As climate volatility and new regulatory pressures escalate, business leaders are increasingly framing complex strategic decisions through the lens of sustainability and resilience. In this episode of Accounting for the Future, host Anne-Marie Henson, Partner, National Industry Leader, sits down with Simon Hutton, National Sustainability Leader, to discuss how organizations are integrating sustainability into proactive risk management, navigating growing pressures, and using data to stay transparent. With grounded insights and practical examples, this episode offers CFOs, audit committee chairs, and business leaders a clear path to strengthening risk oversight, enhancing reporting, and building more resilient, future-ready enterprises. What you’ll hear in this episode: 00:00 – Introducing Simon Hutton, National Sustainability Leader 01:45 – The evolving sustainability landscape 04:57 – Top sustainability priorities for Canadian businesses 09:13 – Sustainability as a catalyst for supply chain scrutiny 12:10 - Extreme weather and supply chain resilience 16:28 - Factoring climate risk into asset decisions 20:16 - Real-world example: Mining industry supply chain decisions 21:26 - Common mistakes in sustainability reporting 25:29 - Avoiding greenwashing & Bill C-59 30:52 - Why CFOs and boards should care about sustainability 35:23 - Closing thoughts Mentioned: Anne-Marie Henson Simon Hutton BDO Canada Quotes: “Sustainability has evolved from simply a reporting exercise to more being a core, integral part of building business resilience.” “We do see more and more companies are recognizing that sustainability performance, commitments, and so on, is really part and parcel of not just building firm value, but also protecting firm value over the course of time.” “The good news that we see unfolding is that more and more companies are shifting. Shifting from a place of reacting to disruptions—which is something, of course, they have to do—to taking a more proactive approach and building more resilience in their supply chain up front.” “I think the two biggest mistakes that we see manifesting is overpromising and then undermeasuring.” “There is a real benefit to starting with one or two things you can confidently do; there is a real risk to identifying five wonderful, bold aspirational goals but not having the confidence you can execute on them.” “Sustainability is a financial management and valuation issue, and, as a result, this is an important thing for the CFOs of the world to take stock of.” “I think, at the end of the day, strong sustainability data creates value, it can protect value, and it can build transparency that can inform smarter decision making and create numerous benefits in the business, again both from a value creation point of view and also from a value protection point of view—a risk management point of view.”
Learning and development (L&D)—is it just a cost centre, or is it a performance lever, retention strategy, and competitive advantage for your organization? Join host Anne-Marie Henson on Accounting for the Future as she explores the value of L&D with Dr. Keith Keating, Chief Learning and Development Officer at BDO Canada. They unpack the evolving dynamics between CFOs and learning, why innovation and compliance don’t have to be at odds, how to integrate learning and development in business strategy, and much more. If people are your greatest asset, this episode is your blueprint for turning learning into a strategic engine for growth. What you’ll hear in this episode: [00:00] Introducing Dr. Keith Keating [01:38] Keith’s journey: What sparked a passion for learning [05:34] Reframing L&D: From cost centre to catalyst [10:27] The evolving relationship of CFOs and L&D [17:53] The CFO as a Chief Value Officer [20:25] Ensuring L&D is central to business strategy [24:13] Balancing innovation with compliance [26:50] The power of “FAIL” [30:59] Strategic partnerships for future-ready learning [37:19] Advice for leaders: Model what you want to multiply [39:33] Closing thoughts and where to learn more Mentioned: Anne-Marie Henson: https://www.bdo.ca/our-people/anne-marie-henson Keith Keating: https://www.bdo.ca/our-people/keith-keating BDO Canada: https://www.bdo.ca/ Quotes: “Leaders are starting to recognize in general that learning isn't just a perk. It's a performance lever. It's a retention strategy.” “Involve L&D early and often. Invite your learning leaders into the room where strategy is being shaped; not just when it's time to roll it out. Because when L&D can understand what the business is solving for, then it can align those efforts from the start.” “If people are your competitive advantage—and most organizations say that they are—then L&D isn't optional. It's an infrastructure. It's the operating system for growth, agility, performance. But it only works when it's embedded into the strategy, not bolted on as an afterthought.” “Shift the mindset from deliverables to value. I want to encourage leaders to move away from asking, ‘What training can we create?’ to, ‘What problem are we solving, and how can learning be part of that solution?’” “Hold learning accountable to business outcomes. What I mean by that is learning shouldn't be measured by butts in seats or satisfaction scores. It should be measured by the outcome that it enables: employee retention, productivity, engagement, capability, client impact, client experience.” “For us, compliance isn’t a blocker; it’s a boundary, yes, but great design can thrive within those boundaries” “We let our teams know that failure isn’t fatal, it’s feedback.” “If I could offer one piece of advice, it would be this: model what you want to multiply. You can’t mandate a growth mindset; you have to live it.”
What do interprovincial trade barriers mean for Canadian businesses and what’s changing? In this episode of Accounting for the Future, host Anne-Marie Henson sits down with Jonathan (Jono) Kalles, Vice President of McMillan Vantage and former advisor to the Prime Minister, to unpack the implications of Bill C-5 and how the interprovincial trade landscape is evolving in Canada. From the removal of federal exceptions under the Canadian Free Trade Agreement to the complexities of provincial cooperation, they explore the economic, regulatory, and strategic shifts underway. Hear practical insights for finance leaders navigating the ripple effects of new trade policies and find out what your organization can do now to stay ahead. What you’ll hear in this episode: [02:28] What are interprovincial trade barriers in Canada? [05:35] What does Bill C-5 mean for Canadian companies? [08:15] Removing the 53 federal exceptions [10:25] Federal vs. provincial role in cutting red tape [14:45] Industries most impacted [17:31] How U.S. trade pressures are sparking policy shifts [18:47] Controversy and risks around Bill C-5 [25:28] Lessons for CFOs and finance leaders [29:21] How to stay up to date Mentioned: Anne-Marie Henson: https://www.bdo.ca/our-people/anne-marie-henson Jonathan Kalles: https://mcmillanvantage.com/team/jonathan-kalles/ BDO Canada: https://www.bdo.ca/ Quotes: “We are in a new reality where tariffs, red tape, and trade in general are being reassessed. We’re thinking about them differently and, obviously, the biggest reason is Donald Trump.” “I think everybody can say there is just too much red tape, there is too much regulation in Canada, and the goal of this is to unleash a lot of our natural resources—projects that go, really, across the country.” “I will throw this out right now—the majority of these barriers remain between provinces, and they’re not at the federal level. So there’s still a lot of red tape to be cut.” “When you live in a world of either free trade or a more tariffed type of trade—and that could be international amongst countries, but it’s true within Canada, as well—it’s trying to balance out how do you protect your local economy, your local workers, how to incentivize buying local, while at the same time opening up markets and having, in a sense, more people to trade with, more people to sell to.” “For a lot of clients that I’ve worked with and companies that I speak to, they often talk about the fact that it’s easier to export north-south than it has been to export east-west or west-east.” “As they say, ‘necessity is the mother of all invention’… All of the tariffs that [President Donald Trump] imposed, it has forced us to reckon with some of our own barriers that we could be getting rid of and making life easier and actually more prosperous within Canada.”
How can you communicate effectively with your board and turn them into one of your most valuable strategic assets? In this episode of Accounting for the Future, host Anne-Marie Henson is joined by Anthony Marinelli, Board Chair and Partner, Assurance-East Leader at BDO Canada, and Janet Boyle, Independent Board Member at BDO Canada and Senior Vice President at RBC. Together, they unpack how CEOs and senior leaders can foster trust, transparency, and strategic alignment with their boards. Tune in to hear practical advice on the role and value of independent board members, leveraging your board as a strategic partner, and much more. What you’ll hear in this episode : [1:40] Management vs. board of directors responsibilities. [4:01] Balancing dual roles as board chair and partner. [5:49] Keys to a strong board-management relationship. [10:05] Tips for better board collaboration. [14:16] The board’s value in understanding discarded ideas. [16:04] Navigating difficult conversations with trust. [20:32] The value of independent board members. [27:43] How to be agile amid constant change. [32:48] Setting the right tone at the top. [35:47] How to get on a board of directors. Mentioned: Anne-Marie Henson Anthony Marinelli Janet Boyle BDO Canada Quotes: “My advice to new CEOs: start early with individual relationships. Don’t wait until first board meetings. Get to know the people, find out what their experiences are, what your board members do, and where they can add value.” “A common mistake I've seen is that CEOs and management sometimes treat the board as an audience instead of a resource.” “As an independent board member, the value is really bringing a very different perspective that the organization does not currently have.” “One thing that CEOs, especially new ones, should remember, is that the board should be one of their most valuable strategic assets, not just an oversight body. Using the board properly will help them have success in their job.” “Boards don’t expect perfection. They want to go through this process and work with management to get there.” “I will double down on using the board for conversation, and not for presentation. Make sure you’re sharing ideas with them and don’t wait until you have a finished product before going to the board with it.”
In this episode of Accounting for the Future, host Anne-Marie Henson is joined by Sunil Sharma, National Leader of Transaction Services and Private Equity at BDO Canada , to unpack what's fueling the rise in companies going private. They discuss how current market conditions, including interest rates, geopolitical uncertainty, and undervalued assets, are influencing M&A activity in 2025. The conversation also covers why private equity is eyeing public markets, what makes a company an attractive target, and the ongoing valuation gap between buyers and sellers. What you’ll hear in this episode: [1:38] Market comparisons between 2022 and 2025, and what they mean for stock prices. [3:52] Analysis of why the Canadian stock market was better equipped to withstand volatility in comparison to the U.S. market. [5:10] Insights into the impact of interest rates on public market activity. [7:04] How Trump’s election and policy announcements are affecting exit strategies, initial public offerings (IPO) plans, and the broader Canadian economy. [9:16] A look at how private equity is approaching today’s market, including the valuation gap between buyers and sellers. [11:41] Further analysis of the persistent valuation gap in the private market, influenced by pandemic-era expectations, tariff-related slowdowns, and more cautious decision-making by investors. [14:06] The difference between a private equity firm taking a company private vs. an industry player acquiring a public company. [16:37] What makes a public company attractive to a private equity fund. [19:12] Key considerations and steps to understand before completing a go-private transaction [23:22] A real-world example of a company that went public and later returned to private ownership. [24:03] Sunil’s market predictions for the next 12 months. Mentioned: Anne-Marie Henson Sunil Sharma BDO Canada Quotes: “If you're thinking about potentially going private or partnering with a private equity fund, you should know that the expectations are different from those in the public market.” “Nearly 50% of private equity deals valued at US$5 billion or more in North America were public-to-private deals.” “Making sure there's excitement and interest from an investor base is crucial when a company is considering going public. In contrast, for private equity, having an aligned business strategy is more important.” “As a result of some of the inefficiencies and challenges we're seeing in the private markets, there continues to be a record amount of dry powder out there. Private equity funds are increasingly looking to the public markets for undervalued assets, see where they can make an impact, and then look to take them private.”
In today’s evolving market, finance leaders are moving beyond traditional back-office functions to become strategic leaders and value creators. Anne-Marie sits down with Jesus Ballesteros and Charlotte Zhen of BDO’s value creation team, to explore how the modern CFO is transforming into a chief value creation officer—aligning finance, operations, and strategy while leading digital transformation to boost efficiency and long-term growth. What you’ll hear in this episode [4:07] The role of historical and current market fluctuations when analyzing and creating effective margin strategies. [9:08] How today’s CFOs are shifting from back-office operators to strategic value creators. [11:53] Why CFOs must adopt a strategic mindset to create value beyond finance and operations—regardless of company size. [13:46] How finance leaders at smaller firms can take the lead in digital transformation to improve efficiency. [16:36] Common inefficiencies companies face when launching value creation initiatives—and how to avoid them. [22:00] The importance of strong performance metrics in enabling smarter, data-driven business decisions. [26:04] Key financial and operational metrics that CFOs should track to continue to drive value. [30:03] The vital role finance plays in shaping corporate strategy and guiding decision-making through accurate, actionable data. [36:29] Actionable advice for CFOs looking to expand their impact and drive greater value across their organization. Mentioned: Anne-Marie Henson Jesus Ballesteros Charlotte Zhen BDO Canada Quotes “If there's one skill that CFOs need to learn nowadays—it’s how to implement strategy effectively. This is because they’re at the centre of all activity within the firm and are uniquely positioned to execute those plans.” “Finance is at the core of being able to bring different functions together towards a common goal. It’s important that they are seen as partners towards driving success.” “Finance teams can really add value by providing ongoing visibility into what is going on in the business. From a numbers perspective, they act as an advisor to ensure that all the operational efforts translate into positive financial results.” “The voice of finance at the table is very important when doing digital transformation. It’s important that CFOs understand how digital transformation impacts operations and how it can make the finance function itself much more efficient.”
Host Anne-Marie Henson sits down with Paul Dostaler, BDO’s Partner and National Manufacturing and Distribution Leader, to unpack how manufacturers can move beyond pilots and start scaling AI effectively. They explore the current pace of AI adoption in Canada, the roadblocks many businesses face, and what’s needed to realize long-term ROI. The episode features data from Momentum: BDO's Manufacturing and Distribution Leadership Report. To explore more findings, visit the report page. What you’ll hear in this episode: [1:33] AI overview: Rate of adoption and key trends. [5:08] Challenges in AI adoption. [9:30] Considerations for scaling AI. [12:02] The connection between warehousing, logistics, supply chains, and financial reporting. [14:05] An overview of the BDO Boost AI tool. [18:21] Regulatory and compliance considerations. [21:45] Top considerations for businesses to realize and maximize ROI. [25:17] Economic uncertainty and AI. Mentioned: Anne-Marie Henson Paul Dostaler BDO Momentum Report Quotes: "AI is different than other technologies. It's not just a standalone tool, it's actually more of a muscle. And so the more that you use AI, the better it becomes and the more potential for ROI that it has." “More and more manufacturers are choosing digital transformation as a means to adapt to all of the current events and the changing environments.” "Look holistically at your business and think about the parts that are taking you the most time and start thinking about what more sophistication around automation and generation might help speed up those workloads." “Organizations really need to understand that adopting AI means experimenting, it means having successes and failures, and it means charting a path that brings the most benefit.” “Everything that the business does is in support of clean and effective financial reporting. And so really good inputs create good outputs, and getting more insight into those inputs further creates better results.”
Host Anne-Marie Henson welcomes two of WXN’s Top 100 Most Powerful Women in Canada: Shilpa Mishra, Managing Director and National Leader of Capital Advisory at BDO, and Alyssa Barry, co-founder of irlabs and President at Alliance Advisors. They discuss navigating male-dominated industries, the power of authenticity and allyship, and how economic uncertainty impacts their roles. The conversation explores strategies for success, the future of women in leadership, and the importance of mentorship in driving gender equality. What you’ll hear in this episode: [1:54] Career paths of Shilpa and Alyssa and their journey toward leadership. [7:45] Challenges in male-dominated industries. [13:10] The impact of current economic uncertainties on their roles. [18:23] The Women Driving Growth pillar at BDO Canada and its success. [26:20] The future of women in leadership roles. [29:16] The role of mentorship and allyship in supporting the next generation of leaders. Mentioned: Anne-Marie Henson Shilpa Mishra Alyssa Barry BDO Quotes: “I often say, I know we're not saving lives, but I love saving companies and helping them navigate their strategies and futures." “I've always approached my career with a mindset of I am who I am, and I don't really see being a woman as something that defines my ability to succeed or limit what I can accomplish.” “And I just want to say that a key driver of our success for Women Driving Growth over the past couple of years has been the continued support from our amazing women partners at BDO and our male allies as well.” “So I think we have a responsibility to bring that next generation into the good, the bad, and the ugly calls. I think sometimes we're all in the client services business here. Sometimes we may not want that junior to sit in on that really tough conversation where we need to have a conversation with a client. I think we need to bring them in and need to allow them to shadow and find unique ways to be a part of it.” “We're starting to see that movement away from tokenism and seeing that shift towards women in the boardroom playing critical roles in decision making, which is really great to see.”
In this episode of Accounting for the Future, host Anne-Marie Henson, Eastern Canada Markets Leader, sits down with Daniel Ma, Partner, Valuations & Modeling, to discuss the challenges of navigating political uncertainty following recent tariff announcements by the Trump administration. They explore the potential impact on Canadian businesses and share proactive strategies for managing risk through scenario planning and financial modeling—essential tools for anticipating unexpected economic or political shifts, from global pandemics to trade policy changes. What you’ll hear in this episode [3:09] The possible implications of the proposed tariff legislation for Canadian businesses. [5:06] Short-term strategies for Canadian businesses amid evolving conditions. [6:11] How the Canadian government is responding to the proposed changes. [7:58] The broader economic impact of tariffs on Canada. [12:12] Analysis of potential scenarios and their impact on Canada. [16:20] How CFOs and business owners can use financial modeling and stress testing for effective scenario planning. [19:52] Tools for CFOs and business owners to assess financial modeling and make informed decisions. [26:11] Exploring the potential positives tariffs could have for the Canadian economy. [28:17] Why strategic planning and adaptability are key to navigating political and economic uncertainties. Mentioned: Anne-Marie Henson Daniel Ma BDO Canada Quotes: “I've built enough models to know that the only thing you can say with certainty about the future is that there will be uncertainty.” "Good planning and adaptability are critical for businesses to weather political and economic uncertainties." “There's a lot of tough decisions to be made in times of uncertainty, but strategic planning helps provide a clearer picture in terms of what could happen and how we could strategize and attack it.” “The silver lining is that there could be some benefits or some positives that we can look towards. We've seen more unity around Canada, and we've seen our political parties band together to support retaliatory tariffs and promote buying domestic.” “Tariffs are top of mind for so many Canadian businesses today, but we've certainly seen this before in other situations. The pandemic being one recent situation that where we saw a number of companies pivot or change the way they do business.”
In part two of this two-part mini-series, host Anne-Marie Henson welcomes back Armand Capisciolto, Chair of Canada’s Accounting Standards Board, BDO alumnus, and former host of the Accounting for the Future podcast. In this episode, they delve into the significant changes that have occurred among different standards, the importance of optionality in standard setting, as well as the impacts of cryptocurrency and ESG on the current standards. . This episode also explores actionable insights for businesses when looking at compliance of current and future standards. For more on accounting standard setting, subscribe to Armand’s LinkedIn newsletter: Inside Standard Setting. What you’ll hear in this episode: [1:52] Guidance and actionable steps for navigating various compliance standards applicable to public companies. [4:04] How do we make standards scalable for businesses of various sizes? [9:26] The impact of ESG and connectivity between sustainability reporting and traditional financial reporting. [14:19] The challenges and opportunities presented by evolving economies, highlighted through the impact of cryptocurrency on accounting standards. [20:56] Addressing the realities of due process and the importance of developing standards that are not only relevant today but will continue to hold value in an evolving economy. Mentioned: Anne-Marie Henson Armand Capisciolto BDO Quotes: “IFRS has moved, and our domestic standards have stayed still, so there's now this large gap between part one and part two of our handbook. First and foremost, any company that is applying ASPE and is thinking about going public, will have to adopt IFRS. They must understand they have a fairly large lift. This is not something you can do at a moment's notice, it takes time.” “One element I think companies absolutely have to consider today, that maybe wasn't as important 10 or 15 years ago with different technology and systems, is the importance of understanding what that change means fundamentally to your organization.” “We spend a lot of time on what we refer to as connectivity, and that's really the connections between sustainability reporting and traditional financial reporting. It highlights risks that traditional financial statements have not necessarily covered. Sustainability reporting looks quite a ways out into the future. Accounting standards do look out to the future, but not that far.” “As standard setters, whether it's the FASB, whether it's us in Canada, or whether it's the IASB, we only have so many hours in the day. We must properly prioritize the projects we're going to work on, and we have to focus on the projects that are going to impact the majority of companies, or the most companies.” “The reality is that we must deal with a standard-setting process that's built around a due process of consultation and outreach that takes time, while dealing with a changing economy and technology that really doesn't care how long standard-setting takes. That for me as a standard-setter is the challenge. How do I create standards that aren't just relevant today but standards that will remain relevant in a changing economy?”
Host Anne-Marie Henson is joined by Armand Capisciolto, chair of Canada's Accounting Standards Board, BDO alumni, and former host of the Accounting for the Future podcast. They discuss the importance of accounting standards, the process of setting them, and Canada's influence on international standards. The episode also highlights how standards improve financial information and the role of stakeholders in the process. For more on accounting standard setting, subscribe to Armand’s LinkedIn newsletter: Inside Standard Setting. This episode is part 1 of 2. What you’ll hear in this episode: [2:29] The importance of standard setting and what it means. [5:17] The process of developing a new standard or making an amendment to a standard. [10:37] The importance of engagement from Canadian stakeholders in the global standard-setting process. [13:39] The unique position of Canada in dealing with diverse industries and regulations. [15:18] How can individuals, companies, and firms get more involved in the standard-setting process? Mentioned: Anne-Marie Henson Armand Capisciolto BDO Quotes: "Our focus is very much on the financial statement user. So, when we talked about a new standard, when we talked about an amended standard, will the new standard, will the amendment provide better information to an investor, to a creditor, to a funder who's making a decision on where to put their money?" "The accounting standards are applied by accountants, they're audited by accountants, but they're not really for accountants. The accounting standards are for the users of the financial information. They're for the public who's using financial statements to make decisions." "When the IASB comes here and we arrange for them to meet with the interested and affected parties in Canada, whether it's investors, whether it's the Canadian Bankers Association, whether it's just preparers and the auditors in the various industries that are prevalent in Canada, they get such great constructive feedback." “I also think one of the reasons why we do a good job of influence from a Canadian standpoint is I always see Canada as kind of a microcosm of the globe, of the world.” "So my biggest thing, get involved. It doesn't matter what size company you work for. Yeah, we understand that there's resource constraints. Everybody has resource constraints. But if you want quality standards, we need to hear from you."
In this episode, host Anne-Marie Henson explores the growing realm of cybersecurity threats with guest Sacha Blasiak-Priestley, BDO's National Leader of Cloud Security. They discuss some of the biggest cybersecurity breaches this year, including Christies, London Drugs, and AT&T. The conversation uncovers the lasting operational and reputational impacts of cyber attacks, AI's intricate role in cybersecurity, and the importance of having a robust, frequently tested incident response plan. What you’ll hear in this episode: [1:27] The trends of emerging cybersecurity threats. [3:07] The types of threats and common vulnerabilities businesses overlook. [9:07] The long-term consequences of cyber attacks. [11:10] How accurately do portrayals in media reflect real-life cyber attacks? [13:09] New technologies that help mitigate cybersecurity risks. [14:38] What companies can do to proactively prepare for sophisticated cyber threats. [18:37] Recommendations on testing and revisiting your company’s plans. [20:20] The future of cybersecurity. Mentioned: Anne-Marie Henson Sacha Blasiak-Priestley BDO Quotes: "Sometimes it can take companies up to years to actually recover all of those systems. So they might have those core systems that are up, but it could take years to get the supporting systems adjusted and fixed to be operational again." "A lot of organizations think, I don't have data that's worth stealing, no one would come after me, I'm not even a large organization. But the truth is that a lot of these attacks are really opportunistic." "We're seeing a lot of frauds that are perpetrated by asking, Hey, I'm your regular supplier, but I need you to change my banking account information or wire me this money somewhere else." "On the defense side, we're using AI to help us quickly detect patterns to identify perhaps misconfigurations or some suspicious behavior.’ "Organizations can help protect around the sophisticated attacks by making sure that they have controls all along the different ways."
Learn how technology, particularly AI and data-driven solutions, is revolutionizing the audit profession, leading to enhanced productivity. Host Anne-Marie Henson is joined by Paul Vetrone, Innovation and Change Director at BDO Canada, and Youssef Hounat, VP of Product at DataSnipper. Together they discuss the integration of innovative technologies in auditing, emphasizing the shift towards more efficient and higher-quality audits. What you’ll hear in this episode: [1:42] An introduction to DataSnipper as an intelligent audit platform. [3:20] What do audit firms look for when it comes to audit technology? [6:56] What a data-driven audit looks like. [9:20] What is BDO Harmony and what does it do? [12:00] The evolution of AI and its impact on some industries. [15:46] AI in the audit process. [23:22] The future of audit technology and data-driven tools. Mentioned: Anne-Marie Henson Paul Vetrone Youssef Hounat BDO DataSnipper Quotes: "When we're talking about a data-driven audit approach, we're really looking at the entire population, the entire data set, and being able to see trends and anomalies within that data to really identify what are those true outliers within that information." "People want to make sure that their teams are actually working on value-added activities, and that's really why they come to DataSnipper, to take away the manual and repetitive work so that their teams can focus on what matters." “Since the launch of ChatGPT in September 2022, there's been so many exciting new products, whether it be bookkeeping assistance that can completely do a reconciliation with absolutely no input from a human, all the way through to transaction risk scoring.” “in terms of what we're seeing in the audit industry right now, I think AI is really kind of on the fringes. I think a lot of firms are really trying to figure out how to best utilize it at this point” “What I can expect to see is much more integration with tools such as APT or with BDO Harmony to make sure that it's more of a seamless experience as people are working”
Auditors can provide value beyond the numbers through practical solutions and advice on governance and regulatory changes. In a special live episode, guest host Mary Mathews is joined by Anthony Marinelli, Assurance-East Leader and Chair of BDO Canada’s Board, in a discussion on how the role and expectations of auditors have evolved and how business leaders should select auditors. They also discuss the impact of ESG and how technology and AI are transforming audit practices. What you’ll hear in this episode: [1:56] How audit has evolved over the years. [5:35] What business leaders should look for when selecting an auditor. [9:17] Building a strong auditor-client relationship. [13:35] What business leaders should expect from their auditors with respect to ESG. [16:08] People and talent in auditing. [18:18] Ensuring technical excellence. [21:00] What does an auditor do to adapt to the challenges and opportunities in today’s business environment? [23:01] The role of innovation and technology in transforming auditing practices. [25:15] Providing value beyond numbers. Mentioned: Mary Mathews Anthony Marinelli BDO Quotes: “…what is the company buying? It's the experience. It's an audit experience, and it's not only from the day the audit starts to the day the audit ends. It's also the post-audit experience from the day the audit ends to the day the next audit starts.” “..our stakeholders are becoming more sophisticated. I just think about a lot of the users of our financial statements, whether it's the bankers, whether it's private equity firms, whether it's second generation now that are involved in the business that expect more out of a financial statement, so absolutely the landscape has changed.” “The pace of change now may be quicker than it ever was, but it's slower than it will be in the future." "Happy people lead to happy clients. It starts with the happy people, and then it's infectious." "AI tools are great and help us become more efficient, but they'll never replace the human auditor." “I think it starts with the numbers though. I think we have to make sure the numbers are right, and if the numbers are wrong, it really doesn't matter what happens after.”
AI holds immense transformative potential for revenue optimization. Yet, governance, ethical considerations, and continuous monitoring cannot be undermined for responsible and effective AI implementation. Guest Achille Ettorre, Advisory Board Member at Queen's University, TedX presenter, and Faculty Member and Executive Consultant at the International Institute for Analytics, joins our conversation on the importance of AI governance, its impact, and ways to mitigate bias. What you’ll hear in this episode: [2:01] Defining Generative AI and big data. [3:49] The impact of AI on business processes. [6:59] AI’s impact on revenue, risks, and opportunities. [10:00] The balance between speed and governance. [12:45] How audit committee members or directors can improve their AI readiness. [15:44] The impact of governance on AI. [22:52] Mitigating AI bias. [26:00] Guest speaker’s reflections on the future. Mentioned: Anne-Marie Henson Achille Ettorre BDO Quotes: "…a larger organization has so much more inputs, data inputs that they really have to have a governance program to ensure that all the throughputs are done in such a way that it's systemic, methodical, and correct every time.” “..it's interesting from a revenue perspective, I truly believe that using these tools or these models can increase the revenue for any organization that understands the processes involved and the people that are actually working these models.” “..for board members specifically, spending some time on whether it's informal education or some formal training on understanding what AI can actually do within their organization, or quite frankly entire industry would definitely bode well.” “…you need to understand where you sit in the maturity model within your organization on how you use data and how you use analytics and how you implement AI.” “If I were to say within the audit industry… I would suggest that a lot of the routine tasks would be automated so that there's oversight and a review versus actually compiling the data that will be automated.” “I definitely think AI can help out in augmenting or setting up the framework, but I do think that should resonate within the leaders of the organization.”
Having robust internal controls is necessary for accurate financial reporting. In this episode, host Anne-Marie Henson is joined by Michael Crolla, Partner and National Capital Markets & Public Company Services Leader, and John Asher, Partner and Risk Advisory Services Leader in Western Canada. Drawing from their experience, they discuss the current Canadian regulatory landscape for public companies, how strong governance affects audits, and the role that strong internal control environments play in financial reporting. Explore the challenges companies face when establishing internal controls, best practices for building an audit committee, and special governance considerations for companies planning to list. Plus, discover key insights for optimizing internal controls in an evolving business landscape. What you’ll hear in this episode: [01:30] An overview of the Canadian regulatory landscape for public companies. [03:56] The importance of establishing and maintaining strong internal control environments. [06:11] How a strong control environment affects the audit process. [10:11] Challenges companies face when trying to develop internal controls. [15:06] Top qualities an audit committee should have to maintain strong governance. [22:47] Advice for companies that want to improve their control environment as they prepare to list. [23:34] Strategies for optimizing internal controls. Mentioned: Anne-Marie Henson Michael Crolla John Asher Quotes: “The regulatory landscape for public companies is really multifaceted and involves several levels of oversight to really ensure the integrity of financial reporting and the internal controls that feed into financial reporting.” “Having robust internal controls ensures accuracy and reliability of financial reporting.” “Some of our clients are very busy with acquisitions, and so anytime you have an acquisition, you're bolting on another set of controls, you're bolting on another set of information systems.” “If you do have that tone at the top, that leadership buy-in, it can really result in a very strong internal control program that really will help mitigate any risks and there's actually more benefits than pain points.” “The world continues to evolve and change, and there's different risks that we're talking about on this right now that could affect the business as you look into the future.” “Focus on some of those key issues or key areas that may have a little bit more risk. Try to mitigate that first, see how it's working, and then obviously keep implementing as you go along and adjusting as you go along.” “Avoid control creep…meaning avoiding adding more controls for the sake of having controls.” “We talked about tone at the top, but it's really important that there's strong commitment from leadership to ensure that staff are knowledgeable and that they're aware of regulations.”
Navigating the complexities of fraud prevention and detection in your organization is critical. In this episode, host Anne-Marie Henson is joined by Alan Mak, Partner and National Leader of BDO’s Forensic Disputes & Investigations, and Mary Mathews, Partner in BDO’s Accounting Advisory Group. Drawing from their expertise, they delve into the pervasive issue of fraud in today's financial landscape, discussing current trends, examples of fraudulent activities ranging from small-scale employee expense frauds to larger procurement frauds, and the psychological and societal implications of fraudulent behaviour. Discover key insights into the indicators of fraud in financial statements, the role of auditors in detecting fraud, and practical strategies for implementing effective controls to mitigate fraud risks. What you’ll hear in this episode: [1:35] An update on the latest fraud trends and status. [2:11] Explanation of the fraud triangle. [4:15] Examples of fraudulent activities. [5:57] Examination of types of fraud and occurrences across different company sizes. [8:25] The psychological aspects of fraud. [13:17] Indicators of fraud in financial statements and the role of auditors in detecting fraud. [17:10] Strategies for reducing the risk of fraud. [23:15] Reflection on the societal perception of fraud and the need for robust consequences for perpetrators. Mentioned: Anne-Marie Henson Alan Mak Mary Mathews BDO Quotes: "Fraud is one of those things that is very personal, even when it's a big company. And the reason why is because fraud inherently involves trust." "As auditors, we have to meet high professional standards, a financial statement audit doesn't actually serve as a guarantee against any fraud or detecting fraud." "It starts with good governance in place... putting in checks and balances to reduce those opportunities and the risks of fraud where opportunities might exist." "We look at the world through one of several ways in terms of risk assessments for fraud, and a common framework that we use is something called the fraud triangle." "Perform reconciliations with the right level of detail and attention... doing it thoroughly, properly, reviewing budgets to see how performance is going." "The fraud triangle lists three elements that are necessary in order for frauds to exist or to occur. They are opportunity, rationalization, and motivation."
How can Canadian companies prepare to comply to Bill S-211? In this episode, host Anne-Marie Henson is joined by Pierre Taillefer, Partner and National Sustainability and ESG Leader at BDO Canada, in a discussion on the evolving landscape of ESG reporting and compliance. He sheds light on regulatory requirements in Canada, specifically, Bill S-211, highlighting the importance of understanding and addressing compliance obligations regarding supply chain management and the mitigation of child labour and forced labour risks. The episode offers valuable insights into the challenges faced by organizations and provides practical strategies for navigating the complexities of reporting obligations. What you’ll hear in this episode: [1:55] ESG regulatory and reporting landscape update. [7:35] Introduction to Bill S-211. [10:50] Compliance and reporting obligations. [15:38] Impacted industries [21:40] The role of Governance (the G) in reporting obligations. [23:30] Challenges and response strategies. [26:26] The future of ESG reporting. Mentioned: Anne-Marie Henson Pierre Taillefer BDO Quotes: “We're seeing a lot of activity over the last couple of months on Bill S-211, which is Canada's Anti-Slavery Act.” "Demonstrating that you've done something and that you have a plan for improvement is crucial, and it allows you over time to implement a more robust process around managing that risk in your supply chain." "We're not trying to boil the ocean. The idea here is not perfection, it is to demonstrate that you have done your work. An organization that needs to comply has done work to evaluate its supply chain and has a plan, a plan for improvement." "The objective is that Canada's supply chain adequately manages the risk of child labour and forced labour within its supply chain." "It's not only “what is the financial result you achieved,” but how did you achieve it, and that trend is not going to go away." “We definitely see Europe ahead in terms of integrated reporting, and they will continue on that trajectory. It does have an impact on Canadian/US organizations that are selling into Europe.”
From enhancing audits to streamlining processes and predicting financial outcomes, AI is here to empower the finance function. In this episode, host Anne-Marie Henson is joined by David McKellar, a Partner and key leader in BDO’s Innovation & Change team and Senior Leadership Team, to discuss the impact of artificial intelligence (AI) on the accounting and finance function. Together, they explore how AI, including generative AI, can benefit financial statement auditors. The episode also touches on the potential applications of AI for CFOs, discussing its role in pattern recognition, prediction, and transparency. Addressing governance, the episode emphasizes the importance of data quality, security, transparency, and addressing potential biases in AI algorithms. What you’ll hear in this episode: [2:30] Understanding artificial intelligence (AI) vs. generative AI and the difference between the two. [6:00] AI in financial statement and auditing. [11:27] AI's impact on the finance function and CFOs. [18:30] Governance considerations for AI adoption. [26:30] AI and the society: The importance of education and embracing AI. [27:35] Optimism about the positive impact of AI and democratization of knowledge. Mentioned: Anne-Marie Henson David McKellar BDO Quotes: "I think a lot of us understand that in some way, AI and how businesses will be using it in the future, is completely accepted." "AI is not going to replace people's jobs; it's going to replace the jobs of those that don't embrace it." " When you're looking for different patterns, instead of a human sorting through different files, no matter how fast they are, there's only so much that you go through. Now, we can actually leverage AI to drive through much more data and still pick up on the trends." "The more AI gets out there, the better the models get, and the more they get fed, the more they learn.” “I think we're going to see a level and a layer of regulation that will likely create some opportunity and some challenges from a finance function of just understanding what's there." "The more AI starts to enable an organization, the more important understanding how biased your data and your algorithms are because you're going to be asked for that"
Over the past year, increasing interest rates, high inflation, and the threat of recession continue to affect the ability to raise funds. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Matthews, Partner in BDO’s Accounting Advisory Group. Together, they discuss key points of raising funds including the importance of data transactions and forecasting information prepared prior to talking to investors. They then turn to the 2022 Accounting for the Future conversation between Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader and Jeffrey Stanger, President of ITB Solutions, Inc. for their still-relevant insights into what it takes to raise money in today’s tough market. What you’ll hear in this episode: [1:00] An overview of the past year from an investment perspective. [4:16] Unique characteristics of companies that are successfully raising funds in today’s market. [7:15] Armand Capisciolto introduces Jeffrey Stanger. [10:05] Navigating early-stage companies through tighter capital markets. [12:20] Strategies for companies to prepare to showcase what they have to offer. [17:44] Accessing a larger audience in a tough market. [20:40] Factors that can negatively impact the market. [23:08] Jeffrey’s advice to companies that are trying to raise money. Mentioned: Anne-Marie Henson Armand Capisciolto Mary Matthews Jeffrey Stanger BDO Quotes: “Some of the things I’m actually seeing in some of these capital raising agreements are what I’ll call sweetener terms.” “Understanding what the accounting could end up looking like is critical for you as a business owner or CFO.” “Sometimes easy money can lead to long-term failure for companies.” “Companies that raise money in hard times like this need to delve deeper into their industry business model and market.” “During tough times, money can still be raised; it just takes a lot more work and a larger audience.” “Starting in a tougher market just makes things easier in the future.”