Search Results for: Deloitte

Deloitte, Partner Fined Over Serco Geografix Audit Failures

Deloitte and a senior partner in the U.K. have been fined and reprimanded for misconduct over the audit of Serco Geografix (SGL), an outsourcing firm, in a July 4 settlement, according to Reuters.

The settlement ended a six-year investigation into fraud and accounting errors. The Financial Reporting Council, the audit watchdog in the U.K., fined Deloitte 4.23 million pounds ($5.32 million) and audit engagement partner Helen George 97,000 pounds after they admitted misconduct for audits in 2011 and 2012.

A subsidiary of Serco (SGL) had been awarded government contracts for GPS satellite-tracking tags to enforce curfews on more than 100,000 offenders each year. A London judge said the company committed “deliberate fraud” between 2010 and 2013.

The judge approved a deferred prosecution agreement (DPA) between SGL and the UK Serious Fraud Office. The company will pay a fine of 19.2 million pounds and costs of 3.7 million pounds.

“SGL engaged in quite deliberate fraud against the Ministry of Justice in relation to the provision of services vital to the criminal justice system,” the judge said.

SGL’s parent Serco Group, one of Britain’s largest government contractors, has said the fraud and false accounting offenses related to how the company reported the profitability of its electronic monitoring contract.

The penalty on Deloitte, one of the Big 4 accounting firms, comes amid a backdrop of serious discussion among British government officials about whether the profession needs a shakeup after the failures of retailer BHS and construction company Carillion.

Deloitte, in a statement, says it regretted that its audit work on Serco Geografix had been below the expected standards.

“We have a program of continuous improvement for our audit quality processes … We have also specifically agreed with the FRC certain actions focused on learning lessons from the shortcomings in this audit work,” Deloitte’s statement says.

Both Deloitte and Helen George qualified for fine reductions after cooperating with the investigation.

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New Jersey Society of CPAs Names Deloitte’s Kyle Sell President

Kyle Sell

The New Jersey Society of Certified Public Accountants (NJCPA) has named Kyle Sell, audit and assurance partner at Deloitte & Touche LLP in Parsippany, N.J., president for the 2019/2020 term.

Since joining the NJCPA in 2004, Sell has served on numerous committees and interest groups. From interviewing NJCPA scholarship candidates interested in the accounting profession to teaching at his alma mater, Lafayette College, he knows first-hand how to inform the next generation about the benefits of becoming a CPA. As president, he will focus on engaging more young professionals as well as work to ensure the accounting field remains open and diverse to all.

“Taking on the role of president seems to be a natural fit for Kyle, whose dedication to the next generation and to furthering the profession are truly commendable,” says Ralph Albert Thomas, executive director at the NJCPA. He succeeds Sarah Krom, MP of SKC & Co. CPAs, in Boonton Township, N.J., who served as president for the 2018/2019 year.

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Deloitte Offering Proactive Monitoring Of Electronic Communications With Relativity Trace

New York-based Deloitte (FY17 net revenue of $18.6 billion) is offering a new service to help clients detect violations of e-communication policies through its alliance with Relativity.

Relativity Trace captures data from more than 40 sources including email, audio, chat and other file types, Deloitte says. The solution offers alerts on high-risk activities like fraud or collusion that necessitate closer analysis.

“Whether your industry is highly regulated or not, having a solution in place to identify and alert legal, compliance, risk management and other teams when possible noncompliant behavior occurs can mean the difference between containment and crisis,” says Chris May, a rick and financial advisory principal with Deloitte Transaction and Business Analytics LLP.

Jordan Domash of Relativity Trace says, “Increasingly, our clients are asking for ways to identify high-risk behavior occurring in their businesses. To us, a proactive automated approach with integrated machine learning is key to culling massive amounts of data and reducing false-positives. That said, for such automation to work well, it needs to be customized and monitored by seasoned investigative professionals.”

Deloitte, part of the RelativityOne Certified Partner program, has built on top of Relativity’s platform to include dashboards, AI-enabled contract review, custom analytics, audio transcription, FOIA and other records disclosure management, and other automated timesavers such as translation, redaction and redaction propagation.

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Deloitte Study: Only 19% of Business Leaders Say They Are Ready to Lead Social Enterprise

Amid rapid technological, economic and social change, it is important for social enterprises to move beyond mission statements and social impact programs to put humans at the center of their business strategies, a new Deloitte study says.

In “Leading the Social Enterprise: Reinvent With a Human Focus,”  the Big 4 firm examines various ways organizations can change the experiences of the workforce to “build identity and meaning for workers.”

A social enterprise is a cause-driven business that exists to achieve a social mission. In the report, survey respondents – nearly 10,000  in 119 countries – say the role of the social enterprise is more important than ever and noted a positive link between leading the social enterprise and an organization’s financial performance.

In fact, 73% of industry-leading social enterprises expect stronger business growth in 2019 than in 2018, compared to only 55% of those where the social enterprise is “not” a priority. However, only 19% of respondents reported being “industry leaders” in their organization’s maturity as a social enterprise.

“What’s missing for many organizations is the focus on the individual and the day-to-day challenges that workers are facing,” says Erica Volini, principal, Deloitte Consulting LLP, U.S. human capital leader. “The reality is that while technology is helping organizations gain competitive advantage, if not managed appropriately, it can simultaneously mean that workers lose their identity in the workplace. We see a call to action for organizations to reinvent their approach to human capital with the worker in mind to create opportunities for continuous learning, accelerated development, and professional and personal growth.”

The report says, “As organizations look to effectively lead the social enterprise, they must adapt to the forces restructuring work and the implications to the workforce – both in composition and capability – while embedding a meaningful experience for workers.”

This focus on the workforce comes as more than 86% of respondents cited reinventing the way people learn as important or very important – the No. 1 trend for 2019. Lifelong learning has evolved from a matter of career advancement to workplace survival. However, even with this emphasis on learning, only 10% of respondents said their organizations are “very ready” to address this topic.

Organizations are also being challenged to “up their game” when it comes to the employee experience. This emphasis comes as only 49% of respondents believed that their organizations’ workers were satisfied or very satisfied with their job design and only 42% thought that workers were satisfied or very satisfied with day-to-day work practices.

“Over the last five years, issues related to productivity, well-being, overwork and burnout have grown,” said Jeff Schwartz, principal, Deloitte Consulting LLP, U.S. future of work leader. “As a result, organizations need to shift from the traditional employee experience to a new category we call ‘human experience,’ where relationships are enduring, learning is continuous, and work has meaning centered around human identity.”

Organizations are finding themselves in a job-seekers’ market as the war for talent rages on. “As organizations’ workforce needs drastically change, leaders should shift from focusing on acquiring talent to accessing capabilities. While the change may seem nuanced, taking a more expanded view of where skills can be found – whether it’s in automation, the gig economy or current employees – can pay dividends in today’s fast-paced and high-demand business environment,” says Volini.

The survey also reveals that the way many organizations compensate and reward workers is out of date. Today, only 11% of respondents felt that their rewards systems are highly aligned with their organizational goals and 23% do not feel they know what rewards their employees value.

“The combination of shifts in the work, the workforce, and the organization have created a new mandate for HR to shape the future,” says Heather Stockton, principal, Deloitte Global, global human capital leader. “But HR cannot do this alone. The entire organization, led by the symphonic C-suite, needs to come together to help organizations truly take the lead in the future of work.”

Deloitte to Deploy Smart Monitoring Sensors by PointGrab in London

Accounting firm Deloitte Touche Tohmatsu Ltd. has selected Israel-based home and building automation company PointGrab Inc. to install smart sensor systems in its London headquarters.

PointGrab’s system will allow Deloitte to receive real-time data on desk occupancy, foot traffic, elevator usage and occupancy of public areas in the 270,000 square-foot building.

According to IoT Evolution, the program is the culmination of a four-year project to define the “workplace of the future,” to accommodate a range of different work activities and styles, with spaces that “fuel creativity and ultimately generate more collaboration across the business.”

PointGrab’s system is designed to enable Deloitte to optimize use of the building. It involves thousands of ceiling-mounted sensors, which provide accurate information about the location and number of people in each space throughout the building.

PointGrab uses foot traffic data to assist in more efficient building maintenance management. For example, the system can alert cleaning crews to focus on spaces with high foot traffic.

“The system serves us both for real-time applications like hot-desking and for space utilization reports of any given area within the premises,” says Dominic McGrory, director of workspace performance, according to IoT Evolution. “PointGrab sensors have a unique mix of high accuracy rates and advanced features, which enable us to truly understand what is going on at any given moment.”

Founded in 2008, PointGrab is based in Kfar Saba, a town northeast of Tel Aviv.

Deloitte US Elects Ucuzoglu CEO, Foutty Chair

Joseph Ucuzoglu

Joseph Ucuzoglu

Joseph Ucuzoglu has been elected CEO and Janet Foutty has been elected chair of the board of New York-based Deloitte (FY17 net revenue of $18.6 billion), the largest accounting firm in the country. Both terms begin June 2.

Ucuzoglu and Foutty will succeed current Deloitte US CEO Cathy Engelbert and chairman Mike Fucci at the conclusion of their four-year terms. In July, the firm told its partners that Engelbert, the first woman to run a Big 4 firm in the U.S., would not be renominated for a second four-year term. In December, Ucuzoglu and Foutty were named the official candidates, subject to a vote this year.

“Joe’s distinguished record of serving our clients and driving transformative, technology-driven change positions him to lead our firm as clients, the capital markets, and society at large turn to Deloitte to navigate the opportunities brought on by the fourth industrial revolution” says Fucci in a statement. “Janet’s extensive leadership experience across multiple dimensions of our businesses, combined with her deep understanding of technology and innovation, the workforce of the future, and her commitment to inclusion have earned her a broad followership internally and externally.”

He added, “I would like to offer my gratitude to Cathy, a recognized leader in the business community who has led Deloitte US during her term to record growth while making significant investments in innovation and supporting our people’s professional lives and career journeys with a series of groundbreaking initiatives.”

Ucuzoglu currently serves as the chair and CEO of Deloitte & Touche LLP, where he has overseen all aspects of the transformation of the audit and assurance practice over the past four years. Ucuzoglu serves several of Deloitte’s largest clients and serves on Deloitte Global’s board of directors.

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Deloitte Report Explores AI and Other Technology Trends

Deloitte has released its 10th annual report on technology trends, “Tech Trends 2019: Beyond the Digital Frontier.The report explores how the convergence of new technologies with powerful technological forces is driving disruption across industries. New technologies include advanced networking, serverless computing and intelligent interfaces; and technological forces encompassing digital experiences, cognitive and cloud.

Ten years ago, when smartphones and mobile apps were gaining traction, and technologies like cloud and the Internet of Things were emerging on the scene, Deloitte released its first Tech Trends report. Some companies are only beginning to explore trends discussed in 2010, while others have advanced rapidly along the maturity curve, the Big 4 firm says.

Scott Buchholz

“The report details how organizational leadership can shape ambitions and instill a culture to sense and make sense of what tomorrow may bring. And – importantly – a path to get there from the realities of today,” says Scott Buchholz, managing director and government and public services CTO, Deloitte Consulting LLP

The report begins with a reflection on a decade of disruptive change driven by nine forces: digital experience, analytics, cloud, core modernization, cyber, business of information technology, cognitive, blockchain, and digital reality. The report explores where these forces are headed.

Deloitte’s report also covers six trends:

  • AI-fueled organizations – Leading companies are systematically deploying rapidly maturing technologies – machine learning, natural language processing, RPA and cognitive – not just to every core business process, but into products, services and the future of industries.
  • NoOps in a serverless world – We’ve reached the next stage in the evolution of cloud computing, with technical resources completely abstracted and management tasks increasingly automated. Freed from mundane responsibilities, IT talent can focus on activities that more directly support business outcomes.
  • Connectivity of tomorrow – At both macro and micro levels, technologies like 5G, mesh networks, and edge computing are expanding business’ reach. Advanced networking is driving development of new products and services and is transforming how work gets done.
  • Intelligent interfaces – Today, people interact with technology through ever-more intelligent interfaces that combine the latest in human-centered design techniques with leading-edge technologies such as computer vision, conversational voice, auditory analytics, augmented reality and virtual reality.
  • Beyond Marketing – Experience reimagined  To deliver the highly personalized, contextualized experiences that today’s customers expect, some chief marketing officers are using a new generation of marketing tools and techniques focused on personalized, contextual and dynamic experiences.
  • DevSecOps and the cyber imperative – DevSecOps fundamentally transforms cyber, security, privacy and risk management from being compliance-based activities into essential framing mindsets across the product journey.

The final chapter explores how modern businesses can navigate digital transformation – building a roadmap that incorporates the right technologies, techniques, talent and executive support.

Deloitte Board Nominates New U.S. CEO to Replace Engelbert

Joseph Ucuzoglu

Joseph Ucuzoglu

According to The Wall Street Journal, Deloitte LLP’s board has nominated Joseph Ucuzoglu, who leads the firm’s audit practice, as its official candidate to replace CEO Cathy Engelbert, who will apparently serve just one term.

The Journal, citing internal emails, reports that Janet Foutty, head of Deloitte’s consulting business, was nominated to be U.S. chairman. Both candidates are subject to a vote by Deloitte’s partners and principals early next year.

The board chose Ucuzoglu after deciding earlier this year not to nominate Engelbert for a second term. The Journal reported in June that the move stunned partners.

“Until this week, there was still a chance Ms. Engelbert’s name might be put back into consideration as part of Deloitte’s elaborate CEO-selection process,” writes reporter Michael Rapoport.

In an email the Journal obtained, Mike Fucci, Deloitte’s current U.S. chairman, said that while Ucuzoglu and Foutty are “the most qualified and best prepared candidates” to lead the firm, write-in candidates have been submitted to the board for consideration.

Engelbert says in a prepared statement that it had been “my privilege” to serve as CEO. “I am excited for the future and look forward to supporting a successful and smooth transition process to new leadership through the end of my term.”

Engelbert became the first woman CEO of a U.S. Big 4 firm when she took the job in 2015.

Deloitte Board Fails to Re-Nominate CEO Engelbert

Catherine Engelbert

Catherine Engelbert

New York-based Deloitte (FY17 net revenue of $18.6 billion) has told its partners that the first woman to run a Big 4 firm in the U.S., Cathy Engelbert, has not been renominated for a second four-year term, the Wall Street Journal reported June 28.

The Journal reported that the announcement “stunned” Deloitte partners and that it came as a “complete shock.” The newspaper reported, “The rationale wasn’t made clear, and dozens of partners, unhappy the firm didn’t provide an explanation, sent a letter to Deloitte’s board demanding more information and transparency on the matter.”

Deloitte did not comment, saying it will provide an update when the firm has its formal leadership election in early 2019. Engelbert also did not provide the Journal with a comment.

Engelbert, who has been with the company since 1986, was named CEO in 2015. She ran the audit practice prior to becoming CEO.

The Journal, citing anonymous sources, reported that some are concerned that the move signifies a shift in focus toward consulting and away from auditing. One person “familiar with Deloitte’s CEO election process,” told the Journal that the situation “certainly isn’t just normal succession.”

Engelbert possibly could be renominated for a second term at a later phase of Deloitte’s CEO-election process. A candidate recommended by the board must be approved by two-thirds of Deloitte’s voting partners and principals. Her current term ends next spring.

Since Deloitte named Engelbert CEO, KPMG named Lynne Doughtie as chairwoman and CEO in 2015. At Ernst & Young, Kelly Grier became chairwoman and managing partner July 1.

Berry Appleman & Leiden and Deloitte UK to Form Alliance to Deliver World’s First Global Immigration Service

Berry Appleman & Leiden (BAL) LLP one of the world’s largest immigration law firms, announced a first-of-its-kind strategic alliance with Deloitte UK. The alliance represents an industry-first offering, combining the best of Deloitte’s scale, expertise and breadth outside of the U.S. with BAL’s legal expertise and high-quality immigration services in the U.S.

In an increasingly complex environment, today’s multinational businesses are struggling to gain the right level of market insights, make the most of big data and integrate their mobility services to advance their immigration programs. It can be particularly tough to find service providers with large enough footprints to effectively address global challenges and to stay ahead of ever-increasing requirements for secure, innovative technologies. This alliance addresses those needs, bringing BAL’s technology and innovation leadership together with the global acumen and scale of Deloitte Global. It gives multinational organizations the global perspectives and footprint and continuous innovation they need to stay ahead in today’s rapidly-changing immigration market.

“Immigration is now a C-Suite priority and the landscape is more complex than ever before. Today’s global businesses need innovative thinking, global scale and deep expertise,” says Jeremy Fudge, BAL MP. “We’re offering clients the very best of two leading organizations, delivering a level of expertise, scale, control and accountability they can’t get anywhere else.”

BAL’s global clients can continue to expect the high-level of technology innovation reflected in products like BAL’s Cobalt® digital immigration services platform, top-notch information security and unmatched immigration expertise they’ve come to know. When served through this alliance, BAL clients will now experience the added benefit of:

  • A centralized view to stay ahead: Addressing the need for increased business integration, multinational companies can now get a combined, broader view of their global immigration programs – from tax to mobility to immigration services and beyond. This alliance gives companies what they need to ensure global alignment across their business.
  • Quality and scale: The alliance gives global businesses access to the worldwide scale of Deloitte Global combined with BAL’s deep immigration expertise – all with a globally consistent quality and database.
  • Technology and security leadership: This alliance leverages the deep technology capabilities of two leading innovators to set a new benchmark for top-notch security solutions, and open the door to new possibilities in artificial intelligence, data analytics and other promising digital technologies.

“With the increased need for cross-border business travel, global organizations are recognizing the value of a firm that can bring a global footprint to help support the challenges of delivery and corporate compliance,” says Kalvinder Dhillon, Deloitte Global Immigration Lead. “Our ability to provide a fully global, end-to-end service will help employers move talent where it’s needed and enhance their compliance.”

Under this alliance, BAL will remain an independent entity in the U.S. Deloitte Global will acquire BAL’s non-U.S. operations and assets in the U.K., Singapore, Australia, Dubai, China, South Africa, Mozambique and Brazil.