# The status quo is not an option
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2016-11-11
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Praxity Global Conference 2016: Embracing Change in the Digital Age
Meta Description: Discover how auditors and accounting professionals can thrive in the digital era. Learn about smart data revolution and innovation at the Praxity Global
URL: https://financedigest.com/the-status-quo-is-not-an-optionhtml

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_By **Ian Lavis**,_ _Praxity Global Alliance_

The Praxity Global Conference 2016 demonstrated sharing international expertise has never been more important as firms face unprecedented challenges in the digital age.

**Futurologists would have us believe the digital revolution will gradually render humans – in particular auditors – surplus to requirements. Praxity’s 10th Global Conference demonstrated this couldn’t be further from the truth.**

Far from surrendering to the inevitable march of technology, delegates at the recent Glen eagles conference in Scotland glimpsed a future where auditors, and accounting professionals in general, can continue to play a vital but very different role in [global business](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031").

The conference highlighted the [big data](https://www.financedigest.com/marine-big-data-market-to-expand-at-cagr-of-21-5-during-forecast-period-tmr-insights.html "Marine Big Data Market to Expand at CAGR of 21.5% During Forecast Period – TMR Insights") revolution has become the smart data revolution, where the most successful firms will be the most agile and adaptable. To gain [competitive advantage](https://www.financedigest.com/how-automation-gives-fs-leaders-a-competitive-advantage.html "How automation gives FS leaders a competitive advantage"), member firms should embrace new technology,not by letting robots take over but by investing in people to monitor data systems and provide more creative, intuitive client solutions.

**Challenging times call for creativity**

Phil Verity, Deputy CEO, Mazars Group, said the changes taking place in the profession represent “one of the most challenging environments I can remember” while Matt Snow, CEO, Dixon Hughes Goodman, called on firms to engage employees differently and encourage them to be “more creative”.

Delegates were reminded that people and not machines will win new business, and that ethics and integrity will be as important as ever in the [industry as it becomes](https://www.financedigest.com/are-banks-destined-to-merely-become-infrastructure-providers-in-the-banking-industry-of-the-future.html "Are banks destined to merely become infrastructure providers in the banking industry of the future?") more automated.

There was a timely call to protect [accounting businesses](https://www.financedigest.com/being-nimble-and-responsive-in-banking-and-business-has-arrived-thanks-to-accounting-automation-technologies.html "Being Nimble and Responsive in Banking and Business Has Arrived, Thanks to Accounting Automation Technologies") against the very real and growing threat of cybercrime. There was also a warning that regulatory bodies and training associations need to [keep up with the pace](https://www.financedigest.com/how-the-global-insurance-market-will-keep-pace-with-evolving-risks-through-data-analytics-and-technology.html "How the global insurance market will keep pace with evolving risks, through data, analytics and technology") of change if firms are to become truly agile.

In his opening ‘State of the [Nation’ address](https://www.financedigest.com/britains-new-king-will-address-the-nation-on-friday.html "Britain’s new king will address the nation on Friday"), Praxity Chairman and Chairman of Mazars South Africa,Hilton Saven said member firms needed to respond to seismic changes within the profession. He explained: “The new [workforce with new skills](https://www.financedigest.com/creating-a-skilled-workforce-fit-for-the-future.html "Creating a skilled workforce fit for the future") and expectations; the new technology with all its plusses and minuses; and the different expectations of clients and investors, all lead to the need for us to adapt, and with confidence.”

He called for member firms to “work together, exchange views and provide feedback”, adding: “Member firms need to be able to offer [innovative solutions](https://www.financedigest.com/the-e-clinical-solution-market-to-stay-put-based-on-innovations.html "The E Clinical Solution Market To Stay Put Based On Innovations") or initiatives with confidence to clients so that everyone can optimise the opportunities these present.”

“Companies that [innovate in the use of data](https://www.financedigest.com/how-real-time-data-innovation-is-driving-up-customer-experience-in-fintech.html "How real-time data innovation is driving up customer experience in fintech") significantly outperform their competitors in many, many ways.”

**A taste of the future**

The main theme of the conference was big data and delegates were given an extraordinary view of the [future where humans become overseers of machines](https://www.financedigest.com/deburring-machine-market-2022-scope-of-current-and-future-industry-2031.html "Deburring Machine Market 2022 | Scope of Current and Future Industry 2031") capable of processing vast amounts of information in seconds.

Gillian Docherty, CEO of The [data](https://www.financedigest.com/three-ways-data-unlocks-business-value-for-financial-organisations.html "Three Ways Data Unlocks Business Value for Financial Organisations ") Lab, which helps companies innovate using data analytics, said: “Companies that innovate in the use of data significantly outperform their competitors in many, many ways.” She explained that big data enabled firms to spot anomalies, diagnose what happened, predict future patterns and prescribe what to do.

Just how accounting firms can benefit from new technology was demonstrated by Gilly Lord, PwC’s Head of Audit [Strategy and Transformation](https://www.financedigest.com/can-ai-supercharge-your-banks-digital-transformation-strategy.html "Can AI supercharge your bank’s digital transformation strategy?"), who demonstrated how the automation of datais improving both the efficiency and quality of auditing.

She told delegates that end-to-end ERP systems and new software, which combines automated [data integration](https://www.financedigest.com/5-ways-data-integration-solutions-are-helping-financial-organizations-deliver-improved-outcomes.html "5 Ways Data Integration Solutions Are Helping Financial Organizations Deliver Improved Outcomes"), visualisation and analytics, enable auditors to process and check millions of transactions in an instant, thus enabling a more complete audit.

**Auditors can breathe easy**

The ability of [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") to spot anomalies in huge amounts of data, could be important in detecting fraud and widen the scope of corporate reporting. Gilly said: “Whoever develops the best artificial intelligence will have a massive competitive advantage,” but she added that auditors could “breathe easy” because the new technology is non-sentient and thus fully reliant on humans to provide algorithms.

This vision of the [future places](https://www.financedigest.com/computer-chip-giant-asml-places-big-bets-on-a-tiny-future.html "Computer chip giant ASML places big bets on a tiny future") the auditor as an overseer of machines; an intuitive, ethical monitor ensuring artificial intelligence operates effectively. “Our [role is going to change from checking the data](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") to checking the algorithms.”

**Think differently**

It’s not only the role of the auditor that needs to change, according to Professor Jamie Anderson who encouraged accountants at all levels to think and work more creatively as they adapt to the [digital world](https://www.financedigest.com/six-reasons-why-digital-world-classtm-finance-organizations-outperform-peers.html "Six Reasons Why Digital World ClassTM Finance Organizations Outperform Peers").

He told delegates that people tend to frame problems from their own perspective, providing a narrow view of the world. Using a series of practical demonstrations, he explained how metacognition – the awareness or analysis of one’s own thought processes – is key to developing new ways to [solve problems](https://www.financedigest.com/solve-a-problem-you-know-and-live.html "Solve a Problem You Know and Live") where reflection and introspection replace assumptions and hierarchy.

This [importance of recognising and developing human qualities in the digital](https://www.financedigest.com/how-financial-services-organisations-can-address-the-vulnerability-lag-and-safeguard-their-most-important-digital-assets.html "How financial services organisations can address the ‘Vulnerability Lag’ and safeguard their most important digital assets") age was a key focus of the conference. Anton Colella, Chief Executive of ICAS (The [Institute of Chartered Accountants](https://www.financedigest.com/theres-a-fine-line-between-relinquishing-control-and-accountability-financial-institutions-must-balance-both-to-successfully-cloudify-operations-and-meet-customer-expectations.html "There’s a fine line between relinquishing control and accountability. Financial institutions must balance both to successfully cloudify operations and meet customer expectations") of Scotland), said that for all the merits of new technology, the accounting profession must put people above machines.

“The [revolution we need](https://www.financedigest.com/hospitality-needs-to-join-the-contactless-revolution.html "Hospitality needs to join the contactless revolution ") to explore, and we ignore it at our peril, is the transformation of our people.”

**Putting people first**

“The futorologists predict the demise of the accounting profession. I have a very different view of the world,” Anton said. “The revolution we need to explore, and we ignore it at our peril, is the transformation of our people. The [business model](https://www.financedigest.com/apis-open-banking-and-new-business-models.html "APIs, Open Banking and New Business Models") going forward is the commercialisation of wisdom.”

He said the accountancy profession was in danger of losing sight of its five ethical principles of: integrity; objectivity; professional competence and due care; confidentiality; and professional behaviour.

Anton added that “hundreds of thousands are coming into the profession and all they are doing is getting a qualification”. Urging Partners to spend more time with young employees to impart knowledge, tell stories and inspire people, he said the way forward was to invest in integrity, not just technology.

Calling for a sixth ethical principle of ‘moral courage’, he said the challenge was to “exemplify integrity” to create a revolution where [businesses](https://www.financedigest.com/building-a-business-case-for-integrated-payments.html "Building a Business Case for Integrated Payments") go to accountants for independent courage and wisdom.

**Empathisers and data scientists**

The need to focus on training and beliefs was echoed by lecturer and author Daniel Susskind, who told the conference young accounting professionals are often livid because the world they are entering is not what they trained for.

He said new [roles will be created](https://www.financedigest.com/banning-russian-aluminium-would-create-uncertainty-about-lmes-role-rusal.html "Banning Russian aluminium would create uncertainty about LME’s role -Rusal") like empathisers and data scientists, and the emphasis will be on how to use technology to solve problems differently. He added: “There is a big burden on our training associations. It goes back to the things we are teaching our young people in schools. They need social and interpersonal skills, and communication skills.”

He stressed that one of the biggest changes that will take place is in the belief system of professional firms, arguing that firms need to ask themselves what they believe can be done more quickly, cheaply, differently or to a higher quality using machines, and what humans can do alongside this. The best [way to prepare for the future](https://www.financedigest.com/contactless-payments-the-way-of-the-future-or-security-scare.html "Contactless Payments – The Way of the Future or Security Scare?"), he concluded, was to invent it.

**Collaboration is key**

In a panel session immediately following the key presentations, Phil Verity, Deputy CE0, Mazars Group, said firms need to address the three t’s of technology, talent and transformation. He called on firms to be more open to stimulus and collaboration.

A more collaborative approach is already being tested. Matt Snow, CEO, Dixon Hughes Goodman, revealed that four Praxity member firms in the US had teamed up to create an ‘incubator’ to develop and [test new technologies in the assurance space](https://www.financedigest.com/system-glitch-prompts-boeing-to-postpone-test-space-flight.html "System glitch prompts Boeing to postpone test space flight"). “We are working together with a common goal that benefits our firms and our clients,” he said. “It’s being run completely differently from anything else we have done together.”

As firms meet the challenge of the digital age, it is [clear that organisations will need to align](https://www.financedigest.com/the-clear-aligner-market-to-tilt-towards-digitization.html "The Clear Aligner Market to tilt towards digitization") themselves differently and adopt a more creative approach to delivering client services.

More value for member firms

Praxity has grown into the largest alliance of independent accountancy and consulting firms in the world. Member firms have a combined turnover of [USD 4.5 billion](https://www.financedigest.com/pvdc-coated-films-market-is-projected-to-reach-usd-12-3-billion-by-2028-at-a-cagr-of-4-6-from-2022-to-2028-fmi.html "PVDC Coated Films Market is projected to reach USD 12.3 billion by 2028, at a CAGR of 4.6% from 2022 to 2028: FMI"), with 61% growth, just nine years since Praxity was formed.

In his opening address at Gleneagles, Praxity Chairman Hilton Saven outlined several new initiatives to add value to member firms and their clients including:

1. A new think-tank to assist member firms to work together on an international basis.
2. A new secondments website tool to help member [firms manage](https://www.financedigest.com/asset-management-firms-are-using-ai-to-deliver-higher-returns-for-investors.html "Asset management firms are using AI to deliver higher returns for investors") staff numbers while helping employees to find secondments within the Alliance.
3. More online content for member firms to rebrand and redistribute to their clients.
4. Country specific [tax guides for every member firm](https://www.financedigest.com/german-tax-authorities-should-show-leniency-to-households-firms-amid-energy-crisis-letter.html "German tax authorities should show leniency to households, firms amid energy crisis – letter") to distribute to potential clients.This will assist with complex tax matters when doing business internationally.


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