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    Who audits the auditors?

    enSeptember 03, 2024
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    Podcast Summary

    • UK-Israel tensions, US audit regulationThe UK suspended arms exports to Israel due to potential humanitarian law violations, while the US PCAOB aims to mandate external oversight boards within audit firms to enhance audit quality and accountability

      Diplomatic tensions between the UK and Israel escalated as the UK suspended 30 export licenses for arms to Israel, citing concerns over potential humanitarian law violations. This decision adds to the international pressure on Israel regarding the ongoing conflict in Gaza. In the business world, US audit firms are facing increased regulation as the Public Company Accounting Oversight Board (PCAOB) aims to mandate the establishment of external oversight boards within audit firms. These boards would scrutinize the audit process and quality controls, adding another layer of accountability. The PCAOB's decision to institute this rule comes as a response to concerns over the quality and effectiveness of audits, particularly in the wake of high-profile accounting scandals.

    • Audit industry vs PCOBThe audit industry is pushing back against new PCOB rules, arguing significant costs and burdens, while the PCOB faces intense lobbying from the industry to halt the rulemaking process, highlighting ongoing tension and potential for bigger regulatory battles.

      There is currently a significant standoff between audit firms and their regulator, the Public Company Accounting Oversight Board (PCOB), over new rules aimed at modernizing audit standards. The audit industry is pushing back against these rules, arguing that they will impose significant costs and burdens, and that the PCOB has not adequately explained how they will be implemented. The SEC, which must approve new PCOB rules, is facing intense lobbying from the industry to halt the rulemaking process. This fight highlights the ongoing tension between audit firms and their regulator, with the industry expressing concerns that the PCOB is becoming more persnickety in its inspections and looking for smaller violations of audit standards. The standoff also suggests that bigger regulatory battles may be on the horizon.

    • Cancer Vaccines, Fraud DetectionCancer vaccines using mRNA technology offer hope for cancer patients by teaching the immune system to recognize and attack tumor-specific proteins, while the auditing industry debates a broader scope for fraud detection, highlighting innovation and progress in both fields.

      The fight against cancer is seeing new advancements with the development of personalized cancer vaccines by companies like Moderna and BioNTech. These vaccines, which use mRNA technology also seen in COVID-19 vaccines, aim to prevent cancer recurrence by teaching the immune system to recognize and attack proteins specific to a patient's tumor. With impressive survival rates in trials, such as the one between Moderna and Merck in melanoma, this personalized treatment offers hope for those dealing with cancer. In the world of auditing, a broader scope for fraud detection is a topic of ongoing debate and potential conflict between regulators and the industry. With Moderna and BioNTech leading the charge in cancer vaccine research, it's clear that innovation and progress are key themes in both fields.

    • Cancer vaccinesCancer vaccines, like those from Moderna and BioNTech, show promise for reducing disease recurrence but face challenges such as requiring strong immune systems, difficulty in sequencing cancer proteins, and lack of large-scale clinical trial data. They could be effective for younger patients and offer new options for cancers with limited treatments.

      Personalized cancer vaccines, such as those being developed by Moderna and BioNTech, hold promise for reducing disease recurrence and potentially becoming part of the ensemble of cancer treatments. However, challenges remain, including the need for patients to have strong immune systems, the difficulty of correctly sequencing cancer proteins, and the lack of large-scale, phase three clinical trial data. Despite these hurdles, these vaccines could be particularly effective for younger patients and could offer new treatment options for cancers with limited options, such as pancreatic and colorectal cancer. The excitement around these developments comes as Britpop rock stars Oasis prepare for their return.

    • Dynamic pricing in ticket industryGovernment investigates potential consumer protection concerns over significant price increases for in-demand events by ticket companies like Ticketmaster, reminding consumers to stay informed and consider alternative options.

      Dynamic pricing in the ticket industry, as practiced by companies like Ticketmaster, can lead to significant price increases for in-demand events. The UK government is currently investigating this issue following reports of hundreds of pounds being added to ticket prices for popular shows. Ticketmaster justifies this practice by citing supply and demand, but the government is looking into potential consumer protection concerns. This is a reminder of the power of market forces in determining prices, and the potential impact on consumers when demand outstrips supply. It's important for consumers to stay informed and consider alternative options, such as buying tickets in advance or exploring secondary markets, to avoid being caught in a price surge. For those looking to expand their business knowledge and skills, the Pearson Business Book Club offers a solution. By joining, you'll gain access to free monthly webinars featuring expert authors on a range of topics, providing valuable insights and practical ideas for personal and professional growth.

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