Vonya Global

The last major weekend of the summer is upon us. Happy Labor Day weekend everyone!

Our leadership sent this out today, along with a sincere expression of gratitude. From our CEO: "I am proud to work with such a forward-thinking and unified team. Our collective success is a top priority for me, and I value every insight and idea you bring to the table in the name of continually improving the important work that we do for clients and for each other."

Wishing all a safe and enjoyable weekend!

In Q4 of 2022, we (Sargon Youmara, Veronika Fritz, and I) decided to merge our company (Vonya Global) with Sikich - the transaction officially closed on January 1, 2023. It was a serious decision that we deliberated on for months, with some extreme due diligence added in to make sure we were making the best decision for our team and our clients.

The fact that Sikich continues winning awards, being named to multiple "best of the best" lists continually reinforces that we made the right decision. If given the chance to do it all over again, I'd make the same decision. You can reference news items like this to support your decision if you're considering using our services.

*************

Sikich has been named a "Best of the Best” firm by INSIDE Public Accounting for the second consecutive year.

This recognition highlights our commitment to operational excellence and a strategic vision for the future that sets up apart in a crowded industry. We're proud of our team's diligent work and dedication to delivering innovative and diverse solutions to our valued clients.

Want to know more about what sets Sikich apart? Read more here: https://www.sikich.com/insight/sikich-named-best-of-the-best-by-ipa/.

In my opinion, assessing the adequacy and effectives of the internal control environment has rarely been a priority for firms. There is no easy way to calculate the ROI on the internal control assessment... until something unforeseen, unfortunate, and costly happens. At that time it is too late.

This article, written by Jesse Laseman and John Iwanski, shifts the lens to the value generated from robust and high functioning internal controls. They break down the significance of internal controls and how to use it to your advantage. Check it out and tell me if you disagree.

Multiplying Private Equity Value through Internal Controls Some private equity leaders overlook strengthening their governance and adding internal controls. Internal controls has a significant impact on safeguarding and generating value.

Union Yes? In this case it was Union Hell No!

Two former presidents and five current and former employees of the Kansas City-based International Brotherhood of Boilermakers have been indicted for their alleged roles in a 15-YEAR, $20 MILLION embezzlement scheme.

Union members put their trust in the leaders of their organizations to serve in the best interest of the membership. The purpose of union leadership is to advocate for workers' rights and interests by negotiating with employers for better wages, benefits, working conditions, and job security.

Stealing $20 MILLION violates that purpose. Who is governing the union?

Internal controls matter. Internal audit matters. A small investment each year in internal control assessments would have prevented this $20 million scam.

Every union member, regardless of union affiliation, should take note of this story. Speak up and hold your leadership accountable. Make sure you can proudly shout, Union Yes!

Two former presidents among 7 Boilermakers union employees indicted for embezzlement Boilermakers officials treated the union as their “personal piggy bank,” a Department of Labor official said.

Thinking about joining Sikich? Maybe you're considering using our services. In either case my guy, Saket Kanodia, is here to tell you a bit about our great company. Give him a listen.

Sikich India on LinkedIn: #sikich #sikichindia #careers #workculture #lifeatsikich Senior Manager Saket Kanodia is grateful that at Sikich he has found a workplace that values his opinions and provides opportunities to learn and…

Trouble can happen anywhere... even in paradise.

"Mayor Richard Bissen authorized the Finance Department to conduct an internal audit due to concerns brought to the attention of the administration."

Why do many organizations wait until it is too late to conduct internal audits? At that point they're no longer internal audits, they are investigations. Establishing a robust system of internal controls and regularly testing their effectiveness would eliminate many of the crippling frauds that are reported daily.

Mayor Bissen said: "I want to underscore my unwavering commitment to upholding a culture of the highest ethical standards within my administration. We have a zero-tolerance policy for any ethical violations, and I want to assure everyone that all infractions will be met with appropriate consequences.”

Dear Mayor Bissen, I appreciate your unwavering commitment. If I were you, I would subscribe to the philosophy "trust but verify." Proactively auditing your internal controls and compliance with ethical standards will demonstrate that you "walk the talk" rather than just talking.

Should you decide to seek outside help, I REALLY LIKE MAUI!

Maui OED Director placed on paid leave as investigation continues following internal audit, ethics findings | Maui Now County of Maui Office of Economic Development Director Luana Mahi was placed on leave with pay on Aug. 20, 2024, pending further investigation. In March 2024, Mayor Richard Bissen, in consultation with the Department of the Corporation Counsel, authorized the Finance Department to conduct an interna...

This report is gaining a lot of traction thanks in large part to my colleagues sharing it throughout their networks. Due to the popularity, I thought I would share again in case you missed it previously.

I also posted in a few groups recently, so you may have also seen it there. This is the same report.

Strategic Role of Internal Audit 2024 Report | Sikich Sikich’s Strategic Role of Internal Audit 2024 report examines whether internal audit is viewed as a strategic function, comparing perspectives of internal auditors and executives across various industries.

He turned to those gathered in the courtroom and said, "I'm sorry."

What he was thinking was "I'm sorry I got caught."

A better system of internal controls likely would have prevented this predator from succeeding.



https://www.kake.com/home/former-kansas-bank-ceo-sentenced-to-24-years-in-prison-for-embezzlement-in-crypto-scheme/article_b1445476-5e68-11ef-a080-83f55fe1a549.html

We produced the report 7th time but the first as Sikich. It starts with a fun little history of internal audit and then explores the comparison between executives and internal auditors. We hope the report provides a foundation for a conversation between internal audit, the board / audit committee, and executive management.

Download from the link below.

Exclusive Access: Strategic Role of Internal Audit 2024 Report A key factor for maximizing internal audit’s value is having “a seat at the table,” symbolizing influence and credibility. This allows internal auditors to understand strategic direction, advise on risks and help meet objectives. This study explores whether internal audit has this seat and wha...

This article is pretty compelling from our CFO Ryan Spohn. I've been fortunate to get to know Ryan, he's brilliant, yet pragmatic, down to earth, and approachable... And my go-to during the negotiation and due diligence processes between Sikich and my old firm Vonya Global. He's one of the primary reasons we joined Sikich - and thankfully so!

If you have an Accounting Today subscription, you should check out this article Ryan wrote about the changing landscape in the accounting profession. It is definitely worth your time.



Read more here: https://www.accountingtoday.com/opinion/how-modern-cpa-firms-are-leaving-the-old-partnership-model-behind

The evolution of a NCAA scandal:
Motivation
Opportunity
Rationalization

For those of us in internal audit, we recognize these three items as the fraud triangle. What I fail to understand is how do perpetrators of fraud think they're going to get away with it? Something thing or someone in the schemes always breaks. As my mom always said, do the right things and you won't get in trouble.

As of this post, the penalties TTUN faces have not been released. It is a shame they took the route they did, they didn't need to, they're roster was stacked.

Grayson Weir of BroBible wrote the article.

Michigan Football Could Get Hammered With Postseason Ban For Sign-Stealing Scandal The NCAA has reportedly finished its investigation into the University of Michigan over the massive sign-stealing scandal that sent shockwaves across

Jesse Laseman explains how a well-structured and high-performing board can bring expertise and guidance to a company, enabling it to remain competitive, while serving in the best interest of the company’s stakeholders.

He doesn't shy away from the board's governance responsibility, specifically as it relates to internal controls: "The Board is responsible for challenging management to have an effective internal control system in place to mitigate identified risks and achieve stated objectives."

This applies to all organizations, be they publicly traded, privately owned, not-for-profit, or a government entity.

Key Responsibilities of Private Companies’ Boards - Sikich Board members bring expertise and guidance all in the best interest of the company’s stakeholders. We can help your company and Board identify risks and generate mitigation strategies.

The course "Listening 101" - (1 CPE)

On a Boat

With booze

for $50

What could be better???

Register today before it sells out.

2nd Annual Interactive Boat Cruise on Lake Michigan Event Date: Thursday, August 15, 2024 Event Time: 3:00 pm - 6:00 pm (CT) Event Loca

This was a lot of fun last year! If this year's registration is like last year's, it will sell out quickly.

Thomas Caputo on LinkedIn: #iiachicago #internalaudit Attention IIA Chicago Chapter members! 🌟 Exciting news! Join us for the upcoming 2nd Annual Interactive Boat Cruise. Enjoy a delightful afternoon with…

A compliance failure and cover up that will cost over $50 million in penalties... but lost nearly $9 Billion for investors. From the recent SEC release.

“At all times, but especially during moments of crises, public companies and their officers must speak truthfully to the investing public. Here, we allege that Silvergate, Lane and Fraher fell not only woefully, but also fraudulently, short in that regard,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Rather than coming clean to investors about serious deficiencies in its compliance programs in the wake of the collapse of FTX, one of Silvergate’s largest banking customers, they doubled down in a way that misled investors about the soundness of the programs. In fact, because of those deficiencies, Silvergate allegedly failed to detect nearly $9 billion in suspicious transfers among FTX and its related entities. Silvergate’s stock eventually cratered, wiping out billions in market value for investors.”

https://www.sec.gov/newsroom/press-releases/2024-82 SEC Charges Silvergate Capital, Former CEO for Misleading Investors about Compliance Program. Former Chief Risk Officer and former CFO also charged for misleading investors.

Each year at this time Sikich announces promotions. Congrats to those who were promoted and cheers to a job well done! 🎉

We are proud to celebrate the exceptional members of who were recently promoted. Their ongoing dedication to our organization and high standards for success are worth recognizing.

As we close out Month, it may be time to consider your organization's , Equity and initiatives. If it is on your radar, you should read our article and check out our sample DEI checklist to get started.

Your Go-to Internal Audit Checklist on Diversity, Equity, Inclusion and Belonging Internal controls ensure the integrity, accountability, and continuous improvement of organization’s Diversity, Equity and Inclusion efforts.

This is a new on: "It's the bank's fault."

Ineffective internal control / fraud mitigation procedures at a company allow an employee to embezzle nearly $900k - but the company claims it is the bank's fault and files a lawsuit against the bank.

This sad, sad story could likely have been prevented with basic review, approval, and reconciliation procedures.

Lawsuit alleges Huntington Bank enabled $883K embezzlement by woman who later died by su***de A Portage chemical company is suing Huntington Bank, alleging that Huntington’s systems allowed an employee to embezzle more than $880,000

Happy 4th of July!

We've already made it to in the U.S., and we’re wishing everyone a fun, safe, and celebratory holiday from us at . Have a GREAT week!

Harriet Adenle-Ouma, Anthony Cambria, and Michael Dirienzo did a masterful job explaining the Oracle Risk Management module within Oracle Fusion Cloud ERP. Check out this webcast if you're considering implementing this module to manage risks and meet compliance and privacy mandates (SoD, SOX, GDPR, etc.).

Sikich on LinkedIn: How to Manage Risk with Oracle | Webinar When it comes to , is key. Learn how Risk Management Cloud can assist and aid your efforts and gain knowledge from our 3…

Wow! A hearty congratulations to Odalys Ochoa and Jonas Capek, the 2024 James A. Sikich Visionary Scholarship recipients. They two students have been recognized and awarded for their passion for the accounting field, leadership abilities and commitment to community service. They are two incredibly deserving young professionals. Congratulations!

Read more about these rising stars 👇.

Sikich Announces 2024 James A. Sikich Visionary Scholarship Recipients Sikich announced its 2024 James A. Sikich Visionary Scholarship recipients: Odalys Ochoa and Jonas Capek.

news from Wayne County Michigan (Detroit). A fundamental breakdown in internal controls allows an employee to embezzle retirement funds from two long-time employees.

Makes you think, doesn't it? Could this happen to us?

Wayne County insurance agency operator faces felony embezzlement charges A 76-year-old woman from Superior Township will face trial on felony embezzlement charges.

Here's another story, this time about allegations of at Adidas in China. Executives received a tip and are now investigating. Per the ACFE, this is how fraud is detected:

Tips: Around 40-43%
Internal Audit: 15-16%
Management Review: 12-13%
Document Examination: 4-5%
Account Reconciliation: 4-5%
Surveillance/Monitoring: 3-4%
External Audit: 3-4%
Confession: 1-2%
Accident: 1-2%
Law Enforcement: 1-2%

Most of these methods require a bit of luck. If you don't think luck is on your side, it might be time to kick the tires on your internal controls.

Adidas is investigating allegations of embezzlement and bribery in China, according to news reports Adidas has launched an investigation into allegations of “compliance violations” in China after receiving an anonymous letter earlier this month accusing local executives of embezzling millions of euros

Check out the honor recently bestowed on my Sikich colleague and friend Brent DeMay by the Illinois CPA Society. Brent received the Employee Benefits Committee Distinguished Service Award for his significant contributions to the profession and his volunteer service roles.

Congratulations Brent!!!

Read more about this honor. 👇

Illinois CPA Society Honors Brent DeMay with Distinguished Service Award Brent DeMay, CPA, CGMA, principal, was honored with a Distinguished Service Award by the Illinois CPA Society (ILCPA).

This article written by Jurica Dujmovic and published by MarketWatch, makes a good complement to the article written by Jesse Laseman and David Panicko and published by Sikich.

Apple’s OpenAI partnership raise​s​data security and online privacy concerns Apple’s latest AI strategies and their implications for users is troubling.

Jesse Laseman and David Panicko recently collaborated to write this article on Internal Audit's role in artificial intelligence adpotion.

Check out their article to learn a few ways internal audit can make the adoption of AI-powered tools a success.

How Internal Audit can be the Key Ingredient in AI Implementations Here are a few ways internal audit can combat risk and make the adoption of AI-powered tools a success for your organization.

Well, this is pretty cool!

We know we have a special culture at Sikich. It’s nice when others take notice, too. Thanks Fortune for once again naming us a 2024 Fortune Best Workplaces in Chicago.

Fortune Magazine Recognizes Sikich Among Best Workplaces in Chicago for Third Year in a Row Sikich announced its inclusion on the 2024 Fortune Best Workplaces in Chicago for the third consecutive year. Up two spots from last year’s results, Sikich ranks as the eighth largest company in the Chicago area that fosters an exceptional employee experience.

Welcoming the newest addition to and the Sikich GRC practice - Vishal Karagathara. Use the link to connect with him.

https://www.linkedin.com/in/kargatharavishal/ Vishal Karagathara - I'm keen on connecting with professionals who share my enthusiasm for internal audit excellence and strategic governance. Let's collaborate to explore new opportunities and elevate the standards of internal audit practices together.

My Sikich colleague Craig Schellenberg wrote this article on Network Security best practices to help security professionals. However, when I read the article, it looks like the start of an internal audit program for network security. You may want to give it a read if you're going to audit network security this year.

Network Security Best Practices: Safeguarding Your Digital Assets Whether you’re managing a small business or overseeing a large enterprise, implementing best network security practices is essential.

Look what I stumbled on. Congratulations to my friend and colleague O’Connor on receiving the prestigious Society of Appraisers (ASA) 2024 Lifetime Achievement Award.

This well-deserved honor recognizes Mary's exceptional dedication and outstanding contributions to ASA and the appraisal profession throughout her career.

Mary O’Connor Honored with 2024 American Society of Appraisers Lifetime Achievement Award Sikich announced that Mary O’Connor is the recipient of the American Society of Appraisers Lifetime Achievement Award.