BDO Governance: Options, Issues, and Recommendations for Improvement

This report provides an analysis of BDO's governance options and the issues it faces. It begins by outlining several governance options, including leadership and accountability, independence, Sarbanes-Oxley compliance, controls assurance, and enhancing strategies for value creation. The report then identifies key issues such as the dynamic market, scarcity of talent (especially in technology), and the increase in sophisticated cyber-crimes. Recommendations are offered to address these issues, including embracing sustainable technology, focusing on talent acquisition, training, and retention, and implementing more sophisticated system software with robust information security measures. The report concludes that by adopting these strategies, BDO can enhance its competitiveness, mitigate risks, and ensure long-term sustainability.

BDO, Governance Options and Issues
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INTRODUCTION
The BDO is responsible for consulting, tax,
advices on maters finance and assurance. The
BDO is guided by codes that are enshrined in set
principles that have evolved over time. These have
allowed tremendous changes in BDO governance
in services to organizations.
The principles of governance as per Walker (2009)
no longer concentrate on the non- executive
directors, the chairpersons, and chief executive
alone but have extended to include ethics, values,
and culture in an organization.

THE GOVERNANCE OPTION
1. Leadership and Accountability
The leadership "essentialism principle“- an idea
incorporated into a significant number of
innovative organizations.
Essentialism implies to carrying out the things that
are critical to the association.

Cont’d
In BDO, essentialism has leads to steady quest
for review of quality, have shaped corporate
structure of governance ensuring
accountability, underscore risk management,
empower joint effort among the groups, and
dealing with critical customer issues
(Christensen & Lægreid, 2015).

Cont’d
It promote accountability and good leadership, enabling
BDO TO set up oversight structures and collaborative
oriented structures for the Assurance and Tax business
lines through MP (managing partner). This is the role that
is spread and cascaded downwards to managers in various
regions of operation.

Cont’d
The structure advances joint effort and an all-
encompassing way to deal with the
administration.
The insight and mentorship of the MPs coupled
with the focus on risk management support and
enhance the review of quality (Houck, 2017).

Cont’d
BDO gives priority to this information by
assigning an officer to be responsible for the
cyber-security program together with
infrastructure.
The BDO is Modeling Leadership by allowing
employees to participate in the training.

Cont’d
The BDO is Modeling Leadership by
allowing employees to participate in the
training.
This program supplements the current
experienced proficient leadership aptitudes
and succession planning (Faris & Abdalla,
2018).

2. Independence in Fact and Appearance
The assessment of audited data is dependent
upon BDO’s uprightness and objectivity of
the experts who undertake the review and
who are not reduced by benefit weights or
irreconcilable interests.

Cont’d
The organization has put in place a tracking
system to help experts in following to
autonomy rules with respect to their own
ventures. The tracking system cautions
experts and the firm when individual
venture property may display issues for the
firm.

3. Sarbanes-Oxley Section (SOX) Compliance
BDO assists organizations be IPO compliance by
installing to them the SOX 404 so as to enhance processes,
decrease the danger of extortion and utilize business
assets.
The BDO's experts dealing with advisory have helped
customers globally divert and build up SOX compliance
systems and controls.

Cont’d
BDO take a practical perspective of the
method of accomplishing system objectives
with cognizant of the fact that a number of
organizations need a multi-step approach.
They give value-added capacities to make
inner control monetary systems following
existing rules.

Cont’d
4. Controls Assurance – Provision of Competitive Advantage
The internal controls and assurance get is now
embedded in compliance framework so that there
is the improvement in compliance system that
boosts on protection and confidence of the
investor.
The BDO assist organizations to adopt the known
assurance standards such as AAF 01/06,
ISAE3402, and SSAE16 (Stoel & Muhanna,
2008).

Cont’d
5.Enhancing strategies, operations, and Value Creation
These changes seen globally are prompting
organizations to strategize on ways to remain
afloat in business (Stanford, 2007).
Risk management is now a strategy that gets
employed by businesses so as to guard
themselves against the stormy business
environment.

Cont’d
Therefore the need for compliance and internal
controls has become the necessity for surviving in
the turbulent market.
The creation of value gets attained with the use of
cost-effective risk management system so that the
system employed is not of favorable cost and
creates the best maximum benefit for the
organization (Kitching et al., 2009).

THE ISSUES OF BDO
1.The dynamic and changing Market
In the technological world, the market is
dynamically changing very fast and novel
technologies came into play.
As a result of these, there is the disruption
in this business sector (Stoel & Muhanna,
2008).

2. Scarcity of talents.
There is scarce of talents when technology is
taken into account.
The result of Brexit negotiations poses a
challenge to BDO because there is a high
likelihood that EU talents will be lost.
The pool of talent has been accelerated and
developed by innovations around the globe
and this has boosted the technology sector in
the UK.
It is going to add to the issues of lack of
enough talented people at BDO.

3.Increase of sophisticated cyber-crimes
 There is increase in cyber-crimes.
 The new wave of attacks like automated hacking, data
poisoning, and speech synthesizers are increasing in frequency
and sophistication.
 These are issues that require a high level of protection which
calls for many expertize information protection.

Recommendation and Conclusion
1. Embracing Sustainable Technology
There is need to embrace technology that is easy
to upgrade with time so that when there is no
system overhaul every time there is new
technology to be put in place.
This will save time, the cost and the manpower
thus making the organization remain competitive
in the market.

2. Talent Acquisition, Training and Retention
The creation, training, and keeping of talent is
paramount in the organization.
Talented employees require especially in the
technology sector require period training to update
and refresh their skills on new emerging
technologies.
This will save the organization the risk of
frustration when new technology emerges.

3. Embracing sophisticated system software
Need to use more sophisticated system software
for the clients.
This will save them from the risky of being
vulnerable to cyber-attacks which are becoming
sophisticated and rampant targeting businesses.
Information security officer is more require so
that issues of cyber-attacks get dealt with.

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