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Volume
1, Issue 5 |
March
2004 |
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CORPORATE
OFFICE Per Mar
Security Services
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New Fraud Auditing Standard SAS No.
99 [more...] | ||||||||||||||||||||||||||||||||
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This year
businesses are faced with a new set of fraud audit procedures that could
prove to be rather costly. SAS No. 99, a new auditing standard, takes
effect this year and could consume twice the time and resources of a
regular audit. The Statement on Auditing Standards No. 99, Consideration
of Fraud in a Financial Statement Audits provides significant guidance
regarding fraud detection procedures and documentation requirements.
Here's what to expect:
The new SAS No.
99 combined with Sarbanes-Oxley compliance will create a significant cost
burden for many organizations. Fortune Magazine predicts the number will
be north of $5 billion this year alone. However, smart organizations are
seizing the opportunity to rethink their processes and confront fraud and
those who commit it. | |||||||||||||||||||||||||||||||||
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Crime
prevention is not new. For centuries man has sought ways to protect
himself and those in his community. One fascinating concept that has yet
to reach full potential is called Crime Prevention Through Environmental
Design (CPTED). | |||||||||||||||||||||||||||||||||
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Security
professionals and corporate investigators frequently have the need to
tape-record those they interview. The need is particularly common during
interviews where an admission is likely. However, many practitioners and
even the lawyers who sometimes assist them don't know if or when it is
permissible. Now the answer is just a mouse-click away. The Reporters
Committee for Freedom of the Press, a Web site that monitors First
Amendment issues, provides an easy-to-use table detailing the rules for
tape recording in all 50 states. While many states still require only "one
party" have knowledge of the recording, twelve states require, under most
circumstances, the consent of all parties to a conversation. Those
jurisdictions include California, Connecticut, Florida, Illinois,
Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire,
Pennsylvania and Washington. | |||||||||||||||||||||||||||||||||
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The decision
whether to post a security and privacy policy on a corporate web site is a
voluntary matter. However, the Federal Communications Commission favors
them and recommends they be clear and honest. Good policies contain four
elements: notice, choice, access and security. Notice involves, "clear and
conspicuous notice of [the recipient's] information practices." Choice
provides users the opportunity to control how the information they provide
will be used. Access speaks to the user's ability to review any
information captured and contest inaccuracies and deficiencies. Security
describes how the captured information will be protected against
unauthorized use, access or disclosure. Travel
Tip:
Banned items in luggage result in big fines. The Transportation Security
Agency has begun to quietly fine travelers who accidentally violate
security policies. Civil penalties now range from $250 to $10,000 for the
first offense. If the TSA is able to prove intent, violators could face
jail. Best advice: Be careful of what you pack and think before you
travel. With the TSA intercepting more than 15,000 prohibited items each
day, its tolerance is waning. | |||||||||||||||||||||||||||||||||
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Spam and
malicious code in the form of viruses and worms are the modern evils of
our electronic world. According to security specialist MessageLabs, last
May, spam accounted for 50% of all business email traffic in the U.S. for
the first time. In November, in response to the SoBig and Blaster viruses,
which exploited vulnerabilities in its software, Microsoft offered a
$250,000 reward to anyone who could lead it to those who created the
viruses. Experts believe that criminals will next combine spam with
viruses. Hackers have already given the scheme a name, dubbing the mass
distribution of spoofed email messages with return links that appear to
come from reputable businesses, phishing. Some customers of eBay, PayPal
and other online vendors have already been victims. Says one IT security
manager, "It will only get worse. The Internet will remain wild and
dangerous well into the 21st Century."
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Fact:
Women over 40 spend 50% more time playing online games each week than men,
according to an AOL survey, and even beat teens in frequency of
play. | |||||||||||||||||||||||||||||||||
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Quote
of the month:
"About as useful to Americans as socks on roosters." Timothy J. Murison on
the privacy notices that banks are now required to send customers each
year. | |||||||||||||||||||||||||||||||||
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Millions of
Americans are heading for serious tax trouble – and few of them know it.
The culprit: a complex and misunderstood menace known as
alternative minimum tax. AMT, as the name implies, is
another way high-incomers are supposed to calculate their income tax.
Originally aimed at a handful of wealthy people, this year about 3.3
million people will owe more in taxes because of it. Because of bracket
creep, the tendency of rising wages to push one into ever-increasing tax
brackets and the elimination of traditional deductions, the Treasury says
next year more than 12 million Americans will be hit. By 2010 more than 30
million people or 37% of all households will be affected. By design, in
the coming years the AMT, "will encroach dramatically on the middle
class," warns a report by the Tax Policy Center in Washington, D.C.
Washington insiders believe the only solution would be the massive
overhaul of the regular tax system – something neither the president or
congress are likely to tackle anytime soon. | |||||||||||||||||||||||||||||||||
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Beware when
shopping online or by phone, the sales tax that wasn't charged doesn't
necessarily go away. It morphs into a "use tax," which is supposed to be
paid when filing state tax returns. Many states this year have added a
line on their tax forms for taxpayers to report out-of-state purchases on
which the merchant did not collect sales tax. Tax experts say states
haven't yet figured out how to track online purchases. However, they warn
sellers of big ticket items maybe forced to give up client lists, and
those who don't pay may also owe interest and penalties once located.
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