Internal audit’s role in ESG reporting
Conversations and focus on sustainability, typically grouped into environmental, social and governance (ESG) issues, are quickly evolving — from activist investor groups and inquisitive regulators pushing for change to governing bodies and C-suite executives struggling to understand and embrace the concept. At the forefront of this new risk area is pressure for organizations to make public commitments to sustainability and provide routine updates to ESG-related strategies, goals, and metrics that are accurate and relevant. However, ESG reporting is still immature, and there is not a lot of definitive guidance for organizations in this space. For example, there is no single standard for what should be reported.
What is clear is that strong governance over ESG — as with effective governance overall — requires alignment among the principal players as outlined in The Internal Institute of Auditors (IIA) Three Lines Model. As with any risk area, internal audit should be well-positioned to support the governing body and management with objective assurance, insights, and advice on ESG matters.
Embarking on the ESG journey
Efforts to mitigate the accelerating effects of climate change and address perceived historical social inequities are two powerful issues driving change globally. These movements have enhanced awareness of how all organizations impact, influence, and interact with society and the environment.
They also have spurred organizations to better recognize and manage ESG risks (i.e., risks associated with how organizations operate in respect to their impact on the world around them). This broad risk category includes areas that are dynamic and often driven by factors that can be difficult to measure objectively.
Still, there is growing urgency for organizations to understand and manage ESG risks, particularly as investors and regulators focus on organizations producing high-quality reporting on sustainability efforts. What’s more, that pressure is being reflected increasingly in executive performance as more organizations tie incentive compensation metrics to ESG goals.
As ESG reporting becomes increasingly common, it should be treated with the same care as financial reporting. Organizations need to recognize that ESG reporting must be built on a strategically crafted system of internal controls and accurately reflect how an organization’s ESG efforts relate to each other, the organization’s finances, and value creation.
Internal audit can and should play a significant role in an organization’s ESG journey. It can add value in an advisory capacity by helping to identify and establish a functional ESG control environment. It also can offer critical assurance support by providing an independent and objective review of the effectiveness of ESG risk assessments, responses, and controls.
Source: Adapted from https://na.theiia.org/about-ia/PublicDocuments/WhitePaper-Internal-Audits-Role-in-ESG-Reporting.pdf
How facial recognition technology aids police

Police officers’ ability to recognize and locate individuals with a history of committing crime is vital to their work. In fact, it is so important that officers believe possessing it is fundamental to the craft of effective street policing, crime prevention and investigation. However, with the total police workforce falling by almost 20 percent since 2010 and recorded crime rising, police forces are turning to new technological solutions to help enhance their capability and capacity to monitor and track individuals about whom they have concerns.
One such technology is Automated Facial Recognition (known as AFR). This works by analyzing key facial features, generating a mathematical representation of them, and then comparing them against known faces in a database, to determine possible matches. While a number of UK and international police forces have been enthusiastically exploring the potential of AFR, some groups have spoken about its legal and ethical status. They are concerned that the technology significantly extends the reach and depth of surveillance by the state.
Until now, however, there has been no robust evidence about what AFR systems can and cannot deliver for policing. Although AFR has become increasingly familiar to the public through its use at airports to help manage passport checks, the environment in such settings is quite controlled. Applying similar procedures to street policing is far more complex. Individuals on the street will be moving and may not look directly towards the camera. Levels of lighting change, too, and the system will have to cope with the vagaries of the British weather.
[…]
As with all innovative policing technologies there are important legal and ethical concerns and issues that still need to be considered. But in order for these to be meaningfully debated and assessed by citizens, regulators and law-makers, we need a detailed understanding of precisely what the technology can realistically accomplish. Sound evidence, rather than references to science fiction technology --- as seen in films such as Minority Report --- is essential.
With this in mind, one of our conclusions is that in terms of describing how AFR is being applied in policing currently, it is more accurate to think of it as “assisted facial recognition,” as opposed to a fully automated system. Unlike border control functions -- where the facial recognition is more of an automated system -- when supporting street policing, the algorithm is not deciding whether there is a match between a person and what is stored in the database. Rather, the system makes suggestions to a police operator about possible similarities. It is then down to the operator to confirm or refute them.
By Bethan Davies, Andrew Dawson, Martin Innes (Source: https://gcn.com/articles/2018/11/30/facial-recognitionpolicing.aspx, accessed May 30th, 2020)
Based on the information provided by Text, mark the statements below as true (T) or false (F).
( ) In relation to AFR, ethical and legal implications are being brought up.
( ) There is enough data to prove that AFR is efficient in street policing.
( ) AFR performance may be affected by changes in light and motion.
The statements are, respectively,


Based on Text I, mark the statements below as true (T) or false (F).
( ) The “spray-and-pray” business model belongs to a late period in the history of ransomware.
( ) The analysis indicates that cybercrime is far from mushrooming.
( ) The text argues that solutions to cybercrime can be reached in a jiffy.
The statements are, respectively,
Here’s why we’ll never be able to build a brain in a computer
It’s easy to equate brains and computers – they’re both thinking machines, after all. But the comparison doesn’t really stand up to closer inspection, as Dr. Lisa Feldman Barrett reveals.
People often describe the brain as a computer, as if neurons are like hardware and the mind is software. But this metaphor is deeply flawed.
A computer is built from static parts, whereas your brain constantly rewires itself as you age and learn. A computer stores information in files that are retrieved exactly, but brains don’t store information in any literal sense. Your memory is a constant construction of electrical pulses and swirling chemicals, and the same remembrance can be reassembled in different ways at different times.
Brains also do something critical that computers today can’t. A computer can be trained with thousands of photographs to recognise a dandelion as a plant with green leaves and yellow petals. You, however, can look at a dandelion and understand that in different situations it belongs to different categories. A dandelion in your vegetable garden is a weed, but in a bouquet from your child it’s a delightful flower. A dandelion in a salad is food, but people also consume dandelions as herbal medicine.
In other words, your brain effortlessly categorises objects by their function, not just their physical form. Some scientists believe that this incredible ability of the brain, called ad hoc category construction, may be fundamental to the way brains work.
Also, unlike a computer, your brain isn’t a bunch of parts in an empty case. Your brain inhabits a body, a complex web of systems that include over 600 muscles in motion, internal organs, a heart that pumps 7,500 litres of blood per day, and dozens of hormones and other chemicals, all of which must be coordinated, continually, to digest food, excrete waste, provide energy and fight illness.[…]
If we want a computer that thinks, feels, sees or acts like us, it must regulate a body – or something like a body – with a complex collection of systems that it must keep in balance to continue operating, and with sensations to keep that regulation in check. Today’s computers don’t work this way, but perhaps some engineers can come up with something that’s enough like a body to provide this necessary ingredient.
For now, ‘brain as computer’ remains just a metaphor. Metaphors can be wonderful for explaining complex topics in simple terms, but they fail when people treat the metaphor as an explanation. Metaphors provide the illusion of knowledge.
(Adapted from https://www.sciencefocus.com/future-technology/can-we-build-brain-computer/ Published: 24th October, 2021, retrieved on February 9th, 2022)
Text II discusses the implications of blockchain for the accounting profession. Based on the arguments presented, analyse the following statements:
I. New technologies have affected CPA's work but not its relevance.
II. Blockchain technology will allow CPAs to shift their attention to other areas.
III. Accounting professionals should not waste time trying to understand new technologies.
Choose the correct answer:
Text II discusses issues related to the opening up of the Tapajós basin for trade. Based on the text, analyse the following statements:
I. The Brazilian government is willing to build the dams without any international investment.
II. Local politicians believe the project may bring economic development to the region.
III. There might be considerable environmental impact if the plan is carried out.
Choose the correct answer: