Would you do this for a bit of chocolate?

What’s one way of increasing the chances of getting hold of someone’s password?

Does it involve the use of the very latest supercomputer? Does it involve some clever IT geeks hacking into a computer for you?

Or does it involve chocolate?

A recent bit of research published in the journal Computers in Human Behaviour attempted to find out how people are obligated by the kindness of others. Or in other words, if someone does something nice for a person, how likely is it that the person will be nice back to them?

The researchers in Luxembourg conducted a survey of random people in the street asking them about internet security including questions about passwords.

Some of the people interviewed were given chocolate and some weren’t.

30% of those that were not given chocolate revealed their passwords which to me is a surprisingly high percentage and just goes to show that quite often human stupidity is the weakest link in internet security.

For the people who were given chocolate at the beginning of the interview the figure rose to 44% and if the chocolate was given just before the question on passwords was asked an incredible 48% gave their passwords! Yes, nearly half of the people asked their passwords as part of a survey told a complete stranger their password if they had been given chocolate.

Andre Melzer, the author of the study said that “when someone does something nice for us we automatically feel obliged to return the favour”.

So, in conclusion, if someone walks up to you in the office and offers you a piece of chocolate be careful what you say…

Is this the best time to leave the office?

When do you think it is a good time to leave the office on a Friday night? After all, if the sun is shining and you’ve got a nice weekend planned it would be good to be able to finish at a reasonable time.

In some jobs though there can be pressure to finish projects which legitimately means that you’ll have to stay late to meet the deadline.

In other companies though there can be a culture of staying late as there’s “always something to do” and never enough time to do it all or there can be pressure to stay late to “prove” that you are busy and working hard.

As an aside, when I was younger I used to work with a colleague who would bring in a spare jacket to leave on the back of his chair when he left the office at the end of the day – his boss would see the jacket on the chair together with an open file on the desk and the screensaver active on his computer and think he was still working hard and in a meeting somewhere else in the office.

Back to 2016 though and Credit Suisse, the leading investment bank, has introduced a new policy called “protecting Friday nights”.

In an email leaked to Reuters, Credit Suisse said it would be ordering all employees to stop working at 7pm on Fridays.

Marisa Drew, co-head of banking and capital markets in London reportedly told workers that she “had given a great deal of thought into how we can provide some time off for our bankers”. Ms Drew went on to say that this would allow “employees to make firm plans with family and friends and ensure that this time will be respected”.

So, good news for Credit Suisse employees as (unless they are working on a deal) they have to leave the office by 7pm on Friday.

When do they have to be back in the office though? Well, they have been told that they cannot go back to the office until midday on Saturday.

Yes, a whole 17 hours to relax, see the family and get some sleep…

This is shocking…

A lot of our readers are accountants or are training to be accountants. It should arguably follow therefore that you are good with figures. You are good with numbers and can manage your finances.

Not everyone though may be as good at managing their own personal finances and for any of you who may have problems controlling your spending, a new product will shortly be hitting the market which could be of interest to you.

A British company by the name of Intelligent Environments has developed a wristband that will deliver an electric shock to the wearer when they exceed pre-set spending limits.

The Pavlok wristband links to an individual’s online bank account and when a pre-set limit is exceeded a 255-volt electric charge is delivered to the wearer. The wristband is named after the Russian scientist Ivan Pavlov whose research showed that the behaviour of dogs could be altered by the prospect of reward or punishment.

Submitting yourself to an electric shock to stop yourself spending money does seem a bit extreme and with a cost of £120 then the buyer may well end up having an electric shock earlier than anticipated…

You can’t read this book…

Everyone seems to be on their smartphone or tablet at the moment. After all, when was the last time you read a book? Or let me ask you a slightly different question, when was the last time you coloured in a colouring book?

“Coloured in a colouring book!? I’m not a child”, I hear you say but whilst most people will come to the conclusion that the last time they coloured in a colouring book was when they were a young child, things may be changing.

One of the latest crazes doing the rounds in the UK at the moment is adult colouring books where grown men and women are buying adult colouring books to colour in. A quick Google search of “adult colouring books” will reveal the vast variety of such type of books (as an aside make sure you include the word “colouring” when searching for adult colouring books otherwise you may get an unexpected search result).

It’s been reported that more than 3 million adult colouring books were sold in the UK last year which represented over £20 million worth of revenue for the publishing industry.

Now, whilst certain trendy people may well be rushing to buy colouring books, the tax authorities in the UK are also getting interested in the trend.

The reason behind the tax authorities interest is that colouring books are currently treated as children’s books and as such are zero rated for VAT purposes (in other words VAT is not charged on the books).

The tax authorities are currently in talks with publishers about plans to classify adult colouring books as uncompleted books which would then make them liable to VAT at 20% in the same way that diaries and notepads are.

The net result is that if the tax authorities do reclassify the adult colouring books then either the books will become 20% more expensive for the individual purchasers or if they remain at the same published price, the publishers will have to take the hit.

More expensive adult colouring books? It’s enough to make you throw your toys out of the cot.

High heels at PwC

Let me ask the men who are reading this a quick question – how would you feel if you had to wear uncomfortable high heels during a 9 hour working day?

My guess is that unless you have a pretty unusual job, as a man you wouldn’t feel too happy wearing high heel shoes. There would also probably be some fairly blunt discussions with your employer if they made it compulsory that you wore high heels.

If you’re a woman though, then it’s a different matter.

Nicola Thorp, a 27-year-old lady was temping at PwC’s office in central London as a receptionist. She turned up for her first day of work at PwC in flat shoes but she was told she had to wear shoes with a “2 inch to 4 inch heel” (5 cm to 10 cm).

According to the BBC, when she refused and complained that male colleagues were not asked to do the same, she was sent home without pay.

To be fair to PwC though, they had outsourced the reception duties at their London office to outsourcing firm Portico and the dress code was not a PwC policy. A PwC spokesman told the BBC that “PwC does not have specific dress guidelines for male or female employees.”

Portico said that Ms Thorp had signed the appearance guidelines but would now review them.

Ms Thorp however has taken the matter further. She has launched a petition on the UK Parliament website calling for it to be illegal for companies to demand that women wear high heels.

The UK Parliament website works in such a way that if a petition receives more than 100,000 signatures the matter will be considered for debate in parliament.

As at the time of writing, the petition has received over 140,000 signatures so it’s likely that the matter will be debated in Parliament.

My guess is that being debated in the UK parliament was the last thing on her mind as Ms Thorp put on her shoes to head into her first day of work at the offices of PwC in London…

Who audits the auditors?

The Financial Reporting Council (FRC) has just published its audit quality inspection reports for the 6 largest auditing companies in the UK. The job of the FRC’s Audit Quality Review (AQR) team is to monitor the quality of the audit work of those UK audit firms that audit public interest and large entities.

The AQR team have been busy over the last year and have now released lengthy reports for BDO, Deloitte, EY, Grant Thornton, KPMG and PwC.

Overall, the quality of the audits has improved during the last year with the number of audits that required “significant improvements” dropping from 10 to 2 for the Big 4. There were no audits that required significant improvements at BDO or Grant Thornton.

Unfortunately for KPMG though, they were the company that undertook the two audits that were highlighted by the FRC as needing significant improvements.

The FRC reviewed 22 KPMG audits and out of those there were 2 that required significant improvements.

The first one involved a change of systems and a 3rd party IT provider. The FRC identified that the KPMG audit team did not “design and perform procedures to obtain sufficient audit evidence in response to the migration risk”.

In the second audit where there were problems the FRC highlighted that insufficient audit work had been performed in relation to revenue and inventory.

Details of the scope of the reviews can be found here and are the full reports on the individual companies are on the following links:

BDO
Deloitte
EY
Grant Thornton
KPMG
PwC

Thank you 200,000 times from ExP…

WOW – thank you so much. We’re celebrating 200,000 fans on Facebook so a big, big, big thank you to all of you that follow us on Facebook – it’s much appreciated!

Whether you attend one of our classroom courses, our online courses or access our free courses on our website thank you so much for your trust in us and we hope we’ve helped you in your professional development.

Thanks again from all of us here at The ExP Group.

Maintaining eye contact…

It’s always nice to grab a social bite to eat with colleagues or clients but if I’m honest, I’m not sure I’d recommend the Bunyadi restaurant for such events.

The reason I wouldn’t recommend the restaurant for such events is not because of the food, location or service (which I’m sure are all very good).

No, the reason I think it would be an awkward location for colleague or client dinners is due to the fact that, how can I put it but using business terminology, they have taken an extremely differentiated approach to competing.

The Bunyadi restaurant has announced that it is opening in central London in June and the different thing about it is that it will be a naked restaurant.

Whilst an increasing number of people are choosing to eat their food in a more “natural” state without additives or preservatives, the company behind Bunyadi are taking things a step further by having a naked section in the restaurant.

Seb Lyall, the founder of the company behind the restaurant said “we believe people should get the chance to enjoy and experience a night out without any impurities: no chemicals, no artificial colours, no electricity, no gas, no phone and even no clothes if they wish to. The idea is to experience true liberation.”

When you arrive at the restaurant, you’ll enter the bar area (where everyone is fully clothed) and then head to the changing rooms where you will be given a gown. You then go to the naked area, take off your gown, fold it and put it on your seat and then sit down to enjoy your meal (and no doubt concentrate very carefully when eating your hot soup so that you avoid spilling any of it in your lap).

If you are interested in going to the restaurant you can sign up on their website but you’d better hurry. At the time of writing, there were over 15,000 people on the waiting list.

Superdry or Superdivorce?

Superdry is one of the world’s top fashion brands. The business was created in 2003 by Julian Dunkerton and James Holder.

Mr Dunkerton originally wanted to be a doctor but after performing badly in his A-level exams he got a loan of £2,000 from his father to start a business selling clothes from a local market stall in 1985.

Mr Holder created the Bench brand in 1992.

They got together in 2003 to create Superdry and since then things have been going well for them on the business front. Superdry products are now sold in over 100 countries with the company running around 500 stores around the world.

Shares in the retailer though recently fell by 6% and the reason for the fall was quite unusual as it involved selling a significant number of shares to fund a divorce.

Mr Dunkerton sold off 4 million of his shares in the company at £12 per share. The £48 million he got from the share sale will go towards funding his divorce as Mr Dunkerton had to sell the shares to pay for a divorce settlement with his ex-wife.

Now £48 million is a lot of money in anyone’s books and I’m sure Mr Dunkerton’s ex-wife is appreciative of that amount of money but there’s no need to feel sorry for Mr Dunkerton when it comes to his personal wealth as he still has a 27% stake in the business which is worth around £292 million.

Interestingly, the co-founder of the Superdry brand, Mr Holder, also had to sell shares because of a divorce. Back in 2013 he sold £20 million worth of shares to fund his divorce.

Some pretty significant figures for share sales to fund divorce settlements and given the amounts involved it’s not clear whether any of the husbands or wives of the other significant shareholders in Superdry are currently consulting divorce lawyers…

Grab your goat and let’s go…

Creativity and innovation in any organisation should always be welcome and whilst technology is often at the forefront of innovation it is sometimes the really simple ideas that can create benefits.

Unfortunately, in this particular situation it didn’t quite go according to plan.

The initial idea was good. Officials in charge of the 1,200 acre Minto-Brown Island Park in Oregon in America were concerned that several invasive plants were taking over the park and killing off a number of the native flora including maple and hazelnut trees.

The solution put forward was to create a crack team of 75 goats who would eat the invasive plants such as the Armenian blackberry and the English Ivy which would then mean that the native flora would thrive.

75 goats were duly obtained from a company called Yoder Goat Rentals (as an interesting aside I wonder how many of you were aware that you could rent a team of goats. I certainly wasn’t.)

The goats got down to work but 6 weeks later the project was cancelled.

There were a number of issues.

Firstly, the goats were fairly relaxed about what they ate. In terms of the invasive Armenian blackberry for example they decided to eat the tasty blackberry leaves but left the prickly bramble. This resulted in the plant carrying on growing.

Secondly, they didn’t show any distinction between the (tasty) maple and hazelnut trees which they were supposed to be helping and the invasive plants.

Thirdly, the total cost of the 6-week pilot programme was $20,719 which was nearly 5 times the $4,245 cost for a normal parks maintenance man supported by a prison inmate work crew.

Finally, according to a report to the city council the goats “had a barnyard aroma”.

In summary, a nice try but it didn’t quite work. Still, as any successful business person will surely agree, you don’t progress unless you try. Better luck next time and at least the goats had a nice 6-week holiday in a lovely park…