The Hindu Business Line : Add to your anti-fraud armour

"Fear of fraud should force every board director to take responsibility for their companies' defences and ensure they have strong controls in place," states E&Y.

The guide speaks of "the most common types of fraud", ranging from straightforward asset misappropriation, to false accounting and corruption. "From anti-fraud policies and control systems through to practical steps taken once a fraud has been discovered, the report will provide directors with the necessary armour in the ongoing battle against fraud." Add to your gear, because you never know...

A review of accounting packages

THE ICAEW surveyed more than 1,000 personnel responsible for financial and business software and found that Sage's Instant Accounting package — which costs less than £100 — achieved the highest level of customer satisfaction.

Accountancy reports that the Institute also found that the biggest and most expensive business software systems, including accounting packages, deliver the lowest levels of customer satisfaction. "Businesses were least satisfied with the large ERP systems, such as those supplied by Oracle and SAP."

Alarmingly, 12 per cent of those using accounting packages "reported that they had suffered a `business critical failure' during the past two years."

It is expected many businesses would upgrade their software with the introduction of international accounting standards in 2005.

ICAEW responds to merger talks

A CONSOLIDATED body comprising the ICAEW, the CIPFA and CIMA is expected to be born by the end of 2005, going by the current pace of discussion among the three, though any final decision will rest with the respective memberships of the three institutes. Accountancy reports that the combination "would create a single professional body representing in excess of 200,000 accountants and more than 85,000 students, including all of the many different specialisms that make up the modern accountancy profession."

Also, such a consolidation is expected to result in "unrivalled expertise, member representation and support". Merger talks are not new.

There have been "several unsuccessful attempts to merge over the past thirty years." What's new is "the unique combination". No name has been decided yet. Something for our own warring Institutes to consider.

Card industry's cost worry

FROM Deloitte Financial Services is a new study on the market for credit cards in the US. "The latest available figures show that in 2002 more than $1.5 trillion-worth of card transactions took place, and are projected to grow to $2.8 trillion by 2006. General-purpose cards (Visa, MasterCard, American Express and Discover) dominate, capturing 92 per cent of transaction volume," informs the firm. There are challenges to the industry such as falling profitability.

"The growth rate of new cards in issue is declining, and although transaction volumes and outstandings have continued to rise, banks have found it increasingly difficult to translate that trend into profits.

Costs have been rising; charge-off expenses, for example, rose by more than 15 per cent in 2002 to more than $35 billion industry-wide.

If not for a quirk in today's economy — the unprecedented low cost of funds — the profitability picture would look much worse." We may have to look at how the numbers are in our country.

Tough interview queries

AMACOM (American Management Association) has put together "Beat 10 of the Toughest Interview Questions" in its newsletter.

"If you've ever wondered how to answer stumpers like, `What's your greatest weakness?' or `Tell me about a problem you couldn't solve,' this quiz is for you. See what's really behind those tricky questions. Take this quick quiz, complete with tips, to ace your next interview."

The intro to the quiz says: "When you understand what the tricky questions really mean, it's less difficult to prepare impressive answers in advance. The quiz below will help you crack the code. Each question is followed by three possible meanings. Pick the one you think is correct." Check it out.

GlobeTrot@TheHindu.co.in