Olena Nikolaieva of Kreston Ukraine Elected to the Board of the Audit Chamber of Ukraine
June 30, 2023
Kreston Global is pleased to share that Olena Nikolaieva, Director of Quality at Kreston Ukraine, has been elected to the Board of the Audit Chamber of Ukraine. This notable achievement was announced at the regular Congress of Auditors held in Kyiv on June 24, 2023.
Role of the Board of the Audit Chamber of Ukraine
The Audit Chamber of Ukraine is a self-regulatory organisation that oversees the national auditing profession. The Board plays a crucial role in maintaining and enhancing the standards of auditors’ professional activity, ensuring their independence, and promoting the development of the audit profession in Ukraine.
The Importance of Auditing in Ukraine
In the current challenging times, the auditing profession remains a key pillar of financial stability in Ukraine. The role of auditors in ensuring the reliability of financial statements is essential for both Ukrainian society and those who support the country.
Kreston Ukraine Audit’s Vision for the Future
Olena’s election to the Board is a great example of Kreston Ukraine’s ongoing commitment to the development of the auditing profession in Ukraine and contributing to the growth and integrity of the profession.
We congratulate Olena Nikolaieva on her new position and acknowledge her exceptional work in the field of auditing. Her dedication to upholding professional standards sets a valuable example, and we look forward to her contributions in her new role.
Stuart is an FCA-qualified chartered accountant with more than 10 years of practical accounting and audit experience.
He leads the technical developments for Duncan & Toplis. This covers audit, financial reporting and maintaining quality of work.
He has recently been appointed to Duncan & Toplis’ operations board and become a member of the ICAEW’s influential Ethics Advisory Committee. Stuart also sits on the Kreston Global ESG Committee.
International Sustainability Standards Board issues first reporting standards
June 28, 2023
On 26 June 2023, The International Sustainability Standards Board (ISSB) issued its first two reporting standards, IFRS S1 and IFRS S2.
The need for global consistency: ISSB’s first reporting standards
The issuing of these inaugural standards signifies the “ushering in a new era of sustainability-related disclosures in capital markets worldwide”.
One of the most significant limiting factors to the effectiveness of climate reporting has been the number of different bases on which entities report on. There has been a desperate need for global consistency. It is hoped that the release of these standards will be a turning point for the disclosure of climate-related risks and opportunities specific to individual entities.
These first two standards build on the ISSB’s objectives to;
Develop standards for a global baseline of sustainability disclosures meeting the information needs of global investors.
Enable companies to provide comprehensive, decision-useful sustainability information to global capital markets.
Deliver a common language of sustainability disclosures, with the flexibility for regional ‘building blocks’ to be added by regulators when necessary to meet local and multi-stakeholder information needs.
IFRS S1: General requirements for disclosure of sustainability-related financial information
S1 covers the general requirements for disclosure of sustainability-related financial information.
S1 sets the scene for the specific requirements of S2 and for future sustainability standards covering areas other than climate.
S1 adopts the structure of the Task Force on Climate-Related Financial Disclosures (TCFD). S1 also refers to other standards and frameworks in the absence of a specific ISSB standard.
The standard’s main objective is to “require an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
There is a requirement that an entity discloses information about all such risks and opportunities that could reasonably be expected to affect the entity’s prospects.
S1 prescribes how an entity prepares and reports such disclosures, setting out general requirements for the content and presentation of those disclosures so that the information is useful to the users of that information.
In particular, the standard requires that an entity provides disclosures about:
the governance processes, controls and procedures the entity uses to monitor, manage and oversee sustainability-related risks and opportunities;
the entity’s strategy for managing sustainability-related risks and opportunities;
the processes the entity uses to identify, assess, prioritise and monitor sustainability-related risks and opportunities; and
the entity’s performance in relation to sustainability-related risks and opportunities, including progress towards any targets the entity has set or is required to meet by law or regulation.
IFRS S2: Climate-related disclosures to drive sustainable decision-making
S2 covers the specific requirements of climate-related disclosures.
The main objective of the standard is to “require an entity to disclose information about its climate-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
S2 also incorporates the TCFD recommendations and guidance and includes a requirement to provide industry-specific disclosures. Industry-specific metrics are included as illustrative guidance, taken from SASB standards.
S2 specifically applies to:
climate-related risks to which the entity is exposed, which are:
climate-related physical risks; and
climate-related transition risks; and
climate-related opportunities available to the entity.
In particular, the standard requires that an entity provides disclosures about:
the governance processes, controls and procedures the entity uses to monitor, manage and oversee climate-related risks and opportunities;
the entity’s strategy for managing climate-related risks and opportunities;
the processes the entity uses to identify, assess, prioritise and monitor climate-related risks and opportunities, including whether and how those processes are integrated into and inform the entity’s overall risk management process; and
the entity’s performance in relation to its climate-related risks and opportunities, including progress towards any climate-related targets it has set, and any targets it is required to meet by law or regulation.
Effective date and adoption: Understanding the timeline for implementing ISSB Standards
Both standards are effective for periods beginning on or after 1 January 2024, early adoption is permitted as long as both standards are applied.
Voluntary adoption and potential assurance requirements for entities
Adoption of the standards is voluntary. However, local jurisdictions may make their adoption mandatory for certain classes of entities.
At this stage there are no specific assurance requirements in place. However, analysis provided by IFAC would indicate that of the entities reviewed that did report some ESG information, over 50% have obtained some level of assurance on that information between 2019 – 2021.
Assurance has been gained from the entity’s auditor (who provides the majority) and other service providers.
Although there are no specific international ESG assurance standards currently set, the majority of assurance work was performed under ISAE 3000 (revised). The vast majority of reviews obtained limited assurance with c10% obtaining reasonable assurance.
Future plans: ISSB’s global promotion and consultation on additional reporting elements
The ISSB will be promoting the standards worldwide, working with local jurisdictions and focusing on the standard’s connectivity with financial statements. There is also currently a public consultation on four projects to further understand the standard-setting priorities covering ecosystems, human capital, human rights and integration in reporting. Further standards covering other elements of ESG are likely to follow.
European Sustainability Reporting Standards (ESRS) and Corporate Sustainability Reporting Directive (CSRD): Aligning with ISSB efforts
In addition to the ISSB standards, EFRAG has been developing the European Sustainability Reporting Standards (ESRS – 12).
These standards have a mandatory implementation for applicable entities with a progressive phase-in period over several years, with early adoption being encouraged.
The standards have a comprehensive coverage of ESG matters, not just focusing on climate to start with.
The standards have the concept of double materiality and the ESG reports must be made in the management report, at the same time as the financial statements.
The standards also have a mandatory assurance element, starting as limited but moving to reasonable over time.
EFRAG is working with the ISSB to promote interoperability.
The European standards certainly seem to have built on the international ones so far, and are mandatory with a mandatory assurance element.
Conclusion
The introduction of the two SS standards is a pivotal moment in the reporting of ESG matters.
They provide a basis for international comparability and help bring ESG matters to the forefront of investors’ decision-making.
More will follow but this is a vital moment in the battle towards net zero. Read more about global ESG developments on our sustainability hub.
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Doron Rozenblum
Managing Partner, Kreston-Ezra Yehuda-Rozenblum, Israel, Kreston Global Internal Audit Group Chair
Doron is the Managing Partner of Kreston-Ezra Yehuda-Rozenblum in Israel, leading the Risk Advisory Services division. With over two decades of experience in risk management and internal auditing, he excels in identifying operational risks and enhancing internal audit efficiency. Doron is also the Vice President of The Institute of Internal Auditors in Israel. He has a broad experience in all aspects of accounting, auditing and financial management. Direct experience with oil & gas, real estate, financial consulting and venture capital.
Herb is a highly experienced auditor and is a financial expert with over 45 years of experience in business, accounting, and audit, having served as a Senior Audit Partner at Deloitte. He holds certifications from the National Association of Corporate Directors and the Private Directors Association, with knowledge of private company governance and effective risk management. He has extensive knowledge in the financial services sector, including asset management and insurance.
Cloud technology, digital assets and the future of accounting
In an article recently published by the International Accounting Bulletin, Doron Rozenblum and Herbert M. Chain, elaborate on the profound changes sweeping across the profession. These changes are primarily driven by the adoption of cloud technology and the emergence of digital assets such as cryptocurrencies. To read the full article, read the latest audit and assurance supplement by the International Accounting Bulletin (paywall), or read the summary below.
Cloud technology changing accounting practices
As the authors point out, the widespread adoption of cloud technology in recent years has significantly transformed the accounting landscape. Businesses are capitalising on the numerous benefits offered by cloud-based accounting systems, including improved accessibility, cost-efficiency, and scalability. Real-time collaboration, streamlined workflow, and faster financial reporting have been made possible due to this technology.
Nonetheless, this digital transformation also introduces challenges in maintaining data integrity, security, and privacy. With financial data being stored on remote servers, it’s imperative that stringent security measures are employed by cloud service providers. Moreover, accountants need to acquire the necessary technical skills to effectively navigate and integrate these cloud platforms.
The rise of digital assets
Cryptocurrencies, a notable example of digital assets, are also playing a significant role in reshaping the future of accounting and attestation. While they provide alternative forms of digital currency offering transparency, security, and efficiency, their volatile nature poses challenges in valuation and recognition. Furthermore, concerns surrounding the ownership and control of cryptocurrencies necessitate the development of enhanced attestation services.
Blockchain technology, which underpins most cryptocurrencies, presents unique opportunities for accountants. It can facilitate the auditing of smart contracts and cryptocurrency transactions for accuracy and compliance. However, this also necessitates the development of an understanding of blockchain protocols, and the skills needed to audit clients engaged in the digital asset space.
The future of accounting and attestation
The convergence of cloud technology and digital assets signifies a shift in the accounting and attestation landscape. While it offers enhanced capabilities, it also requires professionals to equip themselves with new skill sets, knowledge, and a proactive approach to addressing concerns related to data security and regulatory compliance. The opportunities these technological advancements present for accountants to position themselves as trusted advisors in the digital age of finance are significant.
Opportunities for accountants; a case study
In a case study discussed in the article, a digital asset technology firm required Service Organisation Control (SOC) 1 Type II and SOC 2 Type II examinations. These examinations provide opportunities for accountants to engage in attest work. Specifically, these opportunities arise in the independent evaluation of a client’s controls and processes that may impact its customers’ financial reporting (SOC 1), and the assessment of the client’s security controls and availability of their platform (SOC 2).
Moreover, the readiness assessment stage involves accountants assessing the client’s current operations and determining its preparedness to maintain an annual SOC. This involves identifying existing controls, determining which controls should be in place, and identifying gaps for remediation.
During the examination phase, accountants verify the scope of the SOC examinations, confirm changes to control areas, and identify the client’s controls through walk-throughs, observations, and inspections of evidence. They then test the suitability of the design and operational effectiveness of controls.
Overall, these processes highlight significant opportunities for accountants in attest work, offering them a chance to play a crucial role in evaluating and enhancing the effectiveness of clients’ controls and processes.
*The original article was authored by Doron Rozenblum, Chair of Kreston’s Global Internal Audit and Risk Group and Managing Partner at Kreston EYR, Israel, and Herbert M. Chain, Assistant Technical Director for Kreston’s Global Audit Group and Director at CBIZ MHM, USA.
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Managing cyber risks: The role of Internal Audit
Doron Rozenblum, Managing Partner at Kreston-Ezra Yehuda-Rozenblum, was recently featured in Accounting Today, sharing insights on why internal audit is the key to cyber risk management. Cyber incidents, such as IT outages, data breaches, and ransomware attacks, are the highest global risk. Data breaches are particularly concerning for companies, with costs reaching a record high of $4.4 million in 2022 and projected to exceed $5 million in 2023. Other significant risks include ransomware attacks and failures in digital supply chains or cloud services. Cyber-related vectors, including criminal attacks, human error, and technical glitches, can cause severe disruptions to businesses. Hackers now target both digital and physical supply chains, posing a greater threat to small and mid-sized businesses, while large corporations invest more in cybersecurity.
The evolving landscape of cyber risks: Threats and trends
In the digital landscape, every company, regardless of size, is vulnerable to breaches that can jeopardise operations, reputation, brand, and revenue pipelines. The cyber risk landscape in 2023 is diverse and continuously evolving, with cybercrime costs predicted to reach $8 trillion by 2023 and $10.5 trillion by 2025.
Ransomware attacks, particularly through phishing, pose the greatest threat in both public and private sectors. These attacks are not only increasing in number but also in financial and reputational costs. Phishing involves hackers tricking individuals into sharing valuable data or spreading malware through deceptive emails, often impersonating higher-ranking individuals or trusted institutions. Business Email Compromise (BEC) is another serious issue, often associated with phishing. Attackers use collaboration tools beyond email, such as chat and mobile messaging applications, to carry out their schemes. Hackers frequently abuse Microsoft’s brand in phishing attacks, and brand impersonation attacks are concerning due to poor security habits and lack of user knowledge.
Fraud, especially identity theft, is trending digitally as more people engage in online banking and shopping. In 2022, consumers reported losing nearly $9 billion to fraud, a 30% increase from the previous year, with a significant number of identity theft reports.
Strengthening cyber risk management: Strategies for Internal Audit
Enterprises face heightened vulnerability to cyber risks due to their size, complexity, and interconnectedness. The use of cloud services and the Internet of Things (IoT) creates new attack vectors that are challenging to secure. Robust cyber risk management strategies involving all stakeholders are crucial to address these risks.
While artificial intelligence (AI) holds potential, it can also be a threat vector. AI systems and platforms should be implemented with caution due to the potential for inaccurate assumptions and conclusions drawn from unreliable sources.
Internal audit has evolved as a critical defence against cyber risks. It extends beyond financial areas to include cybersecurity. To effectively audit cyber risks, an internal audit requires understanding the latest threats, knowledge of the organisation’s IT environment and cybersecurity framework, expertise in risk management and data analytics, and collaboration with IT, risk management, and compliance functions.
A risk-based approach is necessary for a strong internal audit of cyber risk. Critical assets and systems must be identified and protected, existing controls should be evaluated, and areas for improvement should be identified. Cyber risk management should be integrated into the organisation’s overall risk management strategy, and regular updates on the cyber risk profile and emerging threats should be provided to the board and senior management. Supply chain management is another critical area that requires assessment of vendors’ and suppliers’ cybersecurity practices.
In conclusion, cyber risks pose a growing threat to organisations, and internal audit plays a vital role in managing these risks. Assessing the risk landscape, reviewing internal controls, and utilising data analytics tools are crucial for effective management. By adopting a collaborative and risk-based approach, internal audit can help organisations navigate the complex and evolving cyber risk landscape.
Kreston Global firms in the Netherlands have recently expanded resources for entrepreneurs with its latest guide to starting a business in the Netherlands. This useful new guide offers practical insights and tips to facilitate a smooth transition into the Netherlands business landscape.
The guide provides a practical roadmap for entrepreneurs looking to establish a business in the Netherlands. It serves as an efficient tool, highlighting the most critical issues businesses might face when entering the Dutch market. However, the guide does not aim to be exhaustive, given the wide range of potential business scenarios and constraints.
Expert consultation from Kreston Global
To supplement the guide, Kreston Global encourages entrepreneurs to consult with their member firms located in the Netherlands for more detailed information. Whether it’s a question about the basics or a complex concern, the team is ready to provide expert advice.
Flexibility and liberal framework of Dutch law
According to Dutch law, a foreign individual or company can operate in the Netherlands through either an incorporated or unincorporated entity or branch. The guide elaborates on the flexible and liberal framework that Dutch corporate law provides for the organization of subsidiaries or branches.
The essentials of starting a business in the Netherlands
The guide offers a holistic approach to doing business in the Netherlands, covering a variety of key areas. These include starting a business, finding a location, understanding subsidies and financing, complying with tax legislation, managing personnel, and a list of useful addresses.
No matter where you are in your entrepreneurial journey, “Doing business in the Netherlands” is designed to equip you with the knowledge and resources you need to succeed. Backed by Kreston Global’s extensive network of eight member firms active in the Dutch region, this guide marks a significant step towards supporting global entrepreneurs in this internationally-focused and strategically positioned base for Europe.
If you are looking to expand your business into the Netherlands, read the doing business in the Netherlands guide. If you would like to speak to one of our firms in the Netherlands, please get in touch.
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Tarek Zouari shares opportunities and challenges in Africa’s green economy with Wealth Briefing Magazine
June 22, 2023
Investments in Africa are rising, particularly within the burgeoning Africa “green economy”. Tarek Zouari, the Managing Partner and founder of Exco Tunisia, highlights this area as a prime opportunity for foreign investors in an interview with Wealth Briefing Magazine. Read the full article or the summary below.
Africa’s green economy to create resilience
Zouari believes that the green economy in Africa is set to grow and will play a pivotal role in developing resilience for the who continent.
“Not only is there an appetite for foreign investment, but a growing population means there is demand for green innovation that creates a climate-resilient food supply, workforce, and economy.”
Zouari also notes the dual role of Africa as both a victim of and solution to climate change: “This presents both opportunities and challenges for Africa’s future development, positioning the continent as highly vulnerable to the effects of climate change and also a site of great renewable potential as the green economy evolves.”
Investment opportunities in the green economy
Renewable energy Renewable energy represents a significant opportunity, with an abundance of solar, wind, hydro, and geothermal energy resources across the continent. Zouari believes Africa’s energy transition could present a $100 billion per year investment opportunity, with climate-resilient infrastructure offering potential investments between $130 billion and $170 billion.
Agriculture and agribusiness Sustainable agricultural practices present an avenue for investors to make a real impact. Zouari suggests, “Foreign investors can participate in the development of sustainable agriculture projects, invest in agribusiness companies that prioritise sustainability, or provide financing to smallholder farmers to adopt sustainable farming practices.”
Waste management and recycling “Waste management and recycling are also emerging sectors in the African green economy,” Zouari continues. Investments in infrastructure and waste management practices could significantly improve sustainability across the continent.
Green technology in mining “Natural resources are a significant contributor to continental GDP, so green technology is increasingly being adopted in the mining industry as companies seek to reduce their environmental impact and improve sustainability,” Zouari said.
Accounting’s role in Africa’s green agenda
Accounting also plays a critical role in Africa’s green agenda, Zouari notes, by providing a framework for measuring, reporting, and managing environmental impact. “With the growing global focus on sustainable development, companies operating in Africa are increasingly expected to report on their environmental, social, and governance (ESG) performance,” he adds.
He emphasises the importance of adhering to these standards, stating, “A foreign investment’s ESG principles may determine their fate in the African market as governments, regulators and international funding bodies such as the World Bank, the African Development Bank, and the United Nations, increasingly prioritise ESG considerations in their project approval and funding decisions.”
Zouari also stresses the responsibility of the finance and accounting sector to support foreign green investment into Africa, “by conducting ESG assessments and audits to evaluate a company’s environmental, social, and governance practices and identify areas for improvement.” They also play a role in providing sustainability reporting and assurance services, as well as offering sustainability training and capacity building.
If you would like to learn more about the green economy in Africa, please get in touch.
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Invest in Mauritania
The latest guide to investing in Mauritania from Exco GHA Mauritanie, “Invest in Mauritania” in English. Learn about investment opportunities in sectors with huge growth potential.
Kreston Global welcomes new president of EXCO Afrique
June 20, 2023
Kreston Global’s African network, EXCO Afrique, has announced a new President of the African network. Abdoulaye Camara of EXCO Senegal takes up the role of President and is joined by Mathieu Sougue of EXCO Ougadougou as General Manager.
Mathieu Sougue (L) and Abdoulaye Camara (R)
EXCO Afrique said a farewell and thank you to outgoing President, Tarek Zouari of Exco Tunisia who held the office of President from 2020 to 2023.
EXCO Afrique is part of the network EXCO, which has extensive coverage in France and Poland.
Abdoulaye Camara, incoming President, said:
“I am delighted to take up the role of President of EXCO Afrique – a network of 28 French-speaking accounting firms based across the African continent. I look forward to liaising with them all and helping both them and the wider Kreston Global network attract and service clients within and across the African continent.”
Liza Robbins, Chief Executive of Kreston Global, said:
“Kreston is delighted to welcome Abdoulaye as new President of EXCO Afrique, and Mathieu as General Manager. We greatly value our relationship with our African members and have worked closely with Tarek in his role as President to help develop our Africa region. I look forward to working with Abdoulaye to help him further his objectives as incoming president.”
For more information on our representation in this region, please go to our Africa page.
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Kreston Global publishes first impact plan report
June 16, 2023
Kreston Global has published its first impact plan report. You can read the full plan and report on the sustainability page.
Leading the way
As a top 15 global network, Kreston Global is keenly aware of its responsibilities as a business adviser and expert to organisations, entrepreneurs and individuals to help them navigate the ESG landscape over the next few years. In addition, we are very conscious of our duty of care to our people across the globe who want to make a positive difference in their business activities. This strategy is very much a part of helping to deliver this.
Kreston Global’s purpose journey
Through discussions with global leaders, Chief Executive of Kreston Global Liza Robbins discovered two vital truths: businesses need to be within thriving communities, and long-term environmental sustainability is crucial for community success.
To address these insights, Kreston Global began its journey to develop its purpose. Liza Robbins, Chief Executive comments,
“In 2021 we launched a purpose initiative across our network as part of a new strategic plan development. Last year we consolidated this work into our purpose, vision and values as part of the strategic plan; our impact strategy is a key part of this, as it seeks to focus on promoting positive impact across our network and around the world.
This report shows our ambitions for the network to play a vital role in helping our firms, our communities and our clients live sustainable business and personal lives.
We are looking forward to the next 12 months as we accelerate our plans, greatly assisted by our worldwide team of ESG experts, led by Andrew Griggs of Kreston Reeves.”
Launching the impact plan
In 2022, Kreston Global introduced its Impact Plan as part of an overarching strategic plan. Kreston Global aligns with seven key United Nations Sustainable Development Goals (SDGs) that are relevant to our network. Our comprehensive plan focuses on four main areas: Planet, People, Prosperity, and Partnerships. These goals guide our initiatives to create a sustainable future.
Through our commitment to these SDGs, we aim to make a meaningful impact within and beyond our network. By integrating environmental consciousness, social well-being, economic prosperity, and collaborative partnerships, we strive to contribute to a sustainable world.
Progress and future outlook
The Impact Plan report highlights the progress achieved by Kreston Global and provides a roadmap for future endeavours. Read the report
Learn more about Kreston Global’s sustainability commitment
Learn more Kreston Global’s commitment to sustainability by visiting the sustainability page. Discover the network’s approach and explore how Kreston Global is actively driving positive change on a global scale.
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Kreston BSG Mexico hosts AI webinar
June 14, 2023
Kreston BSG, which has 10 offices across Mexico, recently held an event to raise the profile of the work accountants do in Mexico and the development of new technology to support businesses to grow and thrive. This event was held to mark Accountants Day in Mexico.
Sharing the scope of Kreston BSG
Kreston BSG created an infographic to share the details of the size and capacity of this ambitious firm, with 228 accountants across 10 offices, including Mexico City, Cabo San Lucas and the largest office, which is in Puebla. They recorded eight different services, including tax, audit and transfer pricing. You can read the full document with Kreston BSG capacity facts and figures here, in both English and Spanish.
Answering top questions about accountancy in Mexico
Kreston BSG shared tips and answered pressing questions for businesses looking to do business in Mexico successfully. They also shared a day in the life videos, to give an inside view on what it is like supporting clients as an accountant in Mexico.
The future of doing business in Mexico
The team also held a webinar with accountants from across all the offices of Kreston BSG to discuss the future of AI in Mexico, evaluating how the team visualise accounting in the future with the rise of artificial intelligence Watch the video here in Spanish.
Get in touch
If you would like to learn more about Kreston BSG, please get in touch.
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Kreston Albania hosts webinar programme to build business opportunities
Kreston Albania recently hosted a programme of webinars to establish business opportunities in Albania with four other network members.
Exploring business opportunities with Albania
The webinar programme was held in partnership with the Albanian Diaspora Chamber of Commerce (ADCC) with four members of the Kreston Global network. Kreston Albania joined the Albanian Diaspora Chamber of Commerce (ADCC) in December 2022 and was asked by the directors of the chamber to host an event that could provide insight into how to do business in the countries within the Kreston Global network. Respectively the webinars took place throughout June and were well attended and received.
Establishing business links with Kreston Global
Kreston Albania invited member firms keen to establish working relationships with Albanian businesses to take part. Each webinar was tailored to the country and the industry of the business owners that attended, with the programme focused on providing key information to the attendants regarding aspects of successfully opening and managing a business in Greece, Italy, Belgium, and the U.K.
Partner Ljubica Llukacej comments,
“We were delighted to see that other member firms of Kreston Global wanted to join us in this initiative that provided an excellent knowledge base for ambitious Albanian businesses. We had four strong Kreston Global members, who shared incredible insight on how to set up and manage a business in each respective country. I would like to that the teams from Hellenic Auditing (Greece), Studio TDL (Italy), Kreston VDN (Belgium), Kreston Reeves (U.K.) for taking part.”
Get involved
Due to the success of the events, Kreston Albania has reached out to other network members to connect new countries to the Albanian chamber to offer a second wave of webinars to Albanian businesses. If you would like to learn more about doing business in Albania, please get in touch.
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Join the International Climate Summit 2023 in New Delhi: Exploring the power of green hydrogen
June 13, 2023
Kreston SNR supports the International Climate Summit: sustainability through green growth
Dr J P Gupta Chairman of the Kreston SNR Board, India, will be the chair for the upcoming International Climate Summit: 2023, which explores the use of green hydrogen and other fossil fuel alternatives. The summit is scheduled to be held on 14 and 15 September 2023, in New Delhi. This event is set to bring together global leaders and experts to discuss the theme of “Sustainability Through Green Growth” and address the pressing issue of climate change. Register as a virtual attendant here.
India Led Global Climate Movement 2023: A New Pathway to Climate Change Mitigation through LiFE- Lifestyle for Environment
One of the primary objectives of the summit is to promote the India-Led Global Climate Movement 2023, which aims to establish a new pathway for climate change mitigation through LiFE (Lifestyle for Environment). By encouraging sustainable lifestyle choices, collectively a significant impact can be made on the environment and combat climate change effectively.
Green Energy Growth: Opportunities for Green Hydrogen, Bio-Fuels, and Renewables
Another focus area of the summit is exploring the best opportunities for green energy growth. The summit will explore the potential of green hydrogen, biofuels, and renewables in driving sustainable development. As an emerging powerhouse in renewable energy, green hydrogen offers a promising solution for reducing carbon emissions and transitioning to a cleaner energy future.
Join Virtually or In-Person: Prime Minister of India as Chief Guest
This international event will be conducted in a hybrid mode, allowing participants from all around the world to join virtually. With over 56,000 people already registered for virtual participation, the turnout of 100,000 attendees virtually is anticipated, along with 1,000 participants attending in person. The Prime Minister of India is expected to grace the event as the Chief Guest. Additionally, several important ministries, including the Ministry of Renewable Energy, Ministry of Environment, Invest India, NITI Aayog, among others, are lending their support to this summit.
Five Knowledge Sessions: Dr. JP Gupta as Chairman of the Summit
The summit comprises five knowledge sessions, each focusing on key aspects of sustainability and green growth. Dr JP Gupta is the Chairman of the Summit. Mahendra Rustagi, CEO of Kreston SNR, will also be a speaker at one of the five sessions.
Javier is an audit manager at Kreston FLS in Mexico City. He graduated from Universidad Iberoamericana and holds a Master’s degree in Business Administration from Shanghai and has studied at Loyola University in Chicago. He has experience in auditing and consulting, both in Mexico and the United States, where he worked for over six years.
AI in Mexico: The impact of AI on business operations and services
The use of AI in Mexico is experiencing rapid growth in adoption, which has been further accelerated by the COVID-19 pandemic. Among these technologies, Artificial Intelligence (AI) has emerged as a disruptive force, transforming the way businesses operate and deliver services. Read the full article written by Kreston FLS audit expert, Javier García Sabaté Payró, and featured in Veritas here (Spanish) or the summary below.
Opportunities for entrepreneurs and advisors
According to a study conducted by IBM, the current adoption of AI in Mexican companies stands at 35%, with an additional 44% already incorporating AI into their existing applications and processes. This indicates a growing recognition of the potential benefits that AI can bring to entrepreneurs and business advisors. By embracing AI, businesses can take advantage of an already thriving industry to save costs on the bottom line. Examples below;
The Mexican Society of Artificial Intelligence projects that the AI market in Mexico will reach 1.2 billion pesos by 2025, indicating substantial growth and opportunities in the AI sector.
Mexico boasts a thriving startup ecosystem, with more than 5,000 startups operating across various industries such as Fin-tech, Health-tech, and Ed-tech. This dynamic landscape showcases the country’s entrepreneurial spirit and diverse range of innovative ventures.
Mexico City serves as the primary technological hub in the country, housing over 900 new companies and a burgeoning number of technology firms. Additionally, notable technology hubs like Guadalajara, Monterrey, and Tijuana contribute to Mexico’s growing reputation as a hub for technological advancements.
AI Applications for Business Advisors and Entrepreneurs
AI offers a wide range of valuable applications, one such application is data analysis. With AI, large volumes of financial, accounting, and contractual data can be analysed within seconds. This enables the identification of patterns and trends that would be difficult to detect manually, leading to more informed decision-making and targeted recommendations for clients. Here is a brief summary of just some of the areas AI could support businesses in Mexico;
– Process Automation:
The most basic function of AI facilitates the automation of manual and repetitive tasks such as data entry and account reconciliation. This not only saves valuable time and minimises errors but also allows accountants, advisors, and entrepreneurs to redirect their focus towards strategic and high-value tasks specific to each business. By automating mundane processes, AI streamlines operations, enhances efficiency, and maximises productivity.
– Streamlining data analysis
By leveraging AI, large volumes of data, including financial, accounting, and contractual information, can be analysed within seconds. This capability enables the identification of intricate patterns and trends that would be arduous to detect manually, potentially taking years to analyse. The ability to swiftly analyse data empowers businesses to make more informed choices and provide precise, targeted decisions, based on real-time data.
– Risk analysis and management
With advanced algorithms, AI can identify potential risks and evaluate their likelihood of occurrence. Moreover, by analysing vast amounts of data from diverse sources such as financial reports, market trends, legal references, and customer behaviour, analysts and entrepreneurs can concentrate their efforts on specific areas of interest. This focused approach enhances risk management practices, allowing for a comprehensive understanding of possible risks and paving the way for better outcomes.
Through AI-driven data analysis, process automation, risk analysis, electronic invoice analysis, and identification of risks, businesses can harness the transformative power of AI. By embracing these applications, organisations gain valuable insights, optimise operations, and make informed decisions that drive success in an increasingly data-driven and competitive business landscape.
– Enhancing compliance and efficiency
AI is proving to be a valuable tool for compliance and efficiency in Mexico. For instance, AI-powered tools that facilitate the download and analysis of electronic invoices have revolutionised the process. These tools can swiftly analyse complete years’ worth of invoice information within minutes. This capability assists advisors and entrepreneurs in accurately responding to authorities’ requirements, avoiding the need for deadline extensions and mitigating potential costs for both companies and authorities.
The Future of AI in Mexico: Job opportunities and technological hubs
The future of AI in Mexico looks promising, with a wealth of job opportunities emerging in the fields of data science, machine learning, and software development. According to the World Economic Forum, AI is expected to generate 900,000 new jobs in Mexico by 2025. Technological hubs such as Mexico City, Guadalajara, Monterrey, and Tijuana are witnessing a surge in startups and technology firms, further propelling the AI revolution in the country.
Embracing AI for future success
In conclusion, AI is revolutionising business operations and services in Mexico. Entrepreneurs and business advisors have a unique opportunity to leverage AI’s capabilities to streamline processes, make more informed decisions, and drive growth. By embracing AI early on, businesses in Mexico can gain a significant competitive advantage and pave the way for future success. With the rapid advancement of AI, it is crucial for authorities, entrepreneurs, and business advisors in Mexico to stay informed and delve deeper into this transformative technology. By doing so, they can position themselves at the forefront of the AI revolution and seize the numerous opportunities it presents for business growth and innovation in Mexico.
If you want to discuss using AI to improve business processes for your business in Mexico, please get in touch.
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