The Good, the Bad and Ap Lang and Comp Argument Essay Topics

The Good, the Bad and Ap Lang and Comp Argument Essay Topics Furthermore, these essays enable students develop critical thinking skills to approach a wide variety of topics. The ideas you need to present in these sorts of writing are applicable to the present times so that it's critical to present them as such. Even in the event that you don't like to argue with the points of different individuals, it's still true that you must be prepared to compose an argumentative essay at any moment! Through such resources, you will discover the precise meanings of words together with knowledge about the content of what you're reading. In addition, the paragraph doesn't support the thought that polite speech conveys tone online as it primarily focuses on the deficiency of polite speech on some sections of the web. Verify the arguments of the US citizens who don't support the notion of the 2nd national language. Knowing the question you're answering is the most essential portion of AP writing. The Demise of Ap Lang and Comp Argument Essay Topics Try new strategies you find, even should they feel silly, for no less than a few questions to learn what works for you. Choosing where to stand, though, can be challenging. The last rhetorical methods. Details of Ap Lang and Comp Argument Essay Topics Prep students will guarantee the documents. Handling Argumentative Essay Prompts It's essential to have the ability to tell the different kinds of AP Lang essays if you would like to receive the best score during the exam. Get prepared for the actual pain to start. To assist you more easily determine which sort of e ssay you should use, be certain to read and complete sample tests. You should do a decent amount of research for this. For those who have access to multiple practice tests, you're able to even take complete tests at distinct times in the studying procedure to observe how you've improved and what you still should work on. You are some tested tips. To assist you have a better comprehension of the writing process of argumentative essays, we've created a guide which should help teach you all of the critical things you have to know. You may have a look at the extra details on how best to compose an eye-catching essay introduction with a hook. To receive the best grade, you will need to be certain you comprehend the question and organize your essay correctly. It does not merely repeat the exact same points. In such essays, the exigence in the literary definition is the crucial point to find and point out. After that, read the essay to receive an overall sense of what the writer is discussing. This isn't to say you ought ton't believe in what you're writing. Thoreau on friendship essay It is an extremely common fashion of writing the research paper because it's simple for the writer to follow it the sample papers are available on the internet for writing in apa format. What You Should Do to Find Out About Ap Lang and Comp Argument Essay Topics Before You're Left Behind English language classes usually call for a lot of writing. A whole lot of students become stumped inside this area and that could result in a serious delay in your writing process. AP English demands a lot of severe reading, and you may be tempted to speed-read. Become knowledgeable about the sorts of topics and comfortable with writing in various modes. Besides a firm stand, having convincing and logical groun ds to strengthen your claim is also crucial if you wish to compose a fantastic argumentative essay. Naturally, you must concentrate on supporting your thesis statement instead of the opponents. Lastly, you also need to make sure you'll offer sufficient supporting points to your claim. Where you stand will also help you produce strong grounds to strengthen your claim. The distinction is that you include the full data in the body text while you just name the arguments in your outline. Should they don't do that in a timely fashion, you won't receive any services we request, and we are going to eventually refuse to schedule any more appointments till they do. The choice to experience rigorous rounds of expensive and frequently unsuccessful IVF isn't one which can be made on a whim. As stated above, establishing a particular stand on the topic at hand is the essential element of an argumentative essay.

Essay about Nelson Mandelas Long Walk To Freedom

Nelson Mandela in his book, Long Walk to Freedom argues through the first five parts that a black individual must deal, coop, and grow through a society that is hindering their lives with apartheid and suppression of their rightful land. Rolihlanla Mphakanyiswa or clan name, Madiba was born on July 18, 1918 in a simple village of Mvezo, which was not accustomed to the happenings of South Africa as a whole. His father was an respected man who led a good life, but lost it because of a dispute with the magistrate. While, his mother was a hard-working woman full of daily choirs. His childhood was full of playing games with fellow children and having fun. In school, Mandela was given his English name of Nelson. After his fathers death, he†¦show more content†¦Nelsons life has been full of hardships and decisions, but his heart for the struggle has never faltered. Now let us examine Nelson in closer detail. Nelson is an individual who fought through many hardships, but was also faced with decisions that affected his future, his family, and his livelihood. As we look at Nelson deeper, we can see many interesting points. He was opened to new ideas and beliefs through his experiences in the schools of Heraldtown and Fort Hare, but knew there was something better. He decided to travel to Johannesburg to find new and greater opportunities. While, in Johannesburg, he believed education would be a key asset. While working for a small firm, he took classes at University of South Africa and eventually Wits University. Here is where his mind and social life flourished. He interacted with great minds and influential political individuals. He talked to many Africans without proper education, who contained more knowledge and better social skills than many Africans with education. But, he still persisted in acquiring his B.A. Wits University brought his life to new extents. He was also talking t o Indians, Coloureds, and whites for the first time in his life and Becoming friends with many more prominent African individuals. Nelson soon joined the ANC and became very prominent in the fight for freedom. Nelson was always open to listening to new ideas, but when his was just starting his fight. He believed that just AfricansShow MoreRelatednelson mandela is my hero1351 Words   |  6 PagesNelson Mandela Nelson Mandela, a true hero in this controversial world or just another politician? Was his 27 years of imprisonment for standing up against his nations government, which did not support human rights, equality and world poverty, something the country of Africa should be proud about? As disappointing as it might seem, the answer is a straight and simple, no. 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On 18july 1918 and named Nelson by one of his teachers, Mandela led the struggle to reinstate the apartheid rule of South Africa against racial discrimination. As well know as a democratic leader he was incarcerated for 27 years. Has been awarded the Nobel peace prize in 1993 and 1994 Nelson Mandela been voted as South Africa firstRead MoreEssay on The Man Who Changed South Africa: Nelson Rolihlahla Mandela955 Words   |  4 Pagesdecades and being a minority race? His name was Nelson Rolihlahla Mandela. He is a true inspiration to those who hear his story. Starting out as nothing more than a black man and ending as a person whose name is heard and recognized all over the world is something that just briefly explains Nelson Mandela’s life. As a true anti-apartheid Nelson Mandela did wonders for equality with much power even when imprisoned for nearly three decades (Smolowe 62). Nelson Mandela was a man admired by the world forRead Mo reNelson Mandela949 Words   |  4 PagesNelson Mandela The life story of Nelson Mandela has long become a legend, a story that transcends race, borders, culture, or language. He is one of the greatest leaders to ever step foot on this Earth. He was willing to give up his own personal freedoms for the good of his people. Still, his decisions at major points in his lifetime hold lessons for individuals who are inspired of becoming good leaders. Many leaders are inspired by the actions and decision-makings abilities of Mandela. He kept the

Wireless Communications & Networking-Free-Samples for Students

Questions: 1.Different antenna, such as yagi, horn, and celluar antennas, etc. has different merits. Research these technologies in details and pay specific attention to how they are used as well their strengths and weakness. 2.Compare and contrast the multiplexing techniques CDMA and FDMA in the area of wireless networking? 3.A local engineering group ask you to present your finding of the most recent advanced wireless technologies. Research these technologies in details and pay specific attention to how they are used as well their strengths and weakness. Answers: Introduction In recent times different kinds of antennas available those are facilitating wireless communication all over (Song, Nuaymi Lagrange, 2016). Among all the antennas available, microstrip antenna is the best and is expected to rule in mere future. The report will grandstand all the antennas and the wireless technologies, and their strength as well as weakness will be showcased in details. 1.Various antennas, those antennas strength and weakness, the antenna which will dominate in future. YAGI antenna YAGI antennas were previously used in the television, and they cannot be used for long frequency instead can only be used for only one frequency (Abdulhamid, 2017). The antennas consist of a reflector, single or multiple directors and single driven element. Strength YAGI has also limited impedance levels that can be lessened. The antenna is responsible for lowering signal strength because of the antennaa gain (Abdulhamid, 2017) YAGI has been designed in such a way that it can be ascend on the vertical poles and similar other poles. Weakness The gain permissible for a single YAGI antenna is 20dB The antenna sometimes extends for augmented gain levels Horn Antenna The radio waves within the Horn antenna transmit or radiates to the vacuum space and this antenna gives a transmission structure where both the impedance of the tube and the vacuum space is checked (Li et al., 2016). The antenna is basically of five prototypes-exponential, conical, sectoral, corrugated and pyramid. Strength The horn antenna gives efficient performance. The horn antennas gain can be prolonged up to 25 dBi. The antenna can function over a wide extent of frequencies as well as the bandwidth. Weakness The antenna has deficits and lack lots and lots of quality parameters. The antenna must be configured with care (Li et al., 2016). Microstrip antenna This antenna is used among the masses and is light weight. The microstrip antenna is very easy to install and configure. The antenna is used in the GPS, missile systems, satellite connection, and mobile connection (Jariyatantiwait Yen, 2016). The reasons why it is used among the masses and is used worldwide and is dominant because of the following magnificent features it offer. The advantages that microstip antenna offers are- The antenna is very easy to generate, install and configure. It is profitable in terms of budget. The microstrip antennas are potent radiators. The antenna is beneficial for both direct, circular polarization (Jariyatantiwait Yen, 2016). The antenna is very easy to collaborate with microwave incorporated circuits. 2.Compare and contrast CDMA and FDMA in the area of wireless networking FDMA FDMA Infrastructure and design: The frequency band is separated into multiple distinct small frequency bands or sub frequency bands. FDMA Terminals: The terminals of FDMA have its own frequency in a continued fashion. Signal Prepare: FDMA signal can be generated by means of filtering in the frequency domain. FDMA basic advantage: FDMA is relatively simple, easy to install and configure and full of elegance FDMA disadvantage: The frequency available via FDMA is not adequate and the frequency is rigid in nature. Other features: FDMA is sometimes combined with SDMA, TDMA for better consequences. CDMA CDMA infrastructure and design: CDMA is designed via expanding the spectrum by employing the orthogonal codes. CDMA terminals: All the associate CDMA terminals all at once can be made active in a continued fashion. CDMA signal generate: CDMA signals can be generated by specially designed codes and specially designed receivers. CDMA basic advantages: CDMA is easy adaptable in nature, requires less planning. CDMA disadvantages: The receivers are complex in nature and more complicated power control is necessary for the senders. Other features: CDMA is combined with the FDMA and TDMA can give better consequences though this combination procedure is little bit complicated. 3.Advanced wireless technologies, their use, their strength, their weakness Bluetooths use This technology is used worldwide and can be installed and configured in the mobile and other similar devices to transmit data, it may be audio, video or any word document file. Bluetooths strength Bluetooth technology is wireless technology Bluetooth is cheap and profitable in terms of budget (Dahiya Gill, 2016). It consumes low power and energy Voice, personal data and files can be shared via Bluetooth It is used worldwide and among the masses. Bluetooth is very easy to install and configure (Dahiya Gill, 2016). It is very easy to use and easy to handle. Bluetooths Weakness The Bluetooth devices can be easily attacked by the intruders or the attackers. The Bluetooth irrespective of laptops or mobiles is responsible for battery drain (Dahiya Gill, 2016). The data or information transfer via Bluetooth devices is comparatively slower. RFID RFID use Radio-frequency identification (RFID) tags technology basically utilize the radio waves to scan the tags attached with a particular object (Kitsos, 2016). RFID technology is also used to detect the living objects as well. RFID Strength RFID technology is used as security base system at the entry gate to detect any guests and visitors. RFID technology is used to detect living objects be it human beings and animals alongside the objects (Kitsos, 2016). RFID has the capability to detect living and non-living objects from two hundred meters. RFID Weakness RFID tags are comparatively large compared to the bar codes The RFID technology is complicated so the operator may face issues (Kitsos, 2016). RFID is comparatively less reliable and not full proof trustworthy. The RFID technology is very costly compared to the bar code. Conclusion It can be concluded from the above discourse that the mentioned microstrip antenna is better compared to all other contemporary antennas available. The CDMA and FDMA has been grandstand, both have been compared and contrast. The report also showcased the advanced wireless technologies along with the strength and weakness associated with the wireless technology. References Abdulhamid, M. F. (2017). Comparative analysis of distributed power control algorithms in CDMA.Radioelectronics and Communications Systems,60(6), 263-271. Brown, L. V., Zhao, K., Halas, N. J., Nordlander, P. J. (2016).U.S. Patent No. 9,372,151. Washington, DC: U.S. Patent and Trademark Office. Dahiya, M., Gill, S. (2016). Secured Bluetooth Authentication Using Artificial Neural Networks.IJRCCT,5(5), 244-248. Jariyatantiwait, C., Yen, G. G. (2016). 5 by 5 Microstrip Antenna Array Design by Multiobjective Differential Evolution based on Fuzzy Performance Feedback.International Journal of Swarm Intelligence Research (IJSIR),7(4), 1-22. Kitsos, P. (Ed.). (2016).Security in RFID and sensor networks. CRC Press. Li, L., Li, J., He, B., Zhang, S., Zhang, A. (2016). A Compact Circularly Polarized Microstrip Antenna with Bandwidth Enhancement.Progress In Electromagnetics Research Letters,61, 85-89. Song, Q., Nuaymi, L., Lagrange, X. (2016, April). Evaluation of multiple access strategies with power control error and variable packet length in M2M. InWireless Communications and Networking Conference Workshops (WCNCW), 2016 IEEE(pp. 379-384). IEEE.

Virtue of Aquinas and Machiavelli Essay Essay Example

Virtue of Aquinas and Machiavelli Essay Essay The author’s end in this essay is to measure the definition of virtuousness harmonizing to Aquinas and compare/contrast that with Machiavellian virtuousness. Following this rating the writer will try to discredit Machiavellian virtuousness as being shallow and impossible. Trusting on inquiry 55 from the Summa Theologiae and assorted chapters from The Prince. the writer hopes to put a solid and concrete statement against Machiavelli. It is deficient to compose of Aquinas without first adverting Aristotle and the relationship Thomas Aquinas had with his work. Aristotle writes at great length of the human good. The good for adult male. harmonizing to Aristotle. is an active usage of those modules which separate adult male from the remainder of nature. viz. ground and will. which are distinguishable from lower modules such as feeling or reaction. One rule that profoundly influenced Aquinas was Aristotle’s theory that the moral virtuousnesss are each an norm of two opposing human traits ( which is how the mean individual gauges ethical motives today whether they are witting of it or non ) . Courage is found between cowardliness and heedlessness. generousness between stinginess and extravagance. We will write a custom essay sample on Virtue of Aquinas and Machiavelli Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Virtue of Aquinas and Machiavelli Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Virtue of Aquinas and Machiavelli Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The highest good for Aristotle is found in the contemplation of truth. he believed this was the highest portion of man’s nature ; that it was so because of its trust on man’s mind and ground. Thomas Aquinas took the contemplation of truth a brilliant measure farther by contending adult male. through seeking his ultimate terminal. as take parting in the very nature of God. For Aquinas this engagement is the province of Grace. A individual in the province of Grace possesses certain powers. these are referred to as virtuousnesss. More specifically they are infused virtuousnesss that can be separated into two distinguishable sorts: Theological virtuousnesss and Moral ( or Cardinal ) virtuousnesss. Before diging excessively profoundly into the particulars of these virtuousnesss it is of import to set up some land work. Thomas Aquinas defines virtuousness as â€Å"a good wont bearing on activity† . We can besides associate this definition to a good module. viz. wont. Intrinsic to the construct of virtuousness is habit. Habit harmonizing to Thomas can be within the natural order or elevated to the Divine by Grace. Habits are seen as â€Å"stable dispositions† . or qualities. that guide the modules to move a certain manner. Habits can be infused or acquired depending on the module. Of class non every wont is a virtuousness but merely one that guides a module. through the usage of ground. toward the good ; the good being the Ultimate terminal or the Beatific Vision which awaits us when our life here on Earth is over. Aquinas makes a cardinal point about virtuousnesss. The cardinal point made is between what Aquinas refers to as the infused virtuousnesss ( those which are God given and work in us without intervention from the modules of adult male ) and the acquired wonts. When these acquired good wonts become regular pattern for us we call them our â€Å"second nature† . Our 2nd nature leads our actions to flawlessness. Elemental and perfectly necessary for the development of our 2nd nature are ground and will. our mind. The infused virtuousnesss. on the other manus. are a gift from God and are therefore called supernatural because they transcend ground and will ; they are gifts which we can non freely get or run. Among these infused gift virtuousnesss are two sorts: the first are the Theological virtuousnesss ( Faith. Hope. and Charity ) which are concerned straight with God and our ultimate terminal. which are unaided by ground. The theological virtuousnesss supply adult male with the love of God and learn us His will. The 2nd and lesser of the infused virtuousnesss are the moral virtuousnesss. The moral virtuousnesss are concerned with human action and non with God himself. More specifically they are concerned with human behavior. The four moral virtuousnesss ( which are besides called Cardinal virtuousnesss ) are Prudence. Fortitude. Temperance. and Justice. Where the Theological virtuousnesss are tied into the supernatural. the Cardinal virtuousnesss are associated with the natural universe. Among the four Prudence is the highest because it is linked with ground. The rule act of Prudence is the executing of right or good ground. Prudence guides our ground. Examples of this are good judgement and the ability to cover with the unexpected in a good manner. Fortitude is concerned with the ability to cover with what is painful or unpleasant. Temperance is associated with the impulses and cravings for what is enjoyable and eventually Justice towards the will of people. Emphasis must be made on the cardinal difference between the two types of virtuousnesss. Theological virtuousnesss ( covering with the occult ) and Cardinal virtuousnesss ( concerned with the natural ) . A moral virtuousness by definition avoids extremes by manner of the usage of human ground. the theological virtuousnesss transcend ground. The supernatural and natural virtuousnesss are interconnected as Aquinas explains: â€Å"Grace ( the occult ) does non destruct but builds upon nature† . Ultimately mortal man’s modules can be described as holding ground which is enlightened by religion ; this elevates adult male into boundlessly higher fields than other animals. After sufficient discourse and account about Aquinas and virtuousness we come to a hamlets. Some four hundred old ages subsequently a new idea emerges with the deep and fractured ( some would state profoundly fractured ) head of Machiavelli. a adult male who continues to offer so much excessively so many slimey politicians across the Earth. Machiavelli and his position on the human status and more specifically human virtuousness in footings of the political adult male is the 2nd subdivision of our probe. Prior to Machiavelli the position of a political leader ( or Prince. as referred to by Machiavelli ) was much different than his ain reading. A Prince and his functions in respects to political authorization were viewed as rightful merely if the exerting swayer had a strong moral character and was a virtuous individual. A swayer was viewed as making good merely when he sought the good. Rulers had to gain the right to be obeyed and respected. This position of a swayer is called a â€Å"moralistic authority† and is exactly what Machiavelli criticizes in his work titled The Prince. In composing The Prince. Machiavelli sought to snuff out so current positions ( or at least present a radically different position ) of political authorization. Machiavelli preached that there is no moral footing on which to judge the difference between correct or illicit utilizations of power. Rather. whoever has power has the right to command ; since goodness does non guarantee power and the good individual has no more authorization merely because he is good. Good or morality is ineffective in the acquisition and care of power. Obviously this position is in blunt struggle with the thoughts of a moralistic political ideal. For Machiavelli the merely existent concern of the political swayer is the acquisition and care of power entirely and non the common good of the community. Virtue. as had been taught by the philosophers preceding Machiavelli. is really frequently incompatible with his impression of effectual usage of power. This is so because those who are willing to utilize tactics without any moral backup are certain to throw out he who acts harmonizing to his virtuousness and is unwilling to use other. immoral tactics. Harmonizing to Machiavelli the lone confidence that a prince can get the better of the strains of political relations is if he is willing and ready to travel against virtuousness when necessary. This kind of swayer must non be low to utilizing tactics such as slaying. misrepresentation. graft. use. and any other manner of immoral behavior he sees fit if certain state of affairss require it in order to keep ( or addition ) power. For Machiavelli it is precisely this attack to opinion that he sees as the â€Å"virtues† of leading. The usage of any manner necessary to obtain and keep power is virtue. Through this bold attack to opinion we are given an wholly new return on virtuousness and arguably mankind itself. With this new vision of political regulation. purged of any moral influences. we are given a wholly new attack to the exercising of power. It is now rooted in the foundations of de-moralized political relations. This new and audacious attack to â€Å"power politics† is exactly what Machiavelli calls virtuousness. Machiavelli employs this new construct of virtuousness to mention to a scope of qualities a prince will happen necessary to get. in order to â€Å"maintain his state† and to â€Å"achieve great things† . the two necessities of power for him. This makes viciously clear that there is no similarity between conventional Christian virtuousness and Machiavellian virtuousness. One can therefore sum up Machiavelli’s position of what it is to be a virtuous individual as such: A prince above all else must get a â€Å"flexible disposition† . A swayer must be capable of switching his/her actions from good to evil and back once more â€Å"as luck and fortunes dictate† . Precisely how does Machiavellian virtuousness affect the exercising of power? In order to reply this inquiry we must analyze another cardinal rule of his virtuousness. Therefore enters the construct of Fortune. As discussed in Chapter 25 of The Prince. Machiavelli teaches the reader that luck shows itself where virtuousness and wisdom are missing. Fortune harmonizing to Machiavelli is a menace to the security of the province and must be fought against as such. Fortune is a force outside of ground that is wholly unpredictable which brings wretchedness and catastrophe to mankind. As Machiavelli provinces: â€Å"it is better to be hotheaded than cautious. because Fortuna is a adult female and it is necessary. in order to maintain her under. to crush and maul her† . Fortune is therefore viewed as a beginning of force which must be answered with force if one hopes to command it. Virtue is the lone readying one has against luck. Virtue provides the ability to react to fortune whenever and nevertheless necessary. Machiavellian virtuousness affects the exercising of power in everyway. Machiavelli’s construct of virtuousness is wholly integrated with the exercising of power. The effectual and utile exercising of power is virtue. for Machiavelli. The tools and methods a Prince utilizes to demand his bid and guarantee his place are his virtuousnesss. Machiavellian virtuousness is so basically different than true virtuousness. ( virtuousness as defined by Aquinas ) that an surrogate word would do to specify it. When analyzing the two philosophers the differences between them are rather obvious. but one must look deeper than what is given at face value in order to happen the true effects of Machiavellian virtuousness. Once a individual has a basic apprehension and cognition of Machiavelli and his plants one can so come in into brooding thought on him and happen a deeper effect to populating a Machiavellian virtuous life. What is adult male if all that has traditionally defined him has been reduced to mere tools which help him to accomplish an terminal? What is the him of the adult male? If virtuousness does non specify the individual. what does? The greatest defect in Machiavellian virtuousness is that adult male loses his individuality and his character. Virtue has been redefined from that which develops ethical motives and character to that which helps to procure power. Emphasis is now on the power and non the individual. With Machiavelli virtuousness covers merely one facet of the individual. Man as leader and power trader. What is left of the adult male. if there are no longer any specifying traits. if adult male no longer has an individuality? Without any formal individuality adult male is no longer viewed as being â€Å"like God† . the supernatural facet of adult male is gone. that which is our true individuality. We have learned from Thomas Aquinas that virtuousness is developed through wont ; these wonts become who you are. If we remove that. what of the remainder of the adult male? Man is reduced to something of a retainer to â€Å"power† . Aquinas elevates adult male to the supernatural. as existences created in the similitude and image of God. made to portion in the Divinity of God. Aquinas’ virtuousness covers the whole individual. Thomas lists the cardinal virtuousnesss which guide all the facets of human life. from Prudence to Charity and Temperance to Faith. By developing these virtuousnesss we become virtuous people. the virtuousnesss that we cultivate forms who we are and order our desires in line with the will of God. For Aquinas virtuousness leads us to God and our ultimate terminal which Beatific Vision. For Machiavelli virtuousness is merely the agencies of executing a undertaking. instruments that can and should be employed to make an terminal which is merely of this Earth ; viz. the securing and expanding of power. For Machiavelli all that affairs is what is of this universe. Man is reduced to nil more than animate being with mind. nil supernatural and no life here after. As I have antecedently stated above. the greatest defect in Machiavellian virtuousness is that adult male loses his individuality and character. One other obvious and dramatic restriction to Machiavelli’s position of virtuousness. and therefore adult male himself. is that he speaks merely of adult male as swayer. non adult male as provincial. or servant. or adult male in the familial sense. If adult male were to specify himself precisely as Machiavelli proposes. he would genuinely lose his individuality. If virtuousness is redefined than it would look that adult male excessively is redefined. Either Machiavelli missed something so foundational and necessary. such as the other functions people play in society. or his aim was. in specifying virtuousness. to merely redefine the swayer. Machiavelli must hold realized his position of adult male was limited and flawed ; his true purpose was to alter society from the top down. Resulting would be a society that sought merely selfish desires and the acquisition of power. Machiavelli had no interesting apprehension adult male merely to ordain his thoughts and go a Prince. Man in accommodating these new thoughts is making nil less than lead oning himself. Virtue is a really wide subject which deserves rating. If we are to better understand ourselves and our civil society it is imperative that we learn what we can about those people who have. are presently. and will determine our ideas refering ourselves. God. and nature. What I have attempted is to turn to two really different positions on virtuousness. Aquinas continues to be the root beginning of our apprehension of virtuousness. Many efforts have been made by many people to redefine adult male ; Machiavelli is merely one of many. Machiavelli holds the rubric as the first philosopher to whole-heartedly effort to retrace adult male in his ain similitude and image and to extinguish God. As foolish and impossible as that seems from a Christian position. he succeeded and continues to win in winning over new ( non ) trusters. By the very nature of turning off from God we deceive and are deceived. all of his bold new tactics sum to little more than misrepresentation. Deception laced with penetrations and deformed images of adult male. Man every bit viewed as non fallen from Grace but instead nescient to his â€Å"true† capableness and intent. Machiavelli offers us another apple.

Whats the Deal with Improving Paragraphs SAT Writing Section Guide and Advice

What's the Deal with Improving Paragraphs SAT Writing Section Guide and Advice SAT / ACT Prep Online Guides and Tips If you’re not familiar with the design of these questions on every SAT, you should be. Here’s the scoop on Improving Paragraphs (and, bonus, a quick and dirty guide to acing the SAT Essay)! In this post,we’ll look at what these questions are designed to test, why those skills are important, and, of course, how to easily take the questionsapart on test day. The Problem Education in the U.S. has changed a lot since the SAT’s inception in 1926, and so must the test. The skill of writing is a great example of how they’ve had to do that. Before 2005, the SAT didn’t have any way to measure students’ ability to read or write more than a sentence at a time. Many college officials and instructors understandably felt that this was not an ideal way to test college preparedness- most college freshmen are expected to write multiple 5-8 page papers in the first semester. But writing is a complicated process- how to break it down into small, multiple-choice-type questions? One of the ways the College Board came up with was Improving Paragraphs. The Solution Since 2005, one Writing section in each SAT has ended with a question type called Improving Paragraphs. It shows you what it calls â€Å"an early draft of an essay.† It consists of 2-4 paragraphs in which each sentence is numbered. The questions ask you to identify mistakes or make improvements to the paragraphs. Here’s an example of a question and the sentence it asks about: (6) Although zoologists do not believe that increasing numbers of raptors pose any threat to humans in urban areas, they feel it is important to maintain ongoing surveillance of the main ones where nests are most common. In context, which would best replace the word â€Å"ones† in sentence 6? (A) raptors (B) objects (C) experiments (D) urban areas (E) hypotheses The Breakdown At PrepScholar, our years of experience teaching at both the high school and college levels makes the purpose of the above question, and others like it, quite clear. In this post, we’re going to share that clarity with you. We’ll go through some common question types and explain what they're really testing. The Transition Question It asks†¦ ...which of five sentences would be best to put between two sentences (at the beginning of a paragraph). It’s really testing†¦ ...whether you know how to use transitions. Between two paragraphs, either at the end of the first or the beginning of the second, something- usually a whole sentence- should connect the main ideas of the two paragraphs to each other. Wrong answers on the SAT will mention the main idea of only one, or neither, of the paragraphs concerned. It addresses the problem†¦ ...that many students just don’t use transitions in their writing, accidentally taking the reader on a confusing, bumpy ride. But the SAT can’t ask â€Å"does this need a transition?† because there would only be 2 answers: yes and no. They also can’t ask you to write a transition yourself, since someone would then have to read it. The only option is to give you one appropriate transition and four much less appropriate sentences, and make you find the right one. The Addition Question It asks... ...which of five sentences would be best to insert into the essay at a certain point. It’s really testing†¦ ...whether you understand how to organize an essay. It addresses the problem†¦ ...that students sometimes skip linking information in their thought processes. The first sentence says something about a movie star being courageous. The one after it in the passage, which would go after the sentence we choose as the answer to this question, mentions an outcome that applies to both the movie star and the narrator. The correct answer is a direct comparison between the two- without it, the paragraph is a bit weird, but not confusing. These are difficult because they’re subtle, but the idea is the same as #30: which sentence best connects the sentences that go before and after it? The Wording Question It asks†¦ ...which of five words or phrases would be best to replace another word. It’s really testing†¦ ...whether you know how to be specific. It addresses the problem†¦ ...that students are often (read: almost always) far too vague in their writing, both in high school and college, because it’s easier to be vague. The essay is where the SAT tries to test this the most stringently, but they kind of take a stab at it here, too. Because the SAT has to come up with five answers, the words (or phrases) in these kinds of questions are usually extremely vague, like â€Å"things,† â€Å"ideas,† or â€Å"groups.† Then you have to figure out, based on context, what that vague word or phrase means more specifically. The answers, for example, might be similar nouns with different adjectives attached to them, and you have to decide which adjective would fit best with the surrounding sentences. The Main Idea Question It asks... ...about the purpose of a paragraph. It’s really testing†¦ ...whether you understand the meaning in context of some chunk of writing. It addresses the problem†¦ ...that many students don’t read deeply enough to understand how an author’s use of an example or story fits into his or her overall point. Most academic texts don’t start with a main idea like, â€Å"Cities have too much sprawl; it should be reduced.† Instead, they say something like â€Å"The strip malls designed to serve residents of new housing developments in many suburbs are not suitable replacements for historic districts or unique, local culture.† It could be argued that the first statement is clearer and thus better, but many of the works you’ll read in college will be even less clear than the second statement above, so the SAT tries to test your ability to see through the nonsense to the author’s point. The PhrasingQuestion It asks... ...you to revise half of a sentence. It’s really testing†¦ ...whether you know how to be concise. It addresses the problem†¦ ...that students use more words than they need to in communicating their points. Most of the revision questions in Improving Paragraphs are about conciseness; that’s why it’s called Improving Paragraphs and not Fixing Errors That Happen to Be in Paragraphs. Sometimes, however, they test appropriateness in context- for example, if two sentences contrast, the second needs to start with a word or phrase that indicates that contrast, e.g. â€Å"However,† â€Å"On the other hand,† or â€Å"Others believe that†¦Ã¢â‚¬  The Deletion Question It asks... ...which sentence should be deleted. It’s really testing†¦ ...whether you can eliminate irrelevant information. It addresses the problem†¦ ...of fluff, i.e. filler writing that doesn’t help develop the point of the essay. Students at both the high school and college levels tend to include irrelevant details in their writing. Nobody knows what leads to this mysterious phenomenon, but enough of it can make an essay sound like nonsense. The question is, which sentence has the least to do with the essay as a whole? (If the sentence is related to the essay, but a different part than where it is, they’ll usually ask you to move it rather than delete it.) Bonus Time: Improving Paragraphs is Useful for the Essay Too And here’s your prize for reading all the way to the end! The underlined phrases above (and below) comprise a concise set of guidelines for the SAT essay (and, really, most essays). Use transitions: the joints between paragraphs are the places readers read first. Make sure you move smoothly from one idea to the next. Organize: keep like ideas together and don’t repeat yourself. Be specific: as much as possible, use concrete names, places, and dates; instead of ‘great’ or ‘terrible,’ use specific adjectives like ‘progressive’ or ‘destructive.’ Use examples and stories: rather than hypothetical, â€Å"what-if† scenarios, you can invent situations and events to illustrate your point, so do it! Be concise: cut the fluff, it doesn’t add to your essay, and the readers see it as repetition, which hurts your score. Avoid irrelevant information: this is also tied to organization; give only examples that really drive home your point, not things that ‘kind of’ show what you mean. Other Posts You Might Like: What is a good SAT score? A bad SAT score? SAT Writing Guide Part II: Essays SAT Writing Guide Part III: Improving Sentences

History of Sliced Bread, the Greatest Invention

History of Sliced Bread, the Greatest Invention A clichà © that just about every American knows The greatest thing since sliced bread. But how did this epoch-making invention become so celebrated? The story begins in 1928,  when  Otto Frederick Rohwedder created the greatest invention- pre-sliced bread. But, believe it or not, Rohwedders innovation was initially met with skepticism. The Problem   Before the invention of pre-sliced bread, bread of all kinds was either baked at home or bought in full loaves (not sliced) at the bakery. For both home-baked and bakery loaves of bread, the consumer had to personally cut off a slice of bread every time he wanted one, which meant rugged, irregular cuts. This was time-consuming, especially if you were making several sandwiches and needed many slices. It was also very difficult to make uniform, thin slices. A Solution This all changed when Rohwedder, of Davenport, Iowa, invented the Rohwedder Bread Slicer. Rohwedder began working on a bread slicer in 1912 but his initial prototypes were met with scoffs from bakers who were certain  that pre-sliced bread would quickly go stale. But Rohwedder was certain that his  invention would be a major convenience for consumers and did not let the bakers skepticism slow him down. In an attempt to address the staleness problem, Rohwedder used hatpins to keep the pieces of bread together in the hopes of keeping the loaf fresh. However, the hatpins continually fell out, detracting from the products overall convenience. Rohwedders Solution In 1928, Rohwedder came up with a way to keep pre-sliced bread fresh. He added a feature to the Rohwedder Bread Slicer that wrapped the loaf in a wax paper after slicing. Even with the sliced bread wrapped, bakers remained dubious. In 1928, Rohwedder traveled to Chillicothe, Missouri, where baker Frank Bench took a chance on this idea. The very first loaf of pre-sliced bread went on store shelves on July 7, 1928, as Sliced Kleen Maid Bread. It was an instant success. Benchs sales quickly skyrocketed. Wonder Bread Makes It Go National In 1930, Wonder Bread began to commercially produce pre-sliced loaves of bread, popularizing sliced bread and making it a household staple familiar to generations. Soon other brands warmed to the idea, and for decades there has been row upon row of sliced white, rye, wheat, multigrain, rye and raisin bread on grocery store shelves. Very few people living in the 21st century remember a time when there was no sliced bread, the universally-agreed-upon greatest thing.

Effects of capitalism and socialism Essay Example | Topics and Well Written Essays - 1000 words

Effects of capitalism and socialism - Essay Example The system of socialism does not have the objective of accumulation of capital as followed by profit driven entities. The methods of accounting for a system of socialism does not follow financial calculations but is recorded on the basis of physical quantities, labor and time. Capitalism on the other hand is a system of economy where the means of production are owned by the corporate houses and the private businesses. The management of the ownership structure in a capitalist system is based on the production of goods and services for earning of profits. In a system of capitalism, the prices of goods and services are based on the market forces like competition, customer base, etc. The motives of capitalism are based on the accumulation of capital by the ownership structure. The methods of accounting in a capitalist structure in based on financial calculations. Effects: socialism and capitalism The systems of socialism and capitalism in the economy are different from the management of ownership of these two structures. The motives of socialism and capitalism also vary from each other. Due to this, the effects of socialism and capitalism are different from one another. The system of socialism is aimed at production of goods and services solely for the economic conditions of demand. ... The system of socialism has an effect on the labor wages and rights of the workers. The wages of labor are not reduced below a certain level in socialist economy. The minimum labor wages are sufficient to earn the livelihood in a socialist economy. However, due to absence of competition in the market, the employment level in the market is nor too high. There are a lot of people in the economy who are unemployed. Due to equitable distribution of goods and services in the structure of socialism, the demand of goods and services do not exceed the supply by much. Thus there is very little scope of inflation in a socialist economy. Also the production of goods and services are much lower in order to only meet the minimum demand of the population. Thus the GDP growth rates of the economy are much lower. On the other hand, the capitalism structure is driven by the profit motives. The system of capitalism includes the market forces of competition, labor wages, prices of goods and services fo r the growth of economy. The ultimate objective of the owners in a capitalist economy is the accumulation of business capital (Jones, 2010). The increase in competition of the market forces leads to increase in the production capacities. The increase in the production capacities and the requirement of labor for increased production gives rise to the employment level in the economy. Thus the availability of more jobs raises the bargaining power of the employers for which the labor wage rates decline in a capitalist economy. However, the rise in liquidity in the economy and shortage of employment among a few sections of the population gives rise to disparity of the

Nursing Future Essay Example | Topics and Well Written Essays - 1000 words

Nursing Future - Essay Example Nursing varies from general nursing to nursing specialties, and after the four year course a nurse gets autonomous registration. There is scope for diversification after the basic graduate degree in the form of postgraduate courses. An interview was conducted with Dr. Llasus & Dr. Dover on topics like Nursing Faculty Teaching Expectations, Nursing Faculty Scholarship Expectations, and Future of Nursing Education. Dr.Llasus is the Assistant Dean of the School of Nursing, Nevada State College. As an Assistant Dean he performs of a multitude of functions ranging from performing regular instructional teaching duties on a half-time basis, and collaborates with the Associate Dean and to oversee the academic program and ensures quality of faculty and student support services. In addition to these, Dr.Llasus coordinates courses and faculty to promote communication and consistency in meeting School of Nursing policies and procedures. He provides leadership in curriculum and course development , orients new faculty to the SON, and connects faculty with Course Coordinator or Mentor for course orientation. He conducts orientation for new students and prepares program-specific materials, leads orientation program for each upcoming semester, schedules and leads make-up orientations. He organizes Semester Faculty Meetings, schedules and attends meetings for assigned curriculum tracks, mediates student and faculty issues and problems, follows â€Å"chain of command† in BSN Student Handbook, Performs peer evaluation of faculty by visiting classes and reviews clinical site evaluations by faculty and students, recommends new clinical contracts, prepares student cohort numbers and availability in each cohort, prepares records of students going forward for Reinstatement. Apart from the above said duties as an Assistant, Dean Dr. Llasus shoulders the following general duties such as ATI Assessments (Regular, Accelerated and Part-time Tracks), sets up ATI semester fees/deadline s ,schedules ATI make-up tests at end of semester, collects end of semester ATI exam, analyses from faculty and post on X drive, CSCLV,CSCLV skills lab & room, schedules for upcoming semester, CSCLV simulation schedules for upcoming semester, arranges for Marlock keys and parking information, end of semester scheduling of simulations for clinical make-up, class schedules for upcoming semester--working with the Dean and Associate Dean. Dr. Cheryl Dover is the Program Chair of Nursing Department, Prince George's Community College, Maryland. He performs the following duties like scheduling all classes, appointment of classes, supervising day to day activities like budgets, grants, Committee activities, Faculty/student issues etc. Nursing Faculty Teaching Expectations Dr.Llasus explains the tenure track of Assistant professor Post and explains the responsibilities of an Assistant professor. According to him, Assistant Professors shall be appointed to the School of Nursing upon recommend ation of the nursing faculty and the Dean of the School of Nursing. They shall hold an advanced degree in nursing and a doctorate. The responsibilities of an Assistant Professor are in accordance with college by laws. The position of Assistant Professor shall be primarily that of nursing faculty who teaches nursing courses under policy determined by the Faculty of the College, consistent with College-wide academic policy. An Assistant Professors shall aid in the planning, development, and teaching of nursing

History, The Bourgeoisie, The Proletariat, and Communism Essay Example for Free

History, The Bourgeoisie, The Proletariat, and Communism Essay Karl Marx begins the first chapter of his The Communist Manifesto with the opening line: â€Å"The history of all hitherto existing societies is the history of class struggles† (ch. 1). Underlying all of history is this fundamental economic theme, that each society has its own economic structure which breeds different classes—â€Å"a manifold gradation of social rank,† he calls it (ch. 1). These classes inevitably becomes in conflict with each other—that because of their economic structure, some class becomes the oppressors while others become the oppressed. He argued that the oppressors and oppressed â€Å"stood in constant opposition to one another on an uninterrupted fight that each time ended, either in a revolutionary re-constitution of society at large, or in the common ruin of the contending classes† (ch. 1). He described his time as a struggle between two classes: the Bourgeoisie and the Ploretariat. Marx claims that the modern bourgeois society of his time has not helped to remove, although have simplified, clash antagonisms, but had, instead, â€Å"established new classes, new conditions of oppression, [and] new forms of struggle in place of the old ones† (ch. 1). He saw the bourgeoisie as a â€Å"product of a long course of development, of a series of revolutions in the modes of production and of exchange,† and that each step of its development â€Å"was accompanied by a corresponding political advance† (ch. 1). He claims that the â€Å"executive of the modern State is but a committee for managing the common affairs of the whole bourgeoisie,† that it â€Å"cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society† (ch. 1). He said that it has torn the â€Å"feudal ties that bound men to his natural superiors, and has left no other nexus between man and man than naked self-interest† (ch. 1). He goes on to explain that the bourgeoisie draws all nation into civilization with all the rapid improvements of production and by the immensely facilitated means of communication. However, he claims that they create â€Å"a world after its own image,† that is, for all nations to adopt the bourgeois mode of production. The bougeiosie, according to Marx, has â€Å"created enormous cities, has greatly increased the urban population as compared with the rural, and has thus rescued a considerable part of the population from the idiocy of rural life† but that it has also â€Å"concentrated property in a few hands† (ch. 1). He argued that â€Å"for many a decade past the history of industry and commerce is but the history of the revolt of modern productive forces against modern conditions of production, against the property relations that are the conditions for the existence of the bourgeoisie and of its rule† (ch. 1). At the end, he states that â€Å"its existence is no longer compatible with society† and is unfit to be the ruling class of society since â€Å"it is incompetent to assure an existence to its slave within his slavery† (ch. 1). The proletarians, on the other hand, are, during Marxs time, the modern working class—â€Å"a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital† (Marx ch. 1). Marx claims that the proletarians lost its individual character and charm because of the extensive use of machinery and of the division of labour. They have become an â€Å"appendage of the machines. † He said that lobourers are commodities which are â€Å"expensive to use† but are exploited by the bougeoisie. Marx explains that the proletariat began its struggle as soon as this class was created, at first as an induvidual struggle of the laborer, and later groups of workers. Workers before were still disorganized, divided by goegraphy and by competition with one another. Marx claims that when workers first formed unions, they did so under the influence of the bourgeois and served to further the objectives of the bourgeoisie. The distinction between workers was obliterated due to the wages being reduced to low level. As the proletariat increased in numbers and concentrated in greater mass by forming Trade Unions, they also increased in strenght and local struggles were centralized into one national struggle between classes. Marx further explains that â€Å"the proletariat alone is a really revolutionary class,† that other classes are conservatives or reactionary that fight against the bourgeoisie in order to â€Å"save from extinction their existence as fractions of the middle class† (ch. 1). Because proletarians have nothing of their own to secure, Marx claims that their mission is â€Å"to destroy all previous securities for, and insurances of, individual property† (ch. 1). The proletarian movement, Marx further explains, â€Å"is the self-concious, independent movement of the immense majority, in the interest of the immense majority† (ch. 1). Marx explains that the Communist Party points out and addresses the common interests of the entire proletariat, in their national struggles in different countries, independent of nationality, and represents the interests of the working class in the various stages of development it has to pass through from the struggle against the bourgeoisie. The Communist Party, therefore, still according to Marx, is the most advanced, resolute section â€Å"of the working-class of every country, that section which pushes forward all others† (ch. 2). It has the same aim as that of all the other proletarian parties, which is to overthrow the bourgeois supremacy and to seek its own political power. Marx goes on to explain that the abolition of existing property relations is not a distinctive feature of Communism, that the feature of Communism is not the abolition of property in general, but the abolition of the bourgeois property, which is, according to him, â€Å"the final and most complete expression of the system of producing and appropriating products† (Marx ch. 2). Simply put, Marx states that Communism is a struggle that aims for the â€Å"abolition of private property. † Communism would like to abolish the conception that the labourer merely lives to increase capital, and is allowed only to live insofar as the interest of the ruling class requires it; that labour is meant to widen, enrich and promote the existence of the labourer is what the Communism is fighting for. Communism is, in a way, a struggle of the lower strata of the society against the upper strata. However, it is not a personal struggle of the poor against the rich, it is a societal and political struggle for equality of appropriation of property. Marx explains that â€Å"Communism deprives no man of the power to appropriate the products of society; all that it does is to deprive him of the power to subjugate the labour of others by means of such appropriation† (ch. 2). With its teachings and goals, labour groups and lower working class would have found The Communist Manifesto appealing. The Capitalists, of course, would not have found it appealing, as the manifesto seeks to destroy their current stature and their self-interest would be compromized. On the other hand, Communism would seek to empower labour groups and they would find it all to their advantage to support its cause. The Industrial Revolution has created a majority lower class workers, many of whom lived in poverty under terrible working conditions. The Communist Manifesto calls on all labourers to unite, promising them a better life sprouting from a better world.

Gadgets Of JAmes Bond Essay -- essays research papers fc

The Weapons and Gadgets of James Bond Introduction - Throughout the years, the weapons and gadgets that have come from the hands of the Q Branch, has never turned James Bond down, they are the coolest and are the best in spy paraphernalia. I.  Ã‚  Ã‚  Ã‚  Ã‚  Bond’s choice of equipment A.  Ã‚  Ã‚  Ã‚  Ã‚  Walther PPK B.  Ã‚  Ã‚  Ã‚  Ã‚  Aston Martin DB5 C.  Ã‚  Ã‚  Ã‚  Ã‚  Watches II.  Ã‚  Ã‚  Ã‚  Ã‚  Comparison to some spy gadgets of the army A.  Ã‚  Ã‚  Ã‚  Ã‚  Bond’s popular equipment B.  Ã‚  Ã‚  Ã‚  Ã‚  Military’s popular equipment III.  Ã‚  Ã‚  Ã‚  Ã‚  As technology continues to grow A.  Ã‚  Ã‚  Ã‚  Ã‚  Weapons will get better 1.  Ã‚  Ã‚  Ã‚  Ã‚  Equipment from newer movies a.  Ã‚  Ã‚  Ã‚  Ã‚  Goldeneye b.  Ã‚  Ã‚  Ã‚  Ã‚  Tomorrow Never Dies B.  Ã‚  Ã‚  Ã‚  Ã‚  Gadgets of the older movies C.  Ã‚  Ã‚  Ã‚  Ã‚  Other items of Q’s Lab IV.  Ã‚  Ã‚  Ã‚  Ã‚  What do we expect of Bond A.  Ã‚  Ã‚  Ã‚  Ã‚  More high tech weapons and gadgets B.  Ã‚  Ã‚  Ã‚  Ã‚  A new head for the Q Branch C.  Ã‚  Ã‚  Ã‚  Ã‚  A lot more excitement Conclusion - Finally, the weapons and gadgets of James Bond will still continue to astonish the entire world, and it will still do so as many more films are produced in the near future. â€Å"And this I am Especially Proud of† - Q   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"I think we’ve met.† These were the words of James Bond as he stepped into his talking BMW 750IL during the movie Tomorrow Never Dies. Throughout the years, the weapons and gadgets that have come from the hands of the Q Branch, has never turned James Bond down, they are the coolest and are the best in spy paraphernalia. If someone would try to compare Bond’s gadgets to gadgets of the military, Bond would win ten to one.   Ã‚  Ã‚  Ã‚  Ã‚  Of course, as technology changed and time passed, the Q Branch developed better equipment, but many of the classic gadgets are still obsolete in a technology driven world we live in today. For example, Bond’s old Aston Martin DB5 can out run a Ferrari 355 F1 Spider that was demonstrated in the movie Goldeneye. (Ultimate James Bond Page http:jmsbond.tripod.com) As the James Bond story continues, the better and better the gadg... ...oon be seeing a new Q. The current Q died in a tragic accident in London just a month ago right after the release of â€Å"The World is not enough.† Another thing you will never miss in Bond films is the excitement, and that will always stay true. Finally, the weapons and gadgets of James Bond will still continue to astonish the entire world, and it will still do so as many more films are produced in the near future. Works Cited Blair, Cluade and Tarassuk Leonid. â€Å"The Complete Encyclopedia of Arms and Weapon†   Ã‚  Ã‚  Ã‚  Ã‚  Crown Publisher 1929: 379 The Complete James Bond Interactive Dossier â€Å"Gadgets Section† (CD-Rom) 1996 The Complete James Bond Interactive Dossier â€Å"Vehicles Section† (CD-Rom) 1996 The Ultimate James Bond Site. â€Å"Quotes and Gadgets† Online.Internet. 14 March 2000 available Http://www.007.com BMW USA â€Å"Build Your BMW, Z3† Online.Internet. 1 March 2000   Ã‚  Ã‚  Ã‚  Ã‚  Available Http://www.bmwusa.com â€Å"Tomorrow Never Dies.† Movie. MGM Studios and United Artists 1997 â€Å"Goldeneye.† Movie. MGM Studios and United Artists 1994 007-The Ultimate James Bond Page. â€Å"Quotes and Q Branch† Online.Internet. 1 March 2000 Available Http://jmsbond.tripod.com

Employee Resourcing and Development Essay

Employee resourcing and development is essential to all organisations and highly contributes towards the organisations success. Employee resourcing is ‘the part of human resource management which focuses on the recruitment and release of individuals from organisation’ and ‘the management of their performance and potential while employed by the organisation’ (Pilbeam & Corbridge, 2010). Employee development is ‘the process & facilitation of learning and knowledge that support business goals, develop individual potential and respect and build on diversity’ (Harrison, R., 2009). Employee resourcing and development can significantly add value to an organisation and help to cement the HR business partnership, and this essay will critically analyse the extent to which resourcing and development activities do so. Absence Management Employee absence levels can have substantial negative impacts on organisations; and therefore it is becoming increasingly common to see organisations introducing new, or revising existing, absence management programmes. A study from CIPD found that the ‘annual median cost of absence per employee was  £595’ (CIPD, 2013); costing the UK economy  £17 billion per year (ACAS, 2010). If an employee is absent from work it is highly likely that the organisation will be faced with both direct and indirect costs. Direct costs being those associated with the hiring of, and paying for, temporary staff while the particular employee(s) are absent (ACAS, 2010); Statutory Sick Pay if the employee is absent for 4 or more days in a row; occupational sick pay, if it is part of the particular organisations terms and conditions (GOV.UK, 2013). Secondly, indirect costs are those related to low morale amongst remaining colleagues, who may be expected to take on extra responsibilities as a result of the absence; decreased customer satisfaction, if temporary members of staff are not adequately knowledgeable in particular areas of customer interest; reduced reputation with both customers and potential employees, potentially affecting future business; decreased performance and productivity, as a result of demotivation of remaining colleagues and lack of staff in relation to workload. All of which can significantly impact upon organisational efficiency and effectiveness  (Pilbeam & Corbridge, 2009). Efficient absence management can reduce the detrimental effects that employee absence can have on an organisation, and can also be seen to contribute towards added value. The study carried out by CIPD found that ‘return-to-work interviews and trigger mechanisms†¦ are ranked among the most effective approaches for managing short-term absence’ (CIPD, 2013). A return-to-work interview is a crucial part of an absence management programme – welcoming empl oyees back to work following their absence and checking that the employee is well enough to return to work (ACAS, 2010). If an employee returns to work before being fully recovered there is the chance that the employee will take longer to return to full health, reducing productivity and potentially resulting in them being absent again in the near future, and possibly for a longer period. There is also the risk that they could pass on their illness to other colleagues resulting in further absences (Robson, 2006) and further impacts on productivity. Read more: Essay on Developing and Assessing Employees The return-to-work interview also allows organisations to identify the cause of the employee’s absence and to assess whether their absence was work-related (ACAS, 2010). This then enables the organisation to take steps to prevent the same employee, or other employees, being absent for similar reasons in the future; this may include training updates in health and safety for example. The cost of such changes will be potentially outweighed by the benefits, by reducing employee absence levels in the long-term. A return-to-work interview may also outline the underlying reasons for absence, such as the employee having to take care of an elderly relative (ACAS, 2010). In these circumstances an organisation may decide to develop different working arrangements with that particular employee, for example flexible working. Flexible working allows the organisation to fit around the employee’s schedule, potentially reducing the number of days that the employee needs to take off work unexpectedly as a result of their circumstances; thus reducing the negative impact that unexpected absences can have on productivity and associated costs. It also enables organisations to plan ahead – if they know that a particular employee is going to be off work then they can recruit temporary/part-time staff to fill in on these days; reducing the impact that the extra workload could have on colleagues stress levels and allows the organisation to maintain levels of productivity. The effectiveness of flexible working and the extent to which  it adds value, however, relies heavily on whether or not it is valued by the employees themselves (Hodge, 2009); therefore this should be investigated prior to it being implemented. As previously mentioned trigger mechanisms, such as the Bradford Factor is also found to have an ‘overwhelmingly positive impact on absence’ (CIPD, 2013, p. 31). The Bradford Factor is a ‘mechanism for weighting frequency of sickness absence’ (Pilbeam & Corbridge, 2009 p. 340). Such management techniques of monitoring absence increase productivity and reduce levels of absenteeism; which in the long-term will reduce organisational costs, resulting in increased profit. A study looking into the impact of positive intervention in absence management found that trigger mechanisms reduced absenteeism, especially if sick pay was withdrawn or there was the threat of disciplinary action (Baker-McClearn, et al., 2010). However , this was also found to ‘contribute to low morale, lack of commitment to work, stress and anxiety’ (Baker-McClearn, et al., 2010), all of which could potentially lead to reduced productivity resulting in increased costs. There was also a close link found between the use of trigger mechanisms and increasing levels of presenteeism (Baker-McClearn, D. et al., 2010). Presenteeism can be used to describe people ‘who, despite†¦ ill health†¦ are still turning up at their job’ (Unison. 1999, as cited in Baker-McClearn, et al., p. 311). For example, employees would come into work feeling unwell as, one, they couldn’t afford to remain absent if not receiving sick pay and two, they were frightened of the consequences disciplinary action would bring. This has severe impacts upon productivity, with findings showing that ‘productivity drops from 75% on ‘normal days’ to 55% on ‘sick days’’ (Newcombe, T., 2013). Ther efore, although the Bradford Factor is effective in reducing absenteeism, it is questionable whether the benefits of this outweigh the negative impacts on the employee and the impacts that presenteeism can have on the organisation. As previously mentioned, HR aims to improve employee productivity through absence management. This consequently improves employee performance, which contributes towards organisational objectives, such as improving performance – potentially leading to increased profit margins. Therefore the alignment of the HR practitioner’s objectives with the business manager’s objectives helps to reinforce the business partnership; with both partners working together to  achieve organisational objectives. Employee Well-Being Employee well-being has been defined by CIPD as ‘creating an environment to promote a state of contentment which allow employees to flourish and achieve their full potential for the benefit of themselves and their organisation’ (Pilbeam & Corbridge, 2009, p. 416). It is becoming increasingly common to see organisations adopting measures designed to promote employee health and well-being; as organisational researchers have found that dysfunctional employee well-being can have widespread costs for the organisation (Wright & Chuang, 2012). For instance, employee well-being strategies aim to create a healthier workforce which consequently leads to reduced absence levels. Therefore, as a result, this then leads to a reduction in the significant financials costs related to employee absence (Bevan, S., 2010). Employee well-being also aims to target long-term absence related to depression and anxiety; both of which prove to be ‘more complex and costly to manage, and have m ore significant consequences for employers’ (Bevan, S., 2010, p. 11). Therefore, it is likely that the costs of implementing such well-being policies will be outweighed by the significant savings and increased added value that will be seen as a result. These measures have not only been found to positively influence an employee’s health and well-being, but also to add value to an organisation through improved employee productivity and commitment (Bevan, S., 2010). As previously mentioned, well-being can have a positive impact on absence levels which as a result improves employee productivity. Macdonald (2005) also suggested that well-being strategies contributed towards employee morale, increased levels of productivity and employee retention (Pilbeam, & Corbridge, 2009). Research has also gone onto to find that there is a significant link between employee well-being and job performance, workplace accidents, customer engagement, quality defects and profitability. Job per formance has been found to be highly correlated with employee well-being in a number of organisational studies (Thomas, et al, 2012). Absence management is one way in which performance can be improved within all organisations, particularly within the domiciliary care sector. With government cut backs and managements time being constrained, absence management schemes can often be overlooked, resulting in high levels of absenteeism. As previously mentioned, the Bradford factor has been found to  have an ‘overwhelmingly positive impact on absence’ (CIPD, 2013, p. 31) and is one way that domiciliary care businesses could monitor absence effectively and efficiently, without taking up too much of management’s time and without incurring substantial costs. Return-to-work interviews will also enable management to identify the key reasons behind the absence, allowing management to take steps to potentially prevent absence of the same reason occurring again. Both techniques will in theory reduce absenteeism as employees will be aware that their absence is being monitored, and so they will be less likely to be absent from work as frequently; therefore overall increasing organisational performance. Recruitment and Selection Recruitment is ‘the process of generating a pool of capable people to apply for employment to an organisation’ and selection is ‘the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons more likely to succeed in the job(s)’ (Braton and Gold, 2007, as cited by French & Rumbles, 2010). The recruitment and selection process is ‘fundamental to the functioning of an organisation’ (Pilbeam & Corbridge, 2006, p. 155), and it is also said that ‘the success of an organisation depends on having the right number of staff, with the right skills and abilities’ (ACAS, 2010, p. 3). Therefore, the right recruitment and selection procedures are crucial to an organisation finding the best candidate for the job. Recruitment The recruitment process is extremely important when it comes to adding value to an organisation in the long-term. Poor recruitment processes – which result in the wrong candidate being selected for the job – can be very expensive for an organisation in terms of employee turnover, organisational costs and employee morale (ACAS, 2010). Good recruitment can ‘significantly contribute to effective organisational performance, to good employee relations, and to a positive public image’ (Pilbeam & Corbridge, 2010, p. 156). The first step in the recruitment process is to create an effective job description and job specification. It is vital that the skills and competencies outlined within the person specification are accurate in  relation to the needs of the job. If this is not the case then there is the chance that an individual will be employed with false expectations, potentially resulting in them not performing as well as was originally intended (ACAS, 2010). In worse cases, the employee may lose faith in the organisation and leave to work for potential competitors, taking with them the training they have received. Not only is this is a waste of an organisations time, money and resources – all of which can be potentially avoided if an organisation has an effective recruitment procedure in place – but it can also have an impact on existing employees morale. For example, it can be demotivating for existing employees to see new employees coming and going within a short space of time. The process of recruiting and training new employees can also be lengthy, in which time colleagues will potentially be expected to take on extra responsibilities; possibly impacting upon employee productivity and overall organisational performance. Over recent years online recruitment has become increasingly popular. Online recruitment shortens the recruitment cycle (Pilbeam & Corbridge, 2010), which can be of great benefit to some organisations w ho find that their lengthy recruitment process can result in them losing potential candidates (CIPD, 2013). A survey carried out by Chapman and Webster (2003) also found that most organisations (within the USA) that used technology based recruitment and selection techniques, did so because they found that they added value in terms of improved efficiency, reduced costs and increased the number of potential candidates. This improved efficiency and reduced costs will potentially allow organisations to increase their profit margins, and by widening the applicant pool the organisation has a greater chance of finding the ‘right’ candidate for the job. However, although this method of recruitment generates a high volume of candidates, it does not necessarily mean that these candidates possess the relevant skills or attitudes required for the job. It is also particularly important that the recruitment and selection process is fair. The employer must recognise that it has a lega l obligation to make sure that they do not unlawfully discriminate against potential candidates during the recruitment and selection process (ACAS, 2010). In ensuring this, an organisation reduces its risk of facing legal costs that may be incurred if it were to be seen to demonstrate unlawful recruitment and selection procedures; improving the organisations reputation  and therefore adding value. For example, if an organisation is seen to operate ethically and value equality then it is likely that the organisation will see an increase in their customer base and also in the number of candidates wanting to work for the organisation – increasing the likelihood of the organisation finding the right person for the job. Selection ‘Inappropriate selection decisions reduce organisational effectiveness, invalidate reward and development strategies, are frequently unfair on the individual recruit and can be and can be distressing for managers who have to deal with unsuitable employees’ (Pilbeam & Corbridge, 2010, p. 155). Therefore, it is important that the selection process is carried out effectively, ensuring the ‘best’ candidate is chosen for the job. The selection process not only produces a shortlist of applicants for the interviewing stage, but it also provides the organisation with feedback in regards to their job advertising and the application form. This will help improve the organisations future recruitment and selection procedures, making the process of finding the ‘right’ candidate more effective; therefore saving organisational time and reducing any potential costs associated with ineffective selection procedures. It is essential that the selection process gains the commitment of managers and supervisors, by involving them in the process of selecting a candidate (ACAS, 2010). The managers and supervisors will have first-hand knowledge and experience and therefore will know what it is they need in future employees, making the process of selecting the ‘best’ person for the job more effective. This again will add value to the organisation, as if the right person is selected for the organisation then it is highly likely that they will perform well, potentially improving organisational performance overall. The involvement of the managers and supervisors will also help settle the new employee into the organisation, making them feel comfortable within their new role; potentially reducing employee turnover levels and the costs associated with this. The involvement between HR and business managers throughout recruitment and selection also helps to reinforce the business partnership. This involvement ensures that recruitment and selecti on is carried out in line with the organisations strategy – ensuring that the candidate selected  contributes to organisational objectives. Recruitment and selection can be an issue within a lot of organisations, in particular those within the domiciliary care sector. Domiciliary care tends to involve very demanding work, and due to ineffective selection techniques the wrong candidates are selected for the jobs; therefore resulting in high levels of employee turnover. Psychometric testing is one selection technique that would allow domiciliary care businesses to assess the personalities of potential candidates; improving decision-making and allowing managers to ‘develop more informed and accurate perceptions about the ability and potential of individuals’ (CIPD, 2009, as cited in Pilbeam & Corbridge, 2010, p. 202). This will help ensure the ‘right’ candidate is chosen; reducing employee turnover and any associated costs, and improving employee mora le and productivity – therefore enhancing overall organisational performance within this sector. Talent Management Talent management is ‘the systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organisation.’ These individuals ‘make a difference to organisational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential’ (CIPD, 2013). Talent management has become an increasingly common practice within a lot of organisations, due to a weakening economic climate which has put pressure on organisations to cut costs and increase efficiency and productivity (CIPD, 2013). In the current climate ‘having a rigorous, cyclical, ongoing process around Talent Management [can] be a key differentiator between success and failure’ (Couch, 2012). Talent has been seen to add value to organisations, particularly as talent management has become ‘integral in engaging employees in the organisation’, if prac ticed effectively (Morton, 2005, p. 11, as cited in Hughes & Rog, 2008, p. 746). Engaged employees are committed to the organisation and therefore will be less likely to leave; this as a result minimises employee turnover and any associated costs. Towers Perrin (2003) supports this idea, as he found that 66 percent of highly engaged employees plan to stay with their current employers, compared to only 12 percent of disengaged employees. It is also  more likely to see higher levels of performance from engaged employees; potentially improving customer service and productivity, as well as increasing sales and profits (Hughes, J. C. & Rog, E., 2008). Effective talent management also ensures organisations can successfully attract and retain talent, reducing the risk of talent leaving the organisation or being employed by a competitor – thus allowing organisations to gain a competitive advantage. Organisations that focus on retaining talented individuals are also able to add value through reduced recruitment and training costs as a result of not having to recruit talent externally, or develop talent internally. Retention of talent also reduces the negative impact employee turnover can have on organisational productivity and employee morale; which in turn can potentially have a consequential effect on profit margins (Chitakasem, N., 2011). There is evidence, however, to suggest that talent management doesn’t always add value to organisations. Lewis and Heckman (2006) argued that ‘improvements in bottom line results [prove] to be temporary, despite an ongoing commitment to talent in the organisation’ (as ci ted in Hughes & Rog, 2008, p. 745). Therefore, it is important organisations evaluate the effectiveness of their talent management scheme as this can contribute highly to its success, enabling them to maximise their return on investment (CIPD, 2009). Also, a focus on external recruitment and retention of â€Å"high talent† employees could: increase competition amongst internal candidates, consequently discouraging teamwork; lead to existing employees feeling undervalued, resulting in increased turnover; redirect training and development from those employees who may be struggling to those who are capable, reduce performance of those who don’t receive training; and ignore fixing cultural or other systematic issues which hinder employee performance (Hughes & Rog, 2008). Whelan & Carcary (2001) also say that those employees who are not seen to be ‘key talent’ can become demotivated as a result of them feeling unappreciated within the organisation; leading to f alls in productivity and potentially negatively affecting profit margins. Therefore, in some cases, talent management may not always add value; the extent to which talent management adds value can depend on how well the organisation manages those employees who are not seen to be ‘key talent’. Organisations implementing talent  management programmes may also experience resistance from some employees; as talent management makes their performance more visible to employers and creates a direct link between future career opportunities within the organisation and rewards (Little, B. 2010). Resistance from employees will likely have a knock on effect on productivity, resulting in profit margins being affected; again affecting the extent to which talent management can add value to an organisation. Overall, talent management, if managed effectively, can significantly add value to an organisation. Maximising employee performance and productivity, improving employee retention, a nd increasing the flexibility of employees etc. all contribute towards an organisations success. However, the business partnership plays a significant role in the extent to which talent management can add value within an organisation. A survey carried out by the Corporate Executive Board’s Corporate Leadership Council (CLC) discovered that ‘HR must effectively partner with business line management to drive talent outcomes’ (Martin, 2010). It is important that line manager’s work with HR practitioners so as to ensure that talent management is directed in the right areas of the organisation and that it is aligned with strategic goals. The HR practitioner must also be knowledgeable of the organisations objectives so as to implement talent management programmes that will contribute towards achieving these goals. As a result, this will potentially help to reinforce the business partnership, encouraging HR to work in partnership with the business leaders to improve its performance and future success. Talent management can be beneficial for many organisations in terms of developing and retaining talented employees so as to improve organisational performance. The domiciliary care, as previously mentioned, has problems with employee retention and therefore talent management could be one way of addressing this issue. Appraisals could be used to assess employees’ performance, and allow managers to identify talent within the organisation, and the training needs (Pilbeam & Corbridge, 2010). Managers can then support and mentor talented employees through further training programmes (CIPD, 2013), such as National Vocational Qualifications (NVQ’s). This support will contribute towards employees feeling valued within the organisation, and this along with the increased knowledge and motivation will help to improve employee performance; which as a result will  potentially improve employee retention and the overall performance of the organisation. In conclusion, absence management, recruitment and selection, and talent management, if effectively managed and implemented, can improve organisational performance. Absence management was found to reduce the negative costs associated with absenteeism, and improve employee morale and productivity. Effective recruitment and selection was found to improve the chances of finding the ‘right’ person for the job; therefore increasing employee performance and reducing employee turnover. Finally, talent management was found to increase employee engagement and motivation through mentoring, and improve employee performance and retention through development. Therefore all three resourcing and development activities contribute towards improving organisational performance, consequently adding value to the organisation. Finally, the aim of human resources to achieve organisational goals through these resourcing and development activities helps to contribute towards cementing the busine ss partnership. References GOV.UK. (2013). Statutory Sick Pay (SSP). Accessed 17th November 2013 https://www.gov.uk/statutory-sick-pay Newcombe, T. (23 May 2013). Stress and presenteeism â€Å"sapping UK productivity†, says research. HR Magazine. Retrieved from http://www.hrmagazine.co.uk/hro/news/1077290/stress-presenteeism-sapping-uk-productivity-research Baker-McClearn, D. et al. (2010). Absence management and presenteeism: the pressures on employees to attend work and the impact of attendance on performance. Human Resource Management Journal. 20 (3), 311–328. doi: 10.1111/j.1748-8583.2009.00118.x Robson, F. (2006). How to†¦ manage absence effectively. CIPD. Retrieved from http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2006/08/88/howtomanageabsence-2006-08.aspx Hemsley, S. (2011). Absence: How does it affect the workplace and what can employers do about it? HR Magazine. Retrieved from http://www.hrmagazine.co.uk/hr/features/1019816/absence-how-affect-workplace-employers Howart h, J. (2005). Absence management. Strategic Direction, 21

Fraud Risk Management

Fraud risk management A guide to good practice 1 This guide is based on the fi rst edition of Fraud Risk Management: A Guide to Good Practice. The fi rst edition was prepared by a Fraud and Risk Management Working Group, which was established to look at ways of helping management accountants to be more effective in countering fraud and managing risk in their organisations. This second edition of Fraud Risk Management: A Guide to Good Practice has been updated by Helenne Doody, a specialist within CIMA Innovation and Development.Helenne specialises in Fraud Risk Management, having worked in related fi elds for the past nine years, both in the UK and other countries. Helenne also has a graduate certifi cate in Fraud Investigation through La Trobe University in Australia and a graduate certifi cate in Fraud Management through the University of Teeside in the UK. For their contributions in updating the guide to produce this second edition, CIMA would like to thank: Martin Birch FCMA, MBA Director – Finance and Information Management, Christian Aid.Roy Katzenberg Chief Financial Offi cer, RITC Syndicate Management Limited. Judy Finn Senior Lecturer, Southampton Solent University. Dr Stephen Hill E-crime and Fraud Manager, Chantrey Vellacott DFK. Richard Sharp BSc, FCMA, MBA Assistant Finance Director (Governance), Kingston Hospital NHS Trust. Allan McDonagh Managing Director, Hibis Europe Ltd. Martin Robinson and Mia Campbell on behalf of the Fraud Advisory Panel. CIMA would like also to thank those who contributed to the fi rst edition of the guide. About CIMACIMA, the Chartered Institute of Management Accountants, is the only international accountancy body with a key focus on business. It is a world leading professional institute that offers an internationally recognised qualifi cation in management accounting, with a full focus on business, in both the private and public sectors. With 164,000 members and students in 161 countries, CIMA is committed to upho lding the highest ethical and professional standards of its members and students.  © CIMA 2008. All rights reserved.This booklet does not necessarily represent the views of the Council of the Institute and no responsibility for loss associated to any person acting or refraining from acting as a result of any material in this publication can be accepted by the authors or publishers. Acknowledgements Fraud risk management: a guide to good practice 2 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fraud – its extent, patterns and causes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 1 What is fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 2 The scale of the problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. 3 Which businesses are affected? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. 4 Why do people commit fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1. 5 Who commits fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1. 6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk management – an overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 1 Wh at is risk management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 2 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 3 The risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2. 4 Establish a risk management group and set goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 5 Identify risk areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 6 Understand and assess the scale of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 7 Develop a risk response strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 8 Implement the strategy and allocate responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 9 Implement and monitor suggested controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 10 Review and refi ne and do it again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 11 Information for decision making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 12 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Fraud prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 1 A strategy to combat fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 2 Developing a sound ethical culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. 3 Sound internal control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 1 Detection methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 2 Indicators and warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4. 3 Tools and techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Responding to fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 1 Purpose of the fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 2 Corpor ate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 3 Defi nition of fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 4 Roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 5 The response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 5. 6 The investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5. 7 Organisation’s objectives with respect to dealing with fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 8 Follow-up action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 9 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1 2 3 4 5 3 Appendices Appendix 1 Fraud and the law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Appendix 2 Examples of common types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Appendix 3 Example of a risk analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Appendix 4 A sample fraud policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix 5 Sample whistleblowing policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Appendix 6 Examples of fraud indicators, risks and controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Appendix 7 A 16 step fraud prevention plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Appendix 8 Outline fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Appendix 9 Example of a fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Appendix 10 References and further reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix 11 Listed abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Figures Figure 1 Types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 2 The fraud triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Figure 3 The CIMA risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 4 Anti-fraud strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Figure 5 Ethics advice/services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Figure 6 Meth ods of fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Case Studies Case study 1 Fraud doesn’t involve just money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case study 2 Size really doesn’t matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Case study 3 A breach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Case study 4 Management risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Case study 5 A fi ne warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Case study 6 Vet or regret? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Case study 7 Tipped off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Case study 8 Risk or returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Case study 9 Reporting fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Case study 10 TNT roots our fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4 5 Periodically, the latest major fraud hits the headlines as other organisations sit back and watch, telling themselves that ‘it couldn’t happen here. ’ But the reality is that fraud can happen anywhere. While only relatively few major frauds are picked up by the media, huge sums are lost by all kinds of businesses as result of the high number of smaller frauds that are committed. Surveys are regularly carried out in an attempt to estimate the true scale and cost of fraud to business and society. Findings vary, and it is diffi cult to obtain a complete picture as to the full extent of the issue, but these surveys all indicate that fraud is prevalent within organisations and remains a serious and costly problem. The risks of fraud may only be increasing, as we see growing globalisation, more competitive markets, rapid developments in technology, and periods of economic diffi culty. Among other fi ndings, the various surveys highlight that: organisations may be losing as much as 7% of their annual turnover as a result of fraud †¢ corruption is esti mated to cost the global economy about $1. 5 trillion each year †¢ only a small percentage of losses from fraud are recovered by organisations †¢ a high percentage of frauds are committed by senior management and executives †¢ greed is one of the main motivators for committing fraud †¢ fraudsters often work in the fi nance function †¢ fraud losses are not restricted to a particular sector or country †¢ the prevalence of fraud is increasing in emerging markets. Introduction Despite the serious risk that fraud presents to business, any organisations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. While no system is completely foolproof, there are steps which can be taken to deter fraud and make it much less attractive to commit. It is in assisting organisations in taking such steps that this guide should prove valuable. The original guide to good practice was based on the work of CIMA’s Fraud and Ri sk Management Working Group that was established as part of the Institute’s response to the problem of fraud. Since the publication of the original guide, we have continued to see high rofi le accounting scandals and unacceptable levels of fraudulent behaviour. This second edition of the guide includes updates to refl ect the many changes in the legal environment and governance agenda in recent years, aimed at tackling the ongoing problem of fraud. The guide starts by defi ning fraud and giving an overview of the extent of fraud, its causes and its effects. The initial chapters of the guide also set out the legal environment with respect to fraud, corporate governance requirements and general risk management principles. The guide goes on to discuss the key components of an anti-fraud strategy nd outlines methods for preventing, detecting and responding to fraud. A number of case studies are included throughout the guide to support the text, demonstrating real life problems th at fraud presents and giving examples of actions organisations are taking to fi ght fraud. Fraud risk management: a guide to good practice Management accountants, whose professional training includes the analysis of information and systems, can have a signifi cant role to play in the development and implementation of anti-fraud measures within their organisations. This guide is intended to help management accountants in that role and will also be seful to others with an interest in tackling fraud in their organisation. The law relating to fraud varies from country to country. Where it is necessary for this guide to make reference to specifi c legal measures, this is generally to UK law, as it would be impossible to include references to the laws of all countries where this guide will be read. It is strongly advised that readers ensure they are familiar with the law relating to fraud in their own jurisdiction. Although some references may therefore not be relevant to all readers, the general principles of fraud risk management will still apply and rganisations around the world are encouraged to take a more stringent approach to preventing, detecting and responding to fraud. 6 7 Defi nition of fraud The term ‘fraud’ commonly includes activities such as theft, corruption, conspiracy, embezzlement, money laundering, bribery and extortion. The legal defi nition varies from country to country, and it is only since the introduction of the Fraud Act in 2006, that there has been a legal defi nition of fraud in England and Wales. Fraud essentially involves using deception to dishonestly make a personal gain for oneself and/or create a loss for another. Although defi nitions vary, ost are based around these general themes. Fraud and the law Before the Fraud Act came into force, related offences were scattered about in many areas of the law. The Theft Acts of 1968 and 1978 created offences of false accounting, and obtaining goods, money and services by decept ion, and the Companies Act 1985 included the offence of fraudulent trading. This remains part of the Companies Act 2006. There are also offences of fraud under income tax and value-added tax legislation, insolvency legislation, and the common law offence of conspiracy to defraud. The Fraud Act is not the only new piece of legislation.Over the last few years there have been many changes to the legal system with regard to fraud, both in the UK and internationally. This guide focuses mainly on UK requirements, but touches on international requirements that impact UK organisations. In the UK, the Companies Act and the Public Interest Disclosure Act (PIDA) have been amended and legislation such as the Serious Crimes Act 2007 and the Proceeds of Crime Act 2002 (POCA) have been introduced. Internationally the Sarbanes-Oxley Act 2002 (Sarbox) has been introduced in the United States (US), a major piece of legislation that affects not only companies in the US ut also those in the UK and othe rs based all over the globe. Further information on these pieces of legislation can be found in Appendix 1. As well as updating the legislation in the UK, there have been, and will continue to be, signifi cant developments in the national approach to combating fraud, particularly as we see implementation of actions resulting from the national Fraud Review. Appendix 1 gives further information on the Fraud Review. There are also many law enforcement agencies involved in the fi ght against fraud in the UK, including the Serious Fraud Offi ce, the Serious Organised Crime Agency SOCA), the Financial Services Authority (FSA), and Economic Crime Units within the police force. Different types of fraud Fraud can mean many things and result from many varied relationships between offenders and victims. Examples of fraud include: †¢ crimes by individuals against consumers, clients or other business people, e. g. misrepresentation of the quality of goods; pyramid trading schemes †¢ em ployee fraud against employers, e. g. payroll fraud; falsifying expense claims; thefts of cash, assets or intellectual property (IP); false accounting †¢ crimes by businesses against investors, consumers and employees, e. g. i nancial statement fraud; selling counterfeit goods as genuine ones; not paying over tax or National Insurance contributions paid by staff †¢ crimes against fi nancial institutions, e. g. using lost and stolen credit cards; cheque frauds; fraudulent insurance claims †¢ crimes by individuals or businesses against government, e. g. grant fraud; social security benefi t claim frauds; tax evasion †¢ crimes by professional criminals against major organisations, e. g. major counterfeiting rings; mortgage frauds; ‘advance fee’ frauds; corporate identity fraud; money laundering †¢ e-crime by people using computers and technology to commit crimes, e. . phishing; spamming; copyright crimes; hacking; social engineering frauds. 1. 1 Wh at is fraud? 1 Fraud: its extent, patterns and causes Figure 1 Types of internal fraud Cash Non-cash Financial Non-fi nancial Confl icts of interest Bribery and extortion Asset misappropriation Fraudulent statements Corruption Internal fraud Fraud risk management: a guide to good practice 8 The fi nal of the three fraud categories is corruption. This includes activities such as the use of bribes or acceptance of ‘kickbacks’, improper use of confi dential information, confl icts of interest and collusive tendering. These types of internal fraud are summarised n Figure 1. Surveys have shown that asset misappropriation is the most widely reported type of fraud in UK, although corruption and bribery are growing the most rapidly. Further information on common types of internal fraud, and methods by which they may be perpetrated, is included in Appendix 2. This guide focuses on fraud against businesses, typically by those internal to the organisation. According to the Associa tion of Certifi ed Fraud Examiners (ACFE), there are three main categories of fraud that affect organisations. The fi rst of these is asset misappropriations, which involves the theft or misuse f an organisation’s assets. Examples include theft of plant, inventory or cash, false invoicing, accounts receivable fraud, and payroll fraud. The second category of fraud is fraudulent statements. This is usually in the form of falsifi cation of fi nancial statements in order to obtain some form of improper benefi t. It also includes falsifying documents such as employee credentials. 9 1. 2 The scale of the problem There have been many attempts to measure the true extent of fraud, but compiling reliable statistics around fraud is not easy. As one of the key aspects of fraud is deception, it can be diffi cult to identify and urvey results often only refl ect the instances of fraud that have actually been discovered. It is estimated that the majority of frauds go undetected and, even wh en a fraud has been found, it may not be reported. One reason for this may be that a company that has been a victim of fraud does not want to risk negative publicity. Also, it is often hard to distinguish fraud from carelessness and poor record keeping. Although survey results and research may not give a complete picture, the various statistics do offer a useful indication as to the extend of the problem. There can be no doubt that fraud is prevalent within organisations nd remains a serious issue. PricewaterhouseCooper’s Global Economic Crime Survey (PwC’s survey) in 2007 found that over 43% of international businesses were victims of fraud during the previous two years. In the UK, the fi gures were higher than the global average, with 48% of companies having fallen victim to fraud. Some surveys put the fi gures much higher. For example, during 2008, Kroll commissioned the Economist Intelligence Unit (EIU) to poll nearly 900 senior executives across the world. The EIU found that 85% of companies had suffered from at least one fraud in the past three years1. This fi gure had risen from 80% in a imilar poll in 2007. KPMG’s Fraud Barometer, which has been running since 1987, has also shown a considerable increase in the number of frauds committed in the UK in recent years, including a 50% rise in fraud cases in the fi rst half of 2008. According to the UK report of PwC’s survey, the average direct loss per company over a two year period as a result of fraud has risen to ? 1. 75 million, increasing from ? 0. 8 million in the equivalent 2005 survey. These fi gures exclude undetected losses and indirect costs to the business such as management costs or damage to reputation, which can be signifi cant. Management costs lone were estimated to be on average another ? 0. 75 million. Participants of the ACFE Report to the Nation 2008 (ACFE report) estimated that organisations lose 7% of their annual revenues to fraud. It is diffi cult to put a total cost on fraud, although many studies have tried to. For example an independent report by the Association of Chief Police Offi cers (the ACPO) in 2007 revealed that fraud results in losses of ? 20 billion each year in the UK. The World Bank has estimated that the global cost of corruption and bribery is about 5% of the value of the world economy or about $1. 5 trillion per year. It is thought that these stimates are conservative, and they also exclude other types of fraud such as misappropriation of assets. While it may be impossible to calculate the total cost of fraud, it is said to be more signifi cant than the total cost of most other crimes. According to the Attorney General in the UK, fraud is an area of crime which is second only to drug traffi cking in terms of causing harm to the economy and society2. 1 Kroll Global Fraud Report, Annual Edition 2008/2009 2 Attorney General’s interim report on the government’s Fraud Review, March 2006 Fraud risk managemen t: a guide to good practice 10 Case study 1 Fraud doesn’t just involve moneyCounterfeiting is one example of fraud that can have extremely serious consequences. Technology is ever improving, making it easier for counterfeiters to produce realistic looking packaging and fool legitimate wholesalers and retailers. Counterfeiting is a potentially lucrative business for the fraudster, with possibilities of large commercial profi ts, and it is a problem affecting a wide range of industries including wines and spirits, pharmaceuticals, electrical goods, and fashion. However, there are often many victims affected by such a fraud and not just the business that has been duped or had their brand exploited.For some, the outcome of counterfeiting goes way beyond fi nancial losses and can even be fatal: †¢ In late 2006, 14 Siberian towns declared a state of emergency due to mass poisonings caused by fake vodka. Around 900 people were hospitalised with liver failure after drinking indu strial solvent that was being sold as vodka. This is not a one off problem and sales of fake alcohol have been known to kill people. †¢ Also in 2006, a counterfeit product did result in more tragic consequences. At least 100 children died after ingesting cough syrup that had been mixed with counterfeit glycerine.The counterfeit compound, actually a dangerous solvent, had been used in place of more expensive glycerine. The manufacturing process had been sourced to China and the syrup passed through trading companies in Beijing and Barcelona before reaching its fi nal destination in Panama. The certifi cate attesting to the product’s purity was falsifi ed and not one of the trading companies tested the syrup to confi rm its contents along the way. It is thought that the number of deaths is likely to be much higher than the 100 cases that have been confi rmed. Fraud is often mistakenly considered a victimless rime. However, fraud can have considerable social and psychologic al effects on individuals, businesses and society. For example, when a fraud causes the collapse of a major company, numerous individuals and businesses can be affected. In addition to the company’s own employees, employees of suppliers can be affected by the loss of large orders, and other creditors, such as banks, can be indirectly affected by huge losses on loans. Consumers have to pay a premium for goods and services, in order to compensate for the costs of fraud losses and for money spent on investigations and additional security.Taxpayers also suffer due to reduced payments of corporation tax from businesses that have suffered losses. Fraud drains resources, affects public services and, perhaps of more concern, may fund other criminal and terrorist activity. According to the Fraud Review, fraud is a major and growing threat to public safety and prosperity. Case study 1 demonstrates just how much of a threat fraud can be to public safety and that there truly are victims of fraud. 11 1. 3 Which businesses are affected? Fraud is an issue that all organisations may face regardless of size, industry or country. If the rganisation has valuable property (cash, goods, information or services), then fraud may be attempted. It is often high profi le frauds in large multi-national organisations that are reported on in the media and smaller organisations may feel they are unlikely to be a target of fraudsters. However, according to the ACFE report, small businesses (classifi ed as those with less than 100 employees) suffer fraud more frequently than large organisations and are hit by higher average losses. When small companies are hit by large fraud losses, they are less likely to be able to absorb the damage han a larger company and may even go out of business as a result. The results of PwC’s survey showed that companies reporting fraud were spread across many industries, with at least a quarter of the respondents in any one industry suffering from f raudulent incidents. Industries suffering the highest average losses were insurance and industrial manufacturing. Losses in the fi nancial services industry, a sector frequently in the press and one with which fraud is often associated, were actually below average. Even not-for-profi t organisations are not immune to fraud, with government institutions nd many charities falling victim to unscrupulous fraudsters. As one director working in the international development and aid sector has pointed out, ‘In my sector, fraud is not a possibility, it is a reality and we are always dealing with a number of suspicious incidents on a more or less permanent basis. ’ PwC’s survey also revealed that incidences of fraud were highest in companies in North America, Africa and Central and Eastern Europe (CEE), where more than half of the companies reported fraud. It was lowest in the Western European region, although the UK was uch higher than the average for this region, with l evels of fraud similar to those in CEE. The EIU poll commissioned by Kroll in 2007 found that respondents in countries such as India and China have seen a signifi cant increase in the prevalence of corporate fraud in the last three years and this trend is likely to increase in businesses operating in emerging markets3. Although fraud is prevalent across organisations of all sizes and in all sectors and locations, research shows that certain business models will involve greater levels of fraud risk than others. The control environment hould be adjusted to fi t with the degree of risk exposure. Further guidance on risk assessment and controls is given in later chapters. 3 Kroll Global Fraud Report, Annual Edition 2007/2008 Fraud risk management: a guide to good practice 12 Case study 2 Size really doesn’t matter From a family affair†¦ A member of a small family business in Australia committed a $2m fraud, costing profi ts, jobs and a great deal of trust. The business owner s became suspicious when they realised that their son in law used the company diesel card to buy petrol for his own car.On closer scrutiny, they soon uncovered a company cheque for $80,000 made payable to the son in law’s personal account. BDO’s Brisbane offi ce discovered that the cheque and the fuel were just the tip of a vast iceberg. The company’s complex accounts system allowed the son in law to disguise cheques payable to himself as creditor payments. He then became a signatory and took ever larger cheques. He claimed that the poor cash fl ow was due to losses in one particular division which the family therefore closed, creating redundancies and losing what was in truth a successful business.The costs of ineffi cient accounting systems and undue trust can be massive. Every business should protect itself with thorough controls and vigilance. Adapted from ‘FraudTrack 5 Fraud: A Global Challenge’ published by BDO Stoy Hayward †¦ to a major corporate scandal WorldCom fi led for bankruptcy protection in June 2002. It was the biggest corporate fraud in history, largely a result of treating operating expenses as capital expenditure. WorldCom (now renamed MCI) admitted in March 2004 that the total amount by which it had misled investors over the previous 10 years was almost US$75 billion (? 2 billion) and reduced its stated pre-tax profi ts for 2001 and 2002 by that amount. WorldCom stock began falling in late 1999 as businesses slashed spending on telecom services and equipment. A series of debt downgrades raised borrowing costs for the company, struggling with about US$32 billion in debt. WorldCom used accounting tricks to conceal a deteriorating fi nancial condition and to infl ate profi ts. Former WorldCom chief executive Bernie Ebbers resigned in April 2002 amid questions about US$366 million in personal loans from the company and a federal probe of its accounting practices.Ebbers was subsequently charged with conspir acy to commit securities fraud and fi ling misleading data with the Securities and Exchange Commission (SEC) and was sentenced to 25 years in prison. Scott Sullivan, former Chief Financial Offi cer, pleaded guilty to three criminal charges and was sentenced to fi ve years in prison. Ultimately, losses to WorldCom shareholders were close to US$180 billion and the fraud also resulted in the loss of 17,000 jobs. The SEC said that WorldCom had committed ‘accounting improprieties of unprecedented magnitude’ – proof, it said, of the need for reform in the regulation of corporate ccounting. Adapted from CIMA Offi cial Learning System, Management Accounting Risk and Control Strategy 13 1. 4 Why do people commit fraud? There is no single reason behind fraud and any explanation of it needs to take account of various factors. Looking from the fraudster’s perspective, it is necessary to take account of: †¢ motivation of potential offenders †¢ conditions unde r which people can rationalise their prospective crimes away †¢ opportunities to commit crime(s) †¢ perceived suitability of targets for fraud †¢ technical ability of the fraudster expected and actual risk of discovery after the fraud has been carried out †¢ expectations of consequences of discovery (including non-penal consequences such as job loss and family stigma, proceeds of crime confi scation, and traditional criminal sanctions) †¢ actual consequences of discovery. A common model that brings together a number of these aspects is the Fraud Triangle. This model is built on the premise that fraud is likely to result from a combination of three factors: motivation, opportunity and rationalisation. Motivation In simple terms, motivation is typically based on either reed or need. Stoy Hayward’s (BDO) most recent FraudTrack survey found that greed continues to be the main cause of fraud, resulting in 63% of cases in 2007 where a cause was cited. Other causes cited included problems from debts and gambling. Many people are faced with the opportunity to commit fraud, and only a minority of the greedy and needy do so. Personality and temperament, including how frightened people are about the consequences of taking risks, play a role. Some people with good objective principles can fall into bad company and develop tastes for the fast life, which empts them to fraud. Others are tempted only when faced with ruin anyway. Opportunity In terms of opportunity, fraud is more likely in companies where there is a weak internal control system, poor security over company property, little fear of exposure and likelihood of detection, or unclear policies with regard to acceptable behaviour. Research has shown that some employees are totally honest, some are totally dishonest, but that many are swayed by opportunity. Rationalisation Many people obey the law because they believe in it and/or they are afraid of being shamed or rejected by eople the y care about if they are caught. However, some people may be able to rationalise fraudulent actions as: †¢ necessary – especially when done for the business †¢ harmless – because the victim is large enough to absorb the impact †¢ justifi ed – because ‘the victim deserved it’ or ‘because I was mistreated. ’ Figure 2 The fraud triangle Motivation Opportunity The fraud triangle Rationalisation Fraud risk management: a guide to good practice 14 Case study 3 A breach of trust A good example of the fraud triangle in practice is the highly publicised case of the secretary that stole over ? . 3 million from her bosses at Goldman Sachs. Motivation There were some suggestions that Joyti De-Laurey originally started down her fraudulent path because of fi nancial diffi culties she found herself in before starting work at the investment bank. De-Laurey had previously run her own sandwich bar business, but it was closed down due to ins uffi cient fi nances. According to her defence, De-Laurey’s ‘fi rst bitter experience of fi nancial turmoil coincided with a novel introduction to a Dallas-type world where huge, unthinkable amounts of money stared her in the face, day in and day out. The motive behind the fraud was primarily greed though, with De-Laurey spending her ill gotten gains on a luxury lifestyle, including villas, cars, jewellery, designer clothes and fi rst class holidays. De-Laurey has even admitted that she did not steal because she needed to, but because she could. She explained that she fi rst started taking money simply to fi nd out if she could get away with it. She says that it then became ‘a bit addictive’ and that she ‘got a huge buzz from knowing they had no idea what I was doing. ’ Opportunity In terms of opportunity, De-Laurey’s bosses trusted her and held her in high regard.She had proved herself indispensable, on both business and personal fronts , and was given access to their cheque books in order to settle their domestic bills and personal fi nances. A little over a year after starting at Goldman Sachs, De-Laurey began forging her bosses’ signatures on personal cheques to make payments into her own accounts. Realising she had got away with it, De-Laurey continued to steal money by issuing forged cheques and making false money transfers. Before long she was forging signatures on a string of cash transfer authorities, siphoning off up to ? 2. million at a time from supposedly secure New York investments. Rationalisation De-Laurey was able to rationalise her actions by convincing herself that she had earned the money she stole. De-Laurey believed that she deserved the plundered amounts as a just reward for her dedication, discretion and loyalty, and claims that she had the consent of her bosses to take money in return for her ‘indispensable services’. The fact that they were so rich they did not even noti ce the money was missing, only served to fuel De-Laurey’s fraudulent activities. She justifi ed her actions through the belief that her bosses had cash to spare.According to De-Laurey; ‘They could afford to lose that money. ’ Caught out After four years of siphoning off vast amounts of money, De-Laurey was eventually caught when her boss at the time decided to make a six-fi gure donation to his former college. He took a look at his bank accounts to see if he could cover the donation and was surprised to fi nd the balance on the accounts so low. He investigated further and realised that large sums had been transferred to an unknown account. De-Laurey was the obvious suspect. By this time, De-Laurey had actually stolen around ? 3. 3 million from this particular boss.De-Laurey was the fi rst woman in the UK to be accused of embezzling such a large sum and, after a long and high profi le trial in 2004, she was sentenced to seven years imprisonment. Various sources in cluding The Guardian, The Times, The Independent and the BBC News 15 One of the most effective ways to tackle the problem of fraud is to adopt methods that will decrease motive or opportunity, or preferably both. Rationalisation is personal to the individual and more diffi cult to combat, although ensuring that the company has a strong ethical culture and clear values should help. These methods and principles are developed further in later hapters of this guide. 1. 5 Who commits fraud? Different types of fraudster Fraudsters usually fall into one of three categories: 1 Pre-planned fraudsters, who start out from the beginning intending to commit fraud. These can be short-term players, like many who use stolen credit cards or false social security numbers; or can be longer-term, like bankruptcy fraudsters and those who execute complex money laundering schemes. 2 Intermediate fraudsters, who start off honest but turn to fraud when times get hard or when life events, such as irritation at being passed over for promotion or the need to pay for care for a family ember, change the normal mode. 3 Slippery-slope fraudsters, who simply carry on trading even when, objectively, they are not in a position to pay their debts. This can apply to ordinary traders or to major business people. In 2007, KPMG carried out research on the Profi le of a Fraudster (KPMG survey), using details of fraud cases in Europe, India, the Middle East and South Africa. The ACFE carried out similar research on frauds committed in the US. These surveys highlight the following facts and fi gures in relation to fraudsters: †¢ perpetrators are typically college educated white male most fraudsters are aged between 36 and 55 †¢ the majority of frauds are committed by men †¢ median losses caused by men are twice as great as those caused by women †¢ a high percentage of frauds are committed by senior management (including owners and executives) †¢ losses caused by managers are ge nerally more than double those caused by employees †¢ average losses caused by owners and executives are nearly 12 times those of employees †¢ longer term employees tend to commit much larger frauds †¢ fraudsters most often work in the fi nance department, operations/sales or as the CEO. The ACFE report also found that the type of person ommitting the offence depends on the nature of the fraud being perpetrated. Employees are most likely to be involved in asset misappropriation, whereas owners and executives are responsible for the majority of fi nancial statement frauds. Of the employees, the highest percentage of schemes involved those in the accounting department. These employees are responsible for processing and recording the organisation’s fi nancial transactions and so often have the greatest access to its fi nancial assets and more opportunity to conceal the fraud. Fraud risk management: a guide to good practice 16 Case study 4 Management riskIn 2007, a major British construction fi rm suffered from extensive fraud committed by management at one of its subsidiaries. Accounting irregularities dating back to 2003 were said to include systematic misrepresentation of production volumes and sales by a number of senior fi gures at the division. Management at the subsidiary attempted to cover their behaviour by selling materials at a discounted price and the fraud went undetected for several years despite internal and external audits. The irregularities were eventually uncovered by an internal team sent to investigate a mismatch between orders and sales.Following an initial internal investigation, a team of external experts and the police were brought in to identify the full extent of malpractice. The investigation found that the organisation was defrauded of nearly ? 23 million, but the fraud was said to cost the company closer to ? 40 million due to the written down value of the business and factoring in the cost of the investigation. The managing director of the subsidiary was dismissed, another manager faced disciplinary action and fi ve others left before disciplinary proceedings could be commenced. Civil proceedings were ruled out on the basis that osses were unlikely to be recovered. Operations at the centre of the incident had to be temporarily closed and more than 160 jobs were cut at the business. In addition to individual fraudsters, there has also been an increase in fraud being committed by gangs of organised criminals. Examples include false or stolen identities being used to defraud banks, and forms of e-fraud exploiting the use of internet by commercial businesses. SOCA is responsible for responding to such threats, with the support of the victim organisations. 1. 6 Summary A major reason why people commit fraud is because they are allowed to do so.There are a wide range of threats facing businesses. The threat of fraud can come from inside or outside the organisation, but the likelihood that a frau d will be committed is greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must be to establish a comprehensive system of control which aims to prevent fraud, and where fraud is not prevented, increases the likelihood of detection and increases the cost to the fraudster. Later chapters of this guide set out some of the easures which can be put in place to minimise fraud risks to the organisation. Before looking specifi cally at fraud risk, the guide considers risk management in general. Risk management is defi ned as the ‘process of understanding and managing risks that the entity is inevitably subject to in attempting to achieve its corporate objectives’ (CIMA Offi cial Terminology, 2005). For an organisation, risks are potential events that could infl uence the achievement of the organisation’s objectives. Risk management is about understanding the nature of such events and, where they represent threats, making positive plans to mitigate them. Fraud s a major risk that threatens the business, not only in terms of fi nancial health but also its image and reputation. This guide is primarily focused on managing the risk of fraud, but fi rst, this chapter looks at more general aspects of risk management and corporate governance. 17 2 Risk management – an overview Risk management is an increasingly important process in many businesses and the process fi ts in well with the precepts of good corporate governance. In recent years, the issue of corporate governance has been a major area for concern in many countries. In the UK, the fi rst corporate governance report and code of best practice s considered to be the Cadbury Report in 1992, which was produced in response to a string of corporate collapses. There have been a number of reports since, covering provisions around areas such as exec utive remuneration, non-executive directors, and audit committees. The principles of these various reports have been brought together to form the Combined Code on Corporate Governance (Combined Code). The Combined Code was fi rst introduced in 1998 and among other matters, calls for boards to establish systems of internal control and to review the effectiveness of these systems on a regular basis. UK isted companies are required to provide a statement in their annual reports confi rming that they comply with the Combined Code, and where they do not, they must provide an explanation for departures from it (the ‘comply or explain’ principle). The assessment of internal controls should be included in the report to shareholders. The Combined Code is reviewed regularly and the most recent version was published in June 2008. Following the original introduction of the Combined Code, the Turnbull Committee was set up to issue guidance to directors on how they should assess and report on their review of internal controls. TheTurnbull Committee made it clear that establishment of embedded risk management practices is key to effective internal control systems. The Turnbull guidance was fi rst published in 1999 and revised in 2005. In the revised report (sometimes referred to as Turnbull 2) there is now a requirement for directors to give explicit confi rmation that any signifi cant failings or weaknesses identifi ed from the review of effectiveness of internal controls have been, or are being, remedied. 2. 1 What is risk management? 2. 2 Corporate governance Fraud risk management: a guide to good practice 18 The Financial Reporting Council is responsible for aintaining and reviewing the Combined Code, although the Combined Code is annexed to the rules of the UK Listing Authority, which is part of the FSA. The FSA is responsible for ensuring that listed companies provide the appropriate ‘comply or explain’ statement in their annual report. While the guidance is generally applicable to listed companies, the principles are relevant to all organisations and have been widely used as a basis for codes of best practice in the public and not-for-profi t sectors. Fraud risk management practices are developing along the same lines. Many other countries have also produced reports on orporate governance, usually accompanied by codes of best practices. For example, South Africa has had the King Report (version I and now II) since 1994, Malaysia has had its Code of Corporate Governance in place since 2000 and Sri Lanka issued the Rules on Corporate Governance as part of its Listing Rules in January 2007. Corporate governance requirements in the US are now largely set out within the Sarbox legislation, further details on which are provided at Appendix 1. As previously mentioned, these requirements extend beyond the US, capturing any company that is SEC listed and its subsidiaries. Some other countries have lso introduced a statutory appr oach to corporate governance, such as that in the US, although none are currently as comprehensive. A number of international organisations have also launched guidelines and initiatives on corporate governance, including the Organisation for Economic Co-operation and Development (OECD) and the European Commission. An example of a growing area of corporate governance is IT governance, which has developed in light of rapid and continuing advances in information technology. The following box gives more information on IT governance. IT Governance IT governance is about ensuring that the rganisation’s IT systems support and enable achievement of the organisation’s strategies and objectives. It encompasses leadership, organisational structures, businesses processes, standards and compliance. There are fi ve specifi c drivers for organisations to adopt IT governance strategies: †¢ regulatory requirements e. g. IT governance is covered by the Combined Code and Turnbull gu idance in the UK †¢ increasing intellectual capital value that the organisation has at risk †¢ alignment of technology with strategic organisational goals †¢ complexity of threats to information security †¢ increase in the compliance requirements of nformation and privacy-related regulation. A key benefi t of an effective, integrated IT governance framework is the integration of IT into the strategic and overall operational approach of an organisation. There are a series of international Information Security (IS) standards that provide guidance on implementing an effective IT governance framework, known as the ISO 27000 series. For example, ISO/IEC 27001 defi nes a set of IS management requirements in order to help organisations establish and maintain an IS management system. The standards apply to all types of organisation regardless of size or sector.They are particularly suitable where the protection of information is critical to the business, for example in t he fi nance, health and public sectors, and for organisations which manage information on behalf of others, such as IT outsourcing companies. ISACA also offers a series of IS standards and certifi cation. ISACA is a leading global association in the IT governance and control fi eld. With a network across more than 160 countries, its IS standards are followed by practitioners worldwide. Figure 3 The CIMA risk management cycle Controls assurance Controls assurance is the process whereby controls are eviewed by management and staff. There are various ways to conduct these exercises, from highly interactive workshops based on behavioural models at one end of the spectrum to pre-packaged self audit internal control questionnaires at the other. These models all include monitoring and risk assessment among their principal components. 19 The risk management cycle is an interactive process of identifying risks, assessing their impact, and prioritising actions to control and reduce risks. A n umber of iterative steps should be taken: 1 Establish a risk management group and set goals. 2 Identify risk areas. Understand and assess the scale of risk. 4 Develop a risk response strategy. 5 Implement the strategy and allocate responsibilities. 6 Implement and monitor the suggested controls. 7 Review and refi ne the process and do it again. 2. 3 The risk management cycle Identify risk areas Review and refi ne process and do it again Implementation and monitoring of controls Implement strategy and allocate responsibilities Understand and assess scale of risk Develop risk response strategy Information for decision making Establish risk management group and set goals Fraud risk management: a guide to good practice 20 2. Establish a risk management group and set goals A risk management group should be established whose task it is to facilitate and co-ordinate the overall risk management process. Possible members of the group could include a chief risk offi cer, a non executive direc tor, fi nance director, internal auditor, heads of planning and sales, treasurer and operational staff. Depending on the size and nature of the organisation, the risk management group may be in the form of a committee who meet from time to time. The risk management group will promote the understanding and assessment of risk, and facilitate the evelopment of a strategy for dealing with the risks identifi ed. They may also be responsible for conducting reviews of systems and procedures to identify and assess risks faced by the business, which include the risk of fraud, and introducing the controls that are best suited to the business unit. However, line managers and their staff may also be involved in the risk identifi cation and assessment process, with the risk management group providing guidance. 2. 5 Identify risk areas Each risk in the overall risk model should be explored to identify how it potentially evolves through the organisation.It is important to ensure that the risk is c arefully defi ned and explained to facilitate further analysis. The techniques of analysis include: †¢ workshops and interviews †¢ brainstorming †¢ questionnaires †¢ process mapping †¢ comparisons with other organisations †¢ discussions with peers. Once risks have been identifi ed, an assessment of possible impact and corresponding likelihood of occurrence should be made using consistent parameters that will enable the development of a prioritised risk analysis. In the planning stage, management should agree on the most appropriate defi nition and number of categories to be used when ssessing both likelihood and impact. The assessment of the impact of the risk should not simply take account of the fi nancial impact but should also consider the organisation’s viability and reputation, and recognise the political and commercial sensitivities involved. The analysis should either be qualitative or quantitative, and should be consistent to allow compa risons. The qualitative approach usually involves grading risks in high, medium and low categories. Impact The assessment of the potential impact of a particular risk may be complicated by the fact that a range of possible outcomes may exist or that the risk may occur number of times in a given period of time. Such complications should be anticipated and a consistent approach adopted which, for example, may seek to estimate a worst case scenario over, say, a 12 month time period. Likelihood of occurrence The likelihood of a risk occurring should be assessed on a gross, a net and a target basis. The gross basis assesses the inherent likelihood of the event occurring in the absence of any processes which the organisation may have in place to reduce that likelihood. The net basis assesses the likelihood, taking into account current conditions and processes to mitigate he chance of the event occurring. The target likelihood of a risk occurring refl ects the risk appetite of the organisa tion. 2. 6 Understand and assess the scale of risk 21 Where the net likelihood and the target likelihood for a particular risk differ, this would indicate the need to alter the risk profi le accordingly. It is common practice to assess likelihood in terms of: †¢ high – probable †¢ moderate – possible †¢ low – remote. An example of a risk analysis is contained in Appendix 3. The resulting document is often referred to as a risk register. The overall risk registers at organisational nd operational levels should include the risk of fraud being perpetrated. Some organisations also prepare detailed fraud risk registers that consider possible fraudulent activity. The fraud risk register often directs the majority of proactive fraud risk management work undertaken by an organisation. Analysing fraud risks Fraud risk is one component of operational risk. Operational risk focuses on the risks associated with errors or events in transaction processing or ot her business operations. A fraud risk review considers whether these errors or events could be the result of a deliberate act designed to benefi t the perpetrator.As a result, fraud risk reviews should be detailed exercises conducted by teams combining in depth knowledge of the business and market with detailed knowledge and experience of fraud. Risks such as false accounting or the theft of cash or assets need to be considered for each part of the organisation’s business. Frequently, businesses focus on a limited number of risks, most commonly on thirdparty thefts. To avoid this, the risks should be classifi ed by reference to the possible type of offence and the potential perpetrator(s). Fraud risks need to be assessed for each area and process of the business, for example, cash payments, ash receipts, sales, purchasing, expenses, inventory, payroll, fi xed assets and loans. Fraud risk management: a guide to good practice 22 2. 7 Develop a risk response strategy Once the ri sks have been identifi ed and assessed, strategies to deal with each risk identifi ed can be developed by line management, with guidance from the risk management group. Strategies for responding to risk generally fall into one of the following categories: †¢ risk retention (e. g. choosing to accept small risks) †¢ risk avoidance (e. g. stopping sale of certain products to avoid the risk to occurring) †¢ risk reduction (e. g. hrough implementing controls and procedures) †¢ risk transfer (e. g. contractual transfer of risk; transferring risks to insurers). Before strategies are developed, it is necessary to establish the risk appetite of the organisation. Risk appetite is the level of risk that the organisation is prepared to accept and this should be determined by the board. The appetite for risk will infl uence the strategies to be developed for managing risk. It is worth noting that a board’s risk appetite may vary for different types of risk and over tim e. For example, the board may have a low risk tolerance on compliance and egulatory issues, but be prepared to take signifi cant strategic risks. The board may also reduce their risk appetite as the external environment changes, such as in times of recession. 2. 8 Implement the strategy and allocate responsibilities The chosen strategy should be allocated and communicated to those responsible for implementation. For the plan to be effective it is essential that responsibility for each specifi c action is assigned to the appropriate operational manager and that clear target dates are established for each action. It is also important to obtain the co-operation of those esponsible for the strategy, by formal communication, seminars, action plans and adjustments to budgets. The chosen strategy may require the implementation of new controls or the modifi cation of existing controls. Businesses are dynamic and the controls that are in place will need to be monitored to assess whether or n ot they are succeeding in their objectives. The risk management group should be empowered to monitor the effectiveness of the actions being taken in each specifi c area, as these can be affected by internal and external factors, such as changes in the marketplace or the introduction of new computer systems. . 10 Review and refi ne and do it again All of the elements outlined above form part of an iterative cycle where risk management is continually reviewed and developed. As the cycle continues, risk management should increasingly become embedded in the organisation so that it really becomes part of everyone’s job. 2. 11 Information for decision making Risk management should form a key part of the organisation’s decision-making process. Information is gathered at all stages of the risk management cycle and this information should be fed into the decision-making mechanisms. For more information on risk management, please refer o CIMA’s publication Risk Management : A guide to good practice. 2. 9 Implement and monitor suggested controls 23 There are risks in most situations. Risk management is an important element of corporate governance and every organisation should review their risk status and develop their approach as described in the CIMA Risk Management Cycle in 2. 3 to 2. 11 above. Managing the risk of fraud is the same in principle as managing any other business risk. First, the potential consequences of fraud on the organisation need to be understood, using the principles set out in this chapter. The risks should then be reduced by developing nd implementing an anti-fraud strategy across the organisation. This is best approached systematically, both at the organisational level, for example by using ethics policies and anti-fraud policies, and at the operational level, through introduction of controls and procedures. The following chapters expand on the fraud risk management process in the context of an antifraud strategy. 2. 12 Summar y Fraud risk management: a guide to good practice Given the prevalence of fraud and the negative consequences associated with it, there is a compelling argument that organisations should invest time and resources towards tackling fraud.There is, however, sometimes debate as to whether these resources should be committed to fraud prevention or fraud detection. Fraud prevention Based on the earlier discussion aroun