Gone are the days when auditors were manually checking and ticking lots of pieces of paper. Today’s auditing techniques involve significant use of computers.
But how far can this computer use go? Will they be able to predict when accounting fraud is going to take place as opposed to tracking transactions that have already occurred?
The film Minority Report starring Tom Cruise was based around software that could predict when a crime was going to happen and the culprits would be arrested before they actually committed the crime. Although this film seemed well and truly within the realms of science fiction, two police forces in the UK have recently begun trials of a sophisticated computer software package which aims to predict where and when future crimes are likely to occur.
The software is known as Crush (Criminal Reduction Utilising Statistical History) and is used to identify potential crime hotspots based on a variety of data including crime reports, offender profiles and strangely enough even weather forecasts.
Once these upcoming crime hotspots have been identified then the police can allocate resources accordingly.
The system is produced by IBM and the UK tests are based on a successful roll out of the software in the US by the Memphis police force which resulted in a reduction of serious crime by 30%.
Back to auditing though and will the next step be predicting when a fraud is likely to occur using statistical analysis based on industry, profit movements, director’s personal life and spending habits (plus the weather of course)?
Given the reliability of some computers though, one thing for sure is that is if you happen to live in a town called “Syntax Error” then you may have a surprise visit from a Tom Cruise lookalike with a briefcase and a calculator.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2013-02-28 08:49:392013-02-28 08:49:39Will auditors become more like Tom Cruise in the future? Well, if I was to make a prediction...
Police forces are classic Not-for-Profit Organisations and whilst they don’t have similar revenue streams to those which are found within commercial for-profit organisations they do have to balance the books between their funding (revenue) and their costs.
The Police force in the Australian state of Victoria came up with a novel approach to serving an intervention order that not only ensured that the offender received the order but also saved money.
An individual in Australia had allegedly been harassing and threatening his ex-partner. An order was made against him instructing him to cease this behavior and to stop contacting her.
It was however proving difficult for the police to track him down. They had tried actual visits, sending details by post as well as phone calls to serve the order on him but all to no avail.
They identified that he was an avid Facebook user and in a novel approach to matters the police transcribed all the court documents and sent them to his Facebook inbox.
Going one step further they also recorded the following video for him which was again delivered through the medium of Facebook.
After receiving everything via Facebook, the offender has now agreed to comply with the intervention order although it is not clear whether he clicked the “like” button on his Facebook page after he first viewed the video.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2013-02-20 13:51:182013-02-20 13:51:18Australia. Welcome to the land of sun, sand and intervention orders served via Facebook.
Fast food is big business but for Subway, the world’s largest restaurant chain with 38,000 restaurants in 100 countries, something isn’t quite big enough.
Subway is famous for their “Footlong” sandwiches whose name implies should be a foot long (12 inches / 30 cm).
Their “Footlong” has been the backbone of their advertising for a number of years and any company’s advertising should be accurate and shouldn’t be misleading.
Well up step Australian Subway customer Matt Corby who purchased a Footlong and measured it before eating it. He then took a photo and posted it on Subway’s Facebook page with the request “subway pls respond”.
The photo is shown above and as can clearly be seen the Footlong isn’t in fact a foot but is 1 inch short at 11 inches.
Was this evidence that Subway had been deliberately misleading their customers by calling it a Footlong when it should have been called an “11 inch long”?
Does the extra inch matter?
Well, things took off quickly on Facebook and there were soon more than 100,000 likes and over 5,000 comments to Matt’s post. The shock discovery that the Footlong was an inch short of bread soon spread around the world.
Subway quickly supplied the following statement to the Chicago Tribune newspaper:
“We have redoubled our efforts to ensure consistency and correct length in every sandwich we serve. Our commitment remains steadfast to ensure that every Subway Footlong sandwich is 12 inches at each location worldwide.”
Is this going to be a good enough solution to the problem of the missing inch of bread?
Unfortunately for Subway within hours a number of lawsuits were filed in America in connection with the missing inch.
One of the lawsuits filed by Mr Buren from Chicago for example is claiming that the Footlong sandwich product is false advertising and as a result he is suing the company for $5 million.
Now, I’m an accountant and not a lawyer but if he’s successful the $5 million will buy an awful lot of 1 inch pieces of bread…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2013-01-24 15:19:412013-01-24 15:19:41When is a foot not a foot?
I can therefore say in all truthfulness and honesty that I think Ernst & Young is a great company.
They have some tremendous people working for them and the students I’ve met over the years have all been fantastic.
If I’m really honest and truthful though I have to say that in my opinion there is a bit of a question mark over some of the performances in the video below.
The video was apparently taken at an EY recruitment day event and I’ll leave it up to you to decide whether you think that EY did a good job on the song-writing side of things and whether the employees that joined in with the singing, hand clapping and swaying with such rhythmic precision should stick to doing consulting and client work.
Now to be fair it has to be said that the recruitment event where the EY song was filmed was held 12 years ago so things have no doubt changed since then with the recruitment techniques used. It’s not clear though whether there was a slump in people applying for positions with EY 11 years ago.
Now, all of you that have just had a great weekend and are reading this in the office on a Monday morning, join together and start singing “Oh Happy Days, Oh Happy Days…”
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2013-01-21 06:52:402013-01-21 06:52:40Should Ernst & Young have done this?
Here’s an interesting question. If you resign from your job, what should your resignation letter look like?
Should it be simple, brief and straight to the point or should it be sent to the whole office and include various accusations about your boss including a certain, how shall we say it but, adult liaison in a meeting room with a colleague?
Well if your name is Kieran Allen then the second option appears to be the correct answer.
Mr Allen used to work for MEC, one of the leading media agencies in London. Yesterday he resigned and his resignation letter contains some pretty juicy accusations.
Now whilst this isn’t the first resignation letter that contains some juicy accusations it is the first resignation letter with juicy accusations that has gone viral on the Internet and as a result has been seen by millions around the world.
To avoid a knock at the door from some lawyers, I’ll keep the manager’s name anonymous (although if anyone wants to see the full letter then a simple search on the Internet will reveal it!) but Mr Allen claimed that he left MEC after 2 1/2 years of “loyal service” because of the treatment he received from his manager.
Mr Allen claimed he was forced to take time off work due to stress after being overloaded with work by the manager and he claimed the manager made him feel like a complete outsider on his return.
We’ve all been overloaded with work at some stage or other so this is initial claim isn’t that exciting.
The more interesting accusations though were when he claimed in his letter that the manager “regularly made sexist and other bigoted remarks” and “took a female colleague out for a drink on the day he interviewed her, then took her back to the MEC offices that night and had sexual relations with her in the meeting room on the 3rd floor”.
Mr Allen then went on to say that all of these allegations were “common knowledge throughout the team”.
Some people will applaud Mr Allen for his resignation letter whilst others (no doubt including his manager) will say that he should have kept his issues to himself.
Either way there are some serious lessons to be learnt from all of this. For example, it’s probably advisable to make sure you knock on the door of the meeting room on the 3rd floor at MEC before opening it…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-09-26 15:24:532012-09-26 15:24:53Is this the best or worst resignation letter ever?
It hardly seems like 4 years ago that President Barak Obama became America’s 44th president but here we are with just a few weeks to go before the next US election takes place.
Whilst there will be plenty of arguments for and against each candidate over the next couple of months I came across an interesting website which summarises the political donations made by companies in America.
The website opensecrets.org was created by the Center for Responsive Politics which tracks money in politics.
After quickly using the search function on the site it was straightforward to identify the amount of money that the Big 4 have donated to the election campaigns for President Obama and his Republican opponent Mitt Romney.
The donations as at the time of writing are:
Donations made to Barack Obama / Mitt Romney by the Big 4:
Deloitte (Obama: $291,056; Romney: $286,110)
Ernst & Young (Obama: $38,350; Romney: $158,925)
KPMG (Obama: $24,498; Romney: $67,250)
PwC (Obama: $55,033; Romney: $266,650)
Total (Obama: $408,937; Romney: $778,935)
I’ll leave it up to you to perform your own analytical review on the above figures and to decide who the Big 4 appear to want to win the next US election and of course it’s probably got nothing to do with Barack Obama’s plan to increase the marginal rate of tax on high earners and Mitt Romney’s proposal to reduce taxes for high earners…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-09-24 19:35:572012-09-24 19:35:57Who do the Big 4 want to win the US election?
One of the key attributes of finance and business people should be ethical behaviour. Note that I say “should be” as not everyone seems to agree with this approach.
Former Deloitte UK employee Nahied Kabir seems to have a slightly different view of what is acceptable in terms of ethical behavior.
Here’s a quick multiple choice question for you to see how ethical you are compared to Mr. Kabir.
Question – You’re struggling a bit with your professional exams and your employer’s policy is that if you don’t pass your exam within 2 attempts you’ll lose your job. Do you:
a) Focus your efforts on passing your exams. Or,
b) Focus your efforts on forging two doctor’s certificate.
Now, in my opinion (and hopefully in your opinion as well!) the correct answer is (b) (a).
Alas for former Deloitte employee Mr. Kabir he chose option (b).
In summary, Mr. Kabir failed an exam twice and at a meeting to discuss terminating his employment contract with Deloitte he produced a forged doctor’s note.
Deloitte let him sit the exam again and he passed this time. He then had a further 3 exams to sit and you guessed it he failed all 3.
At the next meeting to discuss things with Deloitte he claimed that he failed due to the ill health of his mother. He then produced a second forged doctor’s note from another doctor claiming his mother was suffering from ill health.
Proving that as well as being a pretty rubbish accountant he was also pretty bad at forging letters, the forged letter from the second doctor was exactly the same as the forged letter from the first doctor with the exception of only 4 words!
It’s probably no surprise to you that Mr. Kabir is now no longer working with Deloitte and the accounting body he was sitting his exams with (ICAEW) have published their report on the disciplinary action they took against him.
Again, it’s probably no surprise that he was “declared unfit to become a member of ICAEW”.
There’s no news yet whether Mr. Kabir is planning a successful career as a bank note forger…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-09-10 10:27:102012-09-10 10:27:10Should this former Deloitte accountant become a doctor?
Marie Claire is one of the leading women’s magazines in the world. It was first published 75 years ago in France and now has various editions around the world.
Although I must admit that I haven’t read a copy in detail I’m told by some of the ladies in the office that it’s a good mix of fashion, beauty and health.
Next month’s issue though is going to have something which has never been seen before in a UK women’s magazine.
Now, I’m not talking about a woman’s magazine writing about the latest football results or the new Range Rover car that has just been released. No, instead I’m talking about a pretty innovative advert.
On pages 34 and 35 of next month’s magazine there will be a 45 second video advert. Yes, that’s right – a 45 second video will be embedded into the pages of the magazine so that when the relevant pages are opened the video will start to play.
The video advert is produced using technology by US company Americhip and will be for a perfume by luxury fashion house Dolce & Gabbana and reportedly will feature two models posing near a coastal scene.
There’s a constant challenge for advertisers to identify eye catching adverts and this video advert embedded within the magazine will certainly be eye catching.
It will also no doubt be very expensive and the cost of including the video advert has not been disclosed. Interestingly the company that will be paying for the advert is Proctor & Gamble as they are the company that produces the perfume under license from Dolce & Gabbana.
Oh and before you all rush out to buy the magazine it’s worth checking that your copy includes the advert as due to cost reasons not all copies will have the advert in it. If you are lucky enough to get hold of a copy with the video in then it will no doubt be a good read or should I say a good watch.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-09-07 10:45:122012-09-07 10:45:12Would you prefer to read it or watch it?
Adidas and Puma are two of the top sportswear brands in the world.
Interestingly though they were actually started by two brothers.
In the 1920s in Germany, brothers Adolf and Rudolf Dassler set up a shoe making business but soon fell out with each other and went their separate ways.
Adolf (Adi) Dassler kept the original company but renamed it Adidas (named after his first name and part of his surname) whilst Rudolf left and set up Puma.
Since the split there has been intense rivalry between the two companies and over the years there have been some famous examples of both of them trying to outdo the other in terms of publicity.
For example, back in the 1970s at the start of the 1970 World Cup final, arguably the world’s best ever footballer famously stopped the referee with a last minute request to tie his shoelaces just before the kickoff. The result was that millions of TV viewers saw Pele tie up his Puma football boots.
An early example of “guerrilla marketing” and priceless publicity for Puma.
More recently there was some rather unusual publicity for Adidas.
At the recent Wimbledon tennis Championship in London, the unlucky losing finalist Andy Murray had a few problems with his shorts.
Adidas pay a significant sum to Murray to sponsor him and in return he wears Adidas tennis gear, including Adidas shorts.
In his Wimbledon match against fellow Adidas sponsored tennis player Marcos Baghdatis, he lost two points after a tennis ball fell out of his Adidas shorts mid-point (Murray puts one tennis ball in his pocket whilst taking his first serve in case he needs to take a second serve).
Luckily for Murray he went on to win his match against Baghdatis but for Adidas it could have been an embarrassing problem had he lost because of the design of their shorts.
Adidas reportedly said that the error in the depth of the pockets was due to the shorts being handmade.
There’s a saying that there’s no such thing as bad publicity and to be honest this has probably turned out ok for Adidas.
More people are probably now aware that Adidas sponsor Murray and they will no doubt change the design of the pockets so there’s no danger of the public seeing one of Murray’s balls popping out of his shorts in the future.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-07-18 15:57:062012-07-18 15:57:06Tennis star's balls fall out of his shorts...
It doesn’t matter how good your answer is, if the markers can’t read your handwriting you won’t get the marks. It’s as simple as that.
As well as having the requisite technical knowledge students must have the necessary exam technique to ensure a pass. One of the more common complaints from markers is that sometimes the handwriting on exam scripts is so bad that they simply cannot read the answers. If they cannot read the answers then they cannot give you any marks.
Whilst it’s probably a bit late now to radically change your handwriting style, there are some simple steps you can take to make your script more readable. An easy one is to leave a gap between each paragraph. This breaks up the text on the page so that it doesn’t look too cluttered and will be easier for the marker to read.
Another point is to practice writing answers under exam conditions. Some of the papers are “written style” papers rather than a numerical one so you must get used to writing under exam conditions. The last time you probably wrote for 3 hours was at the last exam session! Everybody tends to use computers more and more these days and it’s relatively unusual to be writing significant amounts by hand. Practice writing answers under exam conditions and then give your answer to a friend or family member and see if they can understand it!
This was brought home to me the other day when I was talking to my niece. When I mentioned that as a child I used to write notes to fellow students and pass them around the class, she looked at me as though I was a dinosaur. Nowadays they don’t handwrite them but instead send phone text messages to their fellow students. Writing by hand will soon become a thing of the past…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Steve Crossmanhttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve Crossman2012-05-28 18:58:132012-05-28 18:58:13It doesn’t matter how good your answer is, if the markers can’t......
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