Petrol Pump Fraud

With the number of distractions we have today, all it takes is a 2 second distraction at the right time for the petrol pump attendant to make a cool 500 bucks of you. How is done? When you pull up to fuel up.. He will ask you to look at the pump to ensure that the counter is zero, but just at that time someone will distract you with an offer and if you engage in that conversation the other guy will start filling up your car. Once done, you…

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Data Analysis leads to Catching a Thief

After getting reports of robbery on trains, Government Railway Police (GRP)  recently analysed passenger data on trains where robberies were reported to look for patterns or trends. Using the data they were able to identify one passenger who was there in those trains when a robbery was reported. You can read more on https://www.thehindu.com/news/national/police-end-four-year-run-of-train-thief/article27166426.ece. If the railways police can somehow make this data analysis realtime, they can then enter a crime scenario and find a possible list of suspects.

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Startups need to focus on the Unsexy – It can make or break them

Cash is King! People say. That’s the more true in the startup world than anywhere else. Having cash in your bank account ensures that you can survive and maybe become a Unicorn. Most founders focus on the problem of getting more cash but if they also focus on how they are spending the money they can ensure that they are not overly dependent on external funds. One key tool to monitor your cash is doing bank reconciliations on a regular basis. This is a very boring,time consuming and completely unsexy…

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Did the Internal Audit department of VW warn the management?

A recent internal audit at VW in response to the scandal revealed that that Bosch (the company that supplies electronics to the auto industry) warned VW only to use the cheat mode internally back in 2007, and that a whistleblower tried to raise the alarm internally in 2011. You can read more about this at http://arstechnica.com/cars/2015/09/report-vw-was-warned-about-cheating-emissions-in-2007/

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False Revenue in the books is an ongoing risk

Recently shares of chipmaker Marvell plummeted on Friday after the company said it was unable to file its quarterly earnings results on time, but that it expected to post a whopping $382.4m net loss. As per Marvell’s SEC filing Audit Committee of the Company’s Board of Directors is conducting an independent investigation to review certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an…

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Should you use Tiger Teams in your Audit function?

A Tiger Team is a team of highly paid experts typically sent in to solve impossible to solve point problems. The problem with the concept in execution is that these teams are often made up of folks with great skills but even greater egos who parachute into a company, act like they already know everything, and then provide advice that may have little to do with the problem or that the company either can’t or shouldn’t follow. It wasn’t that the idea didn’t have merit, it worked rather well for…

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Risk from Mobile Applications

As communication channels are opening up and smart phones are gaining popularity, hackers are taking advantage of people forwarding messages without validating the details. In one such instance information about a mobile app from RBI started to make the rounds only to discover that it was a fake app. Please read RBI’s press release below:- “It has come to the notice of the Reserve Bank of India that an app (application) is doing rounds on What’s App purportedly to facilitate checking of balance in customers’ bank accounts. The application has…

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Want to experience the challenges a CIO faces in managing information security issues???

Today IT security is becoming more and more important and its hard for someone with no technical background to really get their heads around the types of issues faced and the new risks in this domain. Trend Micro has rolled out a unique role playing game to put you in the shoes of a CIO managing some of these issues As per Trend Micro site “To help develop the mindset that a real-world, discerning top company executive needs to address targeted attacks, we created a game that simulates the many challenges of…

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Don’t Forget about Small Data

Recently, big data has become a buzzword, or catch-phrase, about analysing massive amounts of structured and unstructured data. I am understand that this data is so large that it’s difficult to process using traditional database and software techniques. And everyone is looking to do something with big data, however have you considered if you use big data little brother ‘small data’ effectively before you start to spend money on big data? Especially when it comes to the audit or risk functions the answer to this would be “NO” in a…

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Learning to see the Big Picture

I saw an interesting video on TED today on How art can help you analyze – Amy E. Herman. In the video Amy talks about how learning to analyse art can help doctors, nurses, police officers learn real world skills. Studying art like René Magritte’s Time Transfixed can enhance communication and analytical skills, with an emphasis on both the seen and unseen. You can watch the video here http://ed.ted.com/lessons/how-art-can-help-you-analyze-amy-e-herman. This method could also be used as a tool to help internal auditors be better at their jobs and help them see…

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