Record year for fraud says KPMG

Vigilance is needed by financial managers and auditing professionals more than ever before after the publications of KPMG’s latest Fraud Barometer with record figures. According to an article on The Guardian website, “The firm's Fraud Barometer, which has been running for 25 years monitoring reported cams, recorded £2.5bn of fraud between July and December.”
The financial profession need to be aware of such details not only in their role of financial audit professionals but also in that financial institutions were the ‘largest victims of fraud’. Companies and pubic bodies have brought more fraud to light as they implement budget restrictions and austerity measures according to sources at KPMG. Yet these tough economic times have also given rise to more frauds being perpetrated. As Hitesh Patel, a forensic partner at KPMG, explains in the article: "2011 was an extraordinary year for fraudsters. The economic uncertainty has been the double-edged sword behind these numbers.” http://www.guardian.co.uk/business/2012/jan/30/fraud-managers-kpmg-barometer

Auto-enrolment outside the U.K.

With auto-enrolment due to be rolled out in the U.K. what can we learn from the many other countries who have already gone down this route to improve pension provision? In an article in Professional Pensions magazine, Michael Bow looks at how they operate the system in countries including Australia,the United States and Sweden.

In ‘Auto-enrolment 2.0: Lessons from abroad’ he finds two common elements that governments and pension professionals must ensure for the success of the scheme. Looking at the first one, ‘Funding and Contributions’, he considers the US schemes where legal statutes were employed to ensure regular increases. This is not currently part of the UK proposal. Under the second point of ‘Engagement’, Bow considers the effective communication scheme used in Sweden to ensure people understood their pensions. For more details, including the pensions experience in Australia, read the full article at http://www.professionalpensions.com/professional-pensions/news-analysis/2137752/auto-enrolment-lessons-abroad

How to choose a career in insurance.

Risk Management? Underwriting? Loss Adjusting? All are potential career paths in the insurance industry and the Chartered Insurance Institute’s bright and interactive ‘Discover Risk’ website is aimed at helping students, graduates and others navigate their choices. Its career advice includes personal case studies from all areas of the industry and definitions and tips for each specialist risk area. It defines the role of an underwriter, for example, as someone who assesses risks and decides whether or not to accept applications for insurance cover, and on what terms. The aim is to minimise exposure for their company and help it to make a profit.” The Chartered Insurance Institute is the world’s largest professional body for those working in insurance, risk and financial services. Its membership scheme offers access to exams and awards eventually up to Chartered status with the Discover Risk website helping you to make the first step. Discover the site at http://www.discoverrisk.co.uk/about-risk/career-paths.aspxChartererd
Insurance Institute

New audit legislation – your views

After the decision to abolish the Audit Commission last year, the government are currently drafting the legislation for a new local public audit regime. According to an article on the website of the Institute of Chartered Accountants for England and Wales (ICAEW) this could mean increased opportunity for professional auditors in the public sector.

The institute is one of the bodies contributing recommendations to the Department for Communities and Local Government and are hosting a meeting with the department on Jan 31st. With this in mind the ICAEW encourages professional accountants and auditors to get in touch with their views on how public money should be scrutinised. The article explains that ‘the new regulatory regime as part of the overall framework is based on the existing private sector Companies Act model.’ The first draft of the legislation should be available in the Spring. For your chance to contribute as a finance professional read the article at http://www.ion.icaew.com/MoorgatePlace/23767

Another cautious year ahead? Financial plans for challenging times.

Financial managers and their teams still need to forecast, manage cash and make spending decisions despite the uncertainties of the economic world around them. Expert predictions range from a slow recovery to another year of slowdown. In an article on About.com’s Business Finance guide entitled ‘5 Financial Resolutions for the 2012 New Year for Business Owners’, there is guidance for those professionals managing the money in whatever size of business.

Cash flow management is seen as even more important than ever, particular liquidity, with the article advising holding more cash than normal to manage short-term demands. With a similar eye on outgoings, it also advises delaying major purchasing decisions on such as plant and machinery and to ‘Institute Smart Cost-Cutting Strategies’.

The article urges creativity when looking at costs in areas such as advertising or capital purchasing - rather than just cutting something out. See how your financial resolutions compare by reading the full article at http://bizfinance.about.com/od/smallbusinessfinancefaqs/tp/5-financial-resolutions-2012-new-year-for-business-owners.htm