First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

Budgeting and Auditing

What do audit committees think about risk and audit?

I am encouraged by the latest KPMG report, their 2017 Global Audit Committee Pulse Survey. I am encouraged because KPMG appears to be asking the right questions and getting intelligent answers.

 

, , , , , , ,

The future of risk management

The Institute of Risk Management has a great feature where they have asked people around the world, including a number of luminaries, about the future of risk management.

 

, , , ,

Upcoming corporate income tax changes to curb income sprinkling issues

On July 18, 2017, the federal Department of Finance released legislative proposals and a consultation paper dealing with tax planning affecting private corporations. The goal is to close loopholes that allow wealthy Canadians to avoid higher tax rates, largely by targeting people who incorporate themselves and then draw income from their businesses while paying lower corporate taxes. These proposals, if enacted, will potentially affect most Canadian business owners who carry on their businesses through private corporations, significantly increase the complexity of the tax rules applicable to private corporations and reverse many long-standing tax policies that have encouraged business growth.

 

, , , , , , , , , , , , , , , ,

Trusted advisors and world-class internal auditors

I was recently privileged to receive a signed copy of Richard Chambers’ latest book, Trusted Advisors: Key Attributes of Outstanding Internal Auditors. Richard is the President and CEO of The Institute of Internal Auditors, a veteran of internal audit at the highest level, a friend, and an individual with whom I love to debate the practices of internal auditing and risk management. (I hope I am influencing his views on the imminent update of the COSO ERM Framework.)

 

, , , , ,

Deloitte on internal audit and the path forward

Nine areas of focus have come out of the results of Deloitte’s latest survey of chief audit executives (CAEs) with recommendations for action. The survey, which has been widely reported, indicated that in the opinion of the responding CAEs only 28% of them “believe their functions have strong impact and influence in their organizations, while 16 percent felt that Internal Audit has little to no impact and influence”.

 

, , ,

Ontario’s proposed changes to employment and labour laws could still impact franchising

The Ontario government has responded with surprising speed to the Final Report from the Changing Workplaces Review (the Final Report) by introducing Bill 148, the Fair Workplaces, Better Jobs Act, 2017 on June 1, only eight days after the release of the Final Report on May 23, 2017. Bill 148 is intended to implement certain recommendations made in the Final Report. In a positive development for franchisors and franchisees, Bill 148 does not include measures to adopt the more drastic recommendations in the Final Report that were specifically directed at franchise systems.

 

, , , , , , , , ,

Ontario’s first Cap and Trade Auction results

cap trade auction

Ontario held its first Cap and Trade Program Auction of Greenhouse Gas Allowances on March 22, 2017. The auction drew 47 qualified bidders. Of the total number, approximately half are members of the energy industry.

 

, , , , , , , , ,

Federal Budget 2017-18: Impact on businesses

federal budget 2017

On March 22, 2017, Canada’s Finance Minister Bill Morneau tabled the Liberal Government’s Federal Budget 2017, Building a Strong Middle Class, which includes various measures affecting businesses. The federal budget 2017 is modest and is focused on skills training, innovation and how Canada will promote sustainable growth. The government is forecasting a deficit of $28.5-billion, […]

 

, , , , , , , , ,

Government legal and fiscal measures designed to keep businesses in Quebec

On February 21, 2017, the Quebec government announced a plan to strengthen the Quebec economy as an executive-driven economy. The plan includes the enhancement of existing measures and the development of a number of new fiscal and legal measures designed to keep businesses in Quebec and facilitate the transfer of family businesses, therefore limiting the risk of their sale to foreign interests. The key measures include:

 

, , , , , , , , , ,

Trump at work, week one

The first week of Trump’s administration has revealed a highly activist White House, hewing with surprising fidelity to campaign promises. The pace of change is materially faster than anticipated and the implications may be felt sooner rather than later.

 

, , , , , , , , , , ,

Substantively enacted corporate income tax rates

corporate income tax rates

Ernst and Young’s tables of substantively enacted corporate income tax rates have been updated to December 31, 2016. The tables are prepared on a monthly basis and you can subscribe to them on Knotia.ca. The determination of the substantively enacted date of a corporate income tax rate change follows the guideline provided in EIC-111 (generally […]

 

, , , , , ,

A new front opens in the SOX battle

When potential material weaknesses are discovered during SOX or internal audit testing, my suggestion is to review the issue with the legal function. They can advise the CEO and CFO whether this should be disclosed as part of the Section 302 certification. This new front is clearly starting to open. Don’t let it pull you under.

 

, , , ,

Deloitte predicts change for Internal Audit

A new report from Deloitte has some interesting conclusions—plus predictable ones. 2016 Global Chief Audit Executive Survey: Internal Audit at a crossroads has some provocative content. Deloitte says there is a choice to be made: “Evolution or irrelevance”.

 

, , , ,

CRA provision misuse: The right to remain silent

Practically every tax professional in the country has had to deal with the situation which arises when the Canada Revenue Agency (CRA) bases its reassessing position on the basis of an oral comment to the CRA. The difficulty is that there is no proof the comment was made or it may have been the result of a misunderstanding between the parties. In our practice we had one instance where a comment by an official of a charity to the CRA served as basis for reassessing over a thousand taxpayers. While the official admitted to having made the comment the fact was that the CRA auditor had misunderstood the context in which it was made.

 

, , , , , , , ,

Previous Posts