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Mid-market outlook in Latin America

April 30, 2025

The fifth edition of Going Global is now available, spotlighting the mid-market outlook in Latin America.

This edition explores how geopolitical shifts, regional reforms, and emerging investment priorities are shaping opportunities for mid-sized businesses across the region.

Download the latest magazine here.

Latin America’s evolving investment landscape
Amid increasing global tensions and shifting international policy, Latin America is playing a more central role in the global economy. In this edition, we examine the implications of new trade policies, regional development programmes, and shifting investor interest—from US-led trade repositioning to China’s capital reallocation.

Featured articles include an analysis of Argentina’s new investment framework, RIGI, designed to attract large-scale foreign direct investment, and Mexico’s ‘Plan Mexico’ initiative, which focuses on economic modernisation and cross-border trade.

Kreston Global in Latin America

Kreston Global ranks as the 17th largest accounting network in Latin America, with 24 member firms and over 1,300 professionals across 17 countries. Our teams offer deep local insight and global perspective to help businesses navigate complexity and seize opportunity in this fast-changing market.

Mid-market outlook in Latin America for 2025

Our research shows that businesses in the region are reassessing their strategies in response to new investment flows and regulatory trends. From trade realignments to sector-specific incentives, mid-sized enterprises must stay agile and informed. Across industries, adaptability and regional knowledge are proving essential to staying competitive.

We explore these themes and more in this edition. You can download the full magazine or browse the individual articles online here:

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Herbert M. Chain

Shareholder at CBIZ CPAs PC and director at CBIZ, New York,

www.cbiz.com

Herbert M. Chain is a highly experienced auditor and a financial expert with over 45 years of experience in business, accounting, and audit, having served as a Senior Audit Partner at Deloitte. He holds certifications from the National Association of Corporate Directors and the Private Directors Association, with knowledge of private company governance and effective risk management. He has extensive expertise in the financial services sector, including asset management and insurance.

Auditing digital assets: how auditors can manage risk and compliance

April 23, 2025

Auditing digital assets is becoming an essential skill for assurance professionals as businesses increase their use of cryptocurrencies and blockchain-based technologies. These assets, such as bitcoin, ethereum and other tokens, create new considerations for financial reporting and audit procedures. Herbert M Chain, shareholder at CBIZ CPAs PC and director at CBIZ, New York, writes for AB Magazine.

Financial reporting considerations

Digital assets do not meet the definition of cash or financial assets under IFRS standards. Most should be classified as intangible assets under IAS 38. If held for sale in the ordinary course of business, they may be treated as inventory under IAS 2.

Key audit risks

Auditors must evaluate a number of risks specific to digital assets. These include client acceptance, use of third-party service organisations, and audit assertions related to existence, valuation and ownership.

Existence risk

Digital assets are virtual and decentralised, making it more difficult to confirm whether they exist as reported. Public blockchain transactions can be traced using blockchain explorers, which help verify balances. However, auditors must consider the relevance and reliability of the data source.

When assets are held in cold storage or secured wallets, physical inspection and access verification are often required. Multi-signature wallets, which require multiple authorisations, present additional audit complexity.

Valuation risk

The value of digital assets can change significantly over short periods. Auditors must assess whether the valuation method reflects fair value at the reporting date. This may involve checking several cryptocurrency exchanges to identify the principal market. If pricing aggregators are used, auditors need to confirm that these sources are appropriate, even though they do not operate as direct trading platforms.

When digital assets are held at cost, impairment testing is required. Auditors must judge whether any decline in market value is temporary or indicates a need for permanent write-down.

Ownership risk

Due to the anonymous or pseudonymous nature of blockchain transactions, establishing ownership can be challenging. Auditors should review legal agreements with custodians and service providers, and confirm whether the entity has control of the private keys linked to the reported assets. If a third party holds the keys, it may be more accurate to report a receivable instead of direct ownership.

Independent confirmation from service providers can strengthen audit evidence in these cases.

Evaluating internal controls

Strong internal controls are essential for managing digital asset risks. Auditors should assess the client’s governance framework and procedures for custody, transaction approval and key management.

Where digital assets are held by a custodian, auditors should request the latest SOC 1 or ISAE 3402 Type II report. This helps assess whether the service organisation’s controls are suitably designed and operating effectively, and whether the client is meeting the control requirements specific to their role.

Cybersecurity risk

Digital assets are often targeted by cyberattacks. Auditors should review the entity’s network security, incident response plans and any cybersecurity protocols used by external service providers. Controls should prevent unauthorised access and address threats such as malware, phishing and data loss.

Adapting audit practice to a changing landscape

Auditing digital assets involves new risks that affect traditional audit areas such as existence, valuation and ownership. Auditors must understand these risks, assess controls and apply updated procedures to provide reliable assurance. As the digital asset environment evolves, audit approaches must evolve with it.

Latest News

Mid-market outlook in Latin America

The fifth edition of Going Global is now available, spotlighting the mid-market outlook in Latin America.

New Jordan firm joins Kreston Global

Kreston Global has today welcomed Jordan firm, Alothman Group International (AGI), to the Kreston Global network.

Generative AI in Accounting

Generative AI in accounting is set to be one of the most significant forces shaping the profession in 2025.

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New Jordan firm joins Kreston Global

Kreston Global has today welcomed Jordan firm, Alothman Group International (AGI), to the Kreston Global network.

AGI was established in 1980 and for the last 40 years has built up a client base ranging from small owner-managed businesses to larger multinational corporations operating on a global basis. As a consequence of increasing market complexity, AGI advises clients across a number of industries including Insurance and re-insurance; Not for Profit Organizations (NGO); Financial Services; Public sector; Trading and distribution; Information technology; Retail & FMCG, Contracting and construction, and Healthcare.

Made up of three partners, AGI is one of the larger mid-market accounting and advisory firms in Jordan, employing 35 staff and based in Amman. They have been active internationally for many years and are well-equipped to assist and serve international businesses seeking to invest in Jordan.

The addition of AGI to Kreston Global’s network further strengthens its Middle East region, which consists of 13 member firms across 10 countries providing a range of financial, audit, accounting, taxation, and other advisory services to large and mid-sized businesses requiring inbound and outbound growth support and set up.

Liza Robbins, Chief Executive of Kreston Global, said:

“We are really pleased to welcome AGI to our network. Our Middle East region is flourishing and our firms are incredibly entrepreneurial and ambitious. AGI fits extremely well into this portfolio and Jordan certainly is home to many middle eastern businesses wishing to expand, as well as offering opportunity for inward investment. I am very excited to see how the next year unfolds in this busy market and to introduce AGI to our network.”

Faisal Othman, Executive Director at AGI said:

“AGI is delighted to become part of the well-regarded Kreston Global network and ensure our clients have access to international expertise for their own growth ambitions. As a firm with considerable international experience we can see that membership will assist us not only with client needs but also being able to exposure our people to knowledge sharing, training and development opportunities globally and regionally. We very much look forward to meeting our new Kreston colleagues over the course of the coming months.”

Mid-market outlook in the Middle East

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Richard Spofforth

Head of Accounts and Outsourcing, Kreston Reeves

Richard Spofforth is a Partner and Board Member at Kreston Reeves, where he leads the Accounts and Outsourcing service and oversees the firm’s operations across the Sussex region. With more than 30 years of experience in audit, accounts, IT, and corporate transactions, he works closely with clients to drive growth and business transformation, with a particular focus on automation and strategic advisory. A regular speaker and contributor to industry reports, Richard was a key force behind the firm’s award-winning Going for Growth initiative. He is a Fellow of the Institute of Chartered Accountants in England and Wales and holds a BSc in Business Studies from the University of Buckingham.

Generative AI in Accounting

April 11, 2025

Generative AI in accounting is set to be one of the most significant forces shaping the profession in 2025. As firms explore new ways to boost efficiency, manage risk, and deepen client relationships, the use of GenAI tools will become increasingly widespread across the industry.

Richard Spofforth, Partner and Head of Accounts and Outsourcing at Kreston Reeves and Kreston Global digitalisation expert, recently shared his perspective with the IAB on how GenAI is evolving and where the challenges – and opportunities – lie.

Three levels of GenAI impact

Spofforth outlines three clear areas where GenAI is already beginning to make an impact in accounting firms: personal productivity, in-product capabilities, and enterprise-level applications.

At the personal productivity level, GenAI is being used to assist with everyday tasks such as document summarisation, spreadsheet formulas, and basic analysis. This type of use is informal and often driven by individual needs rather than centralised strategy. For many, this will be the easiest way to engage with the technology – while others may find the shift more difficult.

The second tier is in-product capability. Here, GenAI is being integrated directly into accounting software. Major platforms are building GenAI tools into their systems, allowing users to benefit from AI enhancements without needing to learn new interfaces. This makes adoption smoother, since professionals are already familiar with the core tools.

The most complex – and potentially the most transformative – use of GenAI is at the enterprise level. This involves drawing on AI to analyse both quantitative and qualitative data from previous engagements, enabling firms to offer faster, deeper insights to clients. However, this level of implementation requires careful handling of data security, regulatory compliance, and internal governance.

Managing risks: Talent, trust and cost

Despite its promise, GenAI raises important questions about talent development. As AI tools take on more foundational work, younger professionals may miss out on critical learning experiences. There is a risk of over-reliance on AI before individuals fully understand the numbers behind the output – potentially leading to blind spots in judgement or insight.

There are also concerns about data privacy. Internal misuse, such as employees accessing confidential information, is just as much a threat as external breaches. Spofforth warns that governance and education will be essential in ensuring responsible use of AI within firms.

Cost presents another hurdle. GenAI tools are expensive, and not every team member will adopt them at the same pace. Firms may need to make decisions about who has access – and whether to prioritise seniority or digital fluency. Getting this balance right will be key to realising value.

A shift towards interpretive work

Looking ahead, Spofforth believes GenAI will shift the role of accountants away from manual data work and towards analysis, strategy, and client communication. Rather than replacing accountants, GenAI should serve as an enabler – allowing professionals to focus on what matters most.

However, this shift will also change the shape of workloads. If simpler tasks are automated, remaining work may become more complex and intense – raising the risk of burnout. Supporting staff through this transition will require clear planning and strong leadership.

Ultimately, GenAI has the potential to unlock new value for firms and clients alike. But adoption must be thoughtful. It is not just about technology – it’s about people, process, and trust.