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Clarity

AI concept

Building confidence, knowledge, and resilience

Welcome to the Spring 2024
edition of Clarity

Our aim is to deliver greater clarity and understanding of current and emerging advisory, accounting and audit issues. With this publication, Clarity, we share our knowledge, thought leadership, and expertise, in areas that will solve problems and create solutions for businesses in our region. We hope you find inspiration in this edition. Please don't hesitate to contact your local Audit and Assurance team to discuss any of the topics we explore.

Clarity Magazine Circle Image Spring2024
Future of AI

Clarity Mag

The future of AI regulation in Australia: understanding the proposed mandatory guardrails for high-risk AI
Regulation is coming: are you ready? Artificial Intelligence (AI) has grown from simple, single-task systems to powerful large-language models (LLMs), like ChatGPT and Microsoft’s Co-Pilot, but there hasn't been much regulation or control over its development. The rapid pace of technological advancement has outstripped the ability of regulatory frameworks to...
Rory O Kane

Rory O'Kane

Senior Data Scientist

Melbourne

Cyber aware 2000x1000

Clarity Mag

Cyber risk: secure your business like you secure your home
There are two types of businesses—those that have been hacked and those that will be. We often work with companies that don't realise how vulnerable they actually are, until it's too late. The biggest mistake? Ignoring key cyber risks, leaving critical information exposed, and not knowing what threats exist. Protecting...
Tony Corry 900x1200

Tony Corry

Director - Technology Assurance and Advisory

Brisbane, Melbourne

Sustainability 2000x1000

Clarity Mag

Sustainability and the role of organisations

Australian Sustainability Reporting Standards are now live. In this article, we explore where your business can start to address these new requirements.

Melissa Teh 900x1200
Profile placeholder

2 contributors

Melbourne, Perth

Fraud prevention 2000x1000

Clarity Mag

Fraud prevention: it’s all about opportunity
Fraud in Australia is a persistent fact of life, affecting businesses of all sizes and across all industries. While there is no foolproof method of preventing fraud, the risk can be minimised by taking a systematic and considered approach to its management. It is generally accepted that there are three...
Geoff Peck 900x1200

Geoff Peck

Partner - PKF Integrity

Melbourne

Outgrown business system 2000x1000

Clarity Mag

Is your business system still fit for purpose?
As a partner at PKF Digital, I’ve seen many clients in the same frustrating position: financial audits that were once manageable have turned into time-consuming torture. If you’re spending more time and energy than ever preparing for audits, your business system might be the culprit. Business systems should streamline processes,...
Don Mc Lean Website Headshot

Don McLean

PKF Digital Partner

Sydney

AI governance in Australia

Leadership insights and the voluntary safety standard in practice

As the transformative power of AI continues to grow, Australian business leaders must tackle the challenges for adoption to fully canvas the opportunities and potential for innovation, efficiency. They must also look at the ethical dilemmas and provide thoughtful leadership, underpinned by robust frameworks, that will ensure effective and impactful adoption.

So, throughout 2024, PKF Australia partnered with Governance Institute of Australia to explore the important and emerging issues of AI governance and ethics. 

Here, we share the results of this collaborative thought leadership project, which delves into the profound impact of AI and its potential to shape our future.

The results are of significance to all business leaders.

Learn more
AI governance

Search the full archive

Future of AI

Clarity Mag

The future of AI regulation in Australia: understanding the proposed mandatory guardrails for high-risk AI
Regulation is coming: are you ready? Artificial Intelligence (AI) has grown from simple, single-task systems to powerful large-language models (LLMs), like ChatGPT and Microsoft’s Co-Pilot, but there hasn't been much regulation or control over its development. The rapid pace of technological advancement has outstripped the ability of regulatory frameworks to...
Rory O Kane

Rory O'Kane

Senior Data Scientist

Melbourne

Fraud prevention 2000x1000

Clarity Mag

Fraud prevention: it’s all about opportunity
Fraud in Australia is a persistent fact of life, affecting businesses of all sizes and across all industries. While there is no foolproof method of preventing fraud, the risk can be minimised by taking a systematic and considered approach to its management. It is generally accepted that there are three...
Geoff Peck 900x1200

Geoff Peck

Partner - PKF Integrity

Melbourne

Outgrown business system 2000x1000

Clarity Mag

Is your business system still fit for purpose?
As a partner at PKF Digital, I’ve seen many clients in the same frustrating position: financial audits that were once manageable have turned into time-consuming torture. If you’re spending more time and energy than ever preparing for audits, your business system might be the culprit. Business systems should streamline processes,...
Don Mc Lean Website Headshot

Don McLean

PKF Digital Partner

Sydney

Sustainability 2000x1000

Clarity Mag

Sustainability and the role of organisations

Australian Sustainability Reporting Standards are now live. In this article, we explore where your business can start to address these new requirements.

Melissa Teh 900x1200
Profile placeholder

2 contributors

Melbourne, Perth

Cyber aware 2000x1000

Clarity Mag

Cyber risk: secure your business like you secure your home
There are two types of businesses—those that have been hacked and those that will be. We often work with companies that don't realise how vulnerable they actually are, until it's too late. The biggest mistake? Ignoring key cyber risks, leaving critical information exposed, and not knowing what threats exist. Protecting...
Tony Corry 900x1200

Tony Corry

Director - Technology Assurance and Advisory

Brisbane, Melbourne

Elevation and maturity of the internal audit function

Clarity Mag

Elevation and maturity of the internal audit function
With less than six months to go, has your organisation considered how to implement the new internal audit standards? Internal Audit (‘IA’) plays a vital role in helping organisations achieve improved performance, in ensuring risks are adequately managed in an increasingly complex landscape, and in protecting the public interest. To...
Amy Daley sq
Tim Cronin

2 contributors

Brisbane

Time running out to implement bribery prevention

Clarity Mag

Time is running out to implement foreign bribery prevention measures
In March 2024, the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 (Cth) was passed. The Act is designed to remove barriers to foreign bribery investigations and prosecutions previously faced by law enforcement and prosecutors. The key changes include: A company will be criminally liable if an associate (an officer,...
Geoff Peck 900x1200

Geoff Peck

Partner - PKF Integrity

Melbourne

Enabling a consistent approach to tax

Clarity Mag

Enabling a consistent approach to tax affecting your leases and decommission responsibilities
For the year ended 30 June 2024 (and 31 December 2023), entities are required to recognise a related deferred tax asset (DTA) and a deferred tax liability (DTL) for leases and decommissioning liabilities. In June 2021, the Australian Accounting Standard Board (AASB) published AASB 2021-5 Amendments to Australian Accounting Standards...
Garry Mathoda

Garry Mathoda

Director

Sydney

ASIC focus

Clarity Mag

ASIC focus to improve investor confidence and knowledge
In May 2024, ASIC published its Focus Areas for the 30 June 2024 reporting season, giving priority to educating and building the confidence of investors. ASIC focus areas are now classified as either: Enduring focus areas, orParticular focus areas. ASIC highlighted financial reporting areas which they have determined to be...
James Lee

James Lee

Partner

Sydney, Newcastle

Unpacking the new consolidated entity disclosures

Clarity Mag

Unpacking the new consolidated entity disclosures
As a result of the introduction of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023, from 30 June 2024 onwards, Australian public companies who prepare a consolidated financial report (except those companies that report to the ACNC) must include a new consolidated...
Ken Weldin

Ken Weldin

Partner

Melbourne

Strengthen resilience

Clarity Mag

Strengthening resilience: Considerations for Australian business following the largest global outage in history
On Friday, 19 July 2024, worldwide infrastructure crumbled in what is now recognised as the largest outage the global economy has ever seen. A critical error in CrowdStrike Falcon led to a widespread outage affecting organisations relying on their endpoint protection services. The error was introduced during a routine software...
Tony Corry 900x1200

Tony Corry

Director - Technology Assurance and Advisory

Brisbane, Melbourne

Financial reporting

Clarity Mag

Changes to financial performance reporting to bring investors more consistency
On 9 April 2024 the International Accounting Standards Board (IASB) issued its new standard IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 (AASB 18, when adopted in Australia) will replace IAS 1 (AASB 101) Presentation of Financial Statements. This standard is effective for most for-profit entities for financial...
Simon Fermanis

Simon Fermanis

Partner

Perth

Revenue recognition

Clarity Mag

Revenue recognition for cloud software providers
The days of desktop versions of software files downloaded and installed on local computers (remember MYOB desktop?) are numbered and providers of software applications such as accounting applications, software security systems, ERPs and a myriad of others are moving to cloud deployments. This presents complexity for the provider of the...
PPP operators

Clarity Mag

PPP operators — have you considered AASB Interpretation 12?
Governments, including local governments and other public sector entities, often enter into arrangements with private sector entities, including charities, to operate and fund public services. These arrangements are commonly referred to as public private partnerships (PPPs). A common example is where, where a private sector entity (the operator), constructs and...
Kym Reilly

Kym Reilly

Partner

Sydney, Newcastle

Corporate governance principles

Clarity Mag

Proposed changes to the ASX corporate governance principles and recommendations
The 4th Edition of the ASX Corporate Governance Principles and Recommendations were issued in 2019. On 27 February 2024, the ASX Corporate Governance Council released its Consultation Draft for the 5th Edition of the Principles and Recommendations. The proposed changes are intended to strengthen listed entities’ governance and increase transparency...
Shaun Lindemann 1

Shaun Lindemann

Partner

Brisbane

Orange moon over Sydney

Clarity Mag

Mandated climate reporting in Australia
On 27 March 2024, a Bill was passed in the Australian Government to mark a new era in mandated sustainability reporting for all Australian businesses. Schedule 4 to the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) was introduced into the House of Representatives to establish...
Jim Headhost linkedin
Ken Weldin

2 contributors

Melbourne

Data governance 2000

Clarity Mag

Data governance — a decision making approach
Over the past year, PKF, working with the Governance Institute of Australia, Macquarie University’s DataX Research Centre, and other expert organisations, has supported an important research study to assess the data governance landscape in Australia. The findings are unexpected and motivating.Survey participants and process In August 2023, the Governance Institute...
Ken Weldin

Ken Weldin

Partner

Melbourne

Cyber 2000

Clarity Mag

Cyber security as a cornerstone of sustainable supply chain
Imagine this... your business has undergone rigorous internal audits and your processes gleam. But, a single security breach in one of your supplier’s systems exposes sensitive data, disrupts operations, and shatters customer trust. In 2024, with rampant cybercrime, complex global partnerships, and data privacy regulations tightening, ignoring supply chain security...
Phillipa Ngorima sq

Phillipa Ngorima

IT Auditor

Sydney, Newcastle

Local council 2000

Clarity Mag

Local government changes — a sign of the times
As of mid-2022 all NSW local government councils and joint organisations were required to have considered the 2023 Risk and Audit Guidelines. The 2023 Guidelines replace the 2010 NSW Government’s Internal Audit Guidelines for Local Government in NSW. They seek to incorporate findings and lessons learnt from relevant industry reviews...
Amy Daley sq
Tim Cronin

2 Contributors

Brisbane

ASIC 2000

Clarity Mag

ASIC surveillance results — areas of improvement for financial reporting and audit quality
In October 2023, ASIC published its annual surveillance report. The report highlights areas where the quality of financial reporting and audits can be improved. The surveillance report summarises findings from ASIC’s reviews of both financial reports (180 ASXlisted entities and large unlisted entities) and audit files (15 related audit files...
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Kevin Nguyen

Auditor

Perth

Economic update 2000

Clarity Mag

How the economy is impacting financial reporting
Our economic climate is changing, and so too is how we must approach the preparation of financial reports for upcoming reporting periods. Changing conditions means that the preparation of financial reports will not simply be a rollover of the estimates used in the preparation of the previous financial report. Many...
Website Headshots 11

Kevin Helmers

Partner

Newcastle, Sydney

Mountain biking

Clarity Mag

Taming the trail: Risk mitigation in mountain biking and business
As a new convert to mountain biking, it didn’t take me long to realise that riders face an array of obstacles that can send you tumbling down a hill faster than a stock market crash. But what I soon learnt is that the secrets to risk mitigation in mountain biking...
Cameron Bradley

Cameron Bradley

Partner

Brisbane

Tax governance matters

Clarity Mag

Tax governance matters
Taxation in Australia is both complicated and constantly changing. Public interest in the tax system is arguably at an all-time high. Politically there is a desire to increase tax transparency for larger businesses and high net worth individuals to provide community confidence that ‘the bigger end of town’ is paying...
Garry Mathoda

Garry Mathoda

Director

Sydney

Data analysis revolution

Clarity Mag

Embracing the data analytics revolution
Data analytics, at its core, is the art and science of extracting actionable insights from the labyrinth of data. It encompasses the use of cutting-edge tools and methodologies to dissect, analyse, visualise, and interpret data, leading to informed and strategic decision-making. This pivotal concept has gained immense significance in today’s...
Sangeetha Ravisankar

Sangeetha Ravisankar

Senior Data Analyst

Sydney, Newcastle

Countryside

Clarity Mag

ESG: The future of reporting
In our continued exploration of better practice in Environmental, Social, Governance (ESG) reporting, our focus turns to the agricultural sector. We hope this case study provides guidance and insight to support you on your own ESG journey. There are significant benefits to be gained by reporting on ESG factors, however,...
Dawn Alexander

Dawn Alexander

Partner

New Zealand

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