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The power of public criticism

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Management experts have long advised firm leaders to praise their people publicly and reprimand them privately. However, Nvidia CEO Jensen Huang, like Bridgewater founder Ray Dalio, advocates criticism in public.

As Huang describes in his new book The Nvidia Way, engaging in public criticism of your people fairly and constructively is a good way to normalize feedback. When public criticism becomes part of the company’s standard operating procedure, people no longer worry about humiliation and shame. As Huang explains, criticism is not the same as insulting. When done constructively, Huang argues that criticism is designed to help individuals and teams get better. 

From where I sit, public criticism can be constructive if the goal is to create a better firm and better client experience. Again, to make public criticism work for you, the first thing to do is normalize the feedback. Let’s face it: at most firms, people are not comfortable receiving constructive criticism about themselves or their colleagues — and that’s a problem. Because if you can get to the point that public criticism can be normalized at your firm, then your team can learn from each other’s mistakes. But if you keep all criticism private, no one can learn from it except the person being criticized — and many others will likely make the same mistake.

Instead, if you say: “Hey, we are going to have public criticism going forward. Not of the person, but potentially of the behavior or action.” That may make your people uncomfortable at first, but in the long run, public criticism will significantly accelerate learning at the firm level when you have shared mistakes.

Culture of accountability

In addition to normalizing feedback and accelerating learning through shared mistakes, public criticism is an excellent way to build a culture of accountability. An accountability culture is one in which everyone takes ownership of the things they do and say. Again, as a leader you must reinforce that the team is not going to be insulting each other. Instead, you’re going to be speaking openly and removing ambiguity by making expectations incredibly clear. And if there’s a problem, or if people are falling short, reaffirm that it’s OK to have these conversations in public. Because if you relegate all of your firm’s criticism to a private office, you’re impeding your team’s ability to learn and get better. And you’re making people fearful of open, unvarnished feedback.

As Nelson Mandela said, I never lose. I either win or learn.”

As I’ve found throughout my business (and parenting) career, growth only happens when you are willing to change and do something different than before. And the only way you will do that is if people are pointing out the things that need to be done differently. Winning is nice, but learning is more valuable.

The right way to criticize

I know some of you reading this article are ready to fire off comments about how public criticism creates a toxic culture. Again, being critical of something is different than insulting someone. By criticizing the right way, you won’t be damaging morale or creating a toxic culture. You need to be clear about what you’re criticizing, which is typically a specific point, with clear feedback about how to improve it. 

Again, the purpose of criticizing publicly is to make your firm better. You’re focusing on specific issues that must be fixed; you’re not denigrating someone’s character or threatening their compensation or job security. You’re not doing character assassinations or gaslighting them. Public criticism is not punishment. When engaging in public criticism, make it clear to everyone within earshot: “This is an opportunity for growth that we want you to have, but we don’t want to remove that opportunity for the rest of the firm.”

As I wrote in my article Autopsies without blame, you want to focus on the issue — not the person — to improve the performance of the firm. 

Real-world example

My team and I were recently in a group meeting with a client. The client said to one of the team members: “Hey, it’s great chatting with you; you’re always great about responding.” And then the client said somewhat jokingly to one of our seniors, “However, I do have a real problem getting hold of you,” while pointing directly at him. The client’s point was that our senior team needed to make themselves more available to clients. That was clearly a public criticism of our seniors and that as a client, she expected a higher degree of communication from senior people on the team. That dialogue was constructive for everyone involved. And we were able to go back and say: “OK, what do we need to adjust here to ensure that our most senior people are available to our best clients?”

Key takeaways

1. Make public criticism a regular part of your company’s culture and operations. Make it normal for people to communicate about things that have gone wrong. It’s not a one-time outburst or public humiliation exercise.

2. Celebrate accelerated learning through shared mistakes. 

3. Lean into the culture of accountability. 

Public criticism is an opportunity for growth, not a punishment. Once you frame it that way, it completely changes the way people communicate at your firm. Public criticism isn’t about protecting people’s feelings, it’s about delivering better experiences for clients and preventing multiple people from making the same mistakes. Tell anyone receiving public criticism: “We’re not talking about you as a person. We’re talking about an issue at hand. Let’s fix it together.”  By the way, this approach works just as well with remote teams and employees as it does in person.

It’s all about “wins and learns” in your regular team meetings. The lesson could be: Here was a mistake that occurred. This was negative feedback we got from a client. This was a mistake we made on a tax return. Here’s how it happened; here’s how we fixed it.” The win was that the client was very appreciative that we acknowledged the mistake and fixed it so quickly. You should feel comfortable discussing these things in public and encouraging your team to do the same.

Put mistakes on the open agenda and review them constructively rather than critically. That will go a long way to making continuous improvement part of your firm’s culture. The Japanese call that “kaizen” — getting 1% better every day.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

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Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.

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Accounting

Automated Tax Compliance and Global Regulatory Harmonization in 2026

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Corporate tax accounting departments are navigating an era of unprecedented regulatory complexity as global tax harmonization frameworks take full effect alongside real-time digital tax reporting mandates. Tax directors and accounting teams are adopting cloud-based tax compliance automation tools to manage multi-jurisdictional tax liabilities and satisfy stringent reporting rules across international jurisdictions.

Implementation of Global Minimum Tax Provisions
The implementation of international tax reform agreements—notably the Pillar Two global minimum tax framework—has reshaped multinational corporate tax planning. Multinational enterprises with consolidated revenues exceeding established thresholds must ensure an effective tax rate of at least 15% across every jurisdiction in which they operate.

Accounting teams are implementing specialized tax calculation modules integrated directly into enterprise resource planning (ERP) platforms. These automated tools calculate effective tax rates per country, identify top-up tax liabilities, and generate standardized compliance documentation required by national tax authorities.

Real-Time Digital Invoicing and E-Reporting Mandates
Tax authorities across Europe, Latin America, and Asia-Pacific have enacted mandatory electronic invoicing (e-invoicing) and continuous transaction controls (CTC). Under these systems, corporate transaction data must be submitted electronically to government portals in real time at the point of sale or invoice issuance.

This shift toward continuous digital tax reporting eliminates traditional annual tax audits in favor of ongoing automated compliance monitoring. Accounting departments are upgrading invoicing software to ensure seamless XML data formatting, digital signature authentication, and real-time validation against tax authority databases.

Automation and Data Analytics in Corporate Tax Strategy
To keep pace with dynamic tax legislation, tax departments are transitioning from reactive compliance teams to proactive strategic advisors. Machine learning algorithms analyze corporate transactional data to identify tax credits, research and development (R&D) incentives, and cross-border transfer pricing adjustments.

By automating routine tax return filings and calculations, corporate tax directors can focus on long-term capital structuring, evaluating the tax implications of corporate mergers, and optimizing international supply chain networks.

Strategic Priorities for Tax Executives
1. ERP System Upgrades: Ensure enterprise software is capable of generating real-time, granular tax data required for global minimum tax compliance.
2. E-Invoicing Integration: Implement scalable e-invoicing platforms to satisfy regional continuous transaction control regulations.
3. Strategic Tax Analytics: Utilize predictive tax modeling tools to evaluate structural changes in corporate operations and cross-border trade.

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