A Model to predict accounting fraud!

September 4, 2007

Imagine that your auditor has a magic wand to predict if your company has a high probability for financial fraud. It is true now as researchers came up with a model to predict material accounting manipulations. The mathematical model released in June, focus on 5 areas where manipulations likely to take place: accrual quality (in terms of the number of accruals being booked), financial performance (including earnings growth, cash margins, and transaction management), nonfinancial performance (order backlog and employee head count), off-balance-sheet activities (operating leases and pension assumptions), and market-based measures (valuations and price-to-earnings ratio).

As accounting numbers are balanced and inter-connected, a fraud score exceeds the norm sends immediate red signal to auditors. For more details about the model, please check out CFO.com What’s your fraud score.

A tool like this could be an option to easily spot the high risk areas for auditors. This means reducing the auditing money for companies. 

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Approva’s integration with Mircosoft Office

August 28, 2007

For most of ERP vendors, one of the areas which makes the solution stands out is the usability. The application which provides the intuitive navigation and the seamless integration with information worker’s daily job, wins the competition.  I could not agree more on it. iPhone concept does work for ERP software.

Approva’s integration with Mircosoft Office is a good case study of Office Business Application (OBA) as it puts.  You can see how it integrates with Microsoft portal, Outlook and Excel.

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000000530

Choosing significant accounts after AS5

August 17, 2007

After the Auditing Standard No. 5 with ‘risk based, top down approach’ replaced AS2, companies will change the way of selecting significant accounts from previously ‘whether it exceeds materiality threshold regardless of risks’, to qualitative factors. This ‘qualatative first, quantative second’ approach will allow companies to focus resources on key controls and therefore to reduce the costs.

An article from Compliance week suggested a new way of choosing significant accounts. Read the rest of this entry »

Accenture to invest $250M to expand technology consulting

July 18, 2007

Accenture said it will invest more than $250 million over the next three years to expand its technology consulting capabilities.

The investment is designed to address a strong increase in demand from clients for services an advice from technology -platform-independent services providers.

Specifically, the investment will focus on helping clients: develop IT strategies that deliver measurable business outcomes; standardize, virtualize and secure their IT infrastructures and applications; improve worker productivity; and implement new consumer-like, Web-based applications that tap into the potential of services-oriented architecture (SOA) and other newer technologies.
 

Among specific areas, one of them is to deal with issues from compliance requirements, such as risk management, application security… Read the rest of this entry »

Automating Internal Control Process

July 18, 2007

As the part of Section 404, Sarbanes Oxley Act requires the review of user access. Most companies follow similar process: once or twice a year, IT department prints out the application access and sends to business managers to confirm their staff’s access to ERP applications. This could become a big headache for corporate internal control team if the company has thousands of employees. The complication arises because of the cultural barrier between IT and business departments. Most business managers are not familiar with the ERP backend user authorizations. And in reality, the collaboration between IT and business managers is not that great. There is one independent survey by Ponemon Institute this Feb.. which mentioned that ‘two thirds of 627 respondent companies said their IT department and business functions rarely collaborate in identity management’.

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Oracle Expands Identity Management Ecosystem

July 6, 2007

Building on the success of its Extended Identity Management Ecosystem and Reference Architecture initiative, Oracle today announced it has added eight new members and more than doubled the size of the ecosystem. New Independent Software Vendors (ISVs) including Arcot, Cyber-Ark, ForeScout, Imageware, Juniper Networks, Inc., Pay By Touch, Quantum Secure and TriCipher are working with Oracle to provide value added integrations to Oracle(r) Identity Management thereby delivering solutions that extend beyond traditional access and identity management infrastructures. Read the rest of this entry »

China to soon takeover India in outsourcing?

July 6, 2007

The offshoring trend is likely to change in the near future, according to an IDC study.The analyst group forecast that Chinese cities will soon overtake their Indian counterparts as top destinations for offshore global delivery by 2011, based on the results acquired from its Global Delivery Index.

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The Incoming of ‘Federated Identity Management’

July 6, 2007

Boeing joined Transglobal Secure Collaboration Program, or the TSCP, to collaborate trusted partners when working on the Future Combat Systems program for the US Army. TSCP is about managing identity and enforcing IT security across corporations and national boundaries, in industries where identity management is critical, such as defense industry. This is a great example of  ‘Federated Identity Management’. Read the rest of this entry »

The Top 10 List for Implementing AS5

July 3, 2007

Most people believe that the AS5 will save compliance costs by emphasizing a top down, risk based approach. Todd Neff at Compliance Week mentioned top 10 list for implementing AS5 where to invest most of your time and efforts: Read the rest of this entry »

Market for Wealth Management Compliance Systems 15% Jump by 2011

June 26, 2007

Investment advisors are expected to spend the most as they are among the fastest growing but most regulated group of advisors. But hedge funds are also likely to increase spending.

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