Auditing: Explaining Industry 4.0, EU-GDPR, VUCA, and NOCLAR

Running head: AUDITING 1
Auditing
Name
Institutional Affiliation

AUDITING 2
AUDITING
1. Explain the following terms
Industry 4.0
This term is used to refer to the subset of the fourth industrial and technological
revolution. It mainly concerns the industries (Lee, Bagheri, & Kao, 2015). The fourth
industrial and technological revolution is mainly focused on the smart systems within the
industry rather than the industry itself. In some countries industry 04 is mainly referred to as
smart city. Industry 4.0 can always be referred to as the fourth industrial revolution. They are
often used interchangeably. It is in line with the recent concept of factories in which
machines are connected with wireless technology and movable sensors (Lee, Bagheri, & Kao,
2015). Most of the machines in such an industry have the capability of visualizing the entire
lines of production of the industry and have the capability of making decisions on their own.
The industry 4.0 is purely a description of the trend towards data exchange. It is used in
manufacture of technologies and processes which encompass with them cyber-physical
systems. Within it there is also inclusion of the internet of things (Agrawal, Schaefer, &
Funke, 2018). Cloud computing, cognitive computing and artificial intelligence are also part
of the system used. The essence of industry 04 is that it fosters smart factory. It is important
to the structured smart and televised factories, cyber technology that use physical systems and
those that monitor every physical process. It is important also in creating a virtual copy of the
physical world within the industry and decentralized decisions in relation to the included
analysis. Inclusion of over the internet within the industry helps in cyber-physical systems
through communication and cooperation with humans in real time (Stock, & Seliger, 2016).
The real time inclusion is done in both within and across more than one organizational
service offered by the participants of the industrial value chain.

AUDITING 3
EU General Data Protection Regulation (EU-GDPR)
This is a rule and regulation on the law on data which applies to all citizens of the
European Union by giving them a lot of privacy (Lu, 2017). It also involves the addresses of
the transfer of individual information outside the European Union. The major purpose of the
GDPR is to give privacy and ownership to the individuals who have their personal data. It
also gives and awards simple regulatory environment for cross the border corporations. The
regulation and new laws applies within any location of the EU without consideration of the
related processing personal data. It also doesn’t consider the provisions or the requirements of
the related established EEA.
The EU has replaced the traditional data protection directive (Rüßmann et al., 2015).
It is mainly designed to harmonize data privacy across all the Europe. The law also protects
and empowers all the EU citizens from the data privacy. This new regulation is argued and
considered one of the organizations that will help reshape the position in which most
industries manage data. It is considered a redefinition of the key roles that leaders play in
most international and local businesses (Rüßmann et al., 2015). With the new regulation, the
CEOs have to ensure that they have unbreakable consent management processes in place.
CMOs are also required to be the most effective right systems that manage data by ensuring
that they don’t lose their most valuable assets and data.
VUCA, A new level playing field
The term VUCA was coined from the military (Gilchrist, 2016). However, in the
world of business VUCA is the total accumulation of 50 years of movement from an
industrial economy to an economy that is based purely on information (Gilchrist, 2016).
Normally, it is the result of everything from automation to outsourcing, deregulation to
globalization, personal computing to the internet. It is these changes that have since been
considered to vastly improve productivity and connectivity. VUCA in turn paves way for

AUDITING 4
tremendous business innovations and consumer existing benefits. However on the flip side,
companies are likely, to get increased demand from their customers. They are faced with the
needs to meet relentless productivity and pressure especially from business competitors
(Voigt, & Von dem Bussche, 2017). The business model by the VUCA has been receiving
threats from upstarts within the new sectors. The model also receives quite stiff competition
from macro trends in business, some of which include; shifting the landscape of geopolitics,
the social rapid adoption of customers, moving and cloud based technologies, and the shifting
demographics of customers and employees (Wachter, Mittelstadt, & Floridi, 2017).
Within the VUCA world, the biggest challenge is how to predict and make decision
that change the course of action as needed in the VUCA world while steering organization to
the required destiny (Mack, Khare, Krämer, & Burgartz, 2015).
NOCLAR
In the year 2017, the International Ethics standards for accountants updated the rules
that respond to how clients comply with laws and regulations (Costa, & Kallick, 2018). It is
from such updates that NOCLAR came into existence. NOCLAR is an action that violates
laws which address the compliance matters of the accountants and their clients.
NOCLAR significantly restricts CPAs with confidential requirements. It ensures that
there is very minimal exception to when the accountants can divulge from the client or
employer information without their consents. It has since become the response framework for
most accountants’ decision making processes. NOCLAR has become very significant in
whether information should be divulged to any outside body or institution (King, 2018). The
process is quite significant for the accounting profession. The changes in this regulation
mostly affect the Board of directors and owner of the conduct. Other members of which
include; accountants and financial report holders are also affected by NOCLAR.