The Institute of Forensic Accountants of Pakistan (IFAP)

(Set up under license of Federal Government of Pakistan issued by Registrar Joint Stock Companies under the Societies Registration Act of XXI of 1860)

April 2011 Monthly

Newsletter
The Forensic Accountant (FA)
(Official organ of The Institute of Forensic Accountants of Pakistan (IFAP)
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Look Inside
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Articles Forensic Accountants Focus on Fraud, By: FA MBT Khalid - Secretary IFAP, 79 How to Conduct an Appropriate Fraud Investigation, By: FA Faheem-ul-Haq Khan - Member Executive Council IFAP, 910 President Communication, By: FA Barrister Sohail Nawaz - President IFAP, 46

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Corrupt Pakistani Politicians, World Capitals shy away from Prime Minister's Flood Fund, 1617

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Driving Profitability through Corporate Social Responsibility, 15

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Eight Tips to Prevent Employee Theft and Fraud 1. Create a positive work environment, 11 2. Implement Internal Controls, 11 3. Hire honest people, 11 4. Educate your employees, 12 5. Implement an anonymous reporting system, 12 6. Perform regular - and irregular - audits, 12 7. Investigate every incident, 12 8. Lead by example, 12

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Forensic Accountants Focus on Fraud Common Recurring Small-Rupee Fraud Schemes, 7 Compensation Schemes, 8 Expense Reimbursement Schemes, 8 Mischaracterized Expenses, 8 Overstated Expenses, 9 Payments to Employees, 8 Payments to Vendors, 7 Theft of Cash after It is Recorded, Fraudulent Disbursement Schemes, 7 Theft of Cash before It is Recorded, Skimming Schemes, 7 Forensic Accounting, Case Studies, 1819 Fraud in IFRS Environment, 1314

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How to Become a Corporate Investigator? 1213 How to Conduct an Appropriate Fraud Investigation, 9

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IFAP About IFAP, 52 Executive Council/Board of Governors, 53 IFAP News, 52

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News International News ACAMS News, 3940 ACCA News, 27 ACFE News, 3032 AICPA News, 2326 CIPFA News, 2729 FASB News, 2021 Financial Action Task Force News, 3639 Forensic & Valuation Reporter News, 3335 ICAEW News, 2627 ICAS News, 30 ICSA News, 29 IFAC News, 1820 IFRS News, 2123 The Institute of Money Laundering Prevention Officers News, 3536 PWC News, 33 National News FBR News, 42 Federal Tax Ombudsman Pakistan News, 48 IFAP News, 52 NAB News, 4546 SBP News, 4345 SECP News, 4042 Supreme Court News, 4852 Transparency International News, 4647

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The Case for Bribery, 1718

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What is involved in a Cyber Crime Investigation? 1415

President Communication
Dear Professional Colleagues,
It would be inappropriate if I do not thank the members of my profession for their constant and agreeable support. With your cooperation and support, we will write many success stories for the profession and its stakeholders. Let us bring lan vital to our profession. I assure all stakeholders of the profession that we would take stock of all tasks that have not yet begun, or, have been unfinished or in progress, and then we would bring them to conclusion with our organized cooperation and efforts. Past many a time gives us reasons to march ahead and, at times, asks us to stop, look back and evaluate, and then prepare to march ahead. The list of accomplishments should grow forever, and its impressions on policy, planning and implementation should show. The process of development of the Forensic Accounting Profession should continue. When I say our policy, planning and implementation, I am fundamentally talking about the socioeconomic and historical reality of our profession and its gradual empowerment. I am also talking about capacity building of small and medium practitioners of the profession in particular and about nation-building in general. It is an onerous task and I would like to take it up and continue our march to development. It is true that our Forensic Accounting Profession is at an enviable height. Number of members has increased and so has the number of Branches and overseas Chapters. Membership is in the process of getting consolidated and empowered. We have been a great help to our Government in contouring their accounting procedures. We have added to the infrastructure in the past and will continue to do so as we come across a need. Our initiatives have helped the Forensic Accounting Professionals in creating an efficient space where they would deliver and contribute to the growth of our nation as well as of the world. We have successfully reached our international stake-holder community through a number of MRAs and MOUs with various accounting and non accounting bodies. Almost all international accounting and non accounting bodies acknowledge today our role in the growth of Forensic Accounting Profession. We are at the helm in convergence of accounting standards while efficiently preserving our indigenous ones keeping in view the structure and process of our economy. In the background of these developments, I personally would like to concentrate our efforts to creating a unique IFAP brand that would be recognized and treated with respect all over the world, not just in our nation. We will work towards achieving this goal together. I have always believed in the power of togetherness: together, we achieve more. Togetherness is divine-it has the power to bring progress and success to our existence and endeavors respectively. World is full of people who dream and who say that we should act, but there have been very few who actually rise to the occasion and start to act. We need to take a lead, I feel, and move together in unison to substantiate our goals and realize our vision. If we fail or fall, we will start all over again with courage. Entrusted by the Council and committed to the maintenance of integrity and autonomy of my profession, I assure all our stakeholders-members, students and employees of the Institute on one hand, and society on the other- that we will accomplish all the goals together. In areas where we feel we have reached a standstill, we will explore and strive together to find out an opportunity to turn over a new leaf again. I would like to appeal and call upon my Council colleagues and the staff of the Institute: let us make our endeavors a great success. Our initiative to grow awareness about Forensic Accounting has not only helped the profession domestically by increasing number of students opting for Forensic Accounting (FA) education, but internationally too by creating space for

Pakistani academics and professionals from the field of Forensic Accounting. New buildings are getting ready to house the ever-increasing actions for associates and fellows of the profession. There is no doubt; corporate crime is on the conspicuous rise. According to newly launched KPMGs fraud barometer, more than $100 million worth of fraud has been passing through the courts every six months since January 2011. Ironically, the increase in these criminal cases has given rise to the popularity of Forensic Accounting. In the past, if you have only contemplated a career in Forensic Accounting, perhaps now is the time to take it into serious consideration as opportunities in this area of accountancy are growing at a rapid pace. According to Accounting Today, nearly 40 percent of the top 100 American accounting firms are expanding their forensics and fraud departments. Forensic Accounting remains the most challenging and sophisticated area in the financial sector. Although, the profession does not possess a formal definition, The Accountants Handbook of Fraud & Commercial Crime, describes forensic and investigative accounting as the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. As a discipline, it encompasses financial expertise, fraud knowledge and, a strong understanding of business reality and the working of the legal system. Its development can be achieved usually through on-the-job training and experience with investigating officers and legal counsel. It is fair to say, that Forensic Accounting is all about the thrill of the hunting and discovering inaccuracies. Forensic Accountants (FAs) thrive on detecting fraud and criminal transactions in banks, corporate entity or from any other organizations financial records. However, Forensic Accountants (FAs) are distinguished from external auditors by the assumption that auditors look at the numbers and Forensic Accountants (FAs) look behind them. The role of Forensic Accountant (FA) requires an application of specialized knowledge and pre-eminent accuracy to stumble upon the evidence of economic transactions. Patience and analytical mindset are absolutely essential, as Forensic Accountants (FAs) need to question seemingly benign documents and look for inconsistencies. They take a more proactive, skeptical approach in examining the books, making no assumption of management integrity. However enigmatic the definition of a Forensic Accounting appears to be, the skills required to enter the profession are very specific. D. Larry Crumbley, KPMG Professor at Louisiana State University and an author and co-author of 12 forensic novels describes Forensic Accountant (FA) in a tasty yet accurate way:The characteristics of Forensic Accountants (FAs) are like a three-layer wedding cake. The larger bottom layer is a solid background in accounting. A smaller second layer is a deep background in investigative auditing. The smaller top layer is knowledge of certain legal concepts. The icing on the cake is to be proficient in written and oral communication. Of course, throughout the cake there is the need for a deep knowledge of computer techniques and interviewing skills, explains D.Crumbley. To be a Professional Forensic Accountant (FA), one needs to develop a sense of absolute discretion and be open to consider all alternatives, scrutinize the fine details and at the same time see the bigger picture.

International recruitment agency Michael Page recognizes the growing demand for Forensic Accountants (FAs) and distinguishes the most significant skills:The candidates to look out for are those with analytical prowess, an innately inquisitive nature, and a robust personality. Candidates who are fluent in more than one language are now preferred. As most UK forensic boutiques intend to build market share across West and Eastern Europe, they will pay a premium for such candidates, comments Michael Page. Forensic Accountants (FAs) utilize an understanding of business information and financial reporting systems, accounting and auditing standards and procedures, evidence gathering and investigative techniques, and litigation processes and procedures to perform their work. Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees, fraud deterrence engagements, and assisting in investment analyst research. "While Forensic Accountants ("FAs") usually do not provide opinions, the work performed and reports issued will often provide answers to the how, where, what, why and who. The FAs have and are continuing to evolve in terms of utilizing technology to assist in engagements to identify anomalies and inconsistencies. It is important to remember that it is not the Forensic Accountants (FAs) that determine fraud, but instead the court." Forensic Accounting is investigation accounting which involves analyzing, testing, inquiring and examining the civil and criminal matters and finally giving an unbiased and true report. Just as forensic investigations and lab reports are needed in the court to solve the murder and dacoit mysteries, similarly forensic accounting plays a key role in tracing the financial frauds and white-collar crimes. However, forensic accounting covers a wide range of operations of which fraud examination is a small part where it is most prevalent. The future seems to be bright for Forensic Accountants (FAs) as online financial transactions are on an increase and due to countless cases of investors being duped of their money by various entities. Steps should be taken by government and IFAP to promulgate this niche accounting area thereby creating employment opportunities and fast redressal of crimes and frauds. However, no doubt, with the rapid increase in the cases involving misappropriation of funds, manipulation of books of accounts, banking fraud cases, Securities scams etc. involving complex financial transactions, the Forensic Accountants (FAs) and admissibility of their testimony needs to be elucidated and these would be determining factors for deciding the fate of these cases. The involvement of Forensic Accountant (FA) in financial fraud cases and his testimony will not only take these cases to logical conclusion but also will go a long way ahead to put a curb on these menace of white collar offences. Fraud and white collar crime have increased considerably over the last ten years, and professionals believe this trend is likely to continue. The cost to business and the public can only be estimated, as many crimes go unreported. However, the statistics we currently have show the astronomical values associated with fraud. Also, the expansion of computers into businesses may make organizations more vulnerable to fraud and abuse.

FA Barrister Sohail Nawaz President IFAP

April 30, 2011

Forensic Accountants Focus on Fraud

By FA MBT Khalid (Secretary IFAP) While the major eye-popping, headline-grabbing investor and financial statement frauds have captured the attention of the investing public in recent months, little heed is given to the smaller rupee, repetitive frauds that occur in organizations year in, year out. Forensic Accountants (FAs) and fraud examiners who investigate these transactions understand how they can deplete the resources of an organization in much the same way that wind and water can reshape large boulders gradually, unnoticeably over time, until the scheme is either discontinued or it is uncovered and brought into focus. This article examines the factors that allow fraud to flourish under the radar of internal controls, and reveals some of the common schemes that occur as well as the Forensic Accountants (FA) role in investigating these frauds. Given the impact that the economic crisis has had on the population, these low-risk fraud schemes can put extra rupees into an employees pocket at the employers expense. For the sake of clarity, small-rupee recurring fraud can be defined as misappropriation of an entitys assets, repeated during any given accounting period (e.g., month/year) in an amount insufficient to be detected by the entitys system of internal controls.

Common Recurring Small-Rupee Fraud Schemes

Since the easiest (and most common) type of fraud is the misappropriation of an entitys assets, it should come as no surprise that the asset of choice for such fraud is cash. Cash that has not yet been recorded is much easier to steal because there are no accounting entries to make, no ledgers to balance and fewer controls to circumvent. Cash that is already in the system (i.e., recorded by the entity) may be extracted through outright theft or through a fraudulent disbursements scheme. These schemes require a check to be written or cash to be wired for what appear to be a valid business expense, generally to the perpetrator or to a fictitious vendor.

Theft of Cash Before It Is Recorded: Skimming Schemes

Skimming can occur at any point in which funds enter a business, so almost anyone who deals with the process of receiving cash may be in a position to skim money. Employees may be able to slip checks out of incoming mail rather than posting checks to the proper revenue or customer accounts.

Theft of Cash after It Has Been Recorded: Fraudulent Disbursement Schemes

In order to extract cash from an entity, the perpetrator must create an appearance that a bona fide obligation exists and the entity is supposed to make that payment as part of the normal course of business. Since the focus here is on recurring fraud, these would include payments primarily to vendors and employees. Within an entity, a perpetrator who is in a position to approve, process or record disbursements can forge or manipulate documents to create the appearance of normal business transactions. The only difference is that the disbursement is being directed to the perpetrator, or an account controlled by him or her.

Payments to Vendors
The primary types of payment to vendor schemes are: false invoicing via fictitious vendors and false invoicing via vendors. A fictitious vendor scheme is made easily when the perpetrator has unsupervised authority to approve invoices. Most fictitious vendor

schemes involve the purchase of services, rather than goods, because intangible services are harder to verify. The perpetrator uses a fictitious company to purchase legitimate merchandise, and then resells the merchandise to his or her employer at an inflated price.

Payments to Employees
In the normal course of business operations, an entity makes payments to, or on behalf of employees for generally two bona fide reasons: compensation (salary, wages or commissions) and expense reimbursements. At issue with these types of payments are whether the amounts were paid (correctly calculated and commensurate with the salary/wage rate and number of hours worked); the propriety of the payments (payees actually employed by the entity and entitled to receive these payments); and the accurate characterization of the expense being submitted (expenses actually incurred in connection with the individuals employment and accurately presented).

Compensation Schemes
In compensation schemes the perpetrator may be an hourly employee boosting his or her hours in order to receive additional overtime pay, or a shift supervisor or payroll clerk collecting paychecks for ghost employees who were either terminated or never were employed by the company. In either case, funds are being disbursed in excess of the amounts that the payees are authorized to receive. In the case of the hourly employee, the fraud is committed through either time cards or a handwritten timesheet, which is forwarded to a supervisor or payroll clerk for review. Oftentimes the review is cursory at best, and the inflated hours are forwarded to payroll accounting. Alternatively, the hourly employee may be submitting accurate time records, and then altering them after they have been approved.

Expense Reimbursement Schemes

Employees often incur out-of-pocket expenses in the course of discharging their obligations to their employers. Depending on the nature of the entity and the type of expenses incurred, these expenses may be reimbursed to the employees. The general reporting model for expense reimbursement is that the employee submits documentation for expenses incurred, and it is the job of the accounting department to determine if the expenses are correct, appropriate and reimbursable. The motivation to commit fraud under this reporting model can be very tempting, and an employee with a financial need may see an opportunity to take advantage by letting some personal expenses slip into the reimbursement submission. If expense report submissions are verified by the accounting on a sample basis, the perpetrator has a calculable chance of successfully committing this type of fraud on a recurring basis. In general, reimbursable expenses are subject to mischaracterization and overstatement.

Mischaracterized Expenses
The majority of reimbursable expenses fall into the broad categories of travel, meals, entertainment or miscellaneous. While only business-related activities are reimbursable, dishonest employees frequently submit personal expenses for reimbursement. These relate primarily to restaurant meals, office supplies purchased for the employees personal use and entertainment expenses. In order to detect mischaracterized expenses, a detailed review of the submitted documentation is required. Scrutinizing dates, times and numbers of persons served and comparing these with a calendar and the employees explanation of the reimbursable activities should reveal fraudulent expense. For example, when the reimbursement is for

dinner with client during the week and the restaurant receipt shows a time stamp of one oclock in the afternoon on a Saturday, this is a mischaracterized expense.

Overstated Expenses
There are three ways to overstate expenses: overstating the actual costs incurred, submitting fictitious expenses and submitting the same expenses for reimbursement multiple times. While the financial impact of any of these methods may be immaterial in a single instance, the impact of multiple employees committing expense reimbursement fraud over many periods can become substantial.

Conclusion
Small rupee recurring frauds of one kind or another occur in almost every organization. Forensic Accountants (FAs) who routinely investigate these frauds are familiar with the various schemes to misappropriate funds. Many of these frauds can be avoided when management adopts the mindset that they will not allow fraud to occur. To be effective, fraud prevention must be an attitude that is communicated from the management, officers, board of directors to all employees. In addition, eliminating the opportunity for fraud to take place will significantly reduce the fraud losses that the organization experiences. This requires an awareness of the components of the entities control environment that creates the opportunity. Then, through diligence and with the assistance of trained professionals, the entity can identify those areas of control that can be strengthened economically.

How to conduct an appropriate fraud investigation

By FA Faheem-ul-Haq Khan (Member Executive Council IFAP)

Imagine that your company is being investigated for fraud. One of your employees is caught forging documents, or another is involved in grand money laundering scheme or "cooking" the financial reporting books. A team of forensic accounting and fraud investigators enters your workplace to conduct a review and investigation. If you found your company under investigation -- how would you handle it? If you are unsure, then you should know how IFAP's forensics specialists conduct a comprehensive fraud investigation. It is a carefully planned and thorough undertaking that has to be done right. A poorly executed investigation can make a delicate situation for your company much worse. Fraud takes on many forms. The Canadian Institute of Chartered Accountants (CICA) defines fraud as "an intentional act, by one or more individuals among management, other employees, those charged with governance or third parties, involving the use of deception to obtain an unjust or illegal advantage." These activities can include misappropriation of cash or inventory, fraudulent financial reporting and money laundering. In looking at these activities, IFAP's fraud investigators take a three-step approach in their investigation:-

Secure and collect all tangible and oral evidence in a manner consistent with the rules of evidence to ensure admissibility Analyze the evidence, and Present the evidence in an understandable manner in a venue of the client's choosing These stages normally involve using the technology of computer forensic analysis, data analytics and conducting interviews.

Securing and collecting the evidence: computer forensics

The most successful method of detecting improper activities at corporations where fraud is suspected is through the use of technology. Nearly all of a company's information is created and managed electronically, yet typically only a third of that information is committed to paper. The majority of investigations, therefore, require careful searches of electronic information rather than following a paper trail. Computer forensics allows fraud investigators to uncover more of the facts, support otherwise unsubstantiated information, confirms or refutes allegations, and analyzes competing theories in relation to those facts. It involves identifying, collecting, analyzing large numbers of data. But without the correct presentation or codification of data, it may not be admissible in a legal proceeding. Typically, the forensic group would search and analyze:Emails Documents and files that may be hidden, password protected, or encrypted Files that have been generated from the operating system (i.e., enhanced metafiles) Databases of all user input and activity Recently opened, accessed, created or deleted files, and Online activities, including Internet banking transactions However, electronic evidence is not limited just to laptop and network computers at the workplace. Offsite computer files, servers, and even the head accountant's BlackBerry can prove valuable in an investigation. If your company is being investigated, it is wise to be as cooperative as you can during the "electronic" phase of the investigation. Computer forensic analysts use sophisticated tools and laboratories to conduct a thorough and accurate investigation. There's really nowhere to hide your data anymore, and any attempts to do so merely create additional evidence pointing toward an attempted cover-up.

Gathering additional evidence through interviews

Successful fraud investigations require interviewing potential witnesses, people with information about a particular infraction, and in some cases, speaking with the suspected perpetrators of fraud themselves. The professional interviewer, therefore, has a detailed and organized plan in place. Knowing this will help you understand how investigators acquire oral evidence. The objective of an interview in a fraud situation is to gather facts related to potential motives on the part of the perpetrator, and to verify opportunities presented to the perpetrator for committing a fraud. The interviewer carefully organizes the structure of the interview, including its location, attendees, and the series of questions that will be asked. Questions are designed so that they draw out the best possible information from the interviewee. For instance: What will be gained from the interview? What should be known about this individual's activities? Is

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the interviewee a suspect or just a lead? As well, the interviewer often takes into account body language and certain words and phrases which could indicate deception.

The bottom line

Using computer forensics, data analytics and interviews allows investigators to assemble much of the needed evidence for an investigation. IFAP's professionals then present the evidence in a way that allows them to make a compelling case if needed. Going through a fraud investigation can be a stressful time for your company. But you can get through it with cooperation, patience and the right knowledge.

Eight Tips to Prevent Employee Theft and Fraud

One of the most serious threats to the success of a small business is employee theft. Misplaced trust, lax hiring and supervision, and a failure to implement basic financial controls can lead to an environment that is ripe for internal theft and fraud. The Association of Certified Fraud Examiners (ACFE) estimates that the typical business will lose an average of six percent of revenues from employee theft. The ACFE Report to the Nation on Occupational Fraud and Abuse indicates that small businesses suffer disproportionate losses because of the limited resources they have to devote to detecting fraud. And a U.S. Chamber of Commerce survey reported that one-third of business bankruptcies are due to employee theft. Small business owners can help protect their businesses from employee theft and fraud by following these eight recommendations. 1. Create a positive work environment. A positive work environment encourages employees to follow established policies and procedures, and act in the best interests of the organization. Fair employment practices, written job descriptions, clear organizational structure, comprehensive policies and procedures, open lines of communication between management and employees, and positive employee recognition will all help reduce the likelihood of internal fraud and theft. 2. Implement internal controls. These measures are designed to ensure the effectiveness and efficiencies of operations, compliance with laws and regulations, safeguarding of assets, and accurate financial reporting. The controls for safeguarding assets and financial reporting require policies and procedures addressing:* * * Separation of duties. No employee should be responsible for both recording and processing a transaction. Access controls. Access to physical and financial assets and information, as well as accounting systems, should be restricted to authorized employees. Authorization controls. Develop and implement policies to determine how financial transactions are initiated, authorized, recorded, and reviewed. Internal controls will reduce opportunities for fraud.

3. Hire honest people. Of course, this is the goal of every company, and is easier said than done. But if you have weak (or nonexistent) internal fraud controls, it's even more important to make sure your employees are honest. Dishonest employees will ignore your attempts to provide a positive work environment, and search for ways to defeat even the most comprehensive internal controls. Learn more about Ethics and People Management. Pre-employment background checks are an excellent way to cut down on hiring dishonest employees. A thorough pre-employment background check should include:-

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Criminal history for crimes involving violence, theft, and fraud; Civil history for lawsuits involving collections, restraining orders, and fraud; Driver's license check for numerous or serious violations; Education verification for degrees from accredited institutions; Employment verification of positions, length of employment, and reasons for leaving. 4. Educate your employees. You need to inform your employees about your policies and procedures related to fraud, the internal controls in place to prevent fraud, the organization's code of conduct and ethics policies, and how violations of these policies will be disciplined. Every employee should sign a form to verify receipt of this material. Employees should receive annual training on these topics and on the definition of what's considered fraudulent behavior, and sign an acknowledgement each time. Read more about Preventing Crime and Violence in the Workplace. 5. Implement an anonymous reporting system. Every organization should provide a confidential reporting system for employees, vendors, and customers to anonymously report any violations of policies and procedures. Promote and encourage the use of the reporting system whenever possible. 6. Perform regular - and irregular - audits. Every company should have regular assessments, but random, unannounced financial audits and fraud assessments can help identify new vulnerabilities, and measure the effectiveness of existing controls. It also lets employees know that fraud prevention is a high priority for the organization. 7. Investigate every incident. A thorough and prompt investigation of policy and procedure violations, allegations of fraud, or warning signs of fraud will give you the facts you need to make informed decisions and reduce losses. 8. Lead by example. Senior management and business owners set the example for the organization's employees. A cavalier attitude toward rules and regulations by management will soon be reflected in the attitude of employees. Every employee regardless of position - should be held accountable for their actions. Implementing these recommendations can dramatically reduce the opportunity for employee theft and protect the assets of your business. If you suspect fraudulent activity by an employee, seek professional assistance to conduct the investigation. Determine what's necessary to protect your business and prevent a reoccurrence.

How to Become a Corporate Investigator?

To become a qualified investigator, it is important to understand the meaning of the term investigator. Corporate investigators are professionals who investigate about the civil allegations and criminal activities concerning a company or an organization. The professional investigators perform several investigations for their organization or agency. The main job of Corporate Investigators is to investigate different types of allegations, criminal frauds, irregularities in accounts, embezzlement of funds, information leaks, electronic crime, and other criminal activities. The Investigators are eligible to perform internal as well as external investigation activities for an organization. The internal investigations include the activities performed inside the company, to check abused expense accounts, drug intake within the premises of the company and other activities.

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On the other hand, the external investigation activities include investigating criminal activities held outside the company like fake billing from suppliers or vendors. In all these cases, the Corporate Investigator makes an effective strategy, analyzes facts, interviews witnesses, and obtains the exact evidences. It should be kept in mind that sometimes, all these investigations can take huge amount of time to be completed. Nowadays, courses for professional investigator services are gaining huge popularity among the masses. There are several colleges and institutes, which provide the appropriate training to the interested candidates. Interested candidates can also opt for online courses, which available at different locations and the online courses, ideal for the professionals who already have experience in this field. All this training and knowledge can be advantageous for those who are planning to become Professional Investigators.

Educational Requirements to become a Professional Investigator

To enroll for a professional investigator course, the candidate must have a Bachelor degree in the commerce arts or science stream to be eligible for the corporate investigation. There are several institutes of renowned training schools where one can get the requisite training, but these schools or institutes are more beneficial for candidates with prior experience. However, there are several corporate investigators who are working in the companies with Master in Administration, but it is highly recommended that one clears the exam of Forensic Accountant (FA) Program offered by the Institute of Forensic Accountants of Pakistan (IFAP). The professionals with this certification have better future prospects in various organizations. In addition, the license of corporate investigator also plays a crucial role in enhancing the prospects for a better job. Prospective candidates need to clear the written exam and interview in order to get the certification and become a successful corporate investigator. Students, who have keen interest in this profession, can take professional training or a short-term internship to gain some practical experience. There are several agencies and organizations, which offer the requisite professional training to acquaint the candidates with the real time experience in this field.

Fraud in IFRS Environment

The transition in global reporting International Financial Reporting Standards (IFRS) Reporting

Global Reporting and Fraud Opportunities

Not only the challenges it represents but also its complexity and impact on others departments within organizations coupled with time pressure, the IFRS foster fraud risks. Countries applying the global regulations are under increasing need of proactive fraud deterrents. Some of the aspects relevant to this transition that could lead to greater instances of fraud are: faster revenue and accounts receivable recognition, changes in accounting for assets where they are subject to mark-downs as well as accounting for leases. It seems that opportunities are readily available for management fraud in addition to the conditions that undermine the quality of information such as error for lack of training, loss of data, improper oversight. The situation is getting out of control which in turn means greater opportunities for Forensic Accountants (FAs). For example, some professional organizations are suggesting the need for building a zero tolerance culture as a deterrent to economic crimes. The importance of corporate governance is being highlighted by prompting organizations to develop, implement, monitor stronger internal controls with the purpose of bridging the gap between what is perceived and what is a reality.

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Regardless of when or how we get there, it is expected that the United States will eventually join the more than 100 countries that have adopted International Financial Reporting Standards. The U.S. Securities and Exchange Commission's proposed Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S.A Issuers, released to the public last November, outlines an adoption date for U.S. public companies of 2014, 2015 or 2016, depending on the size of the issuer. Financial reporting in the United States of America (USA) is being influenced by International Financial Reporting Standards (IFRS). IFRS reporting considerations are already impacting business decisions, and not simply through non-USA subsidiaries. The SEC is considering measures that could lead to retiring US GAAP and adopting IFRS in the USA. The effects of global reporting standards on USA companies will accelerate over the next few years, regardless of how the SEC proceeds. Understanding IFRS and its implications is a business imperative for USA companies. Take advantage of the resources that PwC has developed to increase your knowledge. The Journal of Accounting in its January 2009 Edition, included an interview with Schapiro When asked by committee Chairman Sen. Chris Dodd, D-Conn., about whether she would support certain actions that would help detect fraud such as the alleged Ponzi scheme run by Bernard L. Madoff Investment Securities LLC, Schapiro said she would move quickly to create a new process for handling tips and whistleblower complaints received by the agency. Schapiro said she would centralize the process under one point of contact and staff it to ensure intelligence received is properly examined and tracked. Schapiro also indicated that there may be a need to expand the authority of the PCAOB. Her comments related to a PCAOB announcement regarding the registration of all broker-dealers and whether the PCAOB has the authority to inspect such registered FFASs/CPAs if they do not audit issuers. In response to a question regarding IFRS, Schapiro said she has concerns with the SECs current road map for transitioning U.S. public companies to IFRS. I will take a big deep breath and look at this entire area again carefully and will not necessarily feel bound by the existing road map thats out for comment, Schapiro said. Schapiro highlighted her concerns about a lack of consistency in the application of IFRS, the cost for U.S. companies to switch to IFRS from U.S. GAAP and the independence of the International Accounting Standards Board, which she called her greatest concern about IFRS.

What Is Involved in a Cyber Crime Investigation?

Computer crime encompasses a wide variety, and ever-growing, array of crimes. As a result of the many different types of computer crimes, the techniques and procedures used in cyber crime investigation are varied as well. Often, cyber crime investigation involves law enforcement agencies in multiple jurisdictions. Traditional law enforcement detectives, Forensic Accountants (FAs), and experts in information technologies are all frequently involved in investigating cyber crimes. Common examples of crimes that may be classified as a cyber crime, or that may have a cyber component to them, include fraud, phishing, and identity theft, as well as terrorist activities and child pornography. Crimes such as fraud and identify theft are often accomplished through phishing. "Phishing" is the term used to describe the illegal acquisition of personal information over the internet. Cyber criminals often hack into personal files, or trick people into giving away personal data and/or account information, over the internet which they later use to make illegal purchases or transfer money from bank accounts.

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Aside from financial and identity crimes, a cyber crime investigation may also target terrorist activities or child pornography activity that is carried out over the internet. Terrorists, as well as child pornographers, often use the anonymity of the internet to aid in the commission of their crimes. The internet also provides an endless supply of potential buyers of pornographic videos or photos for child pornographers. Much like traditional crimes that leave a paper trail, cyber crimes often lead a digital trail. The first place to look in a cyber crime investigation, then, is to follow the digital trail. All internet correspondence or transactions must have a point of origination. Finding where the communication or transaction originated is the job of the law enforcement officials who work in cyber crime investigation. Cyber crime investigation often requires investigators to sift through massive computer files trying to connect all the dots. Often, the suspect has attempted to delete incriminating files or communications. For this reason, information technology experts are frequently used to retrieve deleted files or communications from computers to ascertain what information the suspect was trying to hide. Once the information is located, a Forensic Accountant (FA) is often called upon to make sense of the information located when the crime is a financial crime. Cyber crimes such as fraud or embezzlement often entail very complex banking transactions that require an expert to understand and follow. A Forensic Accountant (FA) is someone who is trained to discover even the smallest inconsistency in financial records.

Driving Profitability through Corporate Social Responsibility

Studies show that our country's faith in corporate leadership is at an all time low. Continual stories about corporate scandals and fraudulent acts have caused many business leaders to reexamine their role within the company and, more importantly, the meaning of their business in the society at large. As a reaction to the growing perception that corporations exist solely for their own benefit and profitability, there is more pressure on leadership to reinvent company images and goals to gain a competitive edge. Often referred to as the fourth sector, the for-benefit business model is a hybrid business model driven by both social purpose and financial promise. By emphasizing social responsibility over profitability, for-benefit corporations give customers reason to think about the organization as more than a commodity and ultimately increase profits through its commitment to making a difference in the world. Like for-profits, for-benefits provide products and services that attract consumers and contribute to the economy. However, for-benefits follow a stakeholder model instead of a shareholder model. Rather than focusing on driving profits to the company's owners, the stakeholder model aligns customer, vendor, employee and community interests, so that the business's activities benefit everyone. Today, leaders and companies that practice a stakeholder model may enjoy a competitive advantage over their peers. Another advantage to the for-benefit model is its ability to create better relationships between all parties involved customers, employers, employees, and suppliers. Good training, compensation, and advancement programs drive a socially responsible corporate culture, which will help attract the best employees. Also, when suppliers are treated as partners by companies that contribute to their success through collaboration, they are more willing to offer higher quality products and services at fair prices. As leaders of for-benefit organizations, CEOs should set the 'tone at the top' and individually play an active role in the community while concurrently deploying corporate resources to support social initiatives. For example, a company can donate a

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percentage of its profits to charities and encourage customers, vendors, and partners to do the same. Businesses are now realizing, more than ever, that prioritizing social responsibility will drive profits and create a positive public image for the for-benefit organization. Many forbenefit companies use their commitment to social responsibility in order to distinguish themselves in the marketplace from organizations that seem to be self-serving and have no public value. For-benefit companies are businesses where consumers will prefer to shop, employees will want to work, and the community will embrace.

New Tax in Pakistan to Address Hidden Incomes

The Federal Government of Pakistan is looking to address the issues of tax evasion and disproportionately low collection of tax revenues in the country by instating a new tax on assets in the next budget. Over the weekend the representatives of the Economic Advisory Council (EAC) and the Revenue Advisory Council (RAC) of Pakistan held a joint meeting to plan the potential makeup for the governments next financial budget. During the meeting it was decided that a new asset tax should be imposed in the country to help bring more high-income individuals into the national tax net. The rate for the new tax has not yet been finalized, with the Councils currently proposing a levy of 1.25 percent or 1.5 percent. According to press communiqu released following the Councils meeting, the asset tax will be particularly useful at targeting high-earning individuals who conceal their incomes and invest in assets such as real-estate or stocks. It was originally proposed that the upcoming budget also contain a new wealth tax, however, the Councils concluded that such a measure would carry too great a risk of capital flight and even higher levels of tax evasion in Pakistan. Combating tax evasion is a constant topic for the EAC and RAC, and at their next conjoint meeting it is planned for an official request to be made to regional tax authorities of Pakistan to make greater efforts in ensuring the compliance and payment of recently instated agricultural income taxes. Tax revenues account for approximately 10.2 percent of the national GDP of Pakistan, the 25th lowest level in the world, according to the Heritage Foundation. In 2010 only 3.2 million people were registered to pay taxes in the country, and only 1.9 million actually made any payments. Pakistans population has now expanded beyond 180 million people, meaning that approximately 1 percent of citizens of Pakistan currently pay taxes.

Corrupt Pakistani Politicians: World Capitals shy away from Prime Ministers flood fund
The international communitys no confidence in what is seen as one of the most corrupt governments in the countrys history is truly reflected in official statistic of foreign assistance for 2010 flood victims with Prime Ministers Relief Fund getting peanuts i.e. around US$ 21 million from world capitals. The foreign countries and donors instead preferred to depend on international agencies and non-governmental organizations to ensure that the money donated is properly utilized and is not corrupted by the government, which is rated by foreign agencies as one of the most corrupt regimes in the world. According to the official statistics the world capitals, with the exception of countries like Afghanistan and Algeria have shown little or no trust in the government of Pakistan to assist the more than 20 million flood affectees of 2010.

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Such is the credibility of the government that out of total US$697 million assistance that the world capitals have committed to spend through the Government of Pakistan, hardly US$21 million has so far been deposited in the PMs relief fund. Most of these countries even preferred to help in kind. The government figures as available on the Finance Ministrys official website and last updated on January 8, 2011, a total of US$3.042 billion foreign assistance for the flood affectees was committed. Out of this amount US$2.34 billion was committed to be spent through the United Nations or other international agencies and non-governmental organizations whereas the remaining US$696 million was committed to be spent through the Government of Pakistan. The total committed assistance includes a soft loan of US$243 million. Amongst the major donors, the US committed US$571 million but opted to spend all this amount through international agencies like USAID etc. Not even a single dollar was donated by Washington to PMs Relief Fund. Britain, which had pledged US$216 million, also did the same and did not contribute even a single penny to Gilanis account. The Turkish government committed US$53 million besides raising a total of US$142 million through a fundraiser. Turkey seems to have maximum faith in the prime minister as it contributed the most i.e. US$10 million to PMs Relief Fund. The Saudi government has committed US$100 million besides pledging US$23 million on behalf of Saudi Fund for Development and another US$242 million public fund relief raised from the people of Saudi Arabia. Out of this amount of US$365 million, only US$5 million was delivered through National Disaster Management Authority (NDMA). Japan committed a total of US$519 million but did not give any amount for the PMs Relief Fund. Iran too committed US$100 million but it too avoided to deposit any amount in the Prime Ministers Relief Fund. After Turkey, which contributed US$10 million to the PMs Relief Fund, the Asian Development Bank was a major contributor to the same fund with US$3 million contribution. Afghanistan gave US$2 million for the PMs Relief Fund and emerged as the third largest foreign contributor having faith in the governments fund. Other countries, which contributed to the PM fund include Algeria with US$1 million; Bhutan with US$0.10 million; Brunei with US$0.73 million; Indonesia US$1.7 million; Korean private sector companies US$0.94 million; Maldivian philanthropists US$0.27million; Morocco US$1 million etc.

The Case for Bribery

Notoriously enlisted in the annals of corruption, Pakistan is one country that is instantly linked to dirty cases of corruption from the realms of politics to even sports. In order to analyze this rampant moral ailment in the state, studies are compiled and analyses are given forth by senior experts with copious amounts of experience in terms of politics and its history in Pakistan.

Roots of Bribery in Pakistan

Bribery, one of the top most prevailing dilemmas in the state, is defined as: The offering, promising or giving of something in order to influence a public official in the execution of their official duties. In a study lead by Sheheryar Banuri, Catherine Eckel, Rachel Croson, and Reuben Kline from the University of Texas, we learn that corruption in Pakistan finds its slimy roots in the long-ago yesteryears of British Rule. Ranked as the 143rd country in the Corruption Perception Index, Pakistan has further spiraled in a destructive downward

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direction in terms of political transparency and honesty. Who to blame? A set of reasons is offered by analysts who claim that it isnt Pakistanis who enjoy corruption, it is their colonized history as slaves to a British empire that forces them to co-opt with their opposition and threat with a bucket load of cold cash. Historically and statistically speaking, the most active participants in corruption include more than four colossal sectors of Pakistan: police and law enforcement, judiciary and legal profession, power sector, tax and customs, health and education and land administration. Political patronage, conflicting interests, peddling of influence and other forms of demoralizing acts are added along with bribery in Pakistan.

Recent Scandals
According to a survey conducted by Gilani Research Foundation: (54%) of all Pakistanis are against public servants accepting bribes under any circumstances, 16% find it acceptable under compulsion. This proves how corruption has embedded its roots in our society and how people, depending on the situation, are willing to compromise on their principles. Recently a list of frauds and unpopular schemes snaked their way up in mainstream media including the Hajj Scandal, Mehran Bank Scandal in 1994, and other cases against former and current leaders of the Pakistani regime. This systematic and widespread moral decaying has crushed the judiciary as well; the majority of Pakistanis do not view Pakistans justice system above these petty issues. In fact, many citizens firmly believe that the justice system provides anything but justice. In order to curb bribery and other forms of immorality, the National Accountability Bureau was formed to carry out comprehensive tackling of such issues. This was, unfortunately, inhibited by the lack of political support and willingness coupled with the impotent involvement by the justice system. More dismay spread over the country when the National Reconciliation Ordinance of October 2007 granted blanket immunity for all corruption cases in the past. This provided a strong and impenetrable shield for political and official entities that were otherwise open to prosecution. For the past 50 years, political turbulence and insecurity have hovered over Pakistan for what seems to be an unlimited time. An interesting research conducted by the World Governance Indicator reveals that governance under military regime has shown slighter improvement compared to civilian regimes. Pakistani Anti-Corruption strategies have been adapted to cancel the effect of immorality in the state. An OECD website provides URLs to Pakistans corruption related government resources, legislation as well as links to international organizations active in anti-corruption and good governance in Pakistan. They are indeed worth checking out if you, as a citizen, want to know the dirty business of bribery in the land of pure.

International News
IFAC News (www.ifac.org)
IAASB Issues Enhanced Overarching Assurance Standard for Comment
The International Auditing and Assurance Standards Board (IAASB) today released for public comment proposed revised International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. Proposed ISAE 3000 is a principles-based standard that can be applied effectively to a broad range of assurance engagements. Such engagements may range from assurance on statements about the effectiveness of internal control, for example, to direct engagements such as performance or value for money audits, to possible future

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engagements addressing integrated reporting or corporate social responsibility reporting.

IPSASB Issues Exposure DraftKey Characteristics of the Public Sector with Potential Implications for Financial Reporting
The International Public Sector Accounting Standards Board (IPSASB) today released for comment an exposure draft (ED), Key Characteristics of the Public Sector with Potential Implications for Financial Reporting. The paper provides background on issues affecting the development of a conceptual framework for public sector entities and standard setting. In particular, it highlights that public sector entities are likely to depend upon taxation rather than commercially generated profits for their continued existenceand have governance arrangements that generally involve a legislative body holding an executive to account.

IAESB Proposes Clarified Standard on Assessment of Professional Competence

The International Accounting Education Standards Board (IAESB) today released for public exposure a proposed revision of International Education Standard (IES) 6, Assessment of Professional Competence. The revised education standard will assist IFAC member bodies and other professional accountancy organizations in understanding both the learning and development requirements for areas of assessment of professional competence, and their obligations in upholding the standards.

IPSASB Publishes 2011 Handbook of Pronouncements

The International Public Sector Accounting Standards Board (IPSASB) published today its 2011 Handbook of International Public Sector Accounting Pronouncements. In two volumes, the Handbook contains all current IPSASB pronouncements, including 31 accrual-based standards and the IPSASB's cash basis standard. The 2011 Handbook incorporates the amendments made as a result of the IPSASBs 2010 Improvements Project, as well asat the beginning of each accrual-based standarda history of the amendments made to that standard. The 2011 Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements, said IPSASB Chair Andreas Bergmann. In addition, the Handbook has been updated to reflect the IPSASBs Improvements Project, completed in November 2010.

IAESB Proposes Revised Standard on Professional Values, Ethics, and Attitudes

The International Accounting Education Standards Board (IAESB) today released for public exposure a proposed revision of International Education Standard (IES) 4, Professional Values, Ethics, and Attitudes. The revised standard, part of the IAESBs project to improve the clarity of its standards, proposes that the development of professional values, ethics, and attitudes be addressed by learning and development activities that occur throughout the career of the professional accountant. IES 4 will be helpful to educational organizations, employers, regulators, government authorities, and other stakeholders who support the learning and development of professional accountants. IES 4, drafted in 2004, prescribes the values, ethics, and attitudes that professional accountants should acquire during the education program leading to qualification. In addition to a formal program assessment and a learning outcome approach, the IAESB also proposes a requirement on reflective activitywhere professional accountants and students undertake the practice of documenting experiences relating to lessons learned from ethical dilemmas and situations.

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Kreston International Joins Forum of Firms

International network of accounting firms Kreston International has been admitted as a full member of the Forum of Firms after confirming that it has met the Forum's membership standards. This includes reporting that it has implemented a globally coordinated quality assurance program, has policies and methodologies based on the International Standards on Auditing (ISAs), and has met other specific requirements of the Code of Ethics for Professional Accountants.

IAESB Welcomes Completion of Research Intended To Inform Its Standard-Setting Agenda

The International Accounting Education Standards Board (IAESB) is pleased to announce the completion of four International Associations for Accounting and Education Research (IAAER)/Association of Chartered Certified Accountants (ACCA) research projects, which will inform its standard-setting agenda in the area of professional accountancy education. A summary of the research Informing the International Accounting Education Standards Board: A Summary of IAAER/ACCA Research Projects is now available on the IAESB website.

Financial Accounting (www.fasb.org)

Standards

Board

(FASB)

News

FASB Issues Accounting Standards Update to Improve Financial Reporting of Repurchase Agreements
The Financial Accounting Standards Board (FASB) today issued Accounting Standards Update (ASU) No. 2011-03, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements. The Update is intended to improve financial reporting of repurchase agreements (repos) and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The Board revisited its standards on transfers and servicing to respond to concerns from financial statement users who felt the criteria for determining effective control for such transactions should be improved, stated FASB Chairman Leslie F. Seidman. The new guidance improves transparency by eliminating consideration of the transferors ability to fulfill its contractual rights and obligations from the criteria in determining effective control.

SUMMARY OF BOARD DECISIONS

Summary of Board decisions are provided for the information and convenience of constituents who want to follow the Boards deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in re-deliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update. Investment properties, The Board decided that an investment property entity, in accounting for a lease for which it is the lessee, would measure right-of-use assets relating to investment properties at fair value with changes in fair value recognized in net income. Right-of-use assets relating to noninvestment property assets would be carried at amortized cost, consistent with the Leases Exposure Draft. The Board also decided that

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noninvestment property assets held by investment property entities would be accounted for under other applicable U.S. GAAP.

FASB Issues Proposed Accounting Standards Update on Testing Goodwill for Impairment
The Financial Accounting Standards Board (FASB) today issued an Exposure Draft of a proposed Accounting Standards Update (Update) intended to simplify how an entity is required to test goodwill for impairment. Nonpublic companies have expressed concerns to the Board about the cost and complexity of performing the goodwill impairment test, states FASB member Daryl Buck. The proposals contained in this Update are intended to address those concerns and to simplify and improve the process for public and nonpublic entities alike.

IASB and FASB Report Substantial Progress towards Completion of Convergence Program
The International Accounting Standards Board (IASB) and the US-based Financial Accounting Standards Board (FASB) today published a progress report on their joint work to improve International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles, and to bring about their convergence.

SUMMARY OF BOARD DECISIONS

Accounting for financial instruments. The Board discussed the classification and measurement of debt instruments that qualify for the amortized cost category at initial recognition but are subsequently identified for sale. The Board decided that in such circumstances an entity should continue to classify and measure the financial assets at amortized cost (less impairments) and recognize resulting gains, if any, only when the sale is complete. Additionally, the Board decided that in developing an overall impairment model for financial instruments, impairment for financial assets subsequently identified for sale should be recognized in earnings in an amount equal to the entire difference between the instruments amortized cost basis and its fair value. The Board also discussed situations in which an entity anticipates that a portion of a pool of similar assets will be sold while the other portion will continue to be managed through its customer financing (lending) activities. However, the individual assets that will be subsequently sold are not specifically identified for sale at initial recognition. The Board reemphasized that in these circumstances an entity must classify and measure all financial instruments according to one of its defined business activities when applying the business strategy criterion. An entity would not be prevented from managing the same or similar financial instruments through different business activities.

IFRS News (www.ifrs.org)

Trustees publish preliminary conclusions of strategy review for public comment
The Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), have published for public comment the preliminary conclusions of their strategy review.

Conclusions of the March 2011 Trustees meeting, London

The IFRS Foundation Trustees, responsible for the governance and oversight of the International Accounting Standards Board (IASB), held their quarterly meeting in London on 30 and 31 March 2011. The Trustees also met with the IFRS Foundation Monitoring Board, a group of capital market authorities responsible for monitoring and reinforcing

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the public interest oversight function of the IFRS Foundation, on 1 April 2011. The meeting was led by Tsuguoki (Aki) Fujinuma and Robert Glauber, Vice-Chairs and acting coChairs of the Trustees.

Joint Statement by the Monitoring Board and the Trustees of the IFRS Foundation
The Monitoring Board and the Trustees of the IFRS Foundation, following discussion at their fifth joint meeting on 1 April 2011 in London, reaffirmed their commitment to seeking close co-ordination in taking forward their respective efforts in reviewing the Foundations governance and strategy. The two bodies work together in their respective roles and responsibilities to promote the primary mission of the Foundation in setting high quality, globally accepted financial reporting standards.

IASB and FASB report substantial progress towards completion of convergence program
The International Accounting Standards Board (IASB) and the US-based Financial Accounting Standards Board (FASB) today published a progress report on their joint work to improve International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices, and to bring about their convergence.

IASB website feedback survey 2011

As an international standard setter, the IASB recognizes the importance of fully embracing web-based services to support effective communication with interested parties around the world.

New Due Process Oversight Committee (DPOC) section of IFRS Foundation website
The Trustees' Due Process Oversight Committee (DPOC), which is responsible for approving due process and overseeing the IASBs compliance with due process, has introduced a new section of the IFRS Foundation website dedicated to its activities.

Interoperable Taxonomy Architecture Project publishes updated Global Filing Manual for XBRL
The Interoperable Taxonomy Architecture (ITA) Project has published an updated version of The Global Filing Manual. The Global Filing Manual was first published in October 2010, and it has been updated to include new rules that relate specifically to iXBRL (Inline XBRL). The Global Filing Manual contains a set of aligned XBRL (eXtensible Business Reporting Language) filing rules for global use. These rules provide guidance on the preparation, filing and validation of XBRL filings created using the IFRS (International Financial Reporting Standards) Taxonomy, the EDINET (Electronic Disclosure for Investors NETwork) Taxonomy and the U.S. GAAP Taxonomy.

Effective Dates user survey

In October 2010, the IASB and the US-based Financial Accounting Standards Board (FASB) each published a document requesting views from stakeholders about the time and effort that will be involved in adopting several new standards and when those standards should be effective. At the 2 March 2011 meeting, the staff presented a summary of the feedback received. In view of the limited numbers of responses received from users and, for the FASB, private entities, the boards directed the staff to undertake further outreach activities from these groups.

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Interview with Sir David Tweedie and Leslie Seidman regarding the timeline for completing the convergence program
In this recording (mp3 file,10.45 minutes) Sir David Tweedie, Chairman of the IASB, and Leslie Seidman, Chairman of the FASB, review the achievements of the convergence program so far, and the timeline for completing the remaining elements of the program.

Three new draft Questions & Answers on the IFRS for SMEs posted
The SME Implementation Group, responsible for assisting the IASB on matters related to the implementation of the IFRS for SMEs, published today for public comment three more questions and answer documents (Q&As) on the IFRS for SMEs. The new Q&As cover the following topics: Captive insurance subsidiaries Interpretation of traded in a public market Investment funds with only a few participants

IFRS Foundation publishes illustrative examples in XBRL for the IFRS Taxonomy 2011
In order to help preparers understand how to apply XBRL (eXtensible Business Reporting Language) to IFRS (International Financial Reporting Standards) financial statements, the IFRS Foundation has published a set of 12 illustrative examples in XBRL for the IFRS Taxonomy 2011. These examples illustrate how the IFRS Taxonomy 2011 should be used to tag IFRS financial statements (including notes) in XBRL, and in accordance with the XBRL architecture outlined in The IFRS Taxonomy 2011 Guide and The Global Filing Manual. The examples are intended to help preparers understand how to apply the taxonomy to create instance documents and entity-specific extensions using both block tagging and detailed tagging, and also XBRL and Inline XBRL.

IFRS Foundation to enhance IFRS Taxonomy to reflect common reporting practice

The IFRS Foundation today announced that it will publish supplementary tags for the IFRS (International Financial Reporting Standards) Taxonomy that reflects disclosures that are commonly reported by entities in their IFRS financial statements. By publishing these supplementary tags, the IFRS Foundation is taking a first step in providing additional elements as part of its XBRL (eXtensible Business Reporting Language) taxonomy that reflect common reporting practice across the world and across industries. The publication of these common-practice tags will enable entities to create IFRS financial statements in XBRL with fewer entity-specific taxonomy tags, thereby enhancing the comparability of information.

Antonio Zoido to serve as Trustee of the IFRS Foundation

The IFRS Foundation Trustees, the oversight body of the International Accounting Standards Board (IASB), today announced that the IFRS Foundation Monitoring Board approved the appointment of Antonio Zoido as a Trustee of the IFRS Foundation. His initial term begins immediately and will expire on 31 December 2013. The term is renewable once. Mr Zoido is Chairman of the Board and Chief Executive Officer of Bolsas y Mercados Espaoles (BME), the operator of all stock markets and financial systems in Spain. He has been involved in banking and securities markets activities for most of his career, having previously served as Chairman of the World Federation of Exchanges, the Federation of European Stock Exchanges and the European Capital Market Institute.

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AICPA News (www.aicpa.org)

Rebuilding Your Financial Life: CPAs Available to Help Those Affected by Storms
The devastating tornadoes and storms that have raked the Midwest and Southeast in recent days have left more than physical destruction. Theyve shaken residents financial foundations. CPA financial planners are available to help your readers, listeners and viewers think through the financial challenges they will face as they begin to rebuild their lives. In addition, the American Institute of Certified Public Accountants, in conjunction with the American Red Cross and National Endowment for Financial Education, has prepared guides focused on financial issues of disaster recovery that can help those affected in your communities get back on their feet.

AICPA Adds Flexibility for Specialty Credential Candidates

The American Institute of Certified Public Accountants is expanding registration and exam options for its specialty credentials, providing CPAs with more flexibility and opportunity to pursue designations that help differentiate them in the market. Registration for the Personal Financial Specialist (PFS), Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF) exams is now open year round, and each exam will be offered twice per year. Previously, registration was limited and exams were offered only once annually.

AICPA Survey: 23 Million Americans Bought From Online Deal Sites in Past Year
In the past year, 23 million Americans 10 percent of the adult population purchased a coupon from an online site such as Groupon or Living Social, according to a survey conducted for the American Institute of Certified Public Accountants by Harris Interactive, reflecting a burgeoning deal culture that requires consumers to keep a sharp focus on their financial priorities. The coupons were used equally for items needed, 49 percent, and wanted, 48 percent, according to the survey conducted by telephone among 1,005 U.S. adults between March 23 and March 27 in recognition of Financial Literacy Month in April. But there was disparity between the sexes. More than half of men, 53 percent, said they bought coupons for products or services they wanted, while an equal percentage of women got coupons for items they needed.

Anticipated Increase in Mergers and Acquisitions Activity in 2011 to Spotlight Accounting Guidance
Recently effective guidance on accounting for mergers and acquisitions is among the updates included in this years edition of The American Institute of Certified Public Accountants Accounting Trends & Techniques. The professional reference helps preparers, management accountants and auditors incorporate new and existing accounting and reporting guidance into financial statements, and helps investors analyze them. M&A activity in 2010 rose to levels we hadnt seen in years and this trend has heightened the need for good tools to perform financial statement analysis, said Arleen Thomas, AICPA senior vice president for member competency and development. The new edition of Accounting Trends & Techniques is a powerful resource for anyone who needs to understand financial statement reporting at a deep level.

AICPA Writes House Judiciary Committee Chairman in Support of Patent Reform Bill; Includes Provision to Stop Tax Strategy Patents
The American Institute of Certified Public Accountants today wrote House Judiciary Committee Chairman Lamar Smith in support of comprehensive patent reform legislation, H.R. 1249, and thanked Chairman Smith for including language in the bill that

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would stop tax strategy patents. AICPA President and CEO Barry Melancon said, I commend you for your steadfast leadership in addressing the problem of tax strategy patentsThere is enormously broad and bipartisan support for resolving this threat to taxpayers and their advisers, and the AICPA believes that this provision is an essential component of patent reform legislation. I thank you for making this a priority in the legislation.

Americans and their Families Need Simpler Tax Laws, AICPA Tells Congress
Revamp Americas incomprehensible tax laws, the American Institute of Certified Public Accountants told the tax writing panel of the House of Representatives today. Individual taxpayers and their families need simple tax laws so they can understand the rules and follow them correctly in a cost-efficient manner, Annette Nellen, chair of the AICPA Individual Income Taxation Technical Resource Panel, said at a House Ways and Means Committee hearing.

AICPA Survey: Four in Ten Working Americans Say they will never Afford Retirement
Almost 40 percent of working Americans say they will never afford retirement, which, for the second year in a row, ranks as the nations most important financial concern, according to a telephone survey conducted for the American Institute of Certified Public Accountants by Harris Interactive. More than half of working adults, 55 percent, say they dont know how much they need to save to retire, according to the survey. Many who think they know are likely off in their projections. Asked to estimate how much they needed to retire at age 65 and live for 20 years, those earning $50,000 to $75,000 annually said $250,000, at the median. Assuming inflation and annual expenses of $50,000, that amount of savings likely would run out in less than 10 years.

AICPA Partners with SCORE to Support National White House Initiative

The American Institute of Certified Public Accountants and SCORE, Americas premier source of free and confidential small business advice for entrepreneurs, in support of First Lady Michelle Obama and Dr. Jill Bidens Joining Forces Initiative, have committed to providing mentoring, tools and training support to military personnel and their families through the new Veterans Fast Launch program. Joining Forces is a comprehensive national initiative to mobilize all sectors of society to give service members and their families the opportunities and support they have earned. In this ongoing effort, the First Lady and Dr. Biden will highlight issues that are of special importance to the military families they have met with across the country, including the areas of employment, education, and wellness.

AICPA to Testify on Tax Reform at House Ways & Means Committee

The American Institute of Certified Public Accountants believes that current tax law is often incomprehensible and that compliance burdens for individual taxpayers are too heavy, both in terms of time required and out-of-pocket cost, Annette Nellen, chair of the AICPA Individual Income Taxation Technical Resource Panel, will tell the House Ways and Means Committee at a hearing Wednesday.

AICPA Insiders Awarded Best Association Online Newsletter by the Web Marketing Association
The AICPA Insiders received the Internet Advertising Competition award for Best Associations Online Newsletter campaign. This award recognized the recent redesign and enhancements to graphics and content which resulted in a substantially improved reader experience. The Internet Advertising Competition awards were created by the

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Web Marketing Association in 1999 to recognize excellence in online advertising. They are open to all organizations and individuals involved in the process of developing all forms of Internet advertising. Entries are judged on a number of factors, including creativity, innovation, design and memorability.

Statement from AICPA President and CEO Barry Melancon Applauding Repeal of Section 1099 Reporting Requirements by Congress
The following is a statement by AICPA President and CEO Barry Melancon congratulating Congress on its April 5 repeal of information reporting requirements placed on businesses and rental property owners. Todays overwhelming vote by the Senate to repeal onerous information reporting requirements is a victory for taxpayers. The AICPA had advocated strongly for the repeal of these reporting requirements because the increased burden on taxpayers and the time consuming process the IRS would have to use to reconcile millions of forms is too costly. We urge the President to quickly sign the repeal legislation into law.

AICPA Survey: Rising Gas, Food Prices Blunt Gains from Economic Recovery
Rising fuel and food prices are blunting gains from the economic recovery, hurting Americans ability to save and weighing on consumer sentiment, according to a survey conducted for the American Institute of Certified Public Accountants by Harris Interactive. The national phone survey of 1,005 adults was conducted March 23-27 in advance of Financial Literacy Month in April.

CPAs Available to Answer Americas Tax Questions

This years April 18 tax filing deadline is 13 days away, but approximately 59 million taxpayers still have to file their returns, the Internal Revenue Service said on April 4. These taxpayers are still collecting records, wrestling with forms and struggling to get answers to their last minute tax questions.

AICPA FinREC Comments to FASB on 'Accounting for Financial Instruments and Revisions to the Accounting for Derivatives Instruments and Hedging ActivitiesImpairment'
The American Institute of Certified Public Accountants Financial Reporting Executive Committee submitted a comment letter, dated March 30, 2011, to the Financial Accounting Standards Boards on its supplementary document, Accounting for Financial Instruments and Revisions to the Accounting for Derivatives Instruments and Hedging Activities-Impairment.

AICPA Comment Letter to the International Financial Reporting Standards Foundation's Monitoring Board
Today, the American Institute of Certified Public Accountants sent a comment letter to the International Financial Reporting Standards Foundations Monitoring Board regarding its Feb. 7, Consultative Report on the Review of the IFRS Governance.The Institute generally supports the report. However, it made the below commentary, urging the SEC to continue its efforts to find a way to help fund the IASB and asking the monitoring board to be mindful of the need for independence of the IASB in both fact and appearance.

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ICAEW NEWS (www.icaew.com)

New assurance reporting guidance adds to confidence
To ensure that shareholders have confidence in the managers of their investments ICAEW has published guidance on assurance reporting to support the UK Financial Reporting Councils UK Stewardship Code. ICAEWs guidance on assurance reporting provides a framework for independent verification of how investment managers adhere to the Code. It should thus be useful to asset owners when they are deciding who to appoint or whether to reappoint their existing asset managers. The guidance supplements existing ICAEWs guidance entitled AAF 01/06 Assurance reports on internal controls of service organizations made available to third parties.

ICAEW highlights tax benefits of wedding gifts

With Royal Wedding fever sweeping the nation, many individuals and businesses will be thinking about wedding gifts for the forthcoming wedding season. ICAEW is reminding guests of the tax benefits when you give a gift to the happy couple. Anita Monteith, technical manager from ICAEW Tax Faculty, said: More and more couples are living together and therefore the traditional wedding list with a toaster and a cutlery set is diminishing. A sign of the times is more people asking for money as their wedding present. This is a welcome gift for both parties as if can be exempt from Inheritance Tax (IHT).

No easy answer to the question of improving financial stability, says ICAEW

Commenting on the release of the Independent Commission on Bankings interim report, Iain Coke, Head of ICAEW Financial Services Faculty, said. The ICB interim report makes an important contribution to the debate on the future of banking, but a wider public understanding of the potential consequences of significant structural reform is needed. It is not possible to design a system that prevents banking failure. It is a question of balancing the security of the banking system with the need to deliver finance for economic activity. There is no easy answer. "We are not convinced that structural changes in UK banking such as moving away from the universal banking model and ring-fencing retail banking from investment banking would necessarily improve financial stability.

Proposed changes to IFRS Foundation governance could damage credibility

ICAEW, a world leader of the accountancy and finance profession, warns that proposals in the consultation paper Review of the IFRS Foundations Governance could damage the independence of the International Accounting Standards Board (IASB), and potentially harm the credibility of IFRS. Proposals in the paper include involving the IFRS Foundations Monitoring Board in the selection of the IASB Chair, allowing it to place items on the IASB agenda, establishing a permanent secretariat and setting up an advisory body.

ICAEW enhances presence in Beijing with Greater China regional office

ICAEW, a world leader in the accountancy and finance profession, yesterday celebrated the launch of its Greater China region with the establishment of a regional office in Beijing. ICAEW will work to increase access to its internationally recognized premium qualification, provide better support to members and students in mainland China and Hong Kong and further enhance its working relationship with institutes, the Government and other stakeholders in the region.

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ACCA NEWS (www.accaglobal.com)

Social Mobility Compact welcomed by ACCA
"Global professional body for accountants delighted to sign up to pledge" ACCA (the Association of Chartered Certified Accountants) is proud to support the Business Compact on Social Mobility. As a leading professional body for accountants, and as an employer, ACCA has long been committed to opening up access to the accountancy profession, enabling people to embark on rewarding employment opportunities regardless of their background. ACCA welcomes the impetus that the Deputy Prime Ministers announcement will give to social mobility in the UK.

CIPFA NEWS (www.cipfa.org.uk)

CIPFA proposes new vision for Scottish public services
Radical reform to the way Scottish public services are planned, funded and delivered is needed. This is the call from the Chartered Institute of Public Finance and Accountancy (CIPFA), which proposes a new vision for Scottish public services. CIPFAs vision is for a public service financial culture in Scotland in which services are planned and funded on an integrated basis and that resources are directed to the achievement of social outcomes. CIPFA advocates three principles for public services design and delivery. Public services should be planned to achieve outcomes, they should be sustainable and thirdly, they should be affordable. However all the party manifestos for 5 May Scottish elections propose a significant level of public spending, with little mention of the funding restraint required in the current economic climate, CIPFA says.

CIPFA Statement concerning former Member Mr Michael Wilkinson

On the 15 December 2010 the Disciplinary Committee of the Chartered Institute of Public Finance and Accountancy (CIPFA) heard allegations against Mr. Michael Wilkinson (working as a Business Manager at a boys school in Surrey.) Mr. Wilkinson had resigned from the Institute in July 2010, whilst he was the subject of regulatory action. The proceedings had continued against him in his capacity as a former member.

CIPFA Statement concerning Member Mr Alan Flockton

On the 15 December 2010 the Disciplinary Committee of the Chartered Institute of Public Finance and Accountancy (CIPFA) heard allegations against Mr. Alan Flockton. Mr. Flockton did not attend the Disciplinary Committee hearing and was not represented in his absence. He had previously communicated with CIPFA about the issues concerned in his case and these communications were considered by the Disciplinary Committee.

New help at hand for the public sector in managing their staffing resources
Public services seeking to strengthen their finance and human resources (HR) staffing capacity are set to benefit from a new service from The Chartered Institute of Public Finance & Accountancy (CIPFA). Launched today, CIPFA Recruitment Services is a new full-service recruitment business. Already an established interim financial recruiter, the new business will supply permanent finance staff at all levels, together with interim HR professionals. Utilizing the Institutes existing countrywide presence, CIPFA Recruitment Services will provide nationwide coverage. Offering support at every stage of the recruitment process, key features of the new permanent division include campaign management, search and selection, bespoke assessments, career development and coaching.

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Freedom from national targets presents an opportunity for the public sector
Public sector organizations should exploit the rolling back of national targets to create performance measurement systems that suit them, argues new guidance from CIPFA. In The Performance Pulse, managers in public services are offered the latest thinking on how to design Performance Management System (PMS) specific to their organizations strategic aims. The guidance also outlines the benefits an effective PMS can provide to organizations such as improvements in decision making, and reductions in waste. According to the guidance, organizations wishing to remain effective need to safeguard three core elements:Solid performance management regimes Stable governance and accountability Sound financial management and control.

Scottish public services must focus on achieving outcomes

The Scottish Government must ensure the system for allocating public money to public services focuses on achieving results and takes into account the economic and social characteristics of the different areas of Scotland. This is the call made by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the CIPFA Scottish Directors of Finance Section in their joint submission to the Commission on Future Delivery of Public Services. The historic funding formulae used by public services are largely input based. CIPFA and Scottish Directors of Finance Section share the view of the 2010 Independent Budget Review Panel, that Scottish public services funding should be directed towards achieving outcomes, rather than focusing on how public services operate. They argue an independent review of the current system of resource allocation is needed to resolve this disconnect.

ICSA NEWS (www.icsa.org.uk)

RNLI tops the bill in charities reputation survey
The Royal National Lifeboat Institution (RNLI) has achieved the highest score for charities for the second year running in research on reputation carried out by the Reputation Institute (RI). RI undertakes the largest annual survey of corporate reputation across 34 countries and the survey, which measures reputation among members of the public, was widened to include the top ten charities in England and Wales. The global average score for corporate reputation according to the RI is 64.2 out of 100 and the RNLI scored 94.77. The Royal British Legion and the RNIB came second and third in the ratings, achieving 90.11 and 89.94 respectively. The research, which was carried out for the Institute of Chartered Secretaries and Administrators (ICSA), revealed that governance, citizenship and services were the three key drivers for reputation within the voluntary sector. ICSA will be holding an event in July which looks at the survey results for charities, and other not for profit bodies, in more detail. Were delighted to have achieved such an excellent ranking for the second year running, says Paul Boissier, Chief Executive of the RNLI. This result reflects the commitment and dedication of all our people, volunteers and staff, who work so hard to protect our reputation and our standing with the public. We are fortunate in having a large network of dedicated people working at a local level who feel very involved with the RNLI and really contribute to ensure the charity and its volunteer lifeboat crews and lifeguards can continue to save lives at sea.

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Seamus Gillen, ICSAs Policy Director commented: This is great news for the RNLI. The public wants to trust the charities to whom theyre donating their money. The research proves that charities with a good reputation benefit from higher levels of public support. This is critical in the current economic climate where charities need to maintain their income.

ICSA wins brand development award

ICSAs marketing team was delighted to win an award for brand development at the MemCom Awards held on Friday 1 April. The awards, which take place annually, reward best practice in marketing by membership organizations. The new ICSA branding which incorporates the words Chartered Secretaries was developed by Marie SchuIz ICSAs Senior Graphic Designer. We were delighted to receive the MemCom award for Brand Development 2011 says Marie Re-branding has been of key importance for us - bringing our new visual identity in line with our marketing strategy to take a fresh approach to presenting the role of the Chartered Secretary in the modern world. Our vision was to create a design style which could combine the best of our heritage with a more modern and forward thinking approach. The MemCom judging panels comments were: We were impressed that ICSA developed their brand in-house from concept to implementation. The project included a significant change of their corporate identity, including promotion of the Chartered Secretaries brand. They set out their aims clearly and delivered well.

ICAS NEWS (www.icas.org.uk)

New President of ICAS: Iain McLaren
Iain McLaren today took office as the new President of The Institute of Chartered Accountants of Scotland (ICAS). Formerly Senior Partner of KPMG in Scotland, Iain is Senior Independent Director and Chair of the Audit Committee of Cairn Energy plc and Chairman of Investors Capital Trust plc. He is also a Board member and chair of the audit committee of Scottish Enterprise, a Non-Executive Director of Edinburgh Dragon Trust plc, Baillie Gifford Shin Nippon Trust Plc, Econfin Water & Power Resources Trust plc and a member of the Court of Heriot Watt University and a Governor of St Columbas Hospice. Iain succeeds Alan Thomson, Chairman of Hays plc, Bodycote plc and Polypipe Ltd, Senior Independent Director of Johnson Matthey plc and a non-executive Director of Alstom SA (France). The new ICAS President is supported by vice-Presidents Sir David Tweedie, Chairman of the International Accounting Standards Board and Brendan Nelson, a non-executive director of RBS plc and BP plc. Each President serves a one-year term.

BBC News Executive to head up new role at ICAS

Atholl Duncan has been appointed as Executive Director, UK and Global, Member Engagement for the Institute of Chartered Accountants of Scotland (ICAS). Atholl, currently Head of News and Current Affairs for BBC Scotland, will lead ICASs ambition of creating the most engaged group of professionals in the world. He will take up his new role in May. He will enable the ICAS worldwide membership of around 19,000 chartered accountants (CAs) to access the best and most relevant advice and services. This will include developing new learning and networking opportunities. Atholl will also lead building the Institutes brand and reputation through engagement with the media, politicians and key stakeholders in the UK and worldwide.

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ACFE News (www.acfe.com)

2010 Report to the Nations Introduction
The ACFE's 2010 Report to the Nations on Occupational Fraud and Abuse is based on data compiled from a study of 1,843 cases of occupational fraud that occurred worldwide between January 2008 and December 2009. All information was provided by the Certified Fraud Examiners (CFEs) who investigated those cases. The fraud cases in our study came from 106 nations with more than 40% of cases occurring in countries outside the United States providing a truly global view into the plague of occupational fraud. Since the inception of the Report to the Nation more than a decade ago, we have released five updated editions in 2002, 2004, 2006, 2008 and the current version in 2010. Like the first Report, each subsequent edition has been based on detailed case information provided by Certified Fraud Examiners (CFEs). With each new edition of the Report, we add to and modify the questions we ask of our survey participants in order to enhance the quality of the data we collect. This evolution of the Report to the Nation has enabled us to continue to draw more meaningful information from the experiences of CFEs and the frauds they encounter. In our 2010 Report, we have, for the first time ever, widened our study to include cases from countries outside the United States. This expansion allows us to more fully explore the truly global nature of occupational fraud and provides an enhanced view into the severity and impact of these crimes. Additionally, we are able to compare the anti-fraud measures taken by organizations worldwide in order to give fraud fighters everywhere the most applicable and useful information to help them in their fraud prevention and detection efforts.

2010 Report to the Nations - Key Findings and Highlights

Key Findings and Highlights of the 2010 Report to the Nations include:-

The Impact of Occupational Fraud

Survey participants estimated that the typical organization loses 5% of its annual revenue to fraud. Applied to the estimated 2009 Gross World Product, this figure translates to a potential global fraud loss of more than $2.9 trillion. The median loss caused by the occupational fraud cases in our study was $160,000. Nearly one-quarter of the frauds involved losses of at least $1 million. Small organizations are disproportionately victimized by occupational fraud. These organizations are typically lacking in anti-fraud controls compared to their larger counterparts, which makes them particularly vulnerable to fraud.

Fraud Detection
The frauds lasted a median of 18 months before being detected. Occupational frauds are much more likely to be detected by tip than by any other means. This finding has been consistent since 2002 when we began tracking data on fraud detection methods. Anti-fraud controls appear to help reduce the cost and duration of occupational fraud schemes. We looked at the effect of 15 common controls on the median loss and duration of the frauds. Victim organizations that had these controls in place had significantly lower losses and time-to-detection than those organizations without the controls.

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Perpetrators of Fraud
High-level perpetrators cause the greatest damage to their organizations. Frauds committed by owners/executives were more than three times as costly as frauds committed by managers, and more than nine times as costly as employee frauds. Executive-level frauds also took much longer to detect. More than 80% of the frauds in our study were committed by individuals in one of six departments: accounting, operations, sales, executive/upper management, customer service or purchasing. More than 85% of fraudsters in our study had never been previously charged or convicted for a fraud-related offense. This finding is consistent with our prior studies. Fraud perpetrators often display warning signs that they are engaging in illicit activity. The most common behavioral red flags displayed by the perpetrators in our study were living beyond their means (43% of cases) and experiencing financial difficulties (36% of cases).

2010 Report to the Nations - Conclusions and Recommendations

Occupational fraud is a global problem. Though some of our findings differ slightly from region to region, most of the trends in fraud schemes, perpetrator characteristics and anti-fraud controls are similar regardless of where the fraud occurred. Fraud reporting mechanisms are a critical component of an effective fraud prevention and detection system. Organizations should implement hotlines to receive tips from both internal and external sources. Such reporting mechanisms should allow anonymity and confidentiality, and employees should be encouraged to report suspicious activity without fear of reprisal. Organizations tend to over-rely on audits. External audits were the control mechanism most widely used by the victims in our survey, but they ranked comparatively poorly in both detecting fraud and limiting losses due to fraud. Audits are clearly important and can have a strong preventative effect on fraudulent behavior, but they should not be relied upon exclusively for fraud detection. Employee education is the foundation of preventing and detecting occupational fraud. Staff members are an organizations top fraud detection method; employees must be trained in what constitutes fraud, how it hurts everyone in the company and how to report any questionable activity. Our data show not only that most frauds are detected by tips, but also that organizations that have antifraud training for employees and managers experience lower fraud losses. Surprise audits are an effective, yet underutilized, tool in the fight against fraud. Less than 30% of victim organizations in our study conducted surprise audits; however, those organizations tended to have lower fraud losses and to detect frauds more quickly. While surprise audits can be useful in detecting fraud, their most important benefit is in preventing fraud by creating a perception of detection. Generally speaking, occupational fraud perpetrators only commit fraud if they believe they will not be caught. The threat of surprise audits increases employees perception that fraud will be detected and thus has a strong deterrent effect on potential fraudsters. Small businesses are particularly vulnerable to fraud. In general, these organizations have far fewer controls in place to protect their resources from fraud and abuse. Managers and owners of small businesses should focus their control investments on the most cost-effective mechanisms, such as hotlines and setting an ethical tone for their employees, as well as those most likely to help

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prevent and detect the specific fraud schemes that pose the greatest risks to their businesses. Internal controls alone are insufficient to fully prevent occupational fraud. Though it is important for organizations to have strategic and effective anti-fraud controls in place, internal controls will not prevent all fraud from occurring, nor will they detect most fraud once it begins. Fraudsters exhibit behavioral warning signs of their misdeeds. These red flags such as living beyond ones means or exhibiting control issues will not be identified by traditional controls. Auditors and employees alike should be trained to recognize the common behavioral signs that a fraud is occurring and encouraged not to ignore such red flags, as they might be the key to detecting or deterring a fraud. Given the high costs of occupational fraud, effective fraud prevention measures are critical. Organizations should implement a fraud prevention checklist similar to that on page 80 of the Report in order to help eliminate fraud before it occurs.

PricewaterhouseCoopers LLP News (www.pwc.com)

Absenteeism costing UK business 32 billion a year, with workers taking almost double the number of sick days as US counterparts, says PwC
UK workers have an average (median) 10 days unscheduled absence from their jobs each year, around twice that of their counterparts in the US (5.5 days) and Asia-Pacific (4.5 days), but on a par with Western Europe (9.7 days). Sickness accounts for around 80% of absence, which also covers jury service and compassionate leave. With the average UK salary around 25,000, absenteeism is costing British business approximately 32 billion per annum, far more than previous studies have suggested. This figure is likely to be conservative, as it reflects direct cost of absence only and does not take into account potential replacement costs and lost productivity.

The economic impact of the Royal Wedding PwC

An extensive survey of UK adults reveals the economic impact of the Royal Wedding. PwC conducted the research as part of an ongoing project to monitor the economic impact of large events in the capital in the run up to the Olympic Games next year.

Venture capital investment dollars increase modestly while number of deals declines in Q1 2011
Venture capitalists invested $5.9 billion in 736 deals in the first quarter of 2011, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Quarterly investment activity increased 5% in terms of dollars but fell 11% in number of deals compared to the fourth quarter of 2010 when $5.6 billion was invested in 827 deals.

Talent is top priority for CEOs says PwC survey

Managing talent has overtaken risk as top of the CEO agenda, according to analysis from PwCs 14th annual CEO survey. Some 83% of the 1200 CEOs surveyed globally plan to change their firms talent management strategy over the next 12 months and for 31% these changes will be major. The next priorities are risk management and investment, with 77% and 76% of CEOs respectively anticipating changes in these areas. Last year risk management was the number one priority for 84% of CEOs, followed by investment (81%), and talent third (79%). Globally the picture varies from region to region. In AsiaPacific and the Middle-East, 92% and 89% of CEOs respectively plan to make changes to their people strategy, whereas in North America the figure drops to 78%.

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Forensic & Valuation Reporter News (www.smartbrief.com)

(Forensic Corner)
First award in IRS whistle-blower program is worth $4.5M
The Internal Revenue Service paid $4.5 million to an accountant who alerted the agency that his employer ignored a tax lapse, in the first IRS whistle-blower award. The IRS collected $20 million in taxes and interest from the financial-services firm as a result of the accountant's tip.

Cooperation is the first step to reducing e-discovery costs

Courts are grappling with how to manage the increasingly complex e-discovery process. This article explores 10 issues that are likely to shape e-discovery rules in the near future. They include finding ways to protect privileged information and handling data from newer sources, such as social networking and cloud computing. More courts are requiring opposing counsels to cooperate to reduce the scope and cost of e-discovery.

FBI stops Coreflood botnet by seizing 5 servers

FBI agents ended the Coreflood botnet by seizing and shutting down five infected servers, the agency said. The virus was designed to record keystrokes glean users' private data. The FBI is urging computer users to run anti-virus software to detect and delete the bug.

Bankruptcy and mortgage fraud increasingly intertwine

The Treasury Department's Financial Crimes Enforcement Network reported a large increase of bankruptcy-fraud reports that reference mortgage-loan fraud. The agency also noted in its Mortgage Loan Fraud Update for 2010 an increase of "flopping," a type of flipping scheme for real estate short sales.

Amazon's cloud music site could face copyright hurdle

Amazon's Cloud Drive could spark a legal battle over how copyrighted work is treated in the cloud. The service lets users purchase and store music on a cloud server and access it from anywhere. Courts have yet to resolve whether the arrangement requires Amazon and similar companies to buy performance licenses.

(Valuation Corner)
Reasons that patents might not boost a company's valuation
Appraisers might want to be skeptical when valuing a company's patents, this article suggests. The cost of defending patent rights and uncertainty over litigation can undermine a patent's value. Moreover, having a patent doesn't guarantee that a technology is viable or that it will generate significant revenue. Age and revenue potential help shape patent value: Valuing a patent can be an uncertain task, but there are factors that can help determine its worth, this article explains. They include a patent's litigation history, inventors and potential for generating revenue and sales. Data also show that patents sold in midsize portfolios likely garner a higher value. 6 factors that can increase a patent's value: Corporate competition is only one factor that can drive up a patent's value. Buyers might pay a higher price for patents from widely known inventors or technology that is ready for market.

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Appraisers should consider whether a patent would help the acquirer secure financing or lower its cost of doing business.

Business valuation can be used in multiple ways

Owners encounter myriad reasons for wanting to value their business, including merger opportunities, financing or divorce. Common valuation methods include measuring income and assets or comparing a company to similar businesses. Factors such as reputation, market share and internal controls also affect the outcome.

How to use capitalized net cash flow to find value

Appraisers can use a company's cash-flow history to determine its value under the method of capitalized net cash flow. The approach calls for picking out one-time events and adjusting expenses to reflect the market average. Cash flow is then multiplied by a capitalization rate to produce an overall value.

(FVS Community News)

Position yourself as a premier forensic accounting or business-valuation professional with the CFF or ABV credential
According to Accounting Today's "Top 100: Why the Best are the Best" for 2010, forensics/fraud and business valuation ranked in the top five of the fastest-growing specialties for top CPA firms. In this CFF video, listen to what other CPAs say about the Certified in Financial Forensics credential. Learn how the Accredited in Business Valuation credential can increase your earning potential and advance your career by watching this ABV video. CFF exam and ABV exam registration is open.

Resources are available to address top issues faced by FVS professionals

The 2010 FVS Membership Top Issues Survey examined issues and trends affecting the practices of forensic and valuation professionals from various firm sizes, ranging from sole practitioners to forensic and valuation specialty practices. We have created tools and resources to help our members address a number of issues.

Working draft of revised AICPA "Cheap Stock" practice aid is released

The AICPA's Financial Reporting Executive Committee issued a working draft of the revised AICPA practice aid Valuation of Privately-Held-Company Equity Securities Issued as Compensation, also known as the "Cheap Stock" practice aid. Listen to this podcast for information and highlights on this revised practice aid, which provides nonauthoritative guidance and illustrations for valuation specialists, preparers, auditors and others regarding valuation and disclosure related to privately held companies' equity securities issued as compensation. FinREC is seeking feedback on the working draft by May 31.

The Institute of Money Laundering Prevention Officers (www.imlpo.com) (Latest AML & Financial Crime News)
India announces committee to oversee money laundering investigations
The Indian central government told the Supreme Court on Monday that it has set up a multi-disciplinary committee, comprising top officials of different departments, to oversee and co-ordinate investigations into cases of money laundering and stashing black money in tax havens. More on the Economic Times website here.

FATF warns that the Netherlands is "susceptible" to money laundering

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The Netherlands is susceptible to money laundering because of its large financial centre, openness to trade and the size of criminal proceeds, according to the FATF's latest report. More on the Wall Street Journal website here, including a link to the FATF report itself.

HM Treasury publishes latest Statement on Money Laundering Controls in Overseas Jurisdictions

The latest advice super cedes that issued in November 2010. Click here to download from the HMT website.

Online gaming industry "in turmoil" after US indictments

BBC website here: US authorities have unveiled an indictment against the owners of three of the world's biggest poker websites, throwing the young industry into turmoil. Criminal and civil charges filed in New York have forced online poker sites PokerStars (based in the Isle of Man) and Full Tilt Poker (based in Alderney, in the Channel Islands), as well as Canada-based Absolute Poker, to stop doing business with Americans.

MEPs vote for greater protection for fraud victims

European lawmakers have voted to beef up protection, including guaranteed compensation, for investors who become victims of fraudulent or negligent investment companies. More on the FT website here.

Online gaming sites accused of money laundering

The US Justice Department last week froze gambling accounts linked to three of the biggest online poker sites after accusing those running them of money laundering and fraud. Prosecutors claimed the operators of Pokerstars, Full Tilt Poker and Absolute Poker three of the most popular online poker sites - tricked US banks into processing billions of dollars from customers. US banks are prohibited from accepting payments from illegal gambling websites. More on the Independent website here.

SFO will use money laundering legislation to prosecute companies for bribery & corruption
The Serious Fraud Office has said that it will increasingly make use of the money laundering regulations to prosecute rogue directors whose companies persist in bribery and corruption. Richard Alderman, director of the SFO, told Complinet that the UK's antimoney laundering regime was a "tough" system that had some "fierce" offences and he would not hesitate to use its powers to prosecute offenders. More on Trust Law here.

Bulgarian pleads guilty to role in alleged $1.4m money laundering case

A Bulgarian national pleaded guilty yesterday in US District Court in the District of Columbia for his role in laundering money for a transnational criminal group based in Eastern Europe. Additionally, a Romanian national charged in the same scheme surrendered and appeared in federal court in the District of Columbia. According to court documents, in less than one year, the criminal conspiracy netted more than $1.4 million from US victims via the posting of fraudulent advertisements on eBay and other websites. More on the US Justice Department website here.

Bank worker jailed for 3.2m tax fraud

A former local business manager at Barclays in London has been jailed for three years and three months and a Ukrainian national has received a three year and nine month sentence after both pleaded guilty to cheating the public revenue. The pair registered

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over 1050 fictitious taxpayers on the Income Tax Self Assessment system. They then swindled tax repayments using more than 200 false bank accounts to steal 3.2 million between January 2008 and September 2010. More on Finextra here.

Financial Action Task Force News (www.fatf-gafi.org)

Mutual Evaluation of the Netherlands
This report summarizes the anti-money laundering and counter-terrorist financing measures (AML/CFT) that were in place in the Netherlands at the time of the on-site visit (June 28July 13 2010) and immediately thereafter. It describes and analyses these measures and offers recommendations on how to strengthen certain aspects of the system. It also assesses the Netherlandss level of compliance with the 40+9 Recommendations of the Financial Action Task Force (FATF).

Key findings
Indicators suggest that the Netherlands is susceptible to ML, including because of its large financial center, openness to trade and the size of criminal proceeds. There is a terrorism and TF risk but it appears limited based on available information. The Netherlands have criminalized ML fully in line with the requirements under the Vienna and Palermo Conventions. The Netherlands have a long-standing FIU which is one the founding members of the Egmont Group and enjoys high trust for its professionalism, both domestically and internationally. Financial investigations have been pursued through aggressive and effective approaches, as shown by the relatively high number of prosecutions for ML or ML and other offences. The Netherlands have a long-standing system of preventive measures and while the legal framework is modern and comprehensive for both financial and nonfinancial institutions, it falls short of the international standard in some areas, such as in the case of the verification of beneficial owners and simplified due diligence. Supervision of AML/CFT obligations is based on broadly comprehensive powers and is well regarded by most sections of the regulated financial sector but some gaps in the legal framework need to be filled. The AML/CFT Law has to be amended to improve the reporting regime, including by requiring that suspicious transactions are reported promptly. The Criminal Procedure Code (CPC) should be revised to enable the Netherlands to grant any foreign country assistance in searching and seizing evidence in ML cases, and to make ML an extraditable offense, regardless of the predicate offense involved.

Mutual Evaluation of France

This report provides a summary of anti-money laundering and countering the financing of terrorism (AML/CFT) measures in place in France as at the date of the on-site visit (18 January - 2 February 2010) or immediately thereafter (up to 31 March 2010). It describes and analyses those measures, and provides recommendations on how certain aspects of France's AML/CFT system could be strengthened. It also sets out French levels of compliance with the FATF 40+9 Recommendations.

Key Findings
This was the FATF's third mutual evaluation of France. The implementation of the transposition into French law of the Third European Directive, 2005/60/EC, on the

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prevention of the use of the financial system for the purpose of money laundering and terrorist financing by the Ordinance No. 2009-104 of 30 January 2009 and the subsequent implementing decrees are the latest step in strengthening its preventive regime. Among some of the main new measures introduced in 2009 include: (1) increasing the number of sectors covered by AML/CFT provisions to include in particular domiciliation companies ; (2) submitting all covered institutions/professions to an AML/CFT oversight and sanction system; (3) adopting a risk-based approach to due diligence measures; (4) extending the obligation to report suspicious transactions to all offences under ordinary law, including tax fraud, and increasing the powers of the financial intelligence unit (Tracfin); (5) introducing a licensing system for the money changing profession to replace the previous simple registration requirement and (6) broadening the prohibition from making payments in cash. In addition to the creation of an AML/CFT advisory committee, which is intended to strengthen the co-ordination of the effort of the relevant state authorities and the supervisors of the institutions/professions covered by AML/CFT obligations, one major recent institutional innovation (March 2010) has been the grouping of the licensing and supervision responsibilities regarding banks, payment institutions, investment firm (with the exception of portfolio-management firms) and money changers together with insurance companies, mutual insurance, provident insurance institutions under one independent government agency called the Prudential Supervision Authority (Autorit de contrle prudentiel ACP). Ordinance No. 2009-104 of 30 January 2009 and its implementing decrees revised and supplemented customer due diligence obligations. These new obligations, which apply to both financial institutions and non-financial professions, together with record-keeping and suspicious transaction reporting (STR) obligations, are very comprehensive and largely compliant with FATF requirements. The level of compliance of non-financial professions with their AML/CFT obligations, however, is not completely satisfactory. The authorities will therefore need to make a considerable effort in this area. The French prudential supervision authorities have sufficient powers to carry out their inspections (whether specifically AML/CFT-related or not) and exercise them conscientiously. The oversight system revolves around coordinated use of ongoing off-site inspections and on-site inspections to make the supervisory system effective and efficient. In addition, all relevant authorities have the power to take sanctions in AML/CFT matters, and they have, in most cases, made effective, proportionate and dissuasive use of them. In terms of the number of convictions, fraud and drug trafficking are the most common predicate offences for money laundering in France. The money laundering offence, which is largely in compliance with international law, is being progressively appropriated into case law and by the Cour de cassation. The assessors noted as well that France introduced in 2005 the offence of nonjustification of resources which enables laundering by association (blanchiment de proximit) to be targeted in that the offence aims to penalize individuals for whom the evidence of participation in an act of money laundering cannot be proven even though circumstantial elements appear to show the contrary. Despite a continuous increase in the number of convictions for money laundering, the assessors observed quite a strong tendency among courts to prosecute on the charge of the predicate offence. They thus recommend enhancing the judicial resources made available for investigations and, more generally, for law enforcement measures against economic and financial crime. France has a very comprehensive array of legal tools for criminalizing terrorist

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financing; likewise, law enforcement authorities have the investigative techniques and powers for combating terrorist financing and money laundering, which are compliance with FATF requirements. France is able to offer extensive mutual legal assistance for investigations and prosecutions relating to money laundering and terrorist financing. Available measures relating to extradition are also satisfactory, even if the lack of adequate statistics makes it very difficult to determine exactly how effective the current system is. This mutual evaluation of France considered the matter of the local government authorities (collectivits territoriales) located overseas to determine their role and contribution regarding the country's AML/CFT policy. It is important to note that despite their differences in status, these territories are an integral part of the French Republic and, as such, are governed by the same AML/CFT rules as those in force in metropolitan France (apart from a few highly specific sector-based or geographical characteristics referred to in the report ). The report therefore focuses mainly on how the AML/CFT standard is implemented in these territories and on how effective it is, taking into account the financial weight that these territories represent. The assessment team particularly targeted some of these regions because of their exposure to certain risks relating to AML/CFT and other phenomena that lead to crime. This detailed analysis shows that while the strong financial connection with metropolitan France facilitates the implementation of AML/CFT legislation in these territories, it is also true that the geographical remoteness of these territories lessens the impact of the authorities communication and awareness efforts regarding the covered professions. Although the legislation in force is, apart from a few minor exceptions, the same throughout France, the assessors highlighted in the report several situations that raise doubts as to how effectively AML/CFT measures are implemented in overseas France. Thus, there remain serious doubts as to the full implementation of the STR obligation in certain territories situated overseas (this point applies to both the financial and non financial professions). In this regard, it should be noted that no resources or almost none are devoted by Tracfin in territories located overseas to dialogue and exchanges and, more particularly to awareness raising on STR obligations among covered professions. At the level of AML/CFT compliance inspections for financial professionals, the evaluation report notes the virtual absence of on-site inspections by the AMF in these territories and the necessity for the ACP to increase its inspection activity. Regarding the nonfinancial professions, the assessors learned through interviews with a sampling of professions carrying out such activity overseas that they are confronting significant challenges in implementing their AML/CFT obligations, in particular when they do not have a professional organization in a position to guide and assist them in their efforts in this area. The absence of government authorities clearly identified for dealing with AML/CFT matters in these territories is especially viewed as a difficulty. French authorities should rectify these shortcomings and, more broadly, improve knowledge of the risks of money laundering and terrorist financing in every region of the country.

The Association of Certified Anti-Money Laundering Specialists NEWS (www.acams.org)

The Worldwide Leader in AML Certification, Education and Training
The Association of Certified Anti-Money Laundering Specialists (ACAMS) is the premier organization for anti-money laundering (AML) professionals and the provider of the

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Certified Anti-Money Laundering Specialist (CAMS) credential the most respected certification in the industry. The mission of ACAMS is to advance the professional knowledge, skills and experience of those dedicated to the detection and prevention of money laundering around the world, and to promote the development and implementation of sound anti-money laundering policies and procedures. ACAMS achieves its mission through:Promoting international standards for the detection and prevention of money laundering and terrorist financing, Educating professionals in private and government organizations about these standards and the strategies and practices required to meet them, Certifying the achievements of its members, and Providing networking platforms through which AML/CTF professionals collaborate with their peers throughout the world.

A Diverse and Elite Group of AML Professionals

The ACAMS membership base represents more than 160 countries and includes:Anti-Money Laundering Officers Compliance Officers Government Regulators Law Enforcement/Intelligence Agents Internal & External Auditors Intelligence Officers Risk Management Specialists Attorneys and Certified Public Accountants Investment Advisors Real Estate Compliance Specialists Consultants

From:Banking Government Securities Broker/Dealers Money Services Businesses Insurance Companies Accounting and Law Firms Gaming Organizations Credit, Debit & Pre-Paid Card Companies Real Estate Agencies Jewelry and Precious Metals Dealers

National News
SECP News (www.secp.gov.pk)
SECP granted licenses to 25 non-profit associations in four months
The Securities and Exchange Commission of Pakistan (SECP) granted licenses to 25 nonprofit associations under Section 42 of the Companies Ordinance, 1984, from January to April as compared to 16 licenses issued in corresponding period of previous year. The sector-wise breakdown shows that 8 associations will be working in the social services sector, 7 in education, 6 in healthcare, 2 in charity and one each in the arts and science.

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SECPs eServices project wins international award

The International Data Group, world's leading technology media, events and research company, has declared the eServices project of the Securities and Exchange Commission of Pakistan a winner of its Laureate Gold Medal. This annual award program honors visionary applications of IT in promoting positive social, economic and educational change. It was especially competitive this year because it received over 1,000 nominations.

Publication of Performance of Pension Funds Set Up under Voluntary Pension System Rules, 2005 (For the Period Ended December 31, 2010)
This is a publication by SECP under the requirement of rule 41 of the VPS Rules, 2005. It is highly suggested to individuals interested in enrolment to VPS, to read provisions of offering document of a pension fund to make an informed contribution decisions.

SECP has become the first Pakistani regulatory organization to win ISO/IEC 27001: 2005 Certification
The Securities and Exchange Commission of Pakistan has become the first Pakistani regulatory organization to win ISO/IEC 27001: 2005 certification. It has been earned by Information Systems and Technology (IS&T) Division. Ghulam Haider, CEO of M/S Direct Assessment Services (DAS) Pakistan presented the certification to the SECP chairman on Thursday. It is top international standard for evaluating information security management systems.

Management by Objectives - SECP sets the pace for the Way Forward
The Securities and Exchange Commission of Pakistan (SECP) organized a three-day offsite program to frame its three year Strategic Objectives, set annual targets for the year 2011-12 for the Commission and every department, outline values and competencies and revisit its vision and mission statements. The theme for the way forward agreed by the senior management of SECP will be: accountability, teamwork, target driven approach and to lead by example.

SECP registered 342companies in March

The Securities and Exchange Commission of Pakistan (SECP) registered 342 companies in March. The private companies have the highest share in the new incorporations totaling 301. In addition, 29 single-member companies, 1 public unlisted company, 5 non-profit associations and 6 foreign companies got registered. Company Registration Office (CRO), Lahore registered 128 companies, the CRO in Islamabad and Karachi registering 83 and 80 companies respectively. CROs of Multan and Faisalabad registered 14 companies each while the CROs in Peshawar, and Quetta registered 19 and 4 companies respectively.

SECP amends the format of Statement in Lieu of Prospectus

The Securities and Exchange Commission of Pakistan (SECP) has amended the Statement in Lieu of Prospectus format required to be filed by unlisted public companies to obtain the commencement of business certificate. The main purpose of this revision is to make Statement in Lieu of Prospectus more compatible with SECPs eServices regime and understandable for regulates as well as their consultants. The amended format is much easier to be filled and best suited to online submission environment.

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SECP issued orders for recovery of Rs79 million

As a part of its mandate to regulate the capital markets, the Securities Market Division of the Securities and Exchange Commission of Pakistan issued orders, show cause notices and warning letters to non-compliant market participants in March. Because of regulatory non-compliance, orders were issued against beneficial owners of the five listed companies under section 224 (2) of Companies Ordinance, 1984, and were directed to surrender gain to the tune of Rs79 million. As a part of routine monitoring and surveillance, a warning letters and three show cause notices were issued to members of the stock exchanges, beneficial owners of listed companies and other market participants.

SECP fines 24 defaulting companies

As part of its enforcement and regulatory function, the Securities and Exchange Commission of Pakistan passed 24 orders in March, fining defaulting listed and unlisted companies. In order to safeguard the interests of investors and stakeholders and to develop corporate governance culture in the country, the SECP took action against 49 companies by issuing show-cause notices for non-compliance with various provisions of the 1984 Companies Ordinance. Eighty-two investors complaints were also resolved during the month.

FBR News (www.fbr.gov.pk)

Date for payment of taxes for March 11 extended
Federal Board of Revenue has extended the date for payment of taxes / duty for the tax period March, 2011, and filing of Sales Tax / Federal Excise returns, up to 20th April, 2011, for registered persons claiming benefit under SRO. 283(1)/2011 dated 01.04.2011. The decision has been taken by the FBR in exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005, says a press release issued Friday.

15pc surcharge on payable income tax applies to all, says FBR

Federal Board of Revenue (FBR) has said the imposition of 15% surcharge on the amount of payable income tax for the period 15th March, 2011 to 30th June, 2011 is applicable on all income taxpayers whether individual, Association of Persons (AOPs), or Companies. In an official statement released on Saturday, it says: In order to remove any misconception which may have been caused by a press report appearing in a section of the media, the government wishes to clarify that the imposition of 15% surcharge on the amount of payable income tax for the period 15th March, 2011 to 30th June, 2011 is applicable on all income tax payers whether individual, Association of Persons (AOPs), or Companies. It is an across-the-board surcharge, levied without exception or discrimination, on all categories of income taxpayers. As such, the promulgated law does not envisage any exemption or special treatment to any category of taxpayers.

FBR collects Rs 1.01 trillion to meet 99pc of nine-month revenue target

Against a target of Rs.1.016 trillion for the first nine months of the current fiscal year, Federal Board of Revenue (FBR) has been able to collect Rs.1.010 trillion up to 30th March, 2011, says a press release issued Friday. According to details, collection challans for 31st March, 2011 are being processed and the full months figures would be available in a day or so. For the March, 2011 target of Rs.140.4 billion, FBR has already collected Rs.134.1 billion up to 30th March, 2011. The collection of 31st March, 2011 is yet to be

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reflected in these figures. Nonetheless the attained collection shows a growth of 13.5% over the last year. It may be noted that these collections are provisional and subject to final reconciliation with AGPR and the Banks by mid April, 2011. As per historical trend, additional revenues are accounted to the government treasury as a result of the reconciliation. FBR therefore, expects to meet its monthly as well as the 9 months target as a result of the reconciliation exercise.

State Bank of Pakistan News (www.sbp.org.pk)

State Bank decides to increase SLR for Islamic Banks from June 3
The State Bank of Pakistan (SBP) has decided to increase the Statutory Liquidity Requirement (SLR) for Islamic Banks/ Islamic Banking Branches by 5 percent with effect from June 03, 2011. At present, the SLR for Islamic Banks/ Islamic Banking Branches is 14% (excluding Cash Reserve Requirement) of Total Demand Liabilities (including Time deposits with tenors of less than 1 year). A circular (DMMD Circular No.3) issued today said that in exercise of the powers conferred upon the State Bank of Pakistan under section 36 of the State Bank of Pakistan Act, 1956, and section 29 of the Banking companies Ordinance, 1962 it has been decided to increase the Statutory Liquidity Requirement (SLR) for Islamic Banks/ Islamic Banking Branches with effect from June 03, 2011, as under: 19% (excluding CRR) of Total Demand Liabilities (including Time deposits with tenors of less than 1 year). Time Liabilities (including Time deposits with tenor of 1 year and above) will not require any SLR. With this decision, the SLR for conventional and Islamic Banks will be the same i.e. 19%. It may be pointed out here that the SLR can be maintained in the form of cash in hand, balance with NBP in current account, balance with SBP in current account and Unencumbered Approved Securities as notified by SBP from time to time. Moreover, all holdings of GOP Ijara Sukuk (GIS) will be fully counted for SLR purpose. Holdings of SBP approved SLR eligible Public Sector Sukuks will also be counted up to 7% of total time and demand liabilities for SLR purpose.

First nationwide Financial Literacy Program to be launched shortly

The first ever initiative to promote the financial literacy among the general public at the national level will be launched shortly. In this regard, the State Bank of Pakistan (SBP) has signed a contract with M/s Bearing Point Consultant as an implementing partner to launch a pilot nationwide Financial Literacy Program (FLP). This program will impart knowledge about the basic financial concepts such as budgeting, savings, investments, debt management, financial products and branchless banking. The pilot phase will target about 50,000 beneficiaries with emphasis on low income strata. Upon successful completion of the pilot phase, the program will be scaled up to target more than 500,000 beneficiaries from all over the country. The program will rely on partnerships with financial service providers and network organization to outreach across various districts of Pakistan. The FLP will increase financial inclusion and awareness about innovative alternate delivery channels/branchless banking and also help people understand their rights and obligations. The program will be disseminated by using myriad of communication channels i.e TV channels, regional Radio, print media and mobile network operators for delivering basic knowledge of financial concepts. The Program is being funded under

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the Government of Pakistan and Asian Development Bank (ADB) sponsored Improving Access to Financial Service Fund (IAFSF) to promote financial literacy initiatives in Pakistan. The program has been approved after a thorough review by the IAFSF Committee with representation from SBP, Pakistan Banks Association, Pakistan Poverty Alleviation Fund, Pakistan Microfinance Network, ADB and broader stakeholder consultations.

Majority of banks in Pakistan to meet Basel-III requirements comfortably: Mr. Yaseen Anwar
Mr. Yaseen Anwar, Deputy Governor, State Bank of Pakistan has expressed the hope that the majority of banks operating in the country will comfortably meet the new capital requirements as well as the liquidity standards of Basel-III. However, SBP will continue to work with those banks that may face some problem in achieving the standard promptly, he added. Inaugurating a three-day SAARCFINANCE Regional Seminar on Basel-III and Policy Response in SAARC Countries at the National Institute of Banking and Finance (NIBAF), Islamabad today, he said that the banking sector of Pakistan enjoys a healthy capital adequacy ratio of 14% (aggregate) because of our highly focused and strict banking supervision policies and oversight. This is a remarkable achievement given the fact that for the last two years the sector has faced a sluggish economic environment and a marked rise in overdue loans, he said adding, it now appears that most banks have sufficient capital buffers to manage moderate shocks in credit and market risks. Over the years, our banking sector has witnessed a significant change from a wholly government owned structure to the majority being privately owned, he said and added that this shift was one of the main factors which led to improved performance of the overall banking sector, which is evident in increased Return on Assets (ROA) and Return on Equity (ROE) of the banking industry here, and the high growth in banking assets. Moreover, we opened up our banking industry to foreign investors which provided benefits such as new sources of capital, funding, know-how and competition, he said. As such, this has helped the domestic banks to compete with foreign banks who possessed well established systems & controls, thus improving the overall soundness of the total banking sector and promoting competitive environment, he added. The SBP Deputy Governor said that we implemented the Basel II capital accord in 2008. It helped in enhancing the quality of risk management by tying regulatory capital more closely to institutions' underlying risks and by requiring strong internal systems for evaluating credit and other risks, he observed. He said that under Pillar I, we have adopted simple approaches and we feel that in the area of advances, our banks still have a lot to do to improve the IT systems and data capturing requirement. SBP has also addressed Pillars II and III. It has provided guidance on ICAAP (Internal Capital Adequacy Assessment Plan) to facilitate Pillar II (Supervisory review process) implementation in banks. Regarding Pillar III (market disclosure) banks disclosure requirement through published financial statements and other regulatory reports have been much expanded and thus strengthened over the years, he affirmed. Mr. Anwar said that in the broad area of Risk Management, which ultimately feeds into the Basel implementation, SBP has put in place detailed guidelines for banks, namely on Risk Management (issued in 2003) Internal Control (2004), Country Risk (2004) General Policy Framework (2007) and Stress Testing (2005). In addition, we issued guidelines on Internal Credit Rating System (2007) and by September 2010, 90% of corporate borrowers were internally rated by banks, he added.

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This has gradually started improving the risk management practices at all banks under our oversight and will also help the banks which would opt for advance approaches in future, he said and added: we have constantly been refining our regulatory and supervisory oversight through set of prudential regulations and other related instructions. For example, stress testing guidelines have been revised extensively and would be implemented in forthcoming months. This is in line with Basel III framework which provides for a bigger role for stress testing in the determination of capital buffers under Pillar 2, he added. The SBP Deputy Governor said that keeping in view the increasing reliance on IT systems, most of the large banks have either already shifted to or are in the process of shifting to new core banking application which will specifically cater to the future technology related requirements. However, there is still a lot to be done to further improve the IT systems as well as the procedure for capturing data so as to better enable our banks to meet the minimum data/ information requirement necessary for the effective implementation of the Basel capital accord advance approaches in a proactive and disciplined manner, he added. Referring to recent global financial crisis, he observed that in the absence of a global financial regulator, it proved difficult to ensure the safety and soundness of globally active financial institutions; and as such governments had to step in to bail out their respective institutions. However, these contagion concerns can be minimized if we can keep local problems from turning global, he added. Mr. Anwar said that this would require both strengthening and harmonizing the financial supervision across the borders. Moreover, keeping in view the continuous upgrading of banking regulations and the challenges of adopting advance approaches, there is a need to have frequent interaction and cooperation among the regional countries, he said. This will help us all if we can openly share our knowledge and experiences at regional forums such as this and also collectively devise ongoing and future strategies for region specific issues which may pose potential risks for each of our banking sectors, he added. Mr. Anwar said that the main components of the new Basel framework are aimed at protecting against the types of internal and external shocks banks and banking systems often face, regardless of the state of development or complexity. He said the new framework substantially raises the quality and quantity of capital, with a greater focus on common equity. With tangible common equity (TCE) which comprises paid up capital and retained earnings (minus intangibles), there would be an improvement in capital quality to better absorb losses from shocks which could emanate from anywhere, he added. He further said that the crisis has shown that balance sheets were being leveraged, but the risk based framework failed to fully or adequately capture this dynamic. Recognizing this problem, the Basel Committee has now introduced a simple, non-risk based leverage ratio to supplement the risk-based capital requirement that captures risks arising from total assets, he observed. It introduces two types of capital buffers. The conservation buffer is oriented to absorb losses not only in normal times, but also during times of economic stress, he said and observed that additionally the countercyclical buffer takes into account the dangers of rapid credit growth, which might be particularly relevant for emerging economies. Finally, beyond the need for more and better capital to absorb unexpected losses, the crisis highlighted the risk of poor liquidity management. As such another feature is the introduction of Liquidity buffers: for instance, banks must hold a sufficient position of high-quality liquid assets to allow them to survive a whole months loss of access to funding markets, he added.

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NAB NEWS (www.nab.gov.pk)

NAB record in custody of deputy chairman
Precious records of the National Accountability Bureau on cases relating to President Asif Ali Zardari and other beneficiaries of the National Reconciliation Ordinance are being handled only by NAB Deputy Chairman Javed Kazi, instead of a group of custodians, sources in the NAB told Dawn on Wednesday. Under the standard operating procedure, a group of custodians was formed to access the record of white-collar crimes. No other official could do it not even the chairman of the NAB and other custodians could access the record in his individual capacity, the sources said. The group of custodians comprised the NAB chairman, chief of administration and director general operations, who had separate keys and doors of the record room could not be opened without the use of the three keys at a time. Since the three officials who could access the record jointly have left the bureau following their retirement, all the three keys are now in the custody of the deputy chairman who was not in the group of custodians. Attempts to contact the NAB spokesman for the official version did not succeed. It is learnt that several attempts made in the past to get hold of records of some cases were foiled by the bureau. The record was prepared on the basis of investigations into hundreds of cases. The fate of NAB is hanging in the balance because the government intends to replace it with the national accountability commission. The office of the NAB chairman has been lying vacant since the removal of Justice (Retired) Deedar Hussain Shah by the Supreme Court in March this year. And its Deputy Chairman Javed Kazi was retired by his parent department Federal Board of Revenue on April 30, but he is working in the bureau on deputation, which has been challenged in the Supreme Court. On April 29, he told a schedule for his four-day official visit to Karachi. During the visit which finished on May 3 he got a briefing from Sindh NAB on the sale of PECO shares by NIT and vital inquires and investigations.

Transparency International Pakistan News (www.transparency.org.pk)

TIP urges petroleum adviser to follow PPRA
Transparency International Pakistan (TIP) has asked Dr Asim Hussain, PMs Adviser on Petroleum and Natural Resources, to adhere to Public Procurement Regulatory Authority (PPRA) 2004 rules in importing 3.5 million tonnes of LNG saying a transparent bidding would save millions for the country. The Transparency has also told the Adviser that the Supreme Court had recently taken suo moto notice of LNG import contract which was awarded without following the PPRA rules. Chairman TIP Syed Adil Gilani in his letter to Dr Asim has referred to an interview of the Adviser saying that an exemption of PPRA rules will be sought from the prime minister regarding import of 3.5 million tonnes LNG to rapidly procure the same.

Call to end corruption from education sector

Former National Assembly Speaker Illahi Baksh Soomro has underscored the need for collaborative endeavors with the civil society to kick out corruption from education while emphasizing the need for better education to put the country on the track of development. He said this while speaking as a chief guest at a seminar on Corruption in Education Sector organized by the Transparency International Pakistan on Saturday.

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Soomro, who will be next chairman of the TIP from July, was of the view that no country can progress without having a transparent system of education. He said that there was a dire need to utilize modern technology in the education sector so as to bring education to a greater standard besides minimizing the chances of corruption. He also announced the formation of a committee to devise recommendations to be implemented in the education sector, under the chairman ship of Justice Retd Haziqul Khairi with former Director General Colleges Prof Dr Syed Abdul Aziz, Hamdard Institute of Education and Social Sciences Director Prof Dr MMA Feroz , Department of Islamic Learning Assistant Prof University of Karachi Prof Dr. Nasiruddin and Prof Kafil Ahmad as members of the committee. Chairman of the TI Pakistan Adil Gilani described unaccountability, lack of transparency discretionary power as the most important factors of persistently increasing corruption in Pakistan. He said that one of the major causes of poverty was corruption. Prof Dr Syed Abdul Aziz proposed measures required for the eradication of corruption from examination system. Prof Dr M M A Feroz said that their universities were producing a lot of talent which is of no use since they have no practical experience. He said that the data of intentional corruption was so huge with reference to education in Pakistan, that even terabytes were not enough to show its magnitude. He observed that anyone can visit the website of Transparency International Pakistan, Economic Survey of Pakistan or many other sites to find unimaginable amount of data regarding intentional corruption in education with reference to Pakistan. Prof Dr Nasiruddin also spoke on the occasion.

TIP fears change in PPRA laws to legalize corruption

Fearing a possible change in the rules of Public Procurement Rules Authority (PPRA) by which a contract could be awarded to a firm without tendering, the Transparency International Pakistan (TIP) has written a letter to Prime Ministers Secretariat demanding that no such amendment be approved by the PM which will open the doors of corruption and kickbacks. Chairman TI Pakistan Syed Adil Gilani in his letter to Khushnood Lashari, Principal Secretary to the PM, has mentioned that there were reports that PPRA Board has approved the change in Rule-5 of PPRA which would allow award of contract without tendering and PPRA Chairman had not replied to the letters written by TIP regarding the issue which endorses that the reports of change in PPRA Rule-5 was correct. The self-explanatory letter says, TI Pakistan refers to the letter written to Dr Waqar Masood Khan, Secretary Finance, and Chairman PPRA on 28th March 2011, regarding the five news reports published in newspapers of regarding exemption under PPRA Rules for award of contracts without inviting public tenders. Also a complaint was reported to the Chairman PPRA that an alleged amendment in procedure of application of Rule No 5, which may allow award of contracts without tendering, said to been approved by the PPRA Board on 23 February 2011. This is to point out that under the Article 5 of the PPRA Ordinance 2002, Board of PPRA is only authorized to take actions for improving the governance, management, transparency, accountability and quality of public procurement of goods, services and works in the public sector, and not to make rules which may allow award of contracts without tendering under the pretext of bilateral agreements etc. Unfortunately, the Chairman PPRA has not yet responded to TI Pakistan complaints which may be due to the reason that the complaints are genuine. TI Pakistan would like to state that all loans, by governments and by every lender/donor/Financial Institution are always subject to open competitive bidding for all procurements. Kindly note that all loans paid by public the taxpayers of Pakistan, shall be spent in the most economical manner. TI Pakistan requests that if the following alleged recommendations of PPRA Board have been received for approval of the prime minister, the same may be returned without approval.

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Whenever a Sponsoring Ministry/Division is of the view that the prospective procurement are required to be made by invoking Rule 5 of Public Procurement Rules 2004, it shall bring a case to the ECC after doing due consultation with stakeholder/ministry/division/department etc. as prescribed in the Rules of Business 1973. The ECC shall consider such cases and authorize or otherwise ask sponsoring ministry/division whether or not to proceeds in terms of Rule 5 of Public Procurement Rules 2004.

Federal Tax Ombudsman Pakistan News (www.fto.fov.pk)

Stop Deducting WHT from EPZ units, Hon'ble FTO tells KESC
In a land-mark judgment, Federal Tax Ombudsman (FTO) Dr Muhammad Shoaib Suddle has barred the Karachi Electricity Supply Corporation (KESC) from illegal deduction of 5 per-cent withholding tax on power consumed by around 200 industrial units and manufacturers/cum-exporters within the jurisdiction of Export Processing Zone Authority (EPZA) Karachi. The FTO Regional Office Karachi has issued a detailed judgment in the case of Messrs Alupak Ltd vs Secretary Revenue Division in complaint number 7 of 2011.

Forum of Pakistan Ombudsman Established (FPO)

The Ombudsman of Pakistan (Dr. Shoaib Suddle, Federal Tax Ombudsman; Mr. Azhar Farooqi, Insurance Ombudsman; Mr. Mansur-ur-Rehman Khan, Banking Ombudsman; Mr. Khalid Mahmood, Punjab Ombudsman, Mr. Asad Ashraf Malik, Sindh Ombudsman; Mr. Badshah Gul Wazir, Khyber Pakhtoonkhwa Ombudsman; Mr. Ali Akbar Baloch, Balochistan Ombudsman; and Mr. Muhammad Rashid Khan, AJ&K Ombudsman) got together in Islamabad on 15th April, 2011, and, after discussing at length the dire need for establishing a professional and independent platform of Pakistan Ombudsman, on the analogy of Asian Ombudsman Association, International Ombudsman Association, US Ombudsman Association, European Ombudsman Association, decided unanimously to set up the Forum of Pakistan Ombudsman (FPO), with the objective to improve coordination among them and standardization of their practices, as also for raising their capacity and enhancing the quality of their service-delivery. It was strongly felt that ensuring effective accountability of country's public functionaries against maladministration through Ombudsmanship was a sine qua non for promoting good governance in Pakistan. The FPO unanimously elected Dr. Shoaib Suddle as its President, while Mr. Khalid Mahmood, Mr. Badshah Gul Wazir and Mr. Mansur-ur-Rehman Khan were elected as Vice President, Secretary, and Treasurer respectively. The FPO also resolved to take up several new initiatives to make the Ombudsman services more transparent and effective, and to transform the Forum into a vibrant and credible justice sector public service organization.

Supreme Court News (www.supremecourt.gov.pk)

SPEECH OF MR. JUSTICE IFTIKHAR MUHAMMAD CHAUDHRY, HONBLE CHIEF JUSTICE OF PAKISTAN
It is my pleasure to be with you in connection of celebrating the Intellectual Property Day. The day is being celebrated throughout the world to raise awareness about the role of IP in daily life, to generate public and media interest in issues relating to IP, to increase public understanding about IP and to demonstrate how IP cherish not only arts and music but technological innovation that help to shape our world. his day is continuously being celebrated since 2001 annually with new themes in pursuance of a decision made

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in 2000 by WIPO Member States every year on 26th April, the day on which the convention to establish WIPO came into force in 1970.

CONDOLENCE OF HCJP ON THE SAD DEMISE OF MR. ALI MOHAMMAD DAHIRI

Honble Chief Justice of Pakistan, Mr. Justice Iftikhar Muhammad Chaudhry, has expressed deep sorrows and grief on the murder of Mr. Ali Muhammad Dahiri, Member of the Pakistan Bar Council, former Vice Chairman of the Sindh Bar Council and also former President, District Bar Association Benazirabad. In his condolence message, the Honble Chief Justice of Pakistan conveyed to his son Mr. Shahbaz Ali Dahiri, Advocate that the loss is enormous and expressed heartfelt condolence and prayed that Almighty Allah may keep the departed soul in eternal piece/harmony and give courage and patience to his family to bear this irreparable loss. Honble Chief Justice of Pakistan, admiring late Ali Mohammad Dahiri expressed that he was a prominent lawyer and firm supporter for establishment of rule of law and struggled for independence of judiciary in the country. Throughout his career as a lawyer, he had been supporting the cause of justice and rendering assistance to those who suffered or were aggrieved due to oppression or violation of their rights.

SC CONSTITUTES A LARGER BENCH TO HEAR REFERENCE NO. 01/2011

The Honble Chief Justice of Pakistan Iftikhar Muhammad Chaudhary has constituted an eleven member larger bench to be headed by his lordship and comprising of other ten Honble Judges namely Mr. Justice Javed Iqbal, Mr. Justice Mian Shakirullah Jan, Mr. Justice Nasir-ul-Mulk, Mr. Justice Muhammad Sair Ali, Mr. Justice Mahmood Akhtar Shahid Siddiqui, Mr. Justice Jawwad S. Khawaja, Mr. Justice Anwar Zaheer Jamali, Mr. Justice Khilji Arif Hussain, Mr. Justice Sarmand Jalal Osmany and Mr. Justice Ghulam Rabbani to hear Reference No. 01/2011, received from the President, Islamic Republic of Pakistan under Article 186 of the Constitution for revisiting the case of Zulfiqar Ali Bhutto reported as PLD 1979 SC pages 38-53, in the week commencing from 02.05.2011.

A FOREIGN DELEGATION OF FJA TRAINERS CALLS ON HCJP

A foreign delegation of Federal Judicial Academy trainers, who are on one week visit to Pakistan to impart legal education to our judges of the district judiciary, paid a courtesy call to Honble Chief Justice of Pakistan Mr. Justice Iftikhar Muhammad Chaudhry today i.e. 25.04.2011 in Supreme Court Building, Islamabad. The delegation comprised on Ms. Telissa A. Ridgway, Judge US Court of International Trade, Mr. Morrison C. England Jr. US District Court Judge, Eastern District of California, Mr. Scott Baldwin, Attorney, Office of the policy and external affairs US PTO, Mr. Phillip Guentert, Intellectual Property Law Enforcement Coordinator US DOJ, Mr. Joe Yong, Attorney Advisor, International CLDP and Ms. Kalpanareddy. The Honble Mr. Justice Mian Shakirullah Jan, Senior Judge, Supreme Court of Pakistan and Judge Incharge Federal Judicial Academy was also present at the occasion. During this courtesy call, they briefed and discussed with the Honble Chief Justice of Pakistan the Judicial Course being imparted to our Judges at Academy relating to Intellectual Property Law, Piracy and Counterfeit Laws.

TEXT OF THE ORDER DATED 25.4.2011

PASSED BY MR. JUSTICE IFTIKHAR MUHAMMAD CHAUDHRY HCJ MR. JUSTICE MUHAMMAD SAIR ALI AND MR. JUSTICE GHULAM RABBANI PASSED IN CONSTITUTION PETITION NO. 32 OF 2011 TITLED Mubasher Lucman Versus Federation of Pakistan and others.

Address of Hon'ble Chief Justice of Pakistan

The Concluding Session of national Judicial Conference Dated 24-04-2011.

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DELEGATION OF DIFFERENT BARS OF SINDH CALLS ON HCJP

A 30 Member delegation of different Bar Association of Sindh headed by Qazi Abdul Sattar, Member Sindh Bar Council and Mr. Anwar Mehmood Nizamani, ex-President, Sanghar District Bar and consisting of other office bearers, members of Sanghar, Hyderabad, Tando Allah Yar, Jamshoro and Dadu Bars called on the Honble Chief Justice of Pakistan Mr. Justice Iftikhar Muhammad Chaudhary today i.e. 24.04.2011 in Supreme Court Building, Islamabad.

PRESIDENT SUPREME COURT BAR ASSOCIATION OF INDIA CALLS ON THE CHIEF JUSTICE OF PAKISTAN
A four member delegation headed by Mr. Ram Jeth Malani, President Supreme Court Bar Association of India and comprising other senior Advocates, namely, Mr. Rejeev Dhavan and Mr. M.N. Krishnamani and Mrs. Suparna Choudhry, Journalist, paid a courtesy call on Hon Chief Justice of Pakistan Mr. Justice Iftikhar Muhammad Chaudhry. The delegation had come to attend the National Judicial Conference organized in the Supreme Court Building. The Chief Justice of Pakistan welcomed the members of the delegation in his Chambers and had exchange of views on issues of common interest between the legal/judicial fraternities of the two countries. The Chief Justice stated that he was warmly received and widely welcomed by the judges and lawyers of India during his recent visit to attend a Conference in the city of Hyderabad. The Indian delegation proposed increased cooperation and interaction between the members of the Bench and Bar of the two countries. The Chief Justice of Pakistan reciprocated the sentiments and stated that cooperation/collaboration of the legal fraternity of the two countries would not only help to share ideas and learn best practice from each other but they will also lead to amity and understanding for increasing trade and commerce between the two countries for economic benefits for the two states and their citizens. In this regard, the judicial activism to release fishermen and other prisoners, who have completed their sentences were appreciated as their release was precisely in accord with fundamental rights, guaranteed by the Constitution, of the two countries. Mutual cooperation/collaboration for the cause of peace as well as trade and development and improvement in the legal/judicial systems of the two countries was emphasized. The Indian delegation thanked the Chief Justice of Pakistan for the hospitality and care extended to them during stay in Pakistan. The Chief Justice also presented a set of books to the members of the Indian delegation.

HCJ PERFORMES THE SOFT OPENING OF SUPREME COURT MUSEUM

The Honble Chief Justice of Pakistan Mr. Justice Iftikhar Muhammad Chaudhry performed the soft opening of the Supreme Court Museum on the second day of the National Judicial Conference at Islamabad in a simple but dignified ceremony. It was attended by the Honble Judges of Supreme Court, Chief Justice of Federal Shariat Court, Chief Justices and Judges of all the High Courts of Pakistan, senior and renowned lawyers and delegates of India.

Address of Hon'ble Chief Justice of Pakistan

The Inaugural Session of National Judicial Conference Dated 22-04-2011.

SC HEARS BANK OF PUNJAB CASE

A three member bench headed by the Honble Mr. Justice Iftikhar Muhammad Chaudhry, Chief Justice of Pakistan and comprising other two members namely Honble Mr. Justice Sair Ali and Honble Mr.Justice Ghulam Rabbani heard the Bank of Punjab case. Mr. Aftab Sultan, Addl. Inspector General of Police, Finance and Welfare Lahore

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submitted his comprehensive report comprising on 15 volumes which was accepted and it was direct to be made public. The concluding chapter states that the Bank of Punjab Scam was one of the largest swindles in the countrys history; the Bank was virtually deprived of more than 11 billion Rupees in advances and mark up by the Haris Group alone. The directors sitting on its Board, too, obtained credit and other facilities in defiance of the statutory regulations of the Bank and the same were in the sum of approximately 20.00 billion Rupees.

SC ISSUES NOTICE TO CHAIRMAN ETPB FOR 22.04.2011 IN HR CASE

The Honble Chief Justice of Pakistan Mr. Justice Iftikhar Muhammad Chaudhry took notice on an application of Sardar Ram Singh and others, Ex-Member of District Assembly Malakand (Dargai) stating therein that Chairman, Auqaf Property Board is unlawfully selling Auqaf Property, he further raised some other issues like sale/transfer of the Evacuee Trust Property (ETP) land to DHA, issue of Dewan Khana Choona Mandi Lahore, investment of Rs.1.00 billion in DHA Islamabad, Allotment of ETP Boards Flats at Lawrence Road, Lahore and 7th Road Rawalpindi, Award of construction contracts to fake companies through Mr. Aizaz Zaidi, expenditure on 21 construction projects over and above Budget sanctioned by the Federal Government and misuse of official vehicles of ETP Board. They further requested the Honble Chief Justice of Pakistan to save their historical and religious heritage and to take notice of the misappropriation done by ETPB. It is pertinent to mention here that the reports regarding the above allegations were also published in section of Media highlighting the issue of sale of Gurdawara/Trust land by ETPB to DHA and Indian Government launched protest against the sale of the land.

SC HEARS CIVIL REVIEW PETITION NO. 129 OF 2010 (NRO MATTER)

A seventeen member larger bench headed by the Honble Mr. Justice Iftikhar Muhammad Chaudhry, Chief Justice of Pakistan and comprising on Mr.Justice Javed Iqbal, Mr.Justice Mian Shakirullah Jan, Mr.Justice Tassaduq Hussain Jillani, Mr.Justice Nasirul-Mulk, Mr.Justice Raja Fayyaz Ahmed, Mr.Justice Muhammad Sair Ali, Mr.Justice Mahmood Akhtar Shahid Siddiqui, Mr.Justice Jawwad S. Khawaja, Mr.Justice Anwar Zaheer Jamali, Mr.Justice Khilji Arif Hussain, Mr.Justice Rahmat Hussain Jafferi, Mr.Justice Tariq Parvez, Mr.Justice Mian Saqib Nisar, Mr.Justice Asif Saeed Khan Khosa, Mr.Justice Sarmad Jalal Osmany, Mr.Justice Amir Hani Muslim and Mr.Justice Ghulam Rabbani heard Civil Review Petition No.129 of 2010 (NRO Matter) today i.e. 18.04.2011.

HCJP SPEECH
To the visiting officers of command & staff college Quetta

ADDRESS BY HCJP TO DELEGATION OF

Chief Instructor and Faculty Members of the National School of Public Policy, Trainee Officers

SC FIXES THE CONSTITUTION PETITION AND

The Honble Chief Justice of Pakistan Mr. Iftikhar Muhammad Chaudhry has been pleased to pass the following order on Constitution Petition (Professor G.A.Miana & another VS Federation of Pakistan through the M/o Law and Parliamentary Affairs, Islamabad & others) regarding the devolution of HEC.

HCJP FIXES THE REFERENCE NO. 01/2011 IN COURT ON 13.04.2011

The Honble Chief Justice of Pakistan Mr.Justice Iftikhar Muhammad Chaudhry has been pleased to fix the Reference No. 01/2011, received from the President, Islamic Republic

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of Pakistan under Article 186 of the Constitution for revisiting the case of Zulfiqar Ali Bhutto in the Court on 13.04.2011.

SC RECEIVES REFERENCE REGARDING REOPENING OF ZULFIQAR ALI BHUTTO CASE

The Supreme Court of Pakistan received a Reference today i.e. 02.04.2011 from the President, Islamic Republic of Pakistan under Article 186 of the Constitution for revisiting the case of Zulfiqar Ali Bhutto reported as PLD 1979 SC pages 38-53. The Reference has been filed through Ministry of Law, Government of Pakistan which has been registered in Supreme Court as Reference 01 of 2011. The Reference is being put up before the Honble Chief Justice of Pakistan Iftikhar Muhammad Chaudhry for further processing/disposal.

FLOOD COMMISSION VISITS FLOOD AFFECTED AREAS OF KPK

The flood commission constituted by the supreme court of Pakistan in Marvi Memon vs Federation of Pakistan case visited Khyber Pakhtunkhwa Province to conduct field visit of the flood affected areas. The Members were given detailed briefing by the officials of Provincial Disaster Management Authorities and the Irrigation Department. The Chief Secretary welcomed the Commission Members in the PDMA office. Subsequently, the Commission conducted the field visit in the flood affected areas in Peshawar and Charsadda districts. During the visit, the Commission also met the people affected by the floods. The Commission was informed that due to unprecedented nature of the floods, all the arrangements were unable to cope with it. However, the flood affectees informed the Commission that now is the time that appropriate measures are taken to minimize the damages of any future flooding and also to provide appropriate assistance to the affecteees to build back their properties and restart their normal life.

IFAP News (www.ifap.org.pk)

RERCIPROCAL ARRANGEMENT/MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN IFAP & OXFORD ASSOCIATION OF MANAGEMENT (OXIM UK)
The Institute of Forensic Accountants of Pakistan (IFAP) has made and signed Reciprocal Arrangement/Memorandum of Understanding with The Oxford Association of Management (OXIM UK) on April 14, 2011.

About the IFAP

The Institute of Forensic Accountants of Pakistan (IFAP) is a unique Pakistani venture to meet the global challenges of growing menace of frauds and white-collar crimes in business establishments. The Institute of Forensic Accountant of Pakistan (IFAP) was setup in the year 2009 by those, who have been in the field of Forensic Accounting, Forensic Investigative, Forensic Auditing, Fraud Examination and its allied areas/subjects and have themselves sniffed out investigated and prosecuted scores of frauds and white-collar crimes. The Institute of Forensic Accountants of Pakistan (IFAP) is promoted with the objective to educate business establishments, to prevent, detect and investigate frauds and white-collar crimes and promote anti-fraud education to actively combat the growing menace. The Institute of Forensic Accountants of Pakistan (IFAP) also provides education on intricacies and practical aspects of Forensic Accounting, Forensic Investigative, Forensic Audit, Fraud Examination and imparting education on new emerging issues on aligning new business methods and technology with existing process, with primary objective to put in place the right and meaningful controls and practices to prevent any wrong. In nut shell The Institute of Forensic Accountants of Pakistan (IFAP) provides complete Anti Fraud Education to promote Fraud Risk Management Strategy

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for prevention, detection, investigation & prosecution of frauds and white-collar crimes at all corporate, as a single point destination.

Executive Council/Board of Governors of IFAP

President
Barrister Sohail Nawaz Emails: president@ifap.org.pk, snawaz50@hotmail.com

Vice President
Mr. Tahir Iqbal Emails: vicepresident@ifap.org.pk, ifap.fapakistan@gmail.com

Secretary
Mr. MBT Khalid Emails: secretary@ifap.org.pk, mbt.khalid@gmail.com, mbt.khalid@ifap.org.pk

Member Executive Council

Mr. Muhammad Muazzam Ali Zahid Emails: career@ifap.org.pk

Member Executive Council

Mr. Faheem-ul-Haq Khan Emails: fahimulhaq9@hotmail.com

Member Executive Council

Dr. Shahzad Ali Khan Emails: exemption@ifap.org.pk, shahzad@hsa.edu.pk

Member Executive Council

Mr. Muhammad Tayyab Email: admissions@ifap.org.pk

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Note:
Articles are welcome from any individual, whether an IFAP member or not. For inclusion on the next issue of The Forensic Accountant, fax or email us articles, case studies, papers, opinion, research or related material: Fax: +92 51 222 0872, or emails:ifap.fapakistan@gmail.com admissions@ifap.org.pk exemption@ifap.org.pk, career@ifap.org.pk, secretary@ifap.org.pk, president@ifap.org.pk, vicepresident@ifap.org.pk

Published By:The Institute of Forensic Accountants of Pakistan (IFAP)

Office # 21, First Floor, Capital Shopping Center, Markaz G-11, Islamabad-Pakistan Tel: +92 51 222 0872, 430 4525, Fax: +92 51 222 0872, Cell: +92 300 531 3597 Emails:ifap.fapakistan@gmail.com admissions@ifap.org.pk exemption@ifap.org.pk career@ifap.org.pk secretary@ifap.org.pk president@ifap.org.pk vicepresident@ifap.org.pk The contents of this Newsletter are the copyright of The Institute of Forensic Accountants of Pakistan (IFAP), whose permission is necessary for reproduction in whole or in part. The Institute reserves the right to refuse any matter of advertisement detrimental to the interest of the Institute. The decision of the Editor in this regard will be final.

Index written and designed by: R&G Indexing Services Delivering certainty Sheharyar Rafiq ACCA(Affiliate), AFA srkhatri@hotmail.com

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