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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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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Do we need audits?

Should companies eliminate audits? A interesting viewpoint by Fortune.com  The current system for analyzing and auditing companies’ internal controls needs an overhaul. Do the millions that large companies spend on annual audits actually provide the information investors need and are paying for? And are the earnings reports that companies produce trustworthy? If recent events offer any indication, the answer to both questions is likely a resounding no. On June 8, the U.K.-based CCP research foundation reported that from 2010 to 2014, 16 global banks, including Bank of America, JP Morgan, and…

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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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Companies (Indian Accounting Standards) Rules, 2015 (released on 15th Feb 2015)

MCA has issued Companies (Indian Accounting Standards) Rules, 2015 under the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956). These Accounting Standards (Ind AS) that are inline with upcoming International Financial Reporting Standards, which will alter the way transactions get accounted in India.  During the first phase all companies, listed and unlisted, with net worth over of Rs 500 crore and their holding, subsidiary, joint venture or…

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Whistle Blowing to external partiesVs Raising Concerns to the Internal Audit team

A recent article on Sydney Morning Herald  “Whistleblower’s NAB leak reveals persistent bad behaviour in financial planning, fuels royal commission calls” raises the question about how seriously was internal audit taken in NAB.I am sure the internal audit reports would have highlighted these concerns in addition to the serious issues the internal audit team found in NAB’s It systems in their 2010 report.It also raising an interesting point about how people see internal audit in companies. Was the whistleblower from NAB more comfortable in going to the media rather than…

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Supply Chain Audits

Supply chain professionals do lots of supplier audits. They ask about quality standards, IP data protection, manufacturing process certifications, contract review requirements, document control measures, and source of origin of parts and raw materials. But, surprisingly, they may not be asking how suppliers deal with bribes and corruption issues, according to a recent report from Achilles, a global supplier information management company. Globally, about a third of large companies surveyed said they issue tenders or contracts without having an anti-bribery and corruption policy for their main suppliers, noted Achilles in…

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