Episoder
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Auditors can provide value beyond the numbers through practical solutions and advice on governance and regulatory changes. In a special live episode, guest host Mary Mathews is joined by Anthony Marinelli, Assurance-East Leader and Chair of BDO Canada’s Board, in a discussion on how the role and expectations of auditors have evolved and how business leaders should select auditors. They also discuss the impact of ESG and how technology and AI are transforming audit practices.
What you’ll hear in this episode:
[1:56] How audit has evolved over the years.
[5:35] What business leaders should look for when selecting an auditor.
[9:17] Building a strong auditor-client relationship.
[13:35] What business leaders should expect from their auditors with respect to ESG.
[16:08] People and talent in auditing.
[18:18] Ensuring technical excellence.
[21:00] What does an auditor do to adapt to the challenges and opportunities in today’s business environment?
[23:01] The role of innovation and technology in transforming auditing practices.
[25:15] Providing value beyond numbers.
Mentioned:
Mary Mathews
Anthony Marinelli
BDO
Quotes:
“…what is the company buying? It's the experience. It's an audit experience, and it's not only from the day the audit starts to the day the audit ends. It's also the post-audit experience from the day the audit ends to the day the next audit starts.”
“..our stakeholders are becoming more sophisticated. I just think about a lot of the users of our financial statements, whether it's the bankers, whether it's private equity firms, whether it's second generation now that are involved in the business that expect more out of a financial statement, so absolutely the landscape has changed.”
“The pace of change now may be quicker than it ever was, but it's slower than it will be in the future."
"Happy people lead to happy clients. It starts with the happy people, and then it's infectious."
"AI tools are great and help us become more efficient, but they'll never replace the human auditor."
“I think it starts with the numbers though. I think we have to make sure the numbers are right, and if the numbers are wrong, it really doesn't matter what happens after.”
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AI holds immense transformative potential for revenue optimization. Yet, governance, ethical considerations, and continuous monitoring cannot be undermined for responsible and effective AI implementation. Guest Achille Ettorre, Advisory Board Member at Queen's University, TedX presenter, and Faculty Member and Executive Consultant at the International Institute for Analytics, joins our conversation on the importance of AI governance, its impact, and ways to mitigate bias.
What you’ll hear in this episode:
[2:01] Defining Generative AI and big data.
[3:49] The impact of AI on business processes.
[6:59] AI’s impact on revenue, risks, and opportunities.
[10:00] The balance between speed and governance.
[12:45] How audit committee members or directors can improve their AI readiness.
[15:44] The impact of governance on AI.
[22:52] Mitigating AI bias.
[26:00] Guest speaker’s reflections on the future.
Mentioned:
Anne-Marie Henson
Achille Ettorre
BDO
Quotes:
"…a larger organization has so much more inputs, data inputs that they really have to have a governance program to ensure that all the throughputs are done in such a way that it's systemic, methodical, and correct every time.”
“..it's interesting from a revenue perspective, I truly believe that using these tools or these models can increase the revenue for any organization that understands the processes involved and the people that are actually working these models.”
“..for board members specifically, spending some time on whether it's informal education or some formal training on understanding what AI can actually do within their organization, or quite frankly entire industry would definitely bode well.”
“…you need to understand where you sit in the maturity model within your organization on how you use data and how you use analytics and how you implement AI.”
“If I were to say within the audit industry… I would suggest that a lot of the routine tasks would be automated so that there's oversight and a review versus actually compiling the data that will be automated.”
“I definitely think AI can help out in augmenting or setting up the framework, but I do think that should resonate within the leaders of the organization.”
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Having robust internal controls is necessary for accurate financial reporting. In this episode, host Anne-Marie Henson is joined by Michael Crolla, Partner and National Capital Markets & Public Company Services Leader, and John Asher, Partner and Risk Advisory Services Leader in Western Canada. Drawing from their experience, they discuss the current Canadian regulatory landscape for public companies, how strong governance affects audits, and the role that strong internal control environments play in financial reporting. Explore the challenges companies face when establishing internal controls, best practices for building an audit committee, and special governance considerations for companies planning to list. Plus, discover key insights for optimizing internal controls in an evolving business landscape.
What you’ll hear in this episode:[01:30] An overview of the Canadian regulatory landscape for public companies.
[03:56] The importance of establishing and maintaining strong internal control environments.
[06:11] How a strong control environment affects the audit process.
[10:11] Challenges companies face when trying to develop internal controls.
[15:06] Top qualities an audit committee should have to maintain strong governance.
[22:47] Advice for companies that want to improve their control environment as they prepare to list.
[23:34] Strategies for optimizing internal controls.
Mentioned:Anne-Marie Henson
Michael Crolla
John Asher
Quotes:“The regulatory landscape for public companies is really multifaceted and involves several levels of oversight to really ensure the integrity of financial reporting and the internal controls that feed into financial reporting.”
“Having robust internal controls ensures accuracy and reliability of financial reporting.”
“Some of our clients are very busy with acquisitions, and so anytime you have an acquisition, you're bolting on another set of controls, you're bolting on another set of information systems.”
“If you do have that tone at the top, that leadership buy-in, it can really result in a very strong internal control program that really will help mitigate any risks and there's actually more benefits than pain points.”
“The world continues to evolve and change, and there's different risks that we're talking about on this right now that could affect the business as you look into the future.”
“Focus on some of those key issues or key areas that may have a little bit more risk. Try to mitigate that first, see how it's working, and then obviously keep implementing as you go along and adjusting as you go along.”
“Avoid control creep…meaning avoiding adding more controls for the sake of having controls.”
“We talked about tone at the top, but it's really important that there's strong commitment from leadership to ensure that staff are knowledgeable and that they're aware of regulations.”
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Navigating the complexities of fraud prevention and detection in your organization is critical. In this episode, host Anne-Marie Henson is joined by Alan Mak, Partner and National Leader of BDO’s Forensic Disputes & Investigations, and Mary Mathews, Partner in BDO’s Accounting Advisory Group. Drawing from their expertise, they delve into the pervasive issue of fraud in today's financial landscape, discussing current trends, examples of fraudulent activities ranging from small-scale employee expense frauds to larger procurement frauds, and the psychological and societal implications of fraudulent behaviour. Discover key insights into the indicators of fraud in financial statements, the role of auditors in detecting fraud, and practical strategies for implementing effective controls to mitigate fraud risks.
What you’ll hear in this episode:
[1:35] An update on the latest fraud trends and status.
[2:11] Explanation of the fraud triangle.
[4:15] Examples of fraudulent activities.
[5:57] Examination of types of fraud and occurrences across different company sizes.
[8:25] The psychological aspects of fraud.
[13:17] Indicators of fraud in financial statements and the role of auditors in detecting fraud.
[17:10] Strategies for reducing the risk of fraud.
[23:15] Reflection on the societal perception of fraud and the need for robust consequences for perpetrators.
Mentioned:
Anne-Marie Henson
Alan Mak
Mary Mathews
BDO
Quotes:
"Fraud is one of those things that is very personal, even when it's a big company. And the reason why is because fraud inherently involves trust."
"As auditors, we have to meet high professional standards, a financial statement audit doesn't actually serve as a guarantee against any fraud or detecting fraud."
"It starts with good governance in place... putting in checks and balances to reduce those opportunities and the risks of fraud where opportunities might exist."
"We look at the world through one of several ways in terms of risk assessments for fraud, and a common framework that we use is something called the fraud triangle."
"Perform reconciliations with the right level of detail and attention... doing it thoroughly, properly, reviewing budgets to see how performance is going."
"The fraud triangle lists three elements that are necessary in order for frauds to exist or to occur. They are opportunity, rationalization, and motivation."
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How can Canadian companies prepare to comply to Bill S-211? In this episode, host Anne-Marie Henson is joined by Pierre Taillefer, Partner and National Sustainability and ESG Leader at BDO Canada, in a discussion on the evolving landscape of ESG reporting and compliance. He sheds light on regulatory requirements in Canada, specifically, Bill S-211, highlighting the importance of understanding and addressing compliance obligations regarding supply chain management and the mitigation of child labour and forced labour risks. The episode offers valuable insights into the challenges faced by organizations and provides practical strategies for navigating the complexities of reporting obligations.
What you’ll hear in this episode:
[1:55] ESG regulatory and reporting landscape update.
[7:35] Introduction to Bill S-211.
[10:50] Compliance and reporting obligations.
[15:38] Impacted industries
[21:40] The role of Governance (the G) in reporting obligations.
[23:30] Challenges and response strategies.
[26:26] The future of ESG reporting.
Mentioned:
Anne-Marie Henson
Pierre Taillefer
BDO
Quotes:
“We're seeing a lot of activity over the last couple of months on Bill S-211, which is Canada's Anti-Slavery Act.”
"Demonstrating that you've done something and that you have a plan for improvement is crucial, and it allows you over time to implement a more robust process around managing that risk in your supply chain."
"We're not trying to boil the ocean. The idea here is not perfection, it is to demonstrate that you have done your work. An organization that needs to comply has done work to evaluate its supply chain and has a plan, a plan for improvement."
"The objective is that Canada's supply chain adequately manages the risk of child labour and forced labour within its supply chain."
"It's not only “what is the financial result you achieved,” but how did you achieve it, and that trend is not going to go away."
“We definitely see Europe ahead in terms of integrated reporting, and they will continue on that trajectory. It does have an impact on Canadian/US organizations that are selling into Europe.”
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From enhancing audits to streamlining processes and predicting financial outcomes, AI is here to empower the finance function. In this episode, host Anne-Marie Henson is joined by David McKellar, a Partner and key leader in BDO’s Innovation & Change team and Senior Leadership Team, to discuss the impact of artificial intelligence (AI) on the accounting and finance function. Together, they explore how AI, including generative AI, can benefit financial statement auditors. The episode also touches on the potential applications of AI for CFOs, discussing its role in pattern recognition, prediction, and transparency. Addressing governance, the episode emphasizes the importance of data quality, security, transparency, and addressing potential biases in AI algorithms.
What you’ll hear in this episode:
[2:30] Understanding artificial intelligence (AI) vs. generative AI and the difference between the two.
[6:00] AI in financial statement and auditing.
[11:27] AI's impact on the finance function and CFOs.
[18:30] Governance considerations for AI adoption.
[26:30] AI and the society: The importance of education and embracing AI.
[27:35] Optimism about the positive impact of AI and democratization of knowledge.
Mentioned:
Anne-Marie Henson
David McKellar
BDO
Quotes:
"I think a lot of us understand that in some way, AI and how businesses will be using it in the future, is completely accepted."
"AI is not going to replace people's jobs; it's going to replace the jobs of those that don't embrace it."
" When you're looking for different patterns, instead of a human sorting through different files, no matter how fast they are, there's only so much that you go through. Now, we can actually leverage AI to drive through much more data and still pick up on the trends."
"The more AI gets out there, the better the models get, and the more they get fed, the more they learn.”
“I think we're going to see a level and a layer of regulation that will likely create some opportunity and some challenges from a finance function of just understanding what's there."
"The more AI starts to enable an organization, the more important understanding how biased your data and your algorithms are because you're going to be asked for that"
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Despite the effects of the great resignation, there is still appears to be a scarcity of financial talent. In our latest episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader for Markets & Industry Canada, and Barbara Palmegiani, National Leader for CFO Services at BDO Canada, explore the challenges of hiring and retaining financial talent and the evolving role of CFOs, emphasizing their transformation into Chief Value Officers (CVOs) with a focus on purpose and value. The episode underscores the importance of CFOs cultivating "value acumen" and a growth mindset through continuous learning. Additionally, it addresses leadership styles, diversity and inclusion, and the CFO's pivotal role in leveraging data analytics and technology to drive organizational value.
What you’ll hear in this episode:
[1:42] The great resignation impact; is it still happening?
[5:33] Exploration of the evolving responsibilities of CFOs and the concept of becoming Chief Value Officers (CVOs).
[10:38] Defining value and the CFO's role in driving value.
[11:33] Skills CFOs should develop to navigate the changing landscape.
[16:12] Evolving leadership styles for CFOs, with an emphasis on “extreme ownership” and the shift towards a more sustainable, inclusive approach.
[19:51] The importance of diversity, equity, and inclusion in building effective finance teams.
[22:59] Data ownership and technology.
[26:17] Advice for CFOs and controllers.
Mentioned:
Anne-Marie Henson
Barbara Palmegiani
BDO
Quotes:
“As we continue to manage so much uncertainty about the future, we have to be adaptive so we can't be afraid to be wrong.”
"There are definitely more and more finance teams that are much leaner these days."
"If you talk about what does value mean, it is very widely held that there is no one definition of value for all CFOs in all organizations."
"CFOs need to manage legitimate short-term performance pressures and, at the same time, drive long-term behaviors."
"As a key player on the executive team, it's that play to win attitude. You have to know that you're not afraid to fail, that whatever you undertake, you either win or you learn along the way."
"Be not afraid of going slowly. Be afraid of only standing still."
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Audit quality is a key issue for the interest and governance process of both auditors and companies. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, welcomes BDO’s Head of Global Audit Quality, Nazia Lakhani for a look at the importance of quality assurance, the challenging power of CSQM1, recent changes in assurance and quality standards and what the future of quality assurance holds.
What you’ll hear in this episode:
[1:05] An overview of the goals of BDO’s first Head of Global Auditing Quality.
[2:52] Insights into BDO’s decision to publicly release an annual audit quality report.
[5:52] Navigating the intersection of transparency and protection of investors and public interest.
[8:20] Report content details, including diversity and partner statistics.
[11:41] The impact of CSQM1 on firm process monitoring and commitment to improvement.
[16:14] Advice for CFOs regarding improved audit quality.
[17:35] Steps to enhance proper governance on all sides of audit quality decisions.
[20:51] A five-year look at the future of audit quality.
Mentioned:
Anne-Marie Henson
Nazia Lakhani
BDO
Audit Quality Report 2022-2023
Quotes
“Quality is such a spotlight that a role has to be created because of it.”
“Quality is a journey, and I like the use of that word because it should be interwoven in what we do on a daily basis.”
“Our role as auditors is to promote quality and elevate our role in protecting investors and the public interest.”
“CSQM1 provides a roadmap to areas that might need improvement.”
“Quality should be intertwined into what you do on a yearly basis, it’s not just a check that you do once a year.”
“Quality is continuous improvement that is always in the back of everyone’s mind.”
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The speed of movement surrounding ESG changes is continually increasing and can’t be ignored any longer. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Mathews, Partner in BDO’s Accounting Advisory Group, to discuss the rapid pace at which ESG standards are being implemented and the impact that it can have on companies. They then turn to the 2022 Accounting for the Future conversation between Anne-Marie, Armand Capisciolto, and Pierre Taillefer, BDO Canada’s Sustainability Leader, who discuss all facets of the ESG journey, particularly the “G,” what companies are already getting right, and how they can advance their progress in the ESG journey.
What you’ll hear in this episode:
[1:20] Why it is essential to talk about ESG (again).
[3:35] Changes that need to be made to today’s governance to reflect new ESG standards.
[9:11] Defining the governance and reporting elements of ESG.
[13:10] Most organizations have already started implementing some ESG policies.
[15:49] Possibilities of mandatory sustainability reporting.
[20:17] Integrating ESG factors into operational decisions.
[21:34] Considerations addressing governance and reporting quality data.
[27:37] Advice to boards when implementing ESG policies.
[32:31] Pierre’s advice for getting started with ESG engagement.
Mentioned:
Anne-Marie Henson
Mary Mathews
Armand Capisciolto
Pierre Taillefer
BDO
Quotes:
“We’re not going to stop hearing about ESG,… it’s moving faster than I have ever seen previously.”
“As companies are starting or part way through their ESG journey, it gives everyone a chance to reset and to create processes from the ground up that are really intentional and focus on the right information to produce sustainability-related information for investors.”
“Take away the regulatory requirements, and ESG is reviewing how you operate as an organization and implementing ESG factors to be better off as an entity.”
“When we talk to clients about ESG, the starting point is to talk about what they already do.”
“You can’t think of these things in isolation. You have to be thinking about sustainability, reporting, and financial reporting as a package.”
“Start with small pieces, but have a full picture of where you eventually want to go.”
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Over the past year, increasing interest rates, high inflation, and the threat of recession continue to affect the ability to raise funds. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Matthews, Partner in BDO’s Accounting Advisory Group. Together, they discuss key points of raising funds including the importance of data transactions and forecasting information prepared prior to talking to investors. They then turn to the 2022 Accounting for the Future conversation between Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader and Jeffrey Stanger, President of ITB Solutions, Inc. for their still-relevant insights into what it takes to raise money in today’s tough market.
What you’ll hear in this episode:
[1:00] An overview of the past year from an investment perspective.
[4:16] Unique characteristics of companies that are successfully raising funds in today’s market.
[7:15] Armand Capisciolto introduces Jeffrey Stanger.
[10:05] Navigating early-stage companies through tighter capital markets.
[12:20] Strategies for companies to prepare to showcase what they have to offer.
[17:44] Accessing a larger audience in a tough market.
[20:40] Factors that can negatively impact the market.
[23:08] Jeffrey’s advice to companies that are trying to raise money.
Mentioned:
Anne-Marie Henson
Armand Capisciolto
Mary Matthews
Jeffrey Stanger
BDO
Quotes:
“Some of the things I’m actually seeing in some of these capital raising agreements are what I’ll call sweetener terms.”
“Understanding what the accounting could end up looking like is critical for you as a business owner or CFO.”
“Sometimes easy money can lead to long-term failure for companies.”
“Companies that raise money in hard times like this need to delve deeper into their industry business model and market.”
“During tough times, money can still be raised; it just takes a lot more work and a larger audience.”
“Starting in a tougher market just makes things easier in the future.”
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In this season of the Accounting for the Future podcast, we feature three timely, previously aired episodes with additional insights and background information, in addition to three brand-new episodes.
In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Matthews, Partner in BDO’s Accounting Advisory Group. Together, they reflect on the impact of the great resignation on the finance function as well as some of the best and worst things to come out of hybrid work. Listeners can revisit the still-relevant insights from BDO Alumni and current Chair of the Accounting Standards Board (AcSB), Armand Capisciolto and Barbara Palmegiani, Partner, and CFO Services Leader to listen to their discussion on the future of the finance function.
What you’ll hear in this episode:
[:10] An overview of what to expect from Season 5.
[2:40] The best – and worst – things that have resulted from hybrid work.
[9:51] Armand Capisciolto introduces Barb Palmegian.
[11:25] The state of the finance function prior to the great resignation.
[13:14] The skills of a “future fit plan”.
[15:31] Finance function in the past and key differentiators from the present day.
[20:48] Altering the CPA reaction to mid-career change.
[23:35] The impact of remote work on connectedness and relationship building.
[27:10] Developing a CFO community and network that is supportive.
[30:14] Addressing the risk associated with a record number of CFOs that are resigning from the finance profession.
[34:06] Recommendations for managing resignation risks on a timely basis.
[36:03] Best next steps for CFOs in this decade of disruption.
Mentioned
Anne-Marie Henson
Barbara Palmegiani
BDO
Mary Matthews
The Squiggly Career: Ditch the Ladder, Discover Opportunity, Design Your Career, by Helen Tupper and Sarah Ellis
Quotes:
“Embracing all this new technology has been a great advantage but a little bit of a challenge as well.”
“This decade is the decade of disruption. It’s just a matter of time before we’re saying, ‘here we go again’.”
“We’ve got to find ways of increasing the connectedness, and at the same time working remotely, and those two things don’t have to actually be mutually exclusive.”
“Transformation is not just about influencing more and more technology; it’s about reimagining the entire business model.”
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Financial statements should ideally tell the right company story and provide meaningful information. Still, increasingly complex IFRS requirements have resulted in financial statements that can be both overwhelming and lacking in useful information. In today’s episode of Accounting for the Future, host Anne-Marie Henson, BDO Partner, is joined by BDO Accounting Advisory Group Partner and return podcast guest Mary Mathews. Together, they examine strategies to make financial statements more meaningful and useful. Mary offers steps to meet complex compliance standards while also telling the story users need to obtain from their financial statements.
What You’ll Hear In This Episode:
[1:22] A brief overview of IFRS and its impact on reporting today.
[4:08] Common presentation issues and complexities within disclosure requirements.
[7:32] The effect of the latest IFRS standards on financial reporting and statements.
[9:40] Key steps to crafting financial statements that say what they mean.
[16:38] Tips for staying organized throughout the yearly process.
[21:57] Strategies for organizing and minimizing report pages.
[24:00] Additional considerations when preparing for the future of financial reporting.
Mentioned:
BDO
Mary Matthews
Anne-Marie Henson
Quotes:
“Thinking about financial statements as a communication tool is key.”
“The continuing changes to IFRS add a complexity to that important role of preparing the financial statements.”
“There are always changes happening in the world of accounting standards and financial reporting.”
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With unprecedented supply chain shortages, exorbitant shipping costs, and scrutiny over sustainability, companies are questioning whether importing is best to ensure their company’s long-term growth and viability. In today’s episode of Accounting for the Future, host Anne-Marie Henson, BDO partner, is joined by BDO Canada’s Director of Operational Improvement, Charlie Reid, for a conversation about the risks and benefits of altering a reshoring strategy. Together they discuss the risks and benefits of utilizing various importing strategies when accounting for the optimal impact on a company's future.
What You’ll Hear In This Episode:
[1:25] A brief history of international importing.
[3:53] A definition of common reshoring terms.
[5:46] Key considerations in determining whether to continue overseas sourcing.
[9:20] Major risks that can occur during the reshoring process.
[13:56] Advantages of pursuing a reshoring strategy.
[19:45] Maintaining competitive pricing while utilizing locally sourced vendors.
[23:37] Benefits of reshoring when accounting for the company’s future.
[26:15] Additional considerations when implementing a reshoring strategy.
Mentioned:
BDO
Charlie Reid
Anne-Marie Henson
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The CFO of the past may have been focused on the past, but the CFO of today needs to be focused on the future. In today’s constantly changing environment, there is a greater demand than ever for competent CPAs and forward-thinking CFOs. In today’s Accounting for the Future episode, host Anne-Marie Henson, BDO partner, sits down with Pamela Steer, President and CEO of CPA Canada. Together, they discuss the challenges and rewards of the ever-changing role of the CFO. From navigating digital transformation and ESG initiatives to increasing your knowledge and skills in ways that will align competencies with your values, Pamela has the experience and shares the advice that every CPA needs to hear.
What You’ll Hear In This Episode:
[1:15] Pamela’s less-travelled path led to her current role as CPA Canada’s CEO.
[4:48] The most important skills an effective CFO must have in today’s world.
[10:01] The impact of change on a CFO’s focus today.
[18:15] How can a CFO add value to the organization through digital transformation?
[23:22] Potential ESG and sustainability initiative efforts of companies in Canada.
[30:28] Advice for CPAs who want to learn more about key topics.
[37:25] Pamela’s suggestions when navigating your next career move.
Mentioned:
BDO
CPA Canada
Pamela Steer
Anne-Marie Henson
Quotes:
“Changes are accelerating in pace and the demands on the CFO of today are very different.”
“The CFO of today and tomorrow is a very different individual than it was 20 years ago.”
“The CFO of the past was very focused on the past, and CFOs today need to be very focused, much more than ever, on the future”
“I also think some of the training of a CPA, unlike other roles, is to take very complex topics and tell a story.”
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Cryptocurrency is a hot topic in today's world, but is the crypto apocalypse here? How is crypto impacting BDO clients and businesses? What are some concerns surrounding crypto, and what considerations should a company looking into investing in cryptocurrencies be aware of? On today's Accounting for the Future episode, host Anne-Marie Henson, BDO partner, is joined by Mary Matthews, BDO Accounting Advisory Group Partner, and Michael Crolla, BDO Assurance and Accounting Partner. Together they discuss developments in cryptocurrencies over recent months, managing crypto volatility, and what investors can do to vet new and young investment opportunities better.
What You'll Hear In This Episode:
[2:45] An overview of the current cryptocurrency world and FTX.
[6:30] The ripple effect of cryptocurrency on companies like Silvergate Capital.
[10:02] Regulations that could help stabilize the crypto industry.
[14:58] Recommendations for crypto best practices and financial controls.
[21:00] How can management avoid a fate similar to FTX?
[23:15] The critical role of the CEO in leading a company.
[25:42] Cautionary advice for investors to better protect capital.
Mentioned:
BDO
Mary Matthews
Michael Crolla
Anne-Marie Henson
Quotes:
"While Crypto is a relatively new industry, we can't ignore the fundamentals of running a company with strong governance."
"No matter how big a company is, poor governance can always throw it into chaos."
"Investors need to be wary of boards which consist of just executives or just management.”
“What’s interesting with companies like FTX, is that they’re creating their own currency, their own token, and in general as an investor I would be very cautious of that.”
“It’s a hard balance, but you have to know who and what you’re investing in.”
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Today host Anne-Marie Henson, BDO Partner, and co-host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of accounting advisory services, team up one last time to explore their changing roles as well as some trends that are impacting both of their new roles. Together they discuss the role and importance of private equity, its relevance in today’s accounting environment, and a look to both the future and the past of the Accounting for the Future podcast.
What You’ll Hear In This Episode:
[1:42] A look at Anne-Marie’s changing role in market leadership and firm strategies in private equity.
[5:09] The impact that private equity, reporting, and standard setting will have on new business owners.
[10:10] Armand’s focus as the incoming chair of BDO’s Accounting Standards Board.
[14:04] Defining relevance in the current accounting environment.
[22:06] Highlights from favorite past Accounting for the Future podcast episodes.
[25:45] Armand’s final goodbye as co-host of the podcast.
Mentioned:
BDO
Anne-Marie Henson
Armand Capisciolto
Quotes:
“For anyone who may think accounting is boring or not fun, I dare you to listen to this podcast.”
“We need to think about how private equity is going to be using financial statements.”
“Anyone who is looking at financial statements is not looking at them in isolation.”
“Talking with companies about where they want to go is what makes our job as accountants interesting and exciting.”
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Cloud transformation is changing the way that data is handled today, but what does that mean from an accounting standpoint? To help understand the impact, cost, and many benefits of cloud transformation, host Anne-Marie Henson, BDO Partner, and co-host Armand Capisciolto, BDO's National Accounting Standards Partner and leader of accounting advisory services, are joined by Feng Liu, BDO Lixar's Head of Cloud Engineering. Lixar is BDO's technology division and helps clients with a variety of needs, including digital transformation support, big data analysis, AI tools to help profitability, business applications, and cyber security. Together they discuss tactics for executing a successful cloud transformation that doesn't include any surprises.
What You’ll Hear In This Episode:
[2:02] Defining cloud transformation in the most basic sense.
[6:20] Overcoming key challenges will result in a successful transformation.
[13:10] The benefits of effective cloud transformation.
[20:15] Accounting issues regarding cloud transformation strategy costs.
[24:10] Arrangements for handling various digital assets.
[29:30] Highlighting the accounting impact during the implementation process.
Mentioned:
BDO
Feng Liu
Anne-Marie Henson
Armand Capisciolto
Quotes:
"Cloud transformation, by its definition, is changing something significantly to be better."
“When you have cloud computing power at your fingertips, the cost of trying new ideas and response to market trends is going to be a lot faster. The innovation barriers are a lot lower.”
“The cost is a benefit for organizations when transforming their business over to the cloud.”
“When it comes to accounting, no one likes surprises.”
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Every business owner must face their exit at some point, and those who think about planning their exit strategy in advance are likely going to experience a better transition than those who leave it to the last minute. Today, host Anne-Marie Henson, BDO partner, and co-host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of Accounting Advisory services welcome Sunil Sharma, BDO Canada’s Transaction Services and ARM Private Equity leader. He has joined the podcast for a discussion about the role of private equity in the SMB and SME space, including current trends, considerations for clients who are looking at a private equity exit, and the advantages of creating an exit plan sooner rather than later.
What You’ll Hear In This Episode:
[1:57] Insights into the size of various companies and their impact on private capital investors.
[5:41] Entities that are considered providers of private capital.
[7:45] Comparing the private market growth against public markets.
[10:20] A look at the trends in the IPO market in 2023.
[14:06] Advice for SMB and SME clients who are looking into a private equity exit.
[19:14] The advantages of creating a five year exit plan today.
[23:26] Preparations that assist the owner-managed business to portfolio company transition.
[27:14] Exit strategies of private equity when looking to divest.
Mentioned:
BDO
Sunil Sharma
Anne-Marie Henson
Armand Capisciolto
Quotes:
“We are seeing that private capital is truly outpacing public market growth quite considerably.”
“Getting help, there’s nothing wrong with that. It will generally lead to a more successful outcome.”
“You’re going to exit your business one way or another; voluntarily or involuntarily. You’re better off thinking about it earlier so you can dictate the terms and have a plan.”
“Where you can do preparatory work to make the eventual [exit] process as seamless as possible is only to your advantage.”
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We hear a lot about the environmental and social aspects of ESG, but what about governance? Many companies have already implemented some ESG policies, but there may still be an overwhelming amount of work to be done. Today, host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of accounting advisory services, is joined by current co-host and future host of the Accounting for the Future podcast, Anne-Marie Henson, BDO partner. Together they welcome Pierre Taillefer, BDO Canada’s Sustainability Leader. He is responsible both for moving BDO Canada’s internal ESG strategy forward as well as leading BDO’s sustainability service offerings and has joined the podcast for a discussion about the ESG journey, what companies are already getting right, and how to advance their progress in the ESG journey.
What You’ll Hear In This Episode:
[3:06] Defining the governance and reporting element of ESG.
[6:30] Most organizations have already started implementing some ESG policies.
[9:45] A look at the possibility of mandatory sustainability reporting.
[13:00] Integrating ESG factors into operational decisions.
[15:08] Considerations addressing governance and reporting quality data.
[21:32] Advice to boards when implementing ESG policies.
[25:30] Pierre’s advice for getting started with ESG engagement.
Mentioned:
BDO
Pierre Taillefer
Armand Capisciolto
Anne-Marie Henson
Quotes:
“Take away the regulatory requirements, and ESG is reviewing how you operate as an organization and implementing ESG factors to be better off as an entity.”
“When we are talking to clients about ESG, the starting point is to talk about what they already do.”
“You can’t think of these things in isolation. You have to be thinking about sustainability, reporting, and financial reporting as a package.”
“Start with small pieces, but have a full picture of where you eventually want to go.”
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Financial statements are more than just a compliance document, they’re also a communication tool. But what message are you communicating with hard to understand, vague, or overly complicated financial statements?
Host, Armand Capisciolto, is joined by Anthony Scilipoti, Founder, President and CEO of Veritas Investment Research and board member of the Capital Markets Advisory Committee of the International Accounting Standards Board (IASB).
Together they discuss the value of preparing financial statements that tell the company’s story clearly so that investors can make informed decisions and help move a company forward.What You’ll Hear In This Episode:
[1:15] The value of clearly audited financial statements to investors.
[3:50] Anthony’s advice for crafting easy to understand financial reports.
[8:45] The downside of non-GAAP metrics in financial reporting.
[12:53] A comparison and reasoning of non-GAAP in the US versus Canada.
[14:04] Potential underlying causes of failure to supply needed numbers for data aggregation.
[17:57] Potential disclosure improvements resulting from new regulations.
[21:10] Do various non-cash expenses factor into non-GAAP measures?
[26:40] The value of ‘information overload’ in preparing financial reports.
[28:51] How US disclosure standards benefit companies seeking capital.
[30:18] Anthony’s recommendations for preparers of financial information.
Mentioned:
BDO
Armand Capisciolto
Anthony ScilipotiAdditional Resources:
8 Ways to make your financial statements say what they mean
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