By forensics I mean in accounting. The traditional practice of it was examining ledgers (books) in detail and doing some calculations to see if they have been 'cooked' (Al Capone's bookkeeper first helped the FBI with what is known as the earliest form of forensics). The new version only includes i.T in tracing money movements across borders. But neither alone are enough to me; there's got to be a new method to find fraud or theft. Do you have any views here?
Just that with the terrorism, drug running, gun running, etc etc we've seen over the last 10, even 20, years, have to wonder if some of the growth might be subsiding ...more efficient processes, less job growth? Not sure. I now that all the banks now report pretty much EVERYTHINg to treasury dept. here. Amounts of gifts coming in to the country over 100,000 have to be declare on an IRS form (sent to treasury) purchases and investments over 10,000 have to be report on special forms.
That stuff''s been there for a while. Seems that there's been a combination of discontent (with banks shutting down peroples access just because some computer algorythm says something fraudelent coule be happending, I still remember my advisers complaining 10 yrs ago now when they had to do exra reporting on anything over 10,000) to downnright resignation (as in we have to give up our privace to be safe) ... just not sure it's new (in terms of a career path, any more).
Anyway, it would demand analysis and is not subjectable to regulation. Licensing a competitive industry where the fees are comparable doesn't work to protect the industry or clients, who always could sue without it. Barriers to entry only work for monopolies and oligopolies in my opinion.
Agree. It's certainly worked to grow the bureaucracy that's soppused to be protecting the citizens ... but what I see is growth of government workers' protecting their jobs.
Yes, I agree that the behavioural (we spell it the French-English way with a 'u') or psychology aspects combined with finance, financial planning, or economics are the new wave in academia. I found out when I was studying for the grad cert in commerce. (I'm still unsure how to fit hospital admin or aged care facilities in, regarding the population wave you mentioned. I might be wrong but I thought they, especially retirement and nursing homes would not want any new management styles or creative thinking. Any comment?)
Not sure of the demographis there (other than wat we saw in the charts predicting growth) BUt here the baby boomers (thaty wave of population that came after WWII here in the US) are now hitting their retirement years ... and anythime we see that kind of growth, we see resources going in the same direction... COULD mean there's opportunity for leadership and change. Maybe we're back to looking for that 2% of the companies that want to find win/wins.
Yes, I did remember what you said about changing an income statement to show contributional costs to profit in the last question. I did appreciate it and found it remarkable that you were interested in it. In that long question-conversation, we didn't have time for me to remark on it. I just want to clarify that, when I sat in on management accounting, I learnt about cost allocation. That's what it is called. Direct labour, e.g the factory workers' wages you mentioned, count in the cost of goods sold for the products sold because they produced it. The cost of renting that factory also would be included as relevant and direct. I've not heard of anyone allocating factory or direct costs to headquarters or silly other examples you gave. That would be wrong accounting; deception at worst!!
In GAAP accounting, by the time the numbers are rolled up into the kind of things that investors use to make decisions, they're only seeing profit, cost, etc. of the company. The all revered P/E (price of the stock as compared to the earnings of the company, for example) DOES tell us SOMETHING.. but it doesn't tell management which processes and products the profits are coming from.
The traditional GAAPVincome statement format uses absorption or full costing, in which variable and fixed manufacturing costs are part of the inventory costs and, thus, part of the cost of goods sold calculation. The contribution margin format uses variable costing, in which fixed manufacturing costs are part of the overhead costs of the accounting period and are not part of the product costs. The reasoning behind this approach is that because companies incur these fixed costs regardless of the sales volume, they should not be a part of product costs.The contribution margin format also starts with revenue as the top line. But instead of showing cost of goods and operating expenses, a contribution margin statement breaks out the variable and fixed expenses separately. Variable expenses include variable production costs, such as raw materials and direct labor, and variable marketing and administrative expenses, such as commission expenses and the salaries of supervisors. The contribution margin is the difference between revenues and variable expenses.
I still have to visit those sites. Thanks for the good ideas that can b investigated. Yep, I think what you said about looking at risk from the adviser's point of view could be a problem. Maybe clients' risk levels have already had too much research, that resulted in no insight?
Here, whole companies have been built (and with the shrinking -much neede shrinking, in my opinion - of the investment industry) and have now goine out of business. in that one area .. and es, I'm note sure we're learned much yet ... so very unquantifyable ... that's why I think th psych piece adds more value, insight.