For Jonathan Arnold, an innate curiosity for the investigative aspects of accounting steered him towards internal audit, which, he says, resembles detective work. Working in Sri Lanka as manager for system of quality management (SoQM) at KPMG in the Cayman Islands and the KPMG Islands Group, it’s the unfolding opportunities that excite him most.
'Internal audit provides a burst of adrenaline whenever frauds are identified or serious control lapses are uncovered at organisations. The ability to transform organisations in a value-adding manner is both rewarding and inspiring,' he says.
'One needs to have a sense of pride in being able to identify the potential for key control lapses'
'Providing assurance on corporate governance, risk management, internal control and operations is the responsibility of internal auditors in a wide range of business contexts,’ he adds. ‘They frequently conduct high-profile audits and investigations of the company's financial records, systems and procedures, offering suggestions that address issues and enhance the company's prospects for growth in today’s competitive market.’
Abundant visibility
Currently based with KPMG Sri Lanka and working remotely for member firms across the KPMG Islands Group, Jonathan’s role is to support multiple territories to consistently deliver quality audit engagements. Joining the firm in 2022, he brought with him experience in the field of anti-money laundering and combating the financing of terrorism, which he gained while employed at life insurance company Union Assurance.
As the senior management’s eyes and ears on the ground actively monitoring and reporting suspicious activities, Jonathan views professional accountants as gatekeepers safeguarding stakeholders from serious financial crimes.
'As auditors, we must never take trust for granted'
CV
2022
Manager, SoQM (internal audit), KPMG in the Cayman Islands and the KPMG Islands Group, Colombo
2020
Internal auditor, Union Assurance, Colombo
2014
Joined as audit associate, rising to assistant manager, PwC Colombo
The importance of internal auditing may only become apparent once an incident – such as fraud resulting from a conflict of interest, fines for breaking the law, or a whistleblower reporting corruption – is exposed. In safeguarding organisations against such risk, audit recommendations help prevent unfavourable events happening in the future, thereby avoiding reputational damage. In providing assurance to stakeholders, he adds, internal audit is a vital mechanism.
‘As auditors, we must never take trust for granted. Unethical activity may damage a company's share value, weaken credibility and destroy public trust – as shown by Enron, WorldCom and other scandals of the 21st century that have rocked the corporate landscape. We must never assume that it will not occur on our watch.’
A key challenge in the role is navigating the innovative ways in which fraud can be committed, and controls circumvented by corrupt individuals. 'Identifying these methods requires intellect and acumen that goes well beyond text books and qualifications,' Jonathan says. 'One needs to have a sense of pride in being able to identify not just frauds, but also the potential for key control lapses within dynamic business landscapes.'
Changing landscape
For audit professionals themselves, Jonathan adds, keeping up with changes in the industry is crucial. 'Regulations, standards and best practices pertaining to the auditing profession are constantly changing,' he explains. 'Keeping up with changes in the industry is crucial and adapting to technological advancements in the rapidly evolving field of audit is advantageous.
'Continuous education is not only beneficial in terms of enhanced proficiency, but also enhances one’s career prospects significantly,' he says. 'Lifelong learning should be prioritised by auditors to ensure they are prepared for the opportunities and challenges that accompany an ever changing auditing landscape.'
‘ACCA ingrained in me all the required competencies to achieve greater heights as an internal auditor'
Since gaining his ACCA qualification, Jonathan has continued to pursue professional qualifications to broaden his skillset and elevate his knowledge. ‘ACCA ingrained in me all the required competencies to achieve greater heights as an internal auditor, based on the core values of ethics, integrity and trust,’ he adds.
Giving back
Keen to 'give back' to ACCA, Jonathan has been an advocate both in a local context and on the global stage. He has achieved this in a range of ways, from video and newspaper interviews to being featured on ACCA's website, as well as promotion through his LinkedIn profile. 'Social media has eased one’s ability to advocate for the profession and I am delighted to be a part of this great cause,' he says.
His goal is to pursue excellence in the field of internal audit and to set an example for other young aspiring accountants and auditors.
'A healthy work-life balance will always boost productivity and performance'
‘Understanding accounting and finance in various parts of the world helps one adopt global best practices in organisations, thereby fostering an environment which is likely to flourish,’ Jonathan says.
A talented guitarist, pianist and vocalist, Jonathan holds a fellowship from the London College of Music. Predominantly enjoying modern rock, he finds music a way to unwind, revitalise and energise after a busy day.
Having participated in charity music concerts since the age of 13, Jonathan is currently involved in church worship both as a bass vocalist and an electric guitar instrumentalist. ‘This allows me to embrace my spirituality while edifying the church congregation,’ he says.
He ensures that making music is an essential part of his routine not only for the joy it gives him but as a contrast to the intense and demanding work he thrives on. 'A healthy work-life balance will always boost productivity and performance.'
