NEW SERIES-ARTIFICIAL INTELLIGENCE



The rapid development of artificial intelligence (AI) technology means internal control work in enterprises is facing profound changes. The advantages of AI in data analysis, process automation, and risk identification provide powerful support for internal control in enterprises, but at the same time, it also puts higher demands on the skills and career development of internal control personnel. Internal control specialists, need to consider how to better integrate AI and improve the efficiency and value of internal control, while ensuring their own professional competitiveness. In the era of AI, internal control personnel not only need to possess traditional internal control knowledge, but also need to master new technologies to adapt to the new mode of AI human collaboration. Each month we will follow this section with information, terminology and practice aids regarding the implementation and use of Artificial Intelligence (AI).

Future Trends of AI

1. Augmented Working

• AI will increasingly augment human capabilities, allowing for more efficient and creative work. This includes AI-driven tools for content creation, data analysis, and decision-making.

2. Real-Time Automated Decision-Making

• AI will enable end-to-end automation of business processes, from logistics to customer support, allowing for real-time decision-making with minimal human intervention.

3. Responsible AI

• There will be a growing emphasis on developing and deploying AI ethically, securely, and transparently. This includes addressing issues like AI bias, data privacy, and intellectual property rights.

4. Multimodal AI

• AI systems will become more versatile, capable of understanding and generating multiple types of data, such as text, images, and audio. This will lead to more integrated and comprehensive AI applications.

5. Smaller, More Efficient Models

• The trend towards smaller, more efficient AI models will continue, making AI more accessible and cost-effective for various applications. This includes the development of specialized models for specific industries.

6. AI in Healthcare

• AI will play a significant role in healthcare, from diagnostics and treatment planning to personalized medicine and patient monitoring. This will improve healthcare outcomes and reduce costs.

7. AI in Retail

• AI will revolutionize the retail industry by optimizing inventory management, enhancing customer experiences, and enabling hyper-personalized marketing campaigns.

8. AI and Human Collaboration

• The future workplace will see increased collaboration between humans and AI, with AI handling routine tasks and humans focusing on strategic and creative work.

AI's journey from its inception to its current state has been marked by significant milestones and breakthroughs. As we look to the future, AI's potential to transform industries and improve lives continues to grow, driven by ongoing advancements and ethical considerations.

Next Month: The Role of AI in Internal Control

7,500 Instacart And Shipt Gig Workers Hacked In $30 Million Fraud

The perpetrators allegedly acquired a list of gig workers and tricked them into sharing one-time passcodes, before buying gift cards, the FBI says. It’s a rare case showing how gig workers are vulnerable to hacking at scale, which can be damaging for the tech companies who employ them.

In the court documents, filed earlier this month in Ohio and Michigan, the FBI claimed that from 2022 onwards the accused worked together to acquire a stolen list of Instacart and Shipt shoppers.

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Deutsche Bank fined $3 million by Hong Kong securities regulator

August 28, 2025

Deutsche Bank has been fined HK$23.8 million ($3.05 million) over various breaches between 2015 and 2023, Hong Kong's securities regulator said on Thursday. The violations include overcharging clients on management fees, incorrect assignment of product risk ratings and failure to disclose investment banking relationships in certain research reports, according to Hong Kong's Securities and Futures Commission (SFC).

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FCPA Update: DOJ Encourages US Companies to Report Corrupt Foreign Competitors

Although most reporting on the DOJ's latest Foreign Corrupt Practices Act (FCPA) guidelines has emphasized the anticipated reduction in overall anti-corruption enforcement, an equally important, but less noted, aspect has emerged: the DOJ’s new laser-like focus on protecting US businesses harmed by competitors – particularly foreign ones – unfairly using bribery to secure business advantages.

For US-based companies, this amounts to a formal invitation to level the competitive playing field by becoming whistleblowers, proactively investigating alleged competitor misconduct and making a report to the DOJ.

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Auditing Internal Controls Draft Guidance Open for Comment

By: INTOSAI Subcommittee on Internal Control Standards

August 26, 2025

The paper is now open for comment at https://ics-intosai.nik.gov.pl/auditIC/guid_ICS-AuditingIC_index_en.html

The draft has been published as an online document, but there is an option to download a pdf and MSWord versions, where paragraphs have been numbered to make commenting easier:

Respondents are asked to submit their comments on the draft by 2 October 2025

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7 Essential Risk Management Frameworks 

08/26/2025

Implementing the principles and guidelines of a risk management framework (RMF) is not just an effective way to manage current risks, it also provides a structured risk assessment process for risk identification, mitigation, and compliance alignment. This helps organizations more quickly and easily adapt to new and emerging risks, enhancing resiliency overall.  

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Nine Key Actions To Financially Safeguard Your Nonprofit

Aug 25, 2025,

Implementing the right systems and procedures within a nonprofit is often a trial-and-error process. As the organization grows, the expansion of staff roles and the hiring of more team members without proper training or monitoring protocols in place inadvertently opens nonprofits up to financial abuse.

To combat the increase in potential theft, fraud, or unauthorized use of funds, establishing thorough risk mitigation measures and accountability systems is critical to protect nonprofits. Below, nine Forbes Nonprofit Council members share additional steps nonprofit founders must take to prevent their organization from being the victim of embezzlement.

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Five best practices for running an effective internal investigations program

Aug 21, 2025

A well-designed investigation program is crucial for maintaining integrity and ensuring compliance. In-house counsel play a critical role in both building and implementing such a program, and in continuously evaluating and strengthening its effectiveness.  An efficient, reliable, and properly funded investigations program is key to an organization’s ability to detect and address potential misconduct and maintain organizational integrity.

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