Roles and Responsibilities of Auditors' from Professor Peter A.M. Diekman RA. He contends that both the internal and public accountant have an important duty in monitoring the financial market. On Thursday, 15 May 2008 Diekman accepted the special chair in Compliance & Risk Management, endowed by the Stichting Toezicht en Compliance (Supervision and Compliance Foundation), at the School of Law, Erasmus University Rotterdam, the Netherlands.
In his lecture Diekman gives an overview of the growing number of measures that have been taken in the past decades to protect the financial markets. As early as 1980 the EU agreed on regulations to protect the financial market against abuse. At that time, fighting the drug trade was a major concern, as was reigning in the financial yields from that activity. Fighting terrorism also became an important motive, especially after the terrorist attacks in New York and Washington in September 2001.
Diekman says the regulations have been successful and supervision has been strengthened. Both public and internal accountants play an important role in this. The law has assigned public accountants various obligations to report to regulators like the Nederlandsche Bank, the Netherlands Authority for the Financial Markets, and the Financial Intelligence Unit Nederland. Diekman shows that public accountants apply this reporting obligation broadly in practice. They pass on more information than strictly required by law.
The internal accountant also has an important task in the context of monitoring integrity and interprets his tasks more broadly than the law prescribes. The internal accountant works largely independently and reports to the highest level of leadership in the business, with a direct reporting line to the Supervisory Board. Within financial companies there are separate departments for Compliance, Risk Management and Internal Audit.
Diekman says there is still enough reason to have trust in the banks, despite the great unrest on the financial markets. “I see the current credit crisis primarily as a necessary economic correction. Accountants have played an important role in valuing the assets on the balance sheet via their audit of banks’ annual statements. They put pressure on the US banks to write off outstanding loans that could no longer be repaid. It shows that the system of checks and balances between banks’ management, regulators and accountants actually works.”
Peter Diekman (1954) studied business economics and accountancy at Erasmus University Rotterdam. He started his career at KPMG in Amsterdam and went on to serve as head of Internal Audit at four major companies. Until March 2008 he was Global Head of Group Audit at ABN AMRO Bank NV. He has been involved in non-degree education for accountancy at the EUR for twenty years.
Yvette Nelen | alfa
Blockchain Set to Transform the Financial Services Market
28.09.2016 | HHL Leipzig Graduate School of Management
Paper or plastic?
08.07.2016 | University of Toronto
Ultrafast lasers have introduced new possibilities in engraving ultrafine structures, and scientists are now also investigating how to use them to etch microstructures into thin glass. There are possible applications in analytics (lab on a chip) and especially in electronics and the consumer sector, where great interest has been shown.
This new method was born of a surprising phenomenon: irradiating glass in a particular way with an ultrafast laser has the effect of making the glass up to a...
Terahertz excitation of selected crystal vibrations leads to an effective magnetic field that drives coherent spin motion
Controlling functional properties by light is one of the grand goals in modern condensed matter physics and materials science. A new study now demonstrates how...
Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.
"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...
In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.
A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...
By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.
"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...
14.10.2016 | Event News
14.10.2016 | Event News
12.10.2016 | Event News
25.10.2016 | Earth Sciences
25.10.2016 | Power and Electrical Engineering
25.10.2016 | Process Engineering