Finance and accounting Books

Book SynopsisThe accessible, non-technical guide to applying and benefiting from blockchain technology. Blockchain has grown at an enormous rate in a very short period of time. In a business context, blockchain can level the playing field between small and large organisations in several ways: Exact copies of the immutable, time-stamped data is held by all parties, all transactions can be viewed in real time, data blocks are cryptographically linked, all raw materials are traceable and smart contracts ensure no middle-men, ease of audit and reduced friction. The trust, transparency, security, quality and reduced costs of blockchain make it a game-changing technology that crosses sectors, industries and borders with ease. Even though the technologies are ready for adoption, businesses remain largely unaware of their full potential and effective implementation. End users require accurate and up-to-date information on the practical applications of blockchain Commercializing BlockchTable of ContentsAbout the Author xiii About the Contributors xv Foreword xxiDamien Moore Foreword xxiiiPaolo Tasca Preface xxvii Introduction 1 Commercializing Blockchain 1 Antony Stores Group (ASG) Retail Business Illustration 2 Real-World Enterprise Level Use Cases – Financial Services, Retail, Supply Chain, and CPG 2 Who Will Benefit from Reading Commercializing Blockchain? 2 Antony Stores Group (ASG) Illustration 3 ASG Background 3 History of ASG 3 ASG Challenges and Pain Points 5 1 Introduction to Blockchain Technology 7 Blockchain Technology Definition 7 What Are the Reasons Why We Have Blockchain Technology? 8 The Internet and Blockchain 8 The ‘Trustless’ World 8 Blockchain: The Internet of Value 10 Blockchain has Five Important Characteristics 10 1. Blockchain for Truth and Trust 11 2. Blockchain for Transparency 11 3. Blockchain for Security 12 4. Blockchain for Quality and Certainty 13 5. Blockchain for Efficiency 13 Blockchain Regulation and Global Trade 14 Other Important Blockchain Benefits 29 Blockchain Theory for Good 29 Blockchain and Diversity 30 Blockchain for All Types of Organization 32 Blockchain for New Business Models 32 Example: The DAO – Decentralized Autonomous Organization 33 New Blockchain Companies 34 Blockchain Is Not a Verb! 34 2 Types of Blockchain 37 Differences to a Database 44 Consensus and Blockchain 45 ASG Consensus Example 55 Current Blockchain and DLT Ecosystems 56 Current Blockchain and DLT Ecosystem Summary 66 3 Enterprise Blockchain 67 Enterprise Blockchain and Trust 67 Characteristics of Enterprise Blockchain 68 Why Use Enterprise Blockchain? 68 Where to Use Enterprise Blockchain Technology 69 The Next 20-Year Transformation 70 Total Business Transformation Led by Blockchain Technology 70 Improved Working Together 71 Basics of an Enterprise Blockchain 71 Blockchain and ERP: The Future of the ‘Back Office’ – ERP 2.0 72 Can Blockchain Technology Supercharge ERP? 73 What Can Blockchain Add to ERP? 73 Blockchain and Planning 74 Blockchain and Analysis 74 How Blockchain Technology Can Transform Forecasting and Planning 75 Use Case: Blockchain and Intercompany 76 ASG Intercompany on Blockchain Example 80 Enterprise Blockchain Summary 82 4 What Does Blockchain Solve? 83 Trust 83 Transparency and Openness 84 Immutability 84 Transactions Automation – Smart Contracts 85 ‘Why Blockchain Will Be Transformative’: Looking at the History of Contracts through to Present Day Usage 85 New Business Models and Opportunities 98 MonoChain: A Blockchain Start-Up Building the Circular Economy 99 5 Blockchain Powering the New Marketplace Model 107 A Fundamental Foundation: Marketplaces Built Using Blockchain Technology 107 Marketplace for Anything 108 Decentralized Utopia – Reality or Dream? 109 Example of a Product Marketplace: Replace Amazon, eBay, or Alibaba 110 Example of a Service Marketplace: Replace Uber or Airbnb 110 Real Use Case: Blockchain Product Marketplace – OpenBazaar 111 Real Use Case: Blockchain Marketplace to Replace Uber – EVA 111 Summary 112 6 Where Can Blockchain Technology Be Applied? 113 Industries 114 The Retail and Supply Chain Industry 114 Cryptocurrencies 115 Identity Management 115 Loyalty 117 Gift Cards 117 ASG Gift Card Blockchain Example 118 Warranty Management and Refunds Management 119 Improved Sourcing 120 Inventory Management and Returns Management 120 ASG Inventory on Blockchain Example 121 ASG Returns Blockchain Example 122 Supply Chain Industry (Including Brands, Consumer Products, and Manufacturers) 123 Supply Chain Transparency 124 Global Shipping and Freight 124 Certification and Authentication 125 Traceability 126 Provenance 127 Counterfeit Products 128 The Finance and Financial Services Industry 128 7 Blockchain Adoption 161 How Will Blockchain Be Adopted? 161 Blockchain Adoption: The User Interface 161 Smartphone as ID 162 QR Code World 163 Real Use Case: HTC Launches a Blockchain Smartphone in December 2018 163 Blockchain Adoption: The Understanding of Blockchain Technology 164 Blockchain Adoption: The Killer App for Blockchain 166 Blockchain Adoption: Daily Life Use Cases 166 Blockchain Adoption: Winning Business Models 167 8 First Use Cases 169 History of Bitcoin 169 Cryptocurrency and Crypto Assets 172 How Are Crypto Assets Classed? 172 ICO – Initial Coin Offering 174 ICOs Often Raise Money via Crypto 174 Why Use an ICO? 175 STO – Security Token Offering 176 What to Look for in an ICO/STO 176 Tokenization 177 Tokens for Liquidity 177 Tokens for Globalization 178 Tokens for Global Commerce 178 Tokens for New Assets 178 Tokens Take Us Beyond Money 179 Benefits of Tokenization 184 9 What Makes It Work? Blockchain Best Practice 185 Consensus 185 Governance 186 Agile and Iterative Approach 187 Solution Driven 187 Collaborate 188 Teams Need to Be Fully Bought In 189 Open-Minded to Everything 189 Learning Mentality 190 Blockchain Best Practice Summary 190 10 How to Commercialize Blockchain/Reach Its Potential 191 Blockchain Is a Network Play 191 Real Use Case: Retail Blockchain Consortium 192 Mission and Vision 192 How You Benefit by Joining RBC Executive Forum? 193 Real Use Case: UK Government APPG Blockchain 193 Blockchain Business Case 194 Benefits of Implementing Blockchain Technology 195 Efficiency Gains of Blockchain Technology 196 Revenue Growth with Blockchain Technology 198 New Business Growth Powered by Blockchain Technology 200 Blockchain Technology Benefits Realization 202 People and Process Transformation 203 Principles of Transformation 204 Example Blockchain Implementation Plans in Retail 206 ASG Provenance Tracking Example 206 How to Commercialize Blockchain Summary 208 11 Risks of Implementing Blockchain Technology 211 Change – Inertia of People 211 User’s Adoption 212 Scale and Complexity 213 Standardization 213 Government 214 The Control Structures Around the World aka “The 1%” 214 Regulations 215 Millennials and Younger Generations 216 Ignorance 216 Quantum and New Technology 217 12 Blockchain Is Better When Used with Existing and Other Emerging Technologies 219 IoT, AI/ML, RPA, Blockchain, AR, VR – Emerging Technologies 220 How Blockchain, AI, and IoT Work in Harmony – ‘ABot’ 220 Use Case: Emerging Technologies Working Together in Retail 225 Use Case: Waltonchain for Provenance 226 Use Case: Convergence of Blockchain, IoT, and AI for Successful Provenance Solutions 227 13 Future of Blockchain 251 What Will Blockchain Technology Look Like in 2025? 251 New Business Models Examples: 254 The Circular Economy Powered by Blockchain 254 Use Case: Auto Industry and Blockchain Technology 258 The Future of Blockchain – Contributors’ Views 259 Future of Blockchain – Paolo Tasca 259 Future of Blockchain – Chris Wing 262 Future of Blockchain – Nikhil Vadgama 263 Future of Blockchain – Marta Piekarska 264 Future of Blockchain – Peter Bambridge 264 Future of Blockchain – Areiel Wolanow 265 Future of Blockchain – Carlos Vivas Augier 267 Future of Blockchain – Vikram Kimyani 267 Future of Blockchain Summary 268 14 Use Cases in Real World – 2019 highlights 269 Financial Transactions 270 Financial Transactions Benefits and Outcomes 271 Financial Transactions Examples 272 Cryptocurrencies 273 Tokenization 274 Tokenization Benefits and Outcomes 274 Tokenization Examples 274 Identity Management 276 Identity Management Benefits and Outcomes 277 Identity Management Examples 277 Loyalty 280 Loyalty Benefits and Outcomes 280 Loyalty Examples 281 Gift Cards 281 Gift Cards Benefits and Outcomes 282 Gift Cards Examples 283 Coinbase Introduced e-Gifts after Gaining an e-Money Licence from the FCA in the UK 283 Warranty Management 283 Warranty Management Benefits and Outcomes 283 Warranty Management Examples 284 Refunds Management 286 Refunds Management Benefits and Outcomes 286 Refunds Management Examples 287 Global Shipping and Freight 288 Global Shipping and Freight Benefits and Outcomes 288 Global Shipping and Freight Examples 290 Improved Sourcing and Procurement 291 Improved Sourcing and Procurement Benefits and Outcomes 292 Certification and Authentication 292 Certification and Authentication Benefits and Outcomes 293 Certification and Authentication Examples 293 Inventory Management 295 Inventory Management Benefits and Outcomes 295 Traceability 296 Traceability Benefits and Outcomes 297 Traceability Examples 298 Provenance 300 Provenance Benefits and Outcomes 301 Provenance Examples 301 Counterfeit Products 303 Counterfeit Products Benefits and Outcomes 303 Counterfeit Products Examples 304 Retail Blockchain Consortium 307 About the RBC 307 Mission and Vision 308 How Will You Benefit from Joining? 308 Get Involved – Join the Executive forum 308 Index 311

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Book SynopsisA guide that demystifies modern valuation theory and shows how to apply fundamental valuation concepts The revised and updated third edition of Business Valuation: An Integrated Theory explores the core concepts of the integrated theory of business valuation and adapts the theory to reflect how the market for private business actually works. In this third edition of their book, the authorstwo experts on the topic of business valuationhelp readers translate valuation theory into everyday valuation practice. This important updated book: Includes an extended review of the core concepts of the integrated theory of business valuation and applies the theory on a total capital basisExplains typical valuation discounts (marketability and minority interest) and premiums (control premiums) in the context of financial theory, institutional reality and the behavior of market participantsExplores evolving valuation perspectives in the context of the integrated theoryWritten by two experts on valuation theory from Mercer Capital The third edition of Business Valuation is the only book available regarding an integrated theory of business valuationoffering an essential, unprecedented resource for business professionals.Table of ContentsIntroduction xiii What’s New in the Third Edition? xiv Who Should Read This Book? xvii Part One Conceptual Overview of the Integrated Theory Chapter 1 The World of Value 3 Introduction 3 Common Questions 3 The World of Value 4 The Organizing Principles 5 Summary 16 Chapter 2 The Integrated Theory (Equity Basis) 19 Introduction 19 Common Questions 20 The Fundamental Valuation Model 21 The Conceptual Levels of Value 23 Symbolic Notation for the Integrated Theory 27 The Marketable Minority Interest Level of Value 29 Introduction to the Control Levels of Value 35 Strategic Control Level of Value 51 Firmwide Levels versus the Shareholder Level of Value 58 The Nonmarketable Minority Level of Value 60 The Integrated Theory of Business Valuation on an Equity Basis 67 Summary 67 Chapter 3 The Integrated Theory (Enterprise Basis) 71 Introduction 71 Comparing the Levels of Value: Equity and Enterprise Bases 73 Final Comparisons of the Equity and Enterprise Bases 77 Summary 79 Part Two Valuing Enterprise Cash Flows Chapter 4 Income Approach (Cash Flows) 83 Introduction 83 Reconciling Single-Period Capitalization and Discounted Cash Flow Methods 84 Defining Enterprise Cash Flows 90 Defining Equity Cash Flows 95 Reinvestment Rates and Interim Growth Rates 99 Terminal Growth Rates 104 Expected Cash Flows and the Integrated Theory 108 Marketable Minority Interest Level: Public Company Equivalent 115 Financial Control Level: Private Equity Cash Flows 124 Strategic Control Level: Strategic Acquirer Cash Flows 128 Assessing the Reasonableness of Projected Enterprise Cash Flows 136 Conclusion 139 Chapter 5 Income Approach (Discount Rate) 141 Introduction 141 Return Basics: Realized versus Required Returns 142 Components of the Weighted Average Cost of Capital 148 Market Participants and the WACC 165 The Levels of Value and the WACC 169 Assessing Overall Reasonableness 175 Chapter 6 Market Approach (Guideline Public Companies) 177 Introduction 177 Relationship of the Income and Market Approaches 178 What Do Observed Public Company Valuation Multiples Mean? 180 Adjusting Valuation Multiples for Differences in Risk and Growth 199 Guideline Public Company Multiples and the Enterprise Levels of Value 214 Assessing Overall Reasonableness 219 Chapter 7 Market Approach (Guideline Transactions) 221 Introduction 221 Attributes of Guideline Transaction Data 222 Drawing Valuation Inferences from Guideline Transaction Data 225 Minority Interest Discounts Inferred from Observed Control Premiums 240 Guideline Transaction Multiples and the Levels of Value 242 Assessing Overall Reasonableness 244 Appendix 7-A: A Historical Perspective on the Control Premium and Minority Interest Discount 247 Part Three Valuing Shareholder Cash Flows Chapter 8 Restricted Stock Discounts and Pre-IPO Studies 271 Introduction 271 An Overview of Restricted Stock Discounts 275 Review of the FMV/Stout Restricted Stock Database 306 Pre-IPO Discounts 317 Conclusion 325 Chapter 9 Introduction to the QMDM (Quantitative Marketability Discount Model) 327 Introduction 327 Potential Valuation Approaches at the Shareholder Level 328 A Shareholder Level Discounted Cash Flow Model in Outline 331 Economic Factors Giving Rise to the Marketability Discount 338 Conclusion 346 Appendix 9-A: Liquidity and Marketability 349 Chapter 10 The QMDM Assumptions in Detail 359 Introduction 359 Assumption 1: Expected Holding Period for the Investment (HP) 360 Assumption 2A: Expected Dividend Yield (D %) 368 Assumption 2B: Expected Growth of Dividends (GD) 377 Assumption 2C: Timing of Dividend Receipt 378 Assumption 3A: The Expected Growth Rate in Value (GV) 379 Assumption 3B: Adjustments to the Terminal Value 385 Assumption 4: Required Holding Period Return (Rhp) 385 Conclusion 399 Chapter 11 Applying the QMDM 401 Introduction 401 Comprehensive Example of the QMDM in Use 401 Condensed QMDM Examples 414 The Uniform Standards of Professional Appraisal Practice and the QMDM 427 Chapter 12 Applying the Integrated Theory to Tax Pass-Through Entities 435 Introduction 435 The Nature of the S Corporation Benefit 437 The Firmwide Level Value of S Corporations 440 Other Observations Regarding Relative Value at the Firmwide Levels 443 The Shareholder Level Value of S Corporations 446 S Corporations and the Tax Cuts and Jobs Act of 2017 458 Conclusion 467 About the Authors 469 Index 477

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Book SynopsisAn updated review of the theories and applications of corporate risk management After the financial crisis of 2008, issues concerning corporate risk management arose that demand new levels of oversight. Corporate Risk Management is an important guide to the topic that puts the focus on the corporate finance dimension of risk management. The authora noted expert on the topicpresents several theoretical models appropriate for various industries and empirically verifies theoretical propositions. The book also proposes statistical modeling that can evaluate the importance of different risks and their variations according to economic cycles. The book provides an analysis of default, liquidity, and operational risks as well as the failures of LTCM, ENRON, and financial institutions that occurred during the financial crisis. The author also explores Conditional Value at Risk (CVaR), which is central to the debate on the measurement of market risk under Basel IIITable of ContentsForeword by Denis Kessler xiii Introduction xvii General Presentation xvii Contents of the Book xix Acknowledgments xx General References xxi Chapter 1 Risk Management: Definition and Historical Development 1 1.1 History of Risk Management 2 1.2 Milestones in Financial Risk Management 3 1.3 Current Definition of Corporate Risk Management 7 1.4 Conclusion 8 References 9 Chapter 2 Theoretical Determinants of Risk Management in Non-Financial Firms 11 2.1 Value of Risk Management 12 2.2 Comparative Advantages in Risk Taking 16 2.3 Risk Management and Capital Structure 17 2.4 Risk Management and Managerial Incentives 18 2.5 Conclusion 19 References 19 Chapter 3 Risk Management and Investment Financing 21 3.1 Basic Model 21 3.2 Illustration with the Standard Debt Contract 27 3.3 Model with Two Random Variables 28 3.4 Conclusion 31 References 31 Appendix A: Value of dI*/dw 31 Appendix B: Standard Debt Dcontract 32 Chapter 4 Significant Determinants of Risk Management of Non-Financial Firms 35 4.1 Rationale for the Research 35 4.2 Significant Determinants 36 4.3 Governance and Endogeneity of Debt 50 4.4 Conclusion 60 References 61 Appendix: Construction of the Tax-Save Variable 62 Chapter 5 Value at Risk 63 5.1 Example of VaR 63 5.2 Numerical Method 65 5.3 Parametric Method 66 5.4 Taking Time Periods into Consideration 67 5.5 Confidence Interval of the VaR 68 5.6 CVaR 69 5.7 Conclusion 70 References 71 Chapter 6 Choice of Portfolio and VaR Constraint 73 6.1 Optimal Benchmark Portfolio of the Firm 73 6.2 Optimal Portfolio of a Constrained Manager 75 6.3 Conclusion 77 References 77 Chapter 7 VaR in Portfolios of Assets and Options 79 7.1 VaR as a Risk Measure 79 7.2 Models without Derivatives 80 7.3 VaR with Options 85 7.4 Black and Scholes Model and Risk Management 88 7.5 Delta-Gamma VaR 90 7.6 VaR of a General Portfolio 90 7.7 Application 92 7.8 Conclusion 97 References 97 Chapter 8 Conditional VaR 99 8.1 Motivation for CVaR and Coherence in Risk Measures 99 8.2 Notation and VaR 101 8.3 Definition of CVaR 104 8.4 Another Way to Derive CVaR with a Return Distribution 107 8.5 Example with Student’s t-Distribution and Other Examples 108 8.6 Conclusion: CVaR in Basel Regulation 111 References 111 Chapter 9 Regulation of Bank Risk and Use of VaR 113 9.1 Basel Accords 114 9.2 Market Risk Regulation of 1996 120 9.3 Specific Risks 120 9.4 Total Required Capital 122 9.5 Tests 124 9.6 Comparison between Standard and Internal Methods with Interest Rate Risk 124 9.7 Conclusion 133 References 134 Chapter 10 Optimal Financial Contracts and Incentives under Moral Hazard 135 10.1 Optimal Financial Contracts and Moral Hazard 136 10.2 Theoretical Model 140 10.3 Empirical Application to Air Accident Risk 144 10.4 Conclusion 148 References 148 Appendix A: Synthesis of Forms of Financial Contracts 149 Appendix B: Definitions of Variables 150 Chapter 11 Venture Capital Risk with Optimal Financing Structure 153 11.1 Some Statistics about Venture Capital 154 11.2 Role of Venture Capital Firms 155 11.3 Venture Capital Firms and Added Value 156 11.4 Role of Convertible Debt 156 11.5 Information Asymmetry and Venture Capital 158 11.6 Conclusion 163 References 164 Chapter 12 Bank Credit Risk: Scoring of Individual Risks 167 12.1 Theoretical Model 169 12.2 Empirical Analysis 171 12.3 Credit Line and Loan Default 180 12.4 Conclusion 182 References 182 Chapter 13 Portfolio Management of Credit Risk 185 13.1 CreditMetrics 185 13.2 Review of Chapters 2 and 3 of CreditMetrics 186 13.3 KMV Approach 193 13.4 Calculation of Correlations 196 13.5 Conclusion 202 References 202 Chapter 14 Quantification of Banks’ Operational Risk 205 14.1 Context and Presentation of Operational Risk 205 14.2 Measurement of Regulatory Capital 208 14.3 Calculation of Regulatory Capital for Losses of over $1 Million (LDA) 210 14.4 Conclusion 227 References 228 Chapter 15 Liquidity Risk 231 15.1 Theoretical Modeling of CDSs 232 15.2 Bond Yield Spread’s Default Portion 233 15.3 Empirical Measurement of Yield Spreads’ Default Portion 235 15.4 Non-Default Portion of Yield Spreads 237 15.5 Illiquidity Index 242 15.6 Illiquidity Premium 244 15.7 Data 244 15.8 Principal Component Analysis of Liquidity Risk 245 15.9 Empirical Analysis of Credit Cycles 246 15.10 Regime Detection Model 248 15.11 Detection of Default and Liquidity Regimes 250 15.12 Conclusion 251 References 252 Chapter 16 Long-Term Capital Management 255 16.1 Brief History of the Fund 256 16.2 Risk Management, VaR, and Required Capital 258 16.3 Portfolio Optimization and Leverage Effect 260 16.4 Conclusion 261 References 262 Chapter 17 Structured Finance and the Financial Crisis of 2007–2009 263 17.1 Structured Finance 263 17.2 Poor Risk Management Linked to the Structured Finance Market 264 17.3 Conclusion 266 References 268 Appendix: How to Create an AAA CDO Tranche from BBB Loans 269 Chapter 18 Risk Management and Corporate Governance 271 18.1 Enron and Corporate Governance 271 18.2 Financial Crisis and Corporate Governance 273 18.3 New 2002 Governance Rules 273 18.4 Risk Management and Governance 274 18.5 Administrative Competence of Board Members 276 18.6 New Regulation for Financial Institutions 276 18.7 Economic Analysis of Governance Effect 277 18.8 Conclusion 288 References 288 Appendix A: Governance of Canadian Federal Financial Institutions 290 Appendix B: Details on the Construction of the Governance Indexes 291 Appendix C: Variables 293 Chapter 19 Risk Management and Industrial Organization 295 19.1 Entry, Production, and Hedging 295 19.2 Commitment to Hedging 297 19.3 Conclusion 297 References 299 Chapter 20 Real Implications of Corporate Risk Management 301 20.1 Real Implications of Corporate Risk Management: A Review 302 20.2 Methodology 303 20.3 US Oil Producers 309 20.4 Multivariate Results 316 20.5 Conclusion 324 References 324 Appendix: Estimated MTEs 326 Chapter 21 Exercises 331 Exercise 1 Portfolio Choice and the Notion of Value at Risk (VaR) 331 Exercise 2 Backtesting of VaR Models 345 Exercise 3 Calculation of VaR with Different Distributions and Accuracy of VaR 351 Exercise 4 VaR for an Equity Portfolio with Options 359 Exercise 5 CVaR Conditional Value at Risk 369 Conclusion 376 Reference 376 Conclusion 377 General References 378 Index 379

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Book SynopsisA guide to the popular and fast growing investment opportunities of smart beta Equity Smart Beta and Factor Investing for Practitioners offers a hands-on guide to the popular investment opportunities of smart beta, which is one of the fastest growing areas within the global equity asset class. This well-balanced book is written in accessible and understandable terms and contains an in-depth manual filled with analytical information and new ideas. The authorsnoted experts in the fieldinclude a definition of smart beta investing and detail its history. They also explore the distinguishing characteristics of smart beta strategies, offer an overview of factor investing, and reveal the implementation of smart beta approaches. Comprehensive in scope, the book contains helpful examples of applications, real-life illustrative case studies, and contributions from leading and respected practitioners that explain how they approach smart beta investing. This important book: Contains an in-deptTable of ContentsAcknowledgments xiii Disclaimer xv Introduction 1 Part I Overview of Equity Smart Beta Space Chapter 1 Evolution and Composition of the Equity Smart Beta Space 11 I. Introduction 12 II. Evolution of Equity Smart Beta 13 III. Desired Characteristics of Smart Beta Strategies 19 IV. Composition and Definition of Equity Smart Beta 21 V. Typical Investor Questions 21 VI. Conclusion 30 Part II Equity Common Factors and Factor Investing Chapter 2 An Overview of Equity Common Factors and Factor Investing 35 I. Introduction: What Are Equity Common Factors? 36 II. Evolution of Equity Common Factors and Factor Investing 37 III. Typical Investor Questions 49 IV. Conclusion 53 Chapter 3 Explaining Smart Beta Factor Return Premia 55 I. Introduction 56 II. Data Mining 57 III. Risk-Based Explanations 58 IV. Behavioral Explanations 59 V. Structural Explanations 62 VI. Typical Investor Questions 63 VII. Conclusion 68 Part III Capturing Smart Beta Factors Chapter 4 Weighting Schemes 71 I. Introduction 73 II. Weighting Schemes Used to Capture Factor Returns 73 III. Assessing the Investment Performance and Efficiency of Weighting Schemes Used to Capture Factor Returns 82 IV. Typical Investor Questions 96 V. Conclusion 101 Chapter 5 Factor Specifications 109 I. Introduction 110 II. Value 111 III. Momentum 114 IV. Low Volatility 115 V. Quality 116 VI. Typical Investor Questions 119 VII. Conclusion 122 Chapter 6 Active Risk and Return Decomposition of Smart Beta and Active Strategies 125 I. Introduction 127 II. Risk Decomposition of Smart Beta Strategies 127 III. Risk Decomposition of Active Strategies 134 IV. Typical Investor Questions 142 V. Conclusion 148 Part IV Performance Characteristics of Smart Beta Factor Strategies Chapter 7 Performance Characteristics of Individual Smart Beta Factors 151 I. Introduction 152 II. After-Cost Performance: Accounting for Implementation Costs 154 III. After-Cost Performance Characteristics 158 IV. Typical Investor Questions 168 V. Conclusion 171 Chapter 8 Performance Characteristics of Factor Diversification Strategies 173 I. Introduction 175 II. Active Return Correlations 175 III. Performance Characteristics of Factor Diversification Strategies 179 IV. Constructing Diversification Strategies: The Portfolio Blending versus Signal Blending Debate 197 V. Typical Investor Questions 202 VI. Conclusion 209 Chapter 9 The Low-Volatility Anomaly 211Roger G. Clarke, Research Consultant, Analytic InvestorsHarindra de Silva, Portfolio Manager, Analytic Investors/Wells Fargo Asset ManagementSteven Thorley, H. Taylor Peery Professor of Finance, Marriott School of Business, Brigham, Young University I. Introduction 211 II. Historical Manifestation of the Low-Volatility Factor 212 III. How Is “Low Volatility” Defined? 214 IV. Secondary Factors of Low-Beta Portfolios 218 V. Building a Low-Volatility Portfolio 224 VI. Publicly Available Low-Volatility ETFs 226 VII. Summary and Conclusion 226 Part V Smart Beta Implementation Chapter 10 Structuring Better Equity Portfolios: Combining Smart Beta with Smart Alpha 231 I. Introduction 232 II. Current Portfolio Structuring Practices 233 III. Portfolio Structuring: A Suggested Framework 235 IV. Typical Investor Questions 246 V. Conclusion 258 Chapter 11 Incorporating ESG with Smart Beta 261 I. Introduction 262 II. ESG Data 263 III. Incorporating ESG Strategies 264 IV. Incorporating ESG with Smart Beta 273 V. Typical Investor Questions 277 VI. Conclusion 281 Chapter 12 An Alternative to Hedge Fund Investing: A Risk-Based Approach 283 I. Introduction 283 II. Benefits of a Diversified Portfolio of Hedge Funds 286 III. Systematic Drivers of Hedge Fund Performance 296 IV. Liquid Tracking Portfolio Simulated Performance 301 V. Developments in the Hedge Fund Industry 309 VI. Conclusion 314 Part VI Asset Owner Perspectives Chapter 13 Implementing Smart Beta at CalPERS, a Conversation with Steve Carden 319Investment Director, Global Equities, California Public Employees Retirement System Chapter 14 A Pension Fund’s Journey to Factor Investing: A Case Study 331Hans de Ruiter, Chief Investment Offi cer, Stichting Pensioenfonds TNO; Associate Professor, Vrije Universiteit Amsterdam I. Introduction 331 II. The Case for Passive Market Cap–Weighted Strategies 332 III. Are Smart Beta Strategies the Better Alternative? 333 IV. Practical Considerations 337 V. Conclusion 341 Chapter 15 Using Smart Beta for Efficient Portfolio Management 343Ilian Dimitrov, Head of Growth Assets, Oak Pension Asset Management Limited; Vice President, Investments, Barclays Bank UK Retirement Fund I. Introduction 343 II. Motivation and Strategy Selection 344 III. Challenges 344 IV. Product Selection 345 V. Smart Beta Allocation 347 VI. Governance, Monitoring, and Performance Benchmarking 348 VII. Conclusion 348 Part VII Consultant Perspectives Chapter 16 Smart Beta from an Asset Owner’s Perspective 351James Price, Director, Willis Towers WatsonPhil Tindall, Senior Director, Willis Towers Watson I. The Smart Beta Revolution or Evolution? 351 II. Smart Beta from the Asset Owner Perspective 356 III. Asset Owners Face New Challenges When Using Smart Beta Strategies 364 IV. Future Developments 367 V. Concluding Thoughts 371 Chapter 17 Smart Beta: The Space Between Alpha and Beta 373Andrew Junkin, President, Wilshire ConsultingSteven Foresti, Chief Investment Offi cer, Wilshire ConsultingMichael Rush, Vice President, Wilshire Consulting I. Factors: The Building Blocks of Portfolios 375 II. Alpha or Beta? 375 III. Equity Factor Investing: An Example 377 IV. Performance of Key Equity Factors 377 V. Implementation of Smart Beta 379 VI. Smart Beta Case Study: A Potential Complement to Traditional Active Management 383 VII. The Pros and Cons of Smart Beta 385 VIII. Conclusion 387 Part VIII Retail Perspectives Chapter 18 Smart Beta Investing for the Masses: The Case for a Retail Offering 395Lisa L. Huang, Head of Artifi cial Intelligence Investment Management and Planning, Fidelity InvestmentsPetter N. Kolm, Director of the Mathematics in Finance Master’s Program and Clinical Professor, Courant Institute of Mathematical Sciences, New York University I. Introduction to Factor Investing and Smart Beta 396 II. Why Provide a Smart Beta Strategy in Today’s Retail Market? 399 III. Challenges in Developing a Smart Beta Portfolio Strategy for Retail Investors 401 IV. Implementing a Smart Beta Portfolio Strategy as a Fiduciary Advisor 402 V. A Look into the Future 407 VI. Conclusion 409 Chapter 19 Positioning Smart Beta with Retail Investors, a Conversation with Jerry Chafkin 411Chief Investment Officer, AssetMark Part IX Concluding Remarks Chapter 20 Addressing Potential Skepticism Regarding Smart Beta 425 I. Skepticism Regarding Factor Existence 425 II. Skepticism Regarding Implementation 426 III. Skepticism Regarding Factor Persistence 429 IV. Conclusion 430 Chapter 21 Conclusion 431 About the Authors 433 Bibliography 447 Additional Disclaimers 459 Index 463

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Book SynopsisTable of ContentsList of Cases xiii About the Author xv Preface xvii Abbreviations xxi Analytics Software Used xxv Introduction 1 Temptation in an Occupation 2 Fraudulent Checks Written by the CFO 4 Fraudulent Purchases Made by a Purchasing Manager 7 Donna was a Gamblin’ Wreck at Georgia Tech 9 Forensic Analytics 11 An Overview of Tableau 13 The Risk Assessment Standards 19 Discussion 21 Chapter 1: Using Microsoft Excel for Forensic Analytics 23 The Fraud Types Relevant to Forensic Analytics 23 The Main Steps in a Forensic Analytics Application 25 The Final Report 27 An Overview of Excel 28 Importing Data into Excel 29 Some Useful Excel Formatting Features 30 Protecting Excel Spreadsheets 32 The Valuable "IF" Function 33 The PIVOTTABLE Routine 36 The Valuable VLOOKUP Function 38 Using Excel Results in Word Files 40 Excel Warnings and Indicators 42 Excel Dashboards 43 Dashboards in Practice 46 Summary 47 Chapter 2: The Initial High-Level Overview Tests 50 The Data Profile 51 The Histogram 56 The Periodic Graph 58 Descriptive Statistics 60 Preparing the Data Profile Using Excel 62 Preparing the Data Profile Using Access 64 Preparing the Histogram in Excel and Access 68 Preparing the Histogram in IDEA and Tableau 72 Preparing the Periodic Graph in Excel and Access 74 Summary 76 Chapter 3: Benford’s Law: The Basic Tests 79 An Overview of Benford’s Law 80 Some Early Discussions of Benford’s Law 83 Selected Articles from the Eighties 85 Selected Articles from the Nineties 88 Scenarios Under Which Data Should Conform to Benford 90 The Two Scenarios Under Which Accounting Data Sets Should Conform to Benford 93 Other Considerations for the Conformity of Accounting Data 94 Accounting Data Examples 95 Preparing the Benford Graph Using Excel 98 Preparing the Benford Graph Using Access 99 Summary 101 Chapter 4: Benford’s Law: Advanced Topics 103 Conformity and the Likelihood of Material Errors 103 The First Digits Versus the First-Two Digits 107 Measuring Conformity Using the Z-Statistic 109 The Chi-Square and the Kolmogorov-Smirnoff Tests of Conformity 111 The Mean Absolute Deviation (MAD) Test 112 The Effect of Data Set Size of Conformity to Benford 114 Using Benford’s Law in a Forensic Accounting Setting 116 Using Benford’s Law for Journal Entries in an External Audit 119 Using Benford for Subsidiary Ledger Balances in an External Audit 123 Preparing the Benford Graph in Excel 125 Summary 126 Chapter 5: Benford’s Law: Completing The Cycle 127 The Number Duplication Test 127 The Number Duplications in Accounting Textbooks 132 The Electric Utility Company Fraud Case 134 The Petty Cash Fraud Scheme 136 The Last-Two Digits Test 139 The Fraudulent Credit Card Sales Scheme 141 The Missing Cash Sales Case 142 Running the Number Duplication Test in Excel 144 Running the Number Duplication Test in Access 146 Running the Last-Two Digits Test in Excel 148 Running the Last-Two Digits Test in Access 149 Running the Number Duplication Test in R 151 Summary 153 Chapter 6: Identifying Anomalous Outliers: Part 1 154 The Summation Test 155 The Fraud That Was Red Flagged by Two Qualitative Outliers 158 The Largest Subsets Test 161 The Largest Subset Growth Test 165 The School District Transportation Fraud 168 The SkyBonus Fraud Scheme 170 Running the Summation Test in Excel 170 Running the Summation Test in Access 171 Running the Largest Subsets Test in Excel 172 Running the Largest Subsets Test in Access 173 Running the Largest Growth Test in Excel 174 Running the Largest Growth Test in Access 176 Running the Largest Subsets Test in R 179 Summary 180 Chapter 7: Identifying Anomalous Outliers: Part 2 182 Examples of Relative Size Factor Test Findings 184 The Scheme That Used a Vault That Was Over Capacity 186 The Scheme That Added Sold Cars to the Car Inventory Account 189 The Vice Chairman of the Board Who Stole 0.5 Percent of His Salary 193 Running the RSF Test in Excel 194 Running the RSF Test in Access 199 Running the RSF Test in SAS 208 Summary 212 Chapter 8: Identifying Abnormal Duplications 214 The Same-Same-Same Test 215 Duplicate Payments and Various Types of Fraud 217 The Same-Same-Different (Near-Duplicates) Test 220 The Near-Duplicates Fraud Scheme: Introduction 221 The Near-Duplicates Fraud: The Act 222 The Near-Duplicates Fraud: Getting the Legal Process Started 224 The Near-Duplicates Fraud: Two Sentencing Hearings 228 The Near-Duplicates Fraud: Epilogue 230 The Subset Number Duplication Test 231 Running the Same-Same-Same Test in Excel 233 Running the Same-Same-Different Test in Excel 235 Running the Subset Number Frequency Test in Excel 237 Running the Same-Same-Same Test in Access 239 Running the Same-Same-Different Test in Access 240 Running the Subset Number Frequency Test in Access 242 Summary 245 Chapter 9: Comparing Current Period and Prior Period Data: Part 1 247 A Review of Descriptive Statistics 249 An Analysis of the Purchasing Card Data 250 My Law: An Analysis of Payroll Data 255 An Analysis of Machine Learning Data 257 An Analysis of Grocery Store Sales 261 The Scheme That Used Bank Transfers to a Secret Bank Account 263 Running the Descriptive Statistics Tests in Excel 268 Running the Descriptive Statistics Tests in Minitab 269 Running the Descriptive Statistics Tests in SAS 270 Summary and Discussion 272 Chapter 10: Comparing Current Period and Prior Period Data: Part 2 274 Vectors and Measures of Change 275 An Analysis of the Purchasing Card Data 280 Taxpayer Identity Theft Refund Fraud 282 The Tax Return That Omitted a Million Dollar Prize 284 The Tax Returns for 2000 and 2001 285 The Indictment for Tax Evasion 291 The Tax Evasion Trial 292 The Verdict and Sentencing 298 An Analysis of Joe Biden’s Tax Returns 299 Running the VVS Test in SAS 303 Summary and Discussion 304 Chapter 11: Identifying Anomalies In Time-Series Data 306 An Analysis of the Purchasing Card Data 307 Using IDEA for Time-Series Analysis 311 The Fraud Scheme That Withdrew Funds from Customer Accounts 312 Employee Data Access After Termination 317 A Time-Series Analysis of Grocery Store Sales 321 Using Correlation to Detect Fraud and Errors 322 Using the Angle θ on Trial Balance Data 324 Using the VVS on Customer Rebates 327 Showing the VVS Results in a Dashboard 332 Running Time-Series Analysis in SAS 334 Summary and Discussion 336 Chapter 12: Scoring Forensic Units for Fraud Risk 338 An Overview of Risk Scoring 339 The Audit Selection Method of the IRS 340 The Fraudulent Vendor with a Post Office Box in the Head Office 344 Risk Scoring to Detect Vendor Fraud 348 Risk Scoring to Detect Errors in Sales Reports 354 The Predictors Used in the Sales Report Scoring Model 356 The Results of the Sales Report Scoring Model 364 Summary and Discussion 365 Chapter 13: Case Study: An Employee’s Fraudulent Tax Refunds 367 Background Information 368 The Nicest Person in the Office 369 The Early Years of Tax Refund Fraud Scheme 372 The Later Years of Tax Refund Fraud Scheme 375 An Analysis of the Fraudulent Refund Amounts 376 The End Was Nigh 383 The Letter of the Law 386 Sentencing 391 Mary Ayers-Zander 392 Epilogue 393 Appendix 13A: The Fraudulent Refunds 394 Chapter 14: Case Study: A Supplier’s Fraudulent Shipping Claims 401 Background Information 401 The Fraudulent Shipping Charges Scheme 403 An Analysis of the Shipping Charges 405 Charlene’s Lifestyle 408 The Scheme is Discovered 409 The Corley Plea 412 Charlene’s Appeal for a Reduced Sentence 415 The Government’s Response to Charlene’s Memorandum 417 The Sentencing Hearing 417 The Sentence 419 Motion to Delay the Prison Term 420 Conclusions 423 Chapter 15: Detecting Financial Statement Fraud 425 An Overview of Financial Statement Fraud 426 Biases in Financial Statement Numbers 427 Enron’s Financial Statements 430 Enron’s Chief Financial Officer 432 HealthSouth’s Financial Statements 433 WorldCom’s Financial Statements 436 WorldCom’s Rounded Numbers 440 Using Benford’s Law to Detect Financial Statement Misconduct 442 Beneish’s M-Score 446 Detection and Investigation Steps 447 Detecting Manipulations in Monthly Subsidiary Reports 449 Summary 454 Chapter 16: Using Microsoft Access and R For Analytics 455 An Introduction to Access 456 The Architecture of Access 457 A Review of Access Tables 459 Importing Data into Access 461 A Review of Access Queries 462 Converting Excel Data into a Usable Access Format 465 Using the Access Documenter 466 Database Limit of 2 GB 468 Reports 469 Miscellaneous Access Notes 471 An Introduction to R 472 Installing R and R Studio 472 The Advantages of Using R 474 R Markdown 475 Running Arithmetic Code in R 475 Calculating the VVS in R 477 Summary 479 Appendix 16A: A Discussion of the Basic Commands 480 Chapter 17: Concluding Notes on Fraud Prevention and Detection 482 The Annual Cost of Employee Fraud 483 The Legal Process 484 ”I’m a Lawyer, Trust [Account] Me” 485 The Rights of the Defendant 487 Possible Defenses Against an Embezzlement Charge 490 The Economics of Crime Model 492 Internal Controls 493 Fraud Risk Assessments 495 Detective Controls 496 Crime Insurance 498 Fraud Detection Methods 500 Other Fraud Prevention Methods 501 Final Words 504 Bibliography 507 Index 515

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Book SynopsisAccounting Information systems (AIS) have become indispensable in the field, and this book provides clear guidance for students or professionals needing to get up to speed. Designed to suit a one-semester AIS course at the graduate or undergraduate level,Core Concepts of Accounting Information Systemsexplores AIS use and processes in the context of modern-day accounting. Coverage includes conceptual overviews of data analytics, accounting, and risk management, as well as detailed discussion of business processes, cybercrime, database design and more to provide a well-rounded introduction to AIS. Case studies reinforce fundamental concepts using real-world scenarios that encourage critical thinking, while AIS-at-Work examples illustrate complex procedures or concepts in everyday workplace situations. Test Yourself questions allow students to gauge their level of understanding, while End of Chapter questions stimulate application of new skills through problems, cases, anTable of ContentsChapter 1 Accounting Information Systems and the Accountant 1 1.1 Introduction: Why Study Accounting Information Systems? 1 1.2 Careers in Accounting Information Systems 2 Traditional Accounting Career Opportunities 2 Systems Consulting 2 Fraud Examiner or Forensic Accountant 3 Information Technology Auditing and Security 4 Predictive Analytics 5 1.3 Accounting and IT 6 Financial Accounting 6 Managerial Accounting 9 Auditing 12 Taxation 14 1.4 What are Accounting Information Systems? 14 Accounting Information Systems 14 The Role of Accounting Information Systems in Organizations 18 1.5 What’s New in Accounting Information Systems? 19 Cloud Computing—Impact for Accountants 19 Corporate Responsibility Reporting 20 Suspicious Activity Reporting 21 Forensic Accounting, Governmental Accountants, and Terrorism 22 Corporate Scandals and Accounting 22 Chapter 2 Accounting on the Internet 32 2.1 Introduction 32 2.2 The Internet and World Wide Web 33 Internet Addresses and Software 33 Intranets and Extranets 34 The World Wide Web, HTML, and IDEA 35 Groupware, Electronic Conferencing, and Blogs 35 Social Media and its Value to Accountants 36 2.3 XBRL—Financial Reporting on the Internet 37 XBRL Instance Documents and Taxonomies 38 The Benefits and Drawbacks of XBRL 38 The Current Status of XBRL 40 2.4 Electronic Business 41 e-Accounting 41 Retail Sales 42 E-Payments, E-Wallets, and Virtual Currencies 43 B2C, B2B, and C2C E-Commerce 46 Electronic Data Interchange 47 Cloud Computing 48 2.5 Privacy and Security on the Internet 51 Identity Theft and Privacy 51 Security 53 Spam, Phishing, Spoofing, and Ransomware 53 Firewalls, Intrusion Detection Systems, Value-Added Networks, and Proxy Servers 54 Data Encryption 57 Digital Signatures and Digital Time Stamping 58 Chapter 3 Information Technology and AISs 69 3.1 Introduction 69 3.2 The Importance of Information Technology to Accountants 70 Six Reasons 70 The Top 10 Information Technologies 71 3.3 Input, Processing, and Output Devices 72 Input Devices 72 Central Processing Units 78 Output Devices 80 3.4 Secondary Storage Devices 81 Magnetic (Hard) Disks 82 CD-ROMs, DVDs, and Blu-Ray Discs 83 Flash Memory 84 Image Processing and Record Management Systems 84 3.5 Data Communications and Networks 85 Communication Channels and Protocols 85 Local and Wide Area Networks 86 Client/Server Computing 89 Wireless Data Communications 90 Cloud Computing 93 3.6 Computer Software 93 Operating Systems 93 Application Software 94 Programming Languages 95 Chapter 4 Accounting and Data Analytics 109 4.1 Introduction 109 4.2 Big Data 110 Volume 110 Velocity 110 Variety 111 Veracity 112 4.3 Analyzing Data 112 Data Procurement 113 Data Provisioning 115 Data Analysis 116 Presentation 117 4.4 Enabling Technologies and Tools 118 Data Access 118 Analysis and Data Visualization Tools 121 4.5 Data Analytics and the Accounting Profession 123 Tax Accounting 123 Managerial Accounting 124 Assurance and Compliance 125 Chapter 5 Integrated Accounting and Enterprise Software 134 5.1 Introduction 134 5.2 Integrated Accounting Software 135 Small Business Accounting Software 136 Mid-Range and Large-Scale Accounting Software 138 Specialized Accounting Information Systems 138 5.3 Enterprise-Wide Information Systems 139 Enterprise System Functionality 140 The Architecture of Enterprise Systems 142 Business Processes and ERP Systems 145 Benefits and Risks of Enterprise Systems 145 5.4 Selecting a Software Package 149 When is a New AIS Needed? 149 Selecting the Right Software 149 Chapter 6 Introduction to Internal Control Systems and Risk Management 163 6.1 Introduction 163 Definition of Internal Control 164 Internal Control Systems 165 6.2 COSO Internal Control—Integrated Framework 165 2013 COSO Report 165 6.3 Enterprise Risk Management 169 COSO ERM Introduction 169 2004 ERM Framework 169 2017 ERM Framework 171 Risk Governance and Culture 172 Risk, Strategy, and Objective Setting 173 Risk in Execution 174 Risk Information, Communication, and Reporting 174 Monitoring Enterprise Risk Management Performance 175 6.4 Examples of Control Activities 175 Good Audit Trail 175 Sound Personnel Policies and Procedures 175 Separation of Duties 177 Physical Protection of Assets 179 6.5 Monitoring Internal Control Systems 183 Reviews of Operating Performance 183 COSO Guidance on Monitoring 183 Operating Performance vs. Monitoring 183 COBIT 5 184 6.6 Types of Controls 186 Preventive Controls 186 Detective Controls 187 Corrective Controls 187 Discerning Between Preventive, Detective, and Corrective Controls 187 6.7 Evaluating Controls 188 Requirements of the Sarbanes–Oxley Act 188 Cost–Benefit Analysis 188 A Risk Matrix 190 Chapter 7 Computer Controls for Organizations and Accounting Information Systems 200 7.1 Introduction 200 7.2 Enterprise-Level Controls 201 Risk Assessment and Security Policies 202 Designing a Security Policy 202 Integrated Security for the Organization 203 7.3 General Controls for Information Technology 204 Access to Data, Hardware, and Software 204 Personnel Policies to Protect Systems and Data 209 Additional Policies to Protect Systems and Data 211 7.4 Application Controls for Transaction Processing 217 Input Controls 218 Processing Controls 221 Output Controls 223 Chapter 8 Accounting Information Systems and Business Processes: Part I 234 8.1 Introduction 234 8.2 Business Process Fundamentals 235 Overview of the Financial Accounting Cycle 235 Coding Systems 236 8.3 Collecting and Reporting Accounting Information 237 Designing Reports 238 From Source Documents to Output Reports 239 8.4 The Sales Process 241 Objectives of the Sales Process 242 Inputs to the Sales Process 243 Outputs of the Sales Process 246 8.5 The Purchasing Process 247 Objectives of the Purchasing Process 247 Inputs to the Purchasing Process 250 Outputs of the Purchasing Process 251 8.6 Current Trends in Business Processes 254 Business Process Outsourcing (BPO) 254 Business Process Management Software 256 Chapter 9 Accounting Information Systems and Business Processes: Part II 266 9.1 Introduction 266 9.2 The Resource Management Process 267 Human Resource Management 267 Fixed-Asset Management 270 9.3 The Production Process 272 Objectives of the Production Process 272 Inputs to the Production Process 277 Outputs of the Production Process 278 9.4 The Financing Process 279 Objectives of the Financing Process 279 Inputs to the Financing Process 281 Outputs of the Financing Process 281 9.5 Business Processes in Special Industries 282 Professional Service Organizations 283 Not-for-Profit Organizations 283 Health Care Organizations 285 9.6 Business Process Reengineering 287 Why Reengineering Sometimes Fails 288 Chapter 10 Cybercrime, Fraud, and Ethics 296 10.1 Introduction 296 10.2 Cybercrime and Fraud 297 Distinguishing between Cybercrime and Fraud 297 Cybercrime Legislation 300 Cybercrime Statistics 303 10.3 Examples of Cybercrime 304 Compromising Valuable Information 304 Hacking 305 Denial of Service 307 10.4 Preventing and Detecting Cybercrime and Fraud 309 Enlist Top-Management Support 309 Increase Employee Awareness and Education 309 Assess Security Policies and Protect Passwords 310 Implement Controls 311 Identify Computer Criminals 312 Maintain Physical Security 313 Recognize the Symptoms of Employee Fraud 314 Use Data-Driven Techniques 316 Employ Forensic Accountants 316 10.5 Ethical Issues, Privacy, and Identity Theft 317 Ethical Issues and Professional Associations 317 Meeting the Ethical Challenges 318 Privacy 319 Company Policies with Respect to Privacy 320 Identity Theft 320 Chapter 11 Information Technology Auditing 329 11.1 Introduction 329 11.2 The Audit Function 330 Internal versus External Auditing 330 Information Technology Auditing 331 Evaluating the Effectiveness of Information Systems Controls 335 11.3 The Information Technology Auditor’s Toolkit 337 Auditing Software 337 People Skills 340 11.4 Auditing Computerized Accounting Information Systems 340 Testing Computer Programs 341 Validating Computer Programs 342 Review of Systems Software 343 Validating Users and Access Privileges 344 Continuous Auditing 345 11.5 Information Technology Auditing Today 347 Information Technology Governance 347 The Sarbanes–Oxley Act of 2002 347 Auditing Standard No. 2201 (AS 2201) 349 ISACA Information Technology Assurance Framework 350 IIA’s Global Technology Audit Guides and Guide to the Assessment of IT Risk series 351 Chapter 12 Documenting Accounting Information Systems 358 12.1 Introduction 358 12.2 Why Documentation is Important 359 12.3 Primary Documentation Tools 362 Data Flow Diagrams 363 Document Flowcharts 368 System Flowcharts 372 12.4 Other Documentation Tools 377 Program Flowcharts 378 Decision Tables and Decision Trees 379 Software Tools for Graphical Documentation and SOX Compliance 381 12.5 End-User Computing and Documentation 383 The Importance of End-User Documentation 383 Policies for End-User Computing and Documentation 385 Chapter 13 Developing and Implementing Effective Accounting Information Systems 398 13.1 Introduction 398 13.2 The Systems Development Life Cycle 399 Four Stages in the Systems Development Life Cycle 399 Systems Studies and Accounting Information Systems 401 13.3 Systems Planning 401 Planning for Success 401 Investigating Current Systems 403 13.4 Systems Analysis 403 Understanding Organizational Goals 403 Systems Survey Work 404 Data Analysis 406 Evaluating System Feasibility 406 13.5 Detailed Systems Design and Acquisition 408 Designing System Outputs, Processes, and Inputs 409 The System Specifications Report 412 Choosing an Accounting Information System 413 Outsourcing 416 13.6 Implementation, Follow-Up, and Maintenance 417 Implementation Activities 417 Managing Implementation Projects 419 Postimplementation Review 421 System Maintenance 422 Chapter 14 Database Design 434 14.1 Introduction 434 14.2 An Overview of Databases 434 What is a Database? 435 Significance of Databases 435 Storing Data in Databases 437 Additional Database Issues 439 14.3 Steps in Developing a Database Using the Resources, Events, and Agents (REA) Approach 442 Step 1—Identify Business and Economic Events 443 Step 2—Identify Entities 444 Step 3—Identify Relationships 444 Step 4—Create Entity–Relationship Diagrams 445 Step 5—Identify Attributes of Entities 446 Step 6—Convert E-R Diagrams into Database Tables 447 14.4 Normalization 449 First Normal Form 449 Second Normal Form 450 Third Normal Form 451 Chapter 15 Organizing and Manipulating the Data in Databases 462 15.1 Introduction 462 15.2 Creating Database Tables in Microsoft Access 463 Database Management Systems 463 Using Microsoft Access 463 Creating Database Tables 464 Creating Relationships 466 15.3 Entering Data in Database Tables 468 Creating Records 468 Ensuring Valid and Accurate Data Entry 469 Tips for Creating Database Tables and Records 472 15.4 Extracting Data from Databases: Data Manipulation Languages (DMLs) 473 Creating Select Queries 473 Creating Action Queries 477 Guidelines for Creating Queries 478 Structured Query Language (SQL) 478 Sorting, Indexing, and Database Programming 479 Chapter 16 Database Forms and Reports 490 16.1 Introduction 490 16.2 Forms 490 Creating Simple Forms 492 Using Forms for Input and Output Tasks 496 Subforms: Showing Data from Multiple Tables 497 Concluding Remarks about Forms 498 16.3 Reports 498 Creating Simple Reports 499 Creating Reports with Calculated Fields 502 Creating Reports with Grouped Data 504 Concluding Remarks about Reports 506 Glossary (Available online at http://www.wiley.com/college/simkin) Index 516

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Book SynopsisAdvanced Accounting, 7th Edition, EMEA Edition delivers an in-depth, comprehensive introduction to advanced accounting theory and application, using actual business examples and relevant news stories to demonstrate how core principles translate into real-world business scenarios. Clearly defined and logically organized Learning Objectives aid in student comprehension, while highlighted Related Concepts illustrate how individual concepts fit into the larger picture. Short answer questions throughout the chapter allow students to test their knowledge before reaching the more in-depth end-of-chapter questions, promoting a deeper understanding of both technical and conceptual aspects of the field. Written by active accounting researchers, this text brings clarity and flexibility to the central ideas underlying business combinations, consolidated financial statements, foreign currency transactions, partnerships, non-profit accounting and more. This new 7th Edition, EMEA Table of ContentsAbout the Authors Preface Chapter 1: Introduction to Business Combinations and the Conceptual Framework Learning Objectives 1.1 Growth Through Mergers 1.2 Nature of the Combination 1.3 Business Combinations: Why? Why not? 1.4 Business Combinations: Historical Perspective 1.5 Terminology and Types of Combinations 1.6 Takeover Premiums 1.7 Avoiding the Pitfalls before the Deal 1.8 Determining Price and Method of Payment in Business Combinations 1.9 Alternative Concepts of Consolidated Financial Statements 1.10 FASB's Conceptual Framework 1.11 FASB Codification (Source of GAAP) Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 2: Accounting for Business Combinations Learning Objectives 2.1 Accounting Standards on Business Combinations: Background 2.2 Illustration of Acquisition Accounting 2.3 Bargain Purchase Accounting 2.4 Measurement Period and Measurement Period Adjustments 2.5 Goodwill Impairment Test 2.6 Contingent Consideration (Earnouts) 2.7 Proforma Statements and Disclousre Requirements 2.8 Leveraged Buyouts 2.9 IFRS versus U.S. GAAP Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 3: Consolidated Financial Statements-Date of Acquisition Learning Objectives 3.1 Definitions of Subsidiary and Control 3.2 Requirements for the Inclusion of Subsidiaries in the Consolidated Financial Statements 3.3 Reasons for Subsidiary Companies 3.4 Consolidated Financial Statements 3.5 Investments at the Date of Acquisition 3.6 Consolidated Balance Sheets: The Use of Workpapers 3.7 A Comprehensive Illustration-More than One Subsidiary Company 3.8 Limitations of Consolidated Statements Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 4: Consolidated Financial Statements After Acquisition Learning Objectives 4.1 Accounting for Investments By the Cost, Partial Equity, and Complete Equity Methods 4.2 Consolidated Statements After Acquisition—Cost Method 4.3 Recording Investments in Subsidiaries—Equity Method (Partial Or Complete) 4.4 Elimination of Intercompany Revenue and Expense Items 4.5 Interim Acquisitions of Subsidiary Stock 4.6 Consolidated Statement of Cash Flows 4.7 Illustration of Preparation of a Consolidated Statement of Cash Flows—Year of Acquisition 4.8 Compare U.S. GAAP and IFRS Regarding Equity Method Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 5: Allocation and Depreciation of Differences Between Implied and Book Values Learning Objectives 5.1 Computation and Allocation of the Difference Between Implied and Book Values to Assets and Liabilities of Subsidiary–Acquisition Date 5.2 Effect of Differences Between Implied and Book Values on Consolidated Net Income—Year Subsequent to Acquisition 5.3 Consolidated Statements Workpaper—Using the Cost Method 5.4 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using the Cost Method 5.5 Consolidated Statements Workpaper—Using Partial Equity Method 5.6 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using Partial Equity Method 5.7 Consolidated Statements Workpaper—Using Complete Equity Method 5.8 Controlling Interest in Consolidated Net Income and Retained Earnings—Using Complete Equity Method 5.9 Additional Considerations Relating to Treatment of Difference Between Implied and Book Values 5.10 Push Down Accounting 5.11 IFRS Vs U.S. GAAP on Research & Development Costs Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 6: Elimination of Unrealized Profit on Intercompany Sales of Inventory Learning Objectives 6.1 Effects of Intercompany Sales of Merchandise on the Determination of Consolidated Balances 6.2 Cost Method: Consolidated Statements Workpaper—Upstream Sales 6.3 Cost Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.4 Consolidated Statements Workpaper—Partial Equity Method 6.5 Partial Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.6 Consolidated Statements Workpaper—Complete Equity Method 6.7 Complete Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.8 Summary of Workpaper Entries Relating to Intercompany Sales of Inventory 6.9 Intercompany Profit Prior to Parent-Subsidiary Affiliation Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 7: Elimination of Unrealized Gains Or Losses on Intercompany Sales of Property and Equipment Learning Objectives 7.1 Intercompany Sales of Land (Nondepreciable Property) 7.2 Intercompany Sales of Depreciable Property (Machinery, Equipment, and Buildings) 7.3 Consolidated Statements Workpaper—Cost and Partial Equity Methods 7.4 Calculation of Consolidated Net Income and Consolidated Retained Earnings 7.5 Consolidated Statements Workpaper—Complete Equity Method 7.6 Calculation and Allocation of Consolidated Net Income; Consolidated Retained Earnings: Complete Equity Method 7.7 Summary of Workpaper Entries Relating to Intercompany Sales of Equipment 7.8 Intercompany Interest, Rents, and Service Fees Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 8: Changes in Ownership Interest Learning Objectives 8.1 Changes in Ownership 8.2 Parent Acquires Subsidiary Stock Through Several Open-Market Purchases—Cost Method 8.3 Parent Sells Subsidiary Stock Investment on the Open Market—Cost Method 8.4 Equity Method—Purchases and Sales of Subsidiary Stock By the Parent 8.5 Parent Sells Subsidiary Stock Investment on the Open Market—Cost Method 8.6 Subsidiary Issues Stock Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 9: Intercompany Bond Holdings and Miscellaneous Topics—Consolidated Financial Statements Learning Objectives 9.1 Intercompany Bond Holdings 9.2 Accounting for Bonds—A Review 9.3 Constructive Gain Or Loss on Intercompany Bond Holdings 9.4 Accounting for Intercompany Bonds Illustrated 9.5 Book Entry Related to Bond Investment 9.6 Interim Purchase of Intercompany Bonds 9.7 Notes Receivable Discounted 9.8 Stock Dividends Issued By a Subsidiary Company 9.9 Dividends From Preacquisition Earnings 9.10 Subsidiary With Both Preferred and Common Stock Outstanding 9.11 Consolidating a Subsidiary With Preferred Stock Outstanding Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 10: Insolvency—Liquidation and Reorganization Learning Objectives 10.1 Contractual Agreements 10.2 Bankruptcy 10.3 Liquidation (Chapter 7) 10.4 Reorganization Under the Reform Act (Chapter 11) 10.5 Trustee Accounting and Reporting 10.6 Realization and Liquidation Account Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 11: International Financial Reporting Standards Learning Objectives 11.1 the Increasing Importance of International Accounting Standards 11.2 Historical Perspective 11.3 GAAP Hierarchy—U.S. Versus IFRS 11.4 Similarities and Differences Between U.S. GAAP and IFRS 11.5 Business Combinations and Consolidations 11.6 International Convergence Issues 11.7 American Depository Receipts: An Overview Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 12: Accounting for Foreign Currency Transactions and Hedging Foreign Exchange Risk Learning Objectives 12.1 Exchange Rates—Means of Translation 12.2 Measured versus Denominated 12.3 Foreign Currency Transactions 12.4 Using Forward Contracts As a Hedge Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 13: Translation of Financial Statements of Foreign Affiliates Learning Objectives 13.1 Accounting for Operations in Foreign Countries 13.2 Translating Financial Statements of Foreign Affiliates 13.3 Objectives of Translation 13.4 Translation Methods 13.5 Identifying the Functional Currency 13.6 Translation of Foreign Currency Financial Statements 13.7 Translation of Foreign Financial Statements Illustrated 13.8 Financial Statement Disclosure 13.9 Historical Developments of Accounting Standards Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 14: Reporting for Segments and for Interim Financial Periods Learning Objectives 14.1 Need for Disaggregated Financial Data 14.2 Standards of Financial Accounting and Reporting 14.3 International Accounting Standards Board (IASB) Position on Segment Reporting 14.4 Interim Financial Reporting Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 15: Partnerships: Formation, Operation, and Ownership Changes Learning Objectives 15.1 Partnership Defined 15.2 Reasons for Forming a Partnership 15.3 Characteristics of a Partnership 15.4 Partnership Agreement 15.5 Accounting for a Partnership 15.6 Special Problems in Allocation of Income and Loss 15.7 Financial Statement Presentation 15.8 Changes in the Ownership of the Partnership 15.9 Section A: Admission of a New Partner 15.10 Section B: Withdrawal of a Partner Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 16: Partnerships: Formation, Operation, and Ownership Changes Learning Objectives 16.1 Steps in the Liquidation Process 16.2 Priorities of Partnership and Personal Creditors 16.3 Simple Liquidation Illustrated 16.4 Installment Liquidation 16.5 Incorporation of a Partnership Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 17: Introduction to Fund Accounting Learning Objectives 17.1 Classifications of Nonbusiness Organizations 17.2 Distinctions Between Nonbusiness Organizations and Profit-Oriented Enterprises 17.3 Financial Accounting and Reporting Standards for Nonbusiness Organizations 17.4 Fund Accounting 17.5 Comprehensive Illustration—General Fund 17.6 Reporting Inventory and Prepayments in the Financial Statements Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 18: Introduction to Accounting for State and Local Governmental Units Learning Objectives 18.1 the History of Generally Accepted Governmental Accounting Standards 18.2 the Structure of Governmental Accounting 18.3 Governmental Fund Entities 18.4 Proprietary Funds 18.5 Fiduciary Funds 18.6 Capital Assets and Long-Term Debt 18.7 External Reporting Requirements 18.8 Government Fund-Based Reporting 18.9 Government-Wide Reporting 18.10 Management's Discussion and Analysis (Md&A) 18.11 Interfund Activity Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 19: Accounting for Nongovernment Nonbusiness Organizations: Colleges and Universities, Hospitals and Other Health Care Organizations Learning Objectives 19.1 Sources of Generally Accepted Accounting Standards for Nongovernment-Nonbusiness Organizations 19.2 Financial Reporting for Not-For-Profit Entities 19.3 Accrual Basis of Accounting 19.4 Contributions 19.5 Accounting for Current Funds 19.6 Accounting for Plant Funds 19.7 Accounting for Endowment Funds 19.8 Accounting for Investments 19.9 Accounting for Loan Funds 19.10 Accounting for Agency (Custodial) Funds 19.11 Accounting for Annuity and Life Income Funds 19.12 Issues Relating to Colleges, Universities, and Hospitals Summary Question Analyzing Financial Statements Exercises ASC Exercises Glossary Appendix PV: Tables of Present Values Index

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Book SynopsisGet effective and efficient instruction for all CMA exam competencies in 2020Wiley CMAexcel Learning System Exam Review 2020 Test Bank Complete Exam (2-year access) offers readers 2 years of access to over 3800 practice questions for Parts 1 and 2 of the Certified Management Accountants exam, as well as 16 sample essays. You???ll be able to comprehensively prepare for each part of the exam with challenging multiple-choice questions, as well as answer explanations.

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Book SynopsisThree experts provide an authoritative guide to the theory and practice of derivatives Derivatives: Theory and Practice and its companion website explore the practical uses of derivatives and offer a guide to the key results on pricing, hedging and speculation using derivative securities. The book links the theoretical and practical aspects of derivatives in one volume whilst keeping mathematics and statistics to a minimum. Throughout the book, the authors put the focus on explanations and applications. Designed as an engaging resource, the book contains commentaries that make serious points in a lighthearted manner. The authors examine the real world of derivatives finance and include discussions on a wide range of topics such as the use of derivatives by hedge funds and the application of strip and stack hedges by corporates, while providing an analysis of how risky the stock market can be for long-term investors, and more. To enhance learning, each chapter Table of ContentsAbout the Authors xxvii About the Companion Site xxix Preface xxxi Chapter 1 Derivative Securities 1 1.1 Forwards and Futures 2 1.2 Options 7 1.3 Swaps 14 1.4 Hedging, Speculation, and Arbitrage 16 1.5 Short-Selling 18 1.6 Summary 20 Exercises 21 Part I Forwards and Futures 23 Chapter 2 Futures Markets 25 2.1 Trading on Futures Markets 25 2.2 Futures Exchanges and Traders 29 2.3 Margins and Marking-to-Market 30 2.4 Summary 36 Exercises 36 Chapter 3 Forward and Futures Prices 39 3.1 Pricing Forward Contracts 39 3.2 Dividends, Storage Costs, and Convenience Yield 46 3.3 Commodity Futures 49 3.4 Value of a Forward Contract 53 3.5 Summary 57 Exercises 57 Chapter 4 Futures: Hedging and Speculation 59 4.1 Hedging Using Futures 59 4.2 Novel Futures Contracts 67 4.3 Speculation 70 4.4 Summary 72 Exercises 73 Chapter 5 Index Futures 75 5.1 Stock Index Futures (SIF) 76 5.2 Index Arbitrage 78 5.3 Hedging 81 5.4 Tailing the Hedge 88 5.5 Summary 89 Appendix 5: Hedge Ratios 89 Exercises 93 Chapter 6 Strategies: Stock Index Futures 95 6.1 Underpriced Stocks: Hedging Market Risk 95 6.2 Overpriced Stocks: Hedging Market Risk 98 6.3 Market-neutral Hedge Fund 100 6.4 Long-Short Hedge Fund 101 6.5 Changing Stock Market Exposure 104 6.6 Merger Arbitrage 106 6.7 Summary 109 Appendix 6.A: Stock Picking and Market Risk 110 Appendix 6.B: Market Timing 112 Appendix 6.C: Hedging: Long-Short Portfolio 114 Appendix 6.D: Merger Arbitrage and Hedging 116 Exercises 117 Chapter 7 Currency Forwards and Futures 119 7.1 FX-Futures Contracts 120 7.2 Pricing FX-Forward Contracts 123 7.3 Pricing FX-Futures Contracts 126 7.4 Hedging and Speculation: Forwards 127 7.5 Hedging and Speculation: Futures 129 7.6 Summary 132 Appendix 7: Hedging Using FX-Futures 133 Exercises 135 Part II Fixed Income: Cash Markets 137 Chapter 8 Interest Rates 139 8.1 LIBOR, Repos, Fed Funds, and OIS Rates 139 8.2 Day-Count Conventions 141 8.3 Forward Rates 146 8.4 Forward Rate Agreements (FRAs) 150 8.5 Summary 154 Exercises 154 Chapter 9 Bond Markets 157 9.1 Prices, Yields, and Return 158 9.2 Pricing Coupon Bonds 165 9.3 Summary 168 Exercises 169 Chapter 10 Bonds: Duration and Convexity 171 10.1 Yield Curve 171 10.2 Duration and Convexity 173 10.3 Summary 178 Appendix 10: Duration and Convexity 179 Exercises 181 Part III Fixed Income Futures Contracts 183 Chapter 11 Interest Rate Futures 185 11.1 Three-month Eurodollar Futures Contract 186 11.2 Sterling 3-month Futures Contract 188 11.3 T-bill Futures 188 11.4 Futures Price and Forward Rates 189 11.5 Pricing Interest Rate Futures 190 11.6 Arbitrage: Implied Repo Rate 193 11.7 Speculation 195 11.8 Spread Trades 196 11.9 Summary 199 Appendix 11.A: Futures Prices and Interest Rates 200 Exercises 203 Chapter 12 Hedging with Interest Rate Futures 205 12.1 Number of Futures Contracts 206 12.2 Different Types of Hedge 210 12.3 Hedging: T-bill and Eurodollar Futures 214 12.4 Eurodollar Stack Hedge 217 12.5 Summary 221 Appendix 12: Hedge Ratios 222 Exercises 224 Chapter 13 T-bond Futures 227 13.1 Contract Specifications 228 13.2 Conversion Factor and Cheapest-to-Deliver 230 13.3 Hedging Using T-Bonds 234 13.4 Hedging: Further Issues 235 13.5 Market Timing 238 13.6 Wild Card Play 239 13.7 Pricing T-bond Futures 240 13.8 T-bond Futures Spreads 244 13.9 Summary 247 Appendix 13.A: Hedging: Duration and Market Timing 248 Appendix 13.B: Implied Repo Rate and Arbitrage 250 Exercises 251 Part IV Options 253 Chapter 14 Options Markets 255 14.1 Market Organisation 255 14.2 Call Options 261 14.3 Put Options 268 14.4 Intrinsic Value and Time Value 273 14.5 Summary 276 Exercises 277 Chapter 15 Uses of Options 279 15.1 Protective Put 279 15.2 Put–Call Parity: European Options 282 15.3 Guaranteed Bond 283 15.4 Other Options 286 15.5 Summary 288 Exercises 289 Chapter 16 Black–Scholes Model 291 16.1 Determinants of Option Prices 291 16.2 Black–Scholes 296 16.3 Are Stocks Less Risky in the Long Run? 303 16.4 Delta Hedging 306 16.5 Implied Volatility 308 16.6 Summary 311 Appendix 16: Price Bounds on European Options 312 Exercises 313 Chapter 17 Option Strategies 315 17.1 Synthetic Securities 316 17.2 Bull and Bear Spreads 320 17.3 Straddle, Strangle, Butterfly, and Condor 324 17.4 Horizontal (Time, Calendar) Spreads 333 17.5 Summary 335 Exercises 335 Chapter 18 Stock Options and Stock Index Options 337 18.1 Options on Stocks 337 18.2 Stock Index Options (SIO) 342 18.3 Summary 345 Appendix 18.A: Static Hedge: Index Puts 345 Appendix 18.B: Dynamic Delta Hedge 346 Exercises 346 Chapter 19 Foreign Currency Options 349 19.1 Contract Specifications 349 19.2 Speculation 350 19.3 Hedging Foreign Currency Exposure 353 19.4 Other Currency Options 358 19.5 Summary 358 Exercises 359 Chapter 20 Options on Futures 363 20.1 Market Conventions 363 20.2 Price Bounds on European Futures Options 366 20.3 Trading Strategies 367 20.4 Summary 370 Exercises 371 Part V Options Pricing 373 Chapter 21 BOPM: Introduction 375 21.1 One-Period BOPM 375 21.2 Risk-neutral Valuation 379 21.3 Determinants of Call Premium 382 21.4 Pricing a European Put Option 383 21.5 Summary 384 Appendix 21: No-arbitrage Conditions 385 Exercises 386 Chapter 22 BOPM: Implementation 389 22.1 Generalising the BOPM 390 22.2 Replication Portfolio 393 22.3 BOPM to Black–Scholes 396 22.4 Summary 398 Appendix 22: Delta Hedging and Arbitrage 399 Exercises 402 Chapter 23 BOPM: Extensions 405 23.1 American Options 405 23.2 Options on Other Underlying Assets 407 23.3 Options on Futures Contracts 409 23.4 Options on Dividend-paying Stocks 412 23.5 Summary 414 Appendix 23: BOPM and Risk-neutral Valuation 415 Exercises 419 Chapter 24 Analysis of Black–Scholes 421 24.1 Volatility 421 24.2 Testing Black–Scholes 425 24.3 Limitations of Black–Scholes 428 24.4 Summary 431 Exercises 432 Chapter 25 Pricing European Options 435 25.1 What do N(d1) and N(d2) Represent? 435 25.2 European Options: Dividend Paying Stocks 436 25.3 Foreign Currency and Futures Options 437 25.4 Put–Call Parity 440 25.5 Summary 443 Exercises 444 Chapter 26 Pricing Options: Monte Carlo Simulation 447 26.1 Brownian Motion: Parallel Universe 447 26.2 Pricing a European Call 449 26.3 Variance Reduction Methods 454 26.4 The Greeks 455 26.5 Multiple Stochastic Factors 456 26.6 Path-dependent Options 459 26.7 Summary 460 Appendix 26: MCS, Several Stochastic Variables 461 Exercises 464 Part VI The Greeks 467 Chapter 27 Delta Hedging 469 27.1 Delta 469 27.2 Dynamic Delta Hedging 473 27.3 Summary 481 Exercises 481 Chapter 28 The Greeks 483 28.1 Different Greeks 483 28.2 Hedging with the Greeks 491 28.3 Greeks and the BOPM 496 28.4 Summary 498 Appendix 28: Black–Scholes and the Greeks 499 Exercises 502 Chapter 29 Portfolio Insurance 503 29.1 Static Hedge 504 29.2 Dynamic Portfolio Insurance 507 29.3 Summary 513 Exercises 514 Part VII Advanced Options 517 Chapter 30 Other Options 519 30.1 Corporate Equity and Debt 519 30.2 Warrants 522 30.3 Equity Collar 524 30.4 Summary 526 Exercises 527 Chapter 31 Exotic Options 529 31.1 Three-period BOPM 530 31.2 Asian Options 531 31.3 Other Exotics: Lookbacks, Barrier, Compound, and Chooser 535 31.4 Summary 542 Exercises 543 Chapter 32 Energy and Weather Derivatives 545 32.1 Energy Contracts 546 32.2 Hedging with Energy Futures 549 32.3 Energy Swaps 552 32.4 Weather Derivatives 557 32.5 Reinsurance and CAT Bonds 562 32.6 Summary 562 Exercises 563 Part VIII Swaps 567 Chapter 33 Interest Rate Swaps 569 33.1 Using Interest Rate Swaps 571 33.2 Cash Flows in a Swap 573 33.3 Settlement and Price Quotes 575 33.4 Terminating a Swap 577 33.5 Comparative Advantage 577 33.6 Summary 581 Appendix 33: Comparative Advantage with Swap Dealer 581 Exercises 583 Chapter 34 Pricing Interest Rate Swaps 585 34.1 Cash Flows in a Swap 586 34.2 Floating Rate Note (FRN) 587 34.3 Pricing a Swap: Short Method 589 34.4 Pricing a Swap: Forward Rate Method 591 34.5 Market Value of a Swap 593 34.6 Swap Delta and PVBP 596 34.7 Summary 597 Appendix 34: Value of an FRN Using Arbitrage 597 Exercises 598 Chapter 35 Other Interest Rate Swaps 601 35.1 Swap Deals 601 35.2 Pricing Non-standard Swaps 603 35.3 Hedging Interest Rate Swaps 608 35.4 Credit Risk 614 35.5 Summary 615 Exercises 616 Chapter 36 Currency Swaps 617 36.1 Uses 617 36.2 Pricing a Fixed-Fixed Currency Swap 620 36.3 Valuing a Fixed-Fixed Currency Swap 622 36.4 Summary 625 Appendix 36.A: Pricing a Currency Swap 626 Appendix 36.B: Valuation of a Currency Swap 628 Exercises 629 Chapter 37 Equity Swaps 631 37.1 Equity-for-LIBOR: Fixed Notional Principal 632 37.2 Unhedged Cross-currency Equity Swap 634 37.3 Hedged Cross-currency Equity Swap 635 37.4 Pricing Equity Swaps 636 37.5 Summary 643 Appendix 37: Valuation of Equity-for-LIBOR Swap 643 Exercises 644 Part IX Fixed Income Derivatives 647 Chapter 38 T-Bond Option, Caps, Floors and Collar 649 38.1 Options on T-Bonds and Eurodollars 649 38.2 Caplets and Floorlets 650 38.3 Interest Rate Cap 655 38.4 Interest Rate Floor 657 38.5 Interest Rate Collar 658 38.6 Summary 661 Exercises 662 Chapter 39 Swaptions, Forward Swaps, and MBS 665 39.1 Swaptions 665 39.2 Forward Swaps 668 39.3 Mortgage-backed Securities (MBS) 670 39.4 Hedging Fixed Income Derivatives 675 39.5 Summary 677 Exercises 678 Chapter 40 Pricing Fixed Income Options: Black’s Model and MCS 681 40.1 Black’s Model: European Options 682 40.2 Pricing a Caplet Using MCS 684 40.3 European Swaption: Black’s Model 685 40.4 Summary 688 Exercises 688 Chapter 41 Pricing Fixed Income Derivatives: BOPM 691 41.1 No-arbitrage Approach: BOPM 692 41.2 Pricing a Coupon Bond 697 41.3 Pricing Options 697 41.4 Pricing a Callable Bond 700 41.5 Pricing Caps 701 41.6 Pricing FRAs 702 41.7 Pricing a Swaption 704 41.8 Pricing FRNs with Embedded Options 705 41.9 More Lattices 708 41.10 Summary 709 Exercises 710 Part X Credit Derivatives 713 Chapter 42 Credit Default Swaps (CDS) 715 42.1 Credit Risk and CDS 716 42.2 Speculation with CDS 717 42.3 Contract Details 719 42.4 Pricing and Valuation 720 42.5 Bond Yields and the CDS Spread 725 42.6 Credit Indices and other CDS Contracts 727 42.7 Derivatives on the CDS Spread 727 42.8 Summary 729 Exercises 730 Chapter 43 Securitisation, ABSs and CDOs 731 43.1 ABSs and ABS-CDOs 731 43.2 Credit Enhancement 736 43.3 Losses on ABSs and ABS-CDOs 738 43.4 Sub-prime Crisis 2007–8 740 43.5 Synthetic CDOs 743 43.6 Single Tranche Trading 744 43.7 Total Return Swap 746 43.8 Summary 747 Exercises 748 Part XI Market Risk 749 Chapter 44 Value at Risk 751 44.1 Introduction 751 44.2 Value at Risk (VaR) 752 44.3 Forecasting Volatility 761 44.4 Backtesting 763 44.5 Capital Adequacy 766 44.6 Summary 767 Exercises 768 Chapter 45 VaR: Other Portfolios 769 45.1 Single Index Model 769 45.2 VaR for Coupon Bonds 773 45.3 VaR: Options 777 45.4 Summary 779 Appendix 45.A: VaR for Foreign Assets 779 Appendix 45.B: Single Index Model (SIM) 780 Appendix 45.C: Cash Flow Mapping 782 Exercises 784 Chapter 46 VaR: Alternative Measures 787 46.1 Historical Simulation 787 46.2 Bootstrapping 792 46.3 Monte Carlo Simulation 795 46.4 Alternative Methods 799 46.5 Summary 803 Exercises 804 Part XII Price Dynamics 807 Chapter 47 Asset Price Dynamics 809 47.1 Stochastic Processes 810 47.2 Geometric Brownian Motion (GBM) and Ito’s Lemma 812 47.3 Distribution of Log Stock Price and Stock Price 814 47.4 Summary 817 Appendix 47: Ito’s Lemma 817 Exercises 818 Chapter 48 Black–Scholes PDE 821 48.1 Risk-Neutral Valuation and Black–Scholes PDE 821 48.2 Finite Difference Methods 826 48.3 Summary 830 Appendix 48: Derivation of Black–Scholes PDE 830 Exercises 833 Chapter 49 Equilibrium Models: Term Structure 835 49.1 Risk-neutral Valuation 836 49.2 Models of the Short-Rate 837 49.3 Pricing Using Continuous Time Models 839 49.4 Bond Prices and Derivative Prices 841 49.5 Summary 843 Exercises 844 Glossary 845 Bibliography 867 Author Index 871 Subject Index 873

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Book SynopsisEnsure that your not-for-profit accounting is airtight for 2020 Not-for profit organizations have unique characteristics, so they must adhere to a specific set of generally accepted accounting principles (GAAP). Wiley Not-For-Profit GAAP 2020 provides practical guidance on how to identify and apply the relevant standards. This guide is indispensable for professionals responsible for preparing and auditing not-for-profit accounts. You will learn how to interpret the relevant accounting principles and how to apply them, all while minimizing unnecessary effort and eliminating potentially costly errors. This comprehensive yet concise text thoroughly examines the latest standards for measurement, presentation, and disclosure related to not-for-profits. It covers the Financial Accounting Standards Board (FASB) Accounting Standards Codification, all relevant Accounting Standards Updates, and other guidance that applies to not-for-profit organizations, particularTable of ContentsPreface vii About the Authors ix Not-for-Profit Accounting Literature xi Part 1 Overview of Not-for-Profit Organizations 1 Chapter 1 Overview of Not-for-Profit Organizations 3 Chapter 2 Cash versus Accrual-Basis Accounting 11 Part 2 Basic Financial Statements 21 Chapter 3 Statement of Financial Position 23 Chapter 4 Statement of Activities 31 Chapter 5 Statement of Cash Flows 39 Chapter 6 Other Financial Statement Issues 55 Part 3 Specific Not-for-Profit Accounting Topics 73 Chapter 7 Fund Accounting 75 Chapter 8 Net Assets 87 Chapter 9 Contributions, Pledges, Noncash Contributions, and Exchange Transactions 97 Chapter 10 Investments 143 Chapter 11 Affiliated Organizations 163 Chapter 12 Split-Interest Agreements 185 Chapter 13 Fundraising and Joint Costs 195 Chapter 14 Functional Reporting 209 Chapter 15 Collections 215 Part 4 Other Accounting-Related Not-for-Profit Topics 219 Chapter 16 Accounting for Specific Types of Not-for-Profits 221 Chapter 17 Importance of Budgets to a Not-for-Profit 235 Chapter 18 Principal Federal and State Tax Reporting and Regulatory Requirements 253 Part 5 General Accounting Topics Applied to Not-for-Profit Organizations 315 Chapter 19 Current Assets and Current Liabilities 317 Chapter 20 Inventory 325 Chapter 21 Long-Lived Assets, Depreciation, and Impairment 333 Chapter 22 Intangible Assets 345 Chapter 23 Contingencies 355 Chapter 24 Mergers and Acquisitions 371 Chapter 25 Accounting for Pensions and Postretirement Benefits 385 Chapter 26 Long-Term Liabilities 423 Chapter 27 Accounting Changes 441 Chapter 28 Accounting for Leases 447 Chapter 29 Financial Instruments 485 Chapter 30 Capitalization of Interest Costs 497 Appendix: Disclosure Checklist 503 Index 533

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Book SynopsisThe investigator's practical guide for cybercrime evidence identification andcollection Cyber attacks perpetrated against businesses, governments, organizations, and individuals have been occurring for decades. Many attacks are discovered only after the data has been exploited or sold on the criminal markets. Cyber attacks damage both the finances and reputations of businesses and cause damage to the ultimate victims of the crime. From the perspective of the criminal, the current state of inconsistent security policies and lax investigative procedures is a profitable and low-risk opportunity for cyber attacks. They can cause immense harm to individuals or businesses online and make large sums of moneysafe in the knowledge that the victim will rarely report the matter to the police. For those tasked with probing such crimes in the field, information on investigative methodology is scarce. The Cybercrime Investigators Handbook is an innovative guide that approaches cybercrime investigatiTable of ContentsList of Figures xi About the Author xiii Foreword xv Acknowledgments xvii Chapter 1: Introduction 1 Chapter 2: Cybercrime Offenses 9 Potential Cybercrime Offenses 11 Cybercrime Case Study 26 Notes 26 Chapter 3: Motivations of the Attacker 29 Common Motivators 30 Cybercrime Case Study I 33 Cybercrime Case Study II 34 Note 35 Chapter 4: Determining That a Cybercrime is Being Committed 37 Cyber Incident Alerts 38 Attack Methodologies 41 Cybercrime Case Study I 44 Cybercrime Case Study II 44 Notes 45 Chapter 5: Commencing a Cybercrime Investigation 47 Why Investigate a Cybercrime? 47 The Cyber Investigator 48 Management Support 48 Is There a Responsibility to Try to Get the Data Back? 50 Cybercrime Case Study 51 Notes 52 Chapter 6: Legal Considerations When Planning an Investigation 53 Role of the Law in a Digital Crimes Investigation 54 Protecting Digital Evidence 55 Preservation of the Chain of Custody 56 Protection of Evidence 59 Legal Implications of Digital Evidence Collection 60 Cybercrime Case Study 63 Note 63 Chapter 7: Initial Meeting with the Complainant 65 Initial Discussion 65 Complainant Details 68 Event Details 68 Cyber Security History 69 Scene Details 70 Identifying Offenses 71 Identifying Witnesses 71 Identifying Suspects 71 Identifying the Modus Operandi of Attack 72 Evidence: Technical 73 Evidence: Other 74 Cybercrime Case Study 74 Chapter 8: Containing and Remediating the Cyber Security Incident 77 Containing the Cyber Security Incident 77 Eradicating the Cyber Security Incident 80 Note 82 Chapter 9: Challenges in Cyber Security Incident Investigations 83 Unique Challenges 84 Cybercrime Case Study 91 Chapter 10: Investigating the Cybercrime Scene 93 The Investigation Team 96 Resources Required 101 Availability and Management of Evidence 104 Technical Items 105 Scene Investigation 123 What Could Possibly Go Wrong? 152 Cybercrime Case Study I 155 Cybercrime Case Study II 156 Notes 158 Chapter 11: Log File Identification, Preservation, Collection, and Acquisition 159 Log Challenges 160 Logs as Evidence 161 Types of Logs 162 Cybercrime Case Study 164 Notes 165 Chapter 12: Identifying, Seizing, and Preserving Evidence from Cloud-Computing Platforms 167 What is Cloud Computing? 167 What is the Relevance to the Investigator? 172 The Attraction of Cloud Computing for the Cybercriminal 173 Where is Your Digital Evidence Located? 174 Lawful Seizure of Cloud Digital Evidence 175 Preservation of Cloud Digital Evidence 177 Forensic Investigations of Cloud-Computing Servers 178 Remote Forensic Examinations 182 Cloud Barriers to a Successful Investigation 196 Suggested Tips to Assist Your Cloud-Based Investigation 203 Cloud-Computing Investigation Framework 206 Cybercrime Case Study 219 Notes 221 Chapter 13: Identifying, Seizing, and Preserving Evidence from Internet of Things Devices 225 What is the Internet of Things? 225 What is the Relevance to Your Investigation? 226 Where is Your Internet of Things Digital Evidence Located? 228 Lawful Seizure of Internet of Things Evidence 228 Notes 229 Chapter 14: Open Source Evidence 231 The Value of Open Source Evidence 231 Examples of Open Source Evidence 233 Note 236 Chapter 15: The Dark Web 237 Crime and the Dark Web 238 Notes 242 Chapter 16: Interviewing Witnesses and Suspects 243 Suspect Interviews 245 Witness Interviews 246 Preparing for an Interview 247 The Interview Process 250 Closing the Interview 254 Review of the Interview 254 Preparation of Brief for Referral to Police 255 Chapter 17: Review of Evidence 257 Chapter 18: Producing Evidence for Court 265 Digital Evidence and Its Admissibility 267 Preparing for Court 268 Chapter 19: Conclusion 273 Glossary 277 Index 283

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Book SynopsisAn essential guide for practitioners on avoiding unethical situations in a fraud investigationprovides tips, techniques, and real-life examples Credentialed accountants, auditors, and fraud examiners who fail to identify fraud and misconduct may be in violation of their professional standards. Among these standards are requirements to exercise professional and moral judgment, act in the best interest of the public, maintain integrity, objectivity, and independence, render opinions based on evidence and documentation, and exercise due care in planning and discharging professional activities. Failing to adhere to professional standards and ethical codes have serious consequences for CPAs, CFEs, and CIAs engaged in fraud investigations. Fraud helps readers avoid unethical situations in fraud investigations and stay within the boundaries of professional guidelines and standards. Author Jeffrey Matthews combines real-world techniques and practical advice with Table of ContentsPreface vii Introduction xi Statement on Standards for Consulting Services xx Discussion Points xxvii Chapter 1: F – Forgetting the Present and the Past 1 Fraud in the Present and Past 1 Management 6 External Auditors 11 Internal Auditors 17 Ethical Standards around the World 18 Audit versus Fraud Investigation 32 Summary 40 Recommendations 40 Chapter 2: R – Relying on Others 45 Introduction 45 Management 46 External Auditors 55 Internal Auditors 69 Expert Witnesses 71 Additional Considerations 74 Summary 75 Recommendations 75 Discussion Questions 76 Chapter 3: A – Accepting, Not Verifying 81 Introduction 81 Sufficient Evidential Matter 84 Management 89 External Auditors 96 Others: Expert Witnesses 100 Summary 106 Recommendations 106 Chapter 4: U – Underestimating the Effort 109 Introduction 109 External Auditors 111 Expert Witnesses, Fraud Examiners, and Consulting Experts 118 Management and Internal Audit 136 Summary 137 Recommendations 138 Chapter 5: D – Determining the Outcome Before the Work 141 Introduction 141 Objectivity 145 Objectivity in Other Areas 152 Due Professional Care and Skepticism 154 Summary 164 Recommendations 164 Chapter 6: Overcoming Barriers to Reporting Fraud and Misconduct 167 Introduction 167 Barriers 168 Summary 189 Recommendations 190 About the Author 195 Acknowledgments 197 Index 203

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Book SynopsisA one-of-a-kind reference guide covering the behavioral and statistical explanations for market momentum and the implementation of momentum trading strategies Market Momentum: Theory and Practice is a thorough, how-to reference guide for a full range of financial professionals and students. It examines the behavioral and statistical causes of market momentum while also exploring the practical side of implementing related strategies. The phenomenon of momentum in finance occurs when past high returns are followed by subsequent high returns, and past low returns are followed by subsequent low returns. Market Momentum provides a detailed introduction to the financial topic, while examining existing literature. Recent academic and practitioner research is included, offering a more up-to-date perspective. What type of book is Market Momentum and how does it serve a range of readers' interests and needs? A holistic market momenTable of ContentsContributors xvii Introduction xxiii Chapter 1 Behavioural Finance and Momentum 1 1.1 Introduction 1 1.2 The failure of risk-based explanations 3 1.3 Behavioural models of momentum 3 1.4 Slow information diffusion 5 1.5 Patterns in information arrival 6 1.6 The 52-week high and capital gains overhang 8 1.7 Institutional trading and momentum profits 10 1.8 Sentiment and momentum 11 1.9 Discussion 12 Chapter 2 A Taxonomy of Momentum Strategies 16 2.1 Introduction 16 2.2 Relative strength strategies 17 2.3 Time-series momentum strategies 18 2.4 Cross-sectional momentum strategies 20 2.5 Cross-asset momentum 27 Chapter 3 Demystifying Time-Series Momentum Strategies: Volatility Estimators, Trading Rules and Pairwise Correlations 30 3.1 Data Description 34 3.2 Methodology 39 3.3 Turnover Reduction 42 3.4 The Recent Underperformance of Time-series Momentum Strategies and the Effect of Pairwise Correlations 52 3.5 Trading Costs Implications 58 3.6 Concluding Remarks 63 Chapter 4 Risk and Return of Momentum in Developed Equity Markets 68 4.1 Introduction 68 4.2 Definition of momentum 69 4.3 Simple factor portfolios 71 4.4 Multifactor structure 73 4.5 Pure factor portfolios 75 4.6 Empirical results: momentum performance 76 4.7 Empirical results: momentum risk 80 4.8 Diversification benefits 83 4.9 Summary 84 Chapter 5 Momentum Across Asset Classes 86 5.1 Measuring momentum 87 5.2 Framework: equity momentum and corporate credit risk 87 5.3 Empirical studies: momentum and credit risk 89 5.4 Our research on equity momentum and bond returns 91 5.5 Geographically bound assets 92 5.6 Momentum in other illiquid assets 94 5.7 Cross-asset class effects of commodities 95 5.8 Momentum effects and taxable investors 95 5.9 Active management and momentum effects 96 5.10 Conclusions 98 Chapter 6 Momentum in Momentum ETFs 103 6.1 Introduction 103 6.2 Why are momentum ETFs so popular? 104 6.3 What is in a momentum ETF? 112 6.4 Which factors drive active risk for momentum ETFs? 114 6.5 From constrained to unconstrained strategies 117 6.6 Conclusions 119 Chapter 7 CTA Momentum 120 7.1 Introduction 120 7.2 Time-series momentum (TSM) 121 7.3 Strategy return models 127 7.4 Time-series momentum 131 7.5 TSM meets CSM with two instruments 133 7.6 Conclusions 135 7.A.1 Appendix A: Correlation parameter restrictions 136 7.A.2 Appendix B: Proofs of variances and covariance 138 Chapter 8 Overreaction and Faint Praise – Short-Term Momentum in Contemporary Art 141 8.1 Introduction 141 8.2 Contemporary art market ecosystem 144 8.3 ArtForecaster data 145 8.4 Systematic forecasting strategies 149 8.5 Conclusions 157 Chapter 9 Volatility-Managed Momentum 160 9.1 Introduction 160 9.2 Data and momentum portfolio construction 161 9.3 Volatility-managed momentum strategies 162 9.4 Some potential practical issues 166 9.5 The best volatility measure for momentum? 170 9.6 Concluding remarks 172 Chapter 10 Theoretical Analysis of the Fama-French Portfolios 174 10.1 Introduction 174 10.2 Strategies, notation and preliminaries 179 10.3 Distribution of Fama-French factors 182 10.4 Fama-French factors with sequential sorting 189 10.5 Conclusion 194 10.A.1 Proof of Lemma 1 194 10.A.2 Proof of Theorem 3 195 10.A.3 Proof of Theorem 4 196 Chapter 11 Exploiting the Countercyclical Properties of Momentum and other Factor Premia – A Cross-Country Perspective 199 11.1 Introduction 199 11.2 Methodology 200 11.3 Alternative investment strategies 206 11.4 Quantifying the utility of risk premia strategies 211 11.5 Summary and conclusions 215 Chapter 12 Time-Series Variation in Factor Premia: The Influence of the Business Cycle 218 12.1 Introduction 218 12.2 Factors and factor rotation 219 12.3 Factors and the business cycle 220 12.4 Data and summary statistics 222 12.5 Empirical results 224 12.6 Conclusions 234 12.A.1 Derivation of cash-flow news series 234 12.A.2 US leading economic indicator and global risk appetite indicator 236 12.A.3 Dynamic multifactor strategy: extension to other market segments and regions 236 Chapter 13 Where Goes Momentum? 243 13.1 Introduction 243 13.2 Momentum strategies 245 13.3 Data 246 13.4 Method 247 13.5 Results 252 13.6 Risk-adjusted after-transaction costs performance of time-series and cross-sectional momentum strategies 260 13.7 Conclusions 269 Chapter 14 Time-Series Momentum in Credit: Machine Learning Approach 273 14.1 Introduction 273 14.2 The philosophy of artificial intelligence 274 14.3 Vanilla time-series momentum 277 14.4 Generalized linear models (GLM) – Lasso, Ridge and Elastic Net 280 14.5 Determining optimal hyper-parameters via cross-validation 283 14.6 Results: generalized linear models 284 14.7 Random forests 284 14.8 Neural networks 289 14.9 Results and comments 291 14.10 Conclusion 293 Chapter 15 Momentum and Business Cycles 297 15.1 Introduction 297 15.2 Momentum, business cycles and realised market return 298 15.3 Momentum and expected market risk premiums 301 15.4 Momentum, overconfidence and sentiment 309 15.5 Summary and conclusions 311 Chapter 16 Momentum as a Fundamental Risk Factor 314 16.1 Introduction 314 16.2 Defining momentum as a strategy 316 16.3 A new framework 318 16.4 From realised returns to forecast returns 319 16.5 Examining behaviour 319 16.6 The momentum trader as a bystander 323 16.7 Extending the model 325 16.8 Short-term versus long-term investors 326 16.9 The impact of the short-term investor 330 16.10 The momentum risk premium 332 16.11 The Apollo asset pricing model 334 16.12 Momentum alpha 335 16.13 Beta momentum 339 16.14 Beta signal 340 16.15 Momentum strategies 341 16.16 Results 347 16.17 Analysis of results 353 16.18 Conclusions 355 Chapter 17 Momentum, Value and Carry Commodity Factors for Multi-Asset Portfolios 359 17.1 Introduction 359 17.2 Methodology and key research questions 361 17.3 Commodity factors – insights from the historical data 362 17.4 Wealth accumulation strategies and rebalancing considerations 366 17.5 Wealth decumulation strategies 373 17.6 Long/short versus long only strategies 375 17.7 Completion portfolios versus maximum Sharpe ratio portfolios 379 17.8 Conclusions 380 17.A.1 Momentum factor 381 17.A.2 Carry factor 381 17.A.3 Value factor 382 17.A.4 From commodity factors to factor portfolios 383 17.A.5 Factor construction 383 Index 387

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Book SynopsisBuild a winning portfolioand reduce your riskwith this bestselling guide Online investing has never been easieror more potentially confusing. Now that every broker or finance site has its own app, data, or approach, it can be all too easy to be misled and make a bad decision. Online Investing for Dummies helps you reduce risk and separate the gimmicks from the gold, pointing investors of all experience levels to the pro-tips, calculators, databases, useful sites, and peer communities that will lead to success. Updated to include information on mobile trading and the influence of social media on the markets, the book also covers the basicsshowing you how to figure out how much to invest, find data online, and pick an online broker. It then progresses through to more advanced topics, such as calculating returns, selecting mutual funds, buying bonds, options, commodities, and IPOs, taking you and your money wherever you want to go in the global market. <Table of ContentsIntroduction 1 About this Book 1 Foolish Assumptions 2 Icons Used in This Book 2 Beyond the Book 3 Where to Go from Here 3 Part 1: Getting Started Investing Online 5 Chapter 1: Getting Yourself Ready for Online Investing 7 Why Investing Online is Worth Your While 8 Getting Started 9 Measuring How Much You Can Afford to Invest 12 Turning yourself into a big saver 12 Using desktop personal finance software 13 Perusing personal finance websites 15 Capitalizing from personal finance apps 17 Saving with web-based savings calculators 18 Relying on the residual method 19 Using web-based goal-savings calculators 19 Deciding How You Plan to Save 21 To Be a Successful Investor, Start Now! 21 Learning the Lingo 22 Setting Your Expectations 23 Keeping up with the rate of return 23 The power of compounding 24 Determining How Much You Can Expect to Profit 24 Studying the past 25 What the past tells you about the future 28 Gut-Check Time: How Much Risk Can You Take? 30 Passive or Active? Deciding What Kind of Investor You Plan to Be 31 How to know if you’re a passive investor 31 Sites for passive investors to start with 32 How to know whether you’re an active investor 33 Sites for the active investor to start with 34 Chapter 2: Getting Your Device Ready for Online Investing 35 Turning Your Device into a Trading Station 36 Using favorites to put data at your fingertips 37 Putting key mobile apps a touch away 38 Compiling a list of must watch sites 39 Tracking the Market’s Every Move 39 Getting price quotes on markets and stocks 40 Slicing and dicing the markets 41 Your crystal ball: Predicting how the day will begin 43 Getting company descriptions 44 Keeping tabs on commodities 44 Tracking bonds and U.S Treasurys 45 Monitoring Market-Moving News 46 Financial websites 46 Traditional financial news sites 48 Checking In on Wall Street Chatter 50 Everyone is an expert: Checking in with blogs 51 Finding blogs 52 Getting in tune with podcasts 52 Taming Twitter 53 Keeping Tabs on the Regulators 54 Executing Trades 56 Searching the Internet High and Low 56 Keeping the Bad Guys Out: Securing Your PC 57 Mastering the Basics with Online Tutorials and Simulations 58 Online tutorials 59 Simulations 60 Chapter 3: Choosing the Best Account Type for You 63 Knowing How Different Accounts Are Taxed 64 Taxable accounts 64 Retirement accounts 64 Education savings accounts 65 Plain Vanilla: The Taxable Brokerage Account 66 The importance of dividends 67 How capital gains are taxed 69 The high tax price of being short-term 70 How long-term capital gains are taxed 71 When you can win from your losses 71 What to do with your worthless stock 73 Using technology to measure your capital gain 74 Measuring your capital gains if you’ve lost your records 77 How dividends are taxed 79 Retirement Accounts: Knowing Your 401(k)s from Your IRAs 80 401(k)s: A great place to get started 82 Managing your 401(k) plan online 83 Getting in tune with IRAs 84 Setting up an IRA 85 Going Back to School with Education Savings Accounts 86 Three numbers you need to know: 529 87 Getting up to speed on 529 plans online 88 Understanding 529 fees 89 Living in the 529’s shadow: The Coverdell 90 Chapter 4: Connecting with an Online Broker 91 Finding the Best Broker for You 92 The nine main factors to consider 92 Gotchas to watch out for 94 Separating the Types of Brokerages 94 Paying the minimum with a deep discounter 95 Get more with a discounter 97 Full-service traditional 104 Avoiding Hidden Fees 106 Finding Out What Reviewers Think 108 Is Your Money Safe? Checking Out Your Broker 110 Cutting the Cord: Mobile Trading 111 Pay Attention to Where Your Cash is Parked: Money Market Funds 113 Buying Stocks and Mutual Funds without a Broker 114 Stocks: Direct investments 114 Mutual funds: Straight from the mutual fund company 116 Opening and Setting Up Your Account 116 The checklist of what you need to know 117 The checklist of what you need to have 117 Chapter 5: Getting It Done: How to Enter and Execute Trades 119 Understanding How Stock Trades and Shares Are Handled 120 Ways you can hold your investments 120 A second in the life of a trade 126 Getting It Done: Executing Your Trades 127 Types of orders 127 Costs of different orders 129 Tailoring your trades even more 129 Going off the Beaten Path with Different Trading Techniques 130 Cashing in when stocks fall: Selling stock short 130 Tracking the short sellers 131 Living on borrowed time: Buying stock on margin 132 The call you don’t want to get: The margin call 135 The nightshift: Trading in the extended hours 135 Knowing Your Options: Basic Ways to Best Use Options 136 The different types of options 137 Basic options strategies 137 How to get option prices online 140 How to buy options online 141 Discovering more about options online 142 Stepping Through Placing a Trade 143 Using the brokerage’s website 143 Using the brokerage’s mobile app 145 Using the brokerage’s PC software 146 Part 2: Using Online Investment Resources 149 Chapter 6: Why Stock Prices Rise and Fall 151 How Stocks Get into the Public’s Hands 152 Step 1: An idea becomes a company 152 Step 2: The company expands and grows 152 Step 3: The company goes public 154 Step 4: The new shares trade 155 Why Stocks Move Up and Down in the Short Term 155 Tracking the market’s every move 156 Getting in tune with earnings reports 157 Companies and the company they keep in their industries 162 Monitoring the big cheese 165 Where it all begins: Tracking prices of raw materials 165 Getting with the mo’ 166 Mania over merger chatter 167 Why bond yields aren’t boring 168 The heartbeat of the economy: Economic reports 168 What they know that you don’t — Insider buying and selling 170 Knowing how investors are feeling: Tracking market sentiment 172 What Moves Stocks in the Long Term? 175 Going back to school with academic research 175 Learning from the wise men 176 Chapter 7: Connecting with Other Investors Online 179 Finding Kindred Investment Spirits Online 180 Getting the Message with Stock Message Boards 180 Stock message boards aren’t for everyone 181 Understanding the types of stock message boards 181 Knowing the ulterior motives of some online stock message board members 182 Determining what exchange or market a stock trades on 184 A penny saved: Beware of penny stocks 185 Connecting with an Investment Club 187 How to find an investment club that suits you 188 Understanding the drawbacks of investment clubs 188 Social Networking Comes of Age 189 What’s the fuss about Twitter? 190 Getting a read on the market with Twitter 193 Giving Facebook some face time 194 The Brave New World: Social Networking Meets Online Investing 196 Social investing sites as a higher form of stock message boards? 196 Plugging into social investing sites 197 Starting to get social: Trying social investing sites 198 Chapter 8: Measuring Your Performance 199 The Importance of Tracking Your Performance 200 Why it’s worth the trouble to measure your returns 200 Why you want to measure your risk, too 201 Calculating Your Performance Yourself 202 The easiest way to calculate returns 203 An easy way to calculate returns if you’ve deposited or taken out money 203 The hardest way to calculate returns 205 Calculating How Risky Your Portfolio is 206 A simple way of calculating your average return 207 Calculating your risk 209 What does it all mean? Sizing up your portfolio 210 Finding other things to compare your returns to 211 Using Online Tools to Calculate Your Performance 212 Looking at online performance-measurement tools 213 Using personal finance and performance-tracking software 213 Using stock simulation and social investing sites 214 Using portfolio-tracking websites 215 Using performance-analytics websites 216 Chapter 9: Choosing an Asset Allocation 219 The Recipe for Your Online Investing: Asset Allocation 220 What’s so great about diversification? 221 Zig-zag: The second element of diversification 221 Bigger isn’t always better: Understanding size 223 Picking investments with the right styles 224 How rebalancing steadies your portfolio 226 How discipline can save your portfolio from getting punished 227 Using and Finding Your Perfect Asset Allocation 227 Determining your current asset allocation 228 Using guidelines 230 Picking an asset allocation based on your risk tolerance 232 Picking an asset allocation based on your goals 234 Chapter 10: Finding and Buying Mutual Funds 237 The Feeling is Mutual: Understanding Mutual Funds 238 Considering the pros of mutual funds 238 Drawbacks of mutual funds worth considering 239 Types of Investment Companies 240 Categorizing Mutual Funds 242 Stock funds 242 Bond funds 243 Money market funds 243 Hybrid funds 244 What to Look for in a Mutual Fund 245 Deciphering the morass of mutual fund fees 247 Finding mutual funds that work for you 249 Buying mutual funds with an online broker 250 How to buy mutual funds without a broker 251 Comparing Mutual Funds 252 Putting funds’ characteristics side by side 252 Analyzing a mutual fund’s risk 253 Getting the Full Story: Reading a Mutual Fund’s Prospectus 254 Getting More Information about Funds 255 Chapter 11: Finding and Buying Exchange-Traded Funds 257 Getting to Know ETFs 258 Invest in Popular Indexes with ETFs 260 How to Find the Right ETF for the Job 260 Tracking ETFs’ every move 262 ETF fees can vary 262 Finding out how pricey an ETF is 264 Using ETF-Recommending Robo-Advisors 265 What the heck is a robo-advisor? 265 Robo-advisors that hold your hand 266 Robo-advisors that are completely automated 267 ETFs That Go off the Beaten Path 269 ETFs Have Issues, Too 270 A Few Final Things to Consider about ETFs 271 Using ETFs as a way to invest in themes 272 Betting on commodities and currencies with ETFs 272 Reading the fine print: The prospectus 273 Part 3: Maximizing Investment Knowledge 275 Chapter 12: Putting Companies Under the Microscope 277 Understanding Financial Statements 278 Downloading financial statements 279 Reading the income statement 281 Basics about the balance sheet 282 Understanding the cash flow statement 284 Putting it all together 284 Spotting trends in financial statements 286 Using financial statements to understand the company 288 Unearthing Details about the Company from Regulatory Filings 289 Finding the nitty-gritty description of the company 290 Getting the details on company announcements 290 Finding out whether the company is being sued 290 Getting the truth from management 291 Seeing whether the company got into a tiff with its auditors 292 Weighing the risk of failure 293 Seeing what the company is worried about 293 Assessing how much the company’s management is getting paid 293 Determining the independence of the company’s leadership 294 Chapter 13: Evaluating Stocks’ Prospects 295 Finding Out How to Not Overpay for Stocks 296 Quick ways to determine how pricey a stock is 298 Ways to interpret valuations 300 Studying stocks using automated tools 303 Shortcomings of studying stocks’ valuation ratios 303 The armchair investor’s way to not overpay 305 Evaluating Stocks’ Potential Return and Risk 305 Measuring a stock’s total return 306 Finding out more about risk and return online 307 Digging Even Deeper: Advanced Valuation Techniques 308 Using the dividend discount model to see whether a stock is on sale 308 The value hunter’s favorite weapon: The discounted cash flow analysis 309 Chapter 14: Finding Investment Ideas with Online Stock Screens 313 Getting Familiar with Stock Screens 314 Creating an online screen 315 General characteristics you can use to screen stocks 316 Choosing an online screening site 317 Knowing What You’re Looking For: Popular Screening Variables 319 The basics: Because you have to start somewhere 319 Getting more particular: More advanced variables to screen for 321 Finding stocks using trading-pattern variables 322 Getting Started with Premade Screens 323 Designing a Custom Screen 325 Finding different industries’ best companies by using Yahoo! Finance 326 Finding value or growth companies by using Morningstar’s Stock Screener 327 Chapter 15: Analyzing the Analysts and Stock Pickers 329 Picking Apart Professional Analyst Reports 330 Accessing analyst reports online 330 Determining which Wall Street analysts are worth listening to 332 What to look for in an analyst report 334 Pssst understanding the whisper number 335 Accessing and understanding credit ratings 335 Connecting with Online Stock Ratings 338 Putting quant stock models to work for you 338 Sharing stock ratings with other investors online 339 Evaluating Stock- and Mutual Fund–Picking Newsletters and Websites 341 Before you sign up for a stock-picking service 341 Using newsletters to your advantage 342 Chapter 16: Researching and Buying Bonds Online 345 Getting Acquainted with Bonds 346 Knowing who issues debt 347 Online resources to find out more about bonds 350 Common traits of bonds 350 Finding and Buying Bonds Online 355 Finding individual bonds online 355 Sealing the deal: Buying individual bonds online 357 Considering Bond Alternatives 359 Money market funds and certificates of deposit 360 Wall Street’s lost child: Preferred stock 361 Part 4: The Part of Tens 363 Chapter 17: Ten Top Mistakes Made by Online Investors 365 Buying and Selling Too Frequently 366 Letting Losers Run and Cutting Winners Short 367 Focusing on the Per-Share Price of the Stock 367 Failing to Track Risk and Return 368 Taking Advice from the Wrong People 368 Trying to Make Too Much Money Too Quickly 369 Letting Emotions Take Over 370 Looking to Blame Someone Else for Your Losses 371 Ignoring Tax Considerations 372 Dwelling on Mistakes Too Long 372 Chapter 18: Ten Ways to Protect Your Investments and Identity Online 373 Beware of Pyramid Schemes 374 Steer Clear of Ponzi Schemes 375 Avoid Tout Sheets and Know Whom You’re Taking Advice From 376 Don’t Fall for Investment Spam Emails 377 Understand Loopholes Scammers Can Use 378 Familiarize Yourself with the Fingerprints of a Scam 379 Learn to Be an Online Sleuth 380 Know How to Complain If You Suspect a Fraud 380 Make Sure That Your Computer is Locked Down 381 Be Aware of Online Sources for More Information 382 Chapter 19: Online Investors’ Ten Most Common Questions 383 How Do I Find Out Which Companies Are Going to Split Their Stock? 384 Can I Use Options to Boost My Returns? 384 Can I Still Lose Money If I Invest in Bonds? 385 What’s the Easiest Way to Invest in Commodities? 386 How Long Will it Take for Me to Double My Money? 386 Do I Have a Say in How a Company I’m Invested in Operates? 387 How Can Deep-Discount Online Brokers Make Money Charging $5 or Less for Trades? 388 How Are Hedge Funds, Private-Equity Funds, and Venture Capital Funds Different? 388 If a Company is Buying Back Its Stock, Does That Mean the Stock is Cheap? 389 If I Own a House, Do I Need to Hold Real-Estate Investment Trusts in My Stock Portfolio, Too? 390 Index 391

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Book SynopsisMake AI technology the backbone of your organization to compete in the Fintech era The rise of artificial intelligence is nothing short of a technological revolution. AI is poised to completely transform asset management and investment banking, yet its current application within the financial sector is limited and fragmented. Existing AI implementations tend to solve very narrow business issues, rather than serving as a powerful tech framework for next-generation finance. Artificial Intelligence for Asset Management and Investment provides a strategic viewpoint on how AI can be comprehensively integrated within investment finance, leading to evolved performance in compliance, management, customer service, and beyond. No other book on the market takes such a wide-ranging approach to using AI in asset management. With this guide, you'll be able to build an asset management firm from the ground upor revolutionize your existing firmusing artificial intelligence as the cornerstone and foTable of ContentsPreface xv Acknowledgments xxi Chapter 1: AI in Investment Management 1 What about AI Suppliers? 5 Listening without Judging 6 The Four Stages of AI in Investments 9 The Core Model of AIAI 14 Your Journey through This Book 16 How to Read and Apply this Book? 16 References 17 Chapter 2: AI and Business Strategy 19 Why Strategy? The Red Button 19 AI—a Revolution of its Own 21 Intelligence as a Competitive Advantage 22 Intelligence as a Competitive Advantage and Various Strategy Schools 23 The Intelligence School 25 Intelligence and Actions 26 Actions 27 Automation 28 Intelligence Action Chain and Sequence 28 Enterprise Software 29 Data 29 Competitive Advantage 30 Business Capabilities 31 Chapter 3: Design 35 Who Is Responsible for Design? 36 Introduction to Design 36 AI as a Competitive Advantage 38 The Ten Elements of Design 40 1. Design Your Business Model 41 2. Set Goals for the Entire Firm 44 3. Specify Objectives for Automation and Intelligence 45 4. Design Work Task Frames Based on Human-Computer Interaction 45 5. Perform a DTC (Do, Think, Create) Analysis 46 6. Create a SADAL Framework 47 7. Deploy a Feedback System and Define Performance Measures 49 8. Determine the Business Case or Value 49 9. Analyze Risks 50 10. Develop a Governance Plan 50 Some Additional Ideas about Designing Intellectualization 50 Summary of the Design Process 51 References 52 Chapter 4: Data 53 Who Is Responsible for the Data Capability? 53 Data and Machine Learning 55 Raw Data 55 Structured vs. Unstructured Data 56 Data Used in Investments 57 Data Management Function for the AI Era 58 Step 1: Data Needs Assessment (DNA) 59 Step 2: Perform Strategic Data Planning 59 Step 3: Know the Sensors and Sources (Identify Gaps) 61 Step 4: Procure and Understand the Supply Base 61 Step 5: Understand the Data Type (Signals) 62 Step 6: Organize Data for Usability 62 Step 7: Architect Data 63 Step 8: Ensure Data Quality 63 Step 9: Data Storage and Warehousing 63 Step 10: Excel in Data Security and Privacy 63 Step 11: Implement Data for AI 64 Step 12: Provide Investment Specialization 65 About Legacy Data Management 66 References 67 Chapter 5: Model Development 69 Who Is Responsible? 69 High-Level Process 70 Models 73 The Power of Patterns 74 Techniques of Learning 75 What Is Machine Learning? 76 Scientific Process on Steroids 79 The Learning Machines 79 Algorithms 80 Supervised Learning 82 Supervised: Classification 85 Classification: Random Forest 86 Classification: Using Mathematical Functions 87 Classification: Simple Linear Classifier 88 Supervised: Support Vector Machine 91 Classification: Naive Bayes 94 Classification: Bayesian Belief Networks 95 Classification: k-Nearest Neighbor 95 Supervised: Regression 96 Supervised: Multidimensional Regression 99 Unsupervised Learning 100 Neural Networks 103 Reinforcement Learning 106 References 107 Chapter 6: Evaluation 109 Who Performs the Evaluation? 109 Problems 111 Making the Model Work 111 Overfitting and Underfitting 113 Scale and Machine Learning 113 New Methods 114 Bias and Variance 115 Backtesting 116 Backtesting Protocol 119 References 121 Chapter 7: Deployment 123 Reference Architecture 127 The Reference Architecture and Hardware 130 References 131 Chapter 8: Performance 133 Who Is Responsible for Performance? 134 What Are the Work Processes of Performance? 134 Business Performance 136 Technological Performance 138 References 141 Chapter 9: A New Beginning 143 Building an Investment Management Firm Around Artificial Intelligence? 144 The Fallacy of Going Digital 145 Why Build Your Firm Around AI? 148 You Must Rely on Your Own Capabilities 149 What Is Asset Science? 150 A Healthy Cycle 154 The Tool Set 155 This Is Not Just Automation 156 References 157 Chapter 10: Customer Experience Science 159 Customer Experience 159 Value, Strength, and Duration of Relationship 160 Understanding Customers: Empathy for CX 161 Steps to Become an Empathetic Asset Management Firm 162 Know Your Empmeter 162 Expand Empathy Awareness and Understanding 163 Incorporate into Products and Services 163 What Is Automated Empathy and Compassion (AEC)? 163 Incorporating AEC Marketing 165 References 168 Chapter 11: Marketing Science 171 Who Undertakes This Responsibility? 171 How to Apply AI for Marketing 172 Begin with Assessment 172 Know Your Data 174 The AI Plan for Asset Management Marketing 176 Perform Strategic Planning 176 Manage Product Portfolio with AI 179 Transform Your Communications 180 Build Relationships 181 Execute with Excellence 181 References 182 Chapter 12: Land that Institutional Investor with AI 183 Who Is Responsible for IRMS Automation? 183 Is IRMS Your CRM System? 184 Know Thyself: Automated Self-Discovery 184 Automated Asset Class Analysis 185 Automated Institutional Analysis 185 Automated Structure and Terms Analysis 186 Automated Fee Analysis 186 Automated Communications 186 Unleash the Power of Knowing 188 Chapter 13: Sales Science 189 What Is Sales Science? 189 Who Is Responsible for Implementing Sales Science? 190 Are You Driving This in Sales? 190 How to Build Your AI-Based Sales System 193 References 195 Chapter 14: Investment: Managing the Returns Loop 197 Who Is Responsible for Investment Management? 197 How to Approach Building the New-Era Investment Function? 198 The Core Tool Set 204 What Will Be the Function of Your Investment Lab? 206 Make the Decisions 206 A New World 207 The (Unnecessary) Debate 208 More Behaviors 208 Research and Investment Strategy 209 Portfolio 210 Performance 210 References 210 Chapter 15: Regulatory Compliance and Operations 213 Who Is Responsible? 213 Regulatory Compliance 213 Why Intelligent Automation? 214 Have You Scoped Out What to Do? 215 How to Do It? 215 How to Use Technology for GIPS Implementation? 217 Back and Middle Office 219 Chapter 16: Supply Chain Science 221 Who Is Responsible for Supply Chain Science? 221 How to Think about Supply Chains 222 References 225 Chapter 17: Corporate Social Responsibility 227 CSR Woes: Can Processes Explain Them? 227 What Are the Criticisms of CSR? 228 Measurement Issues 228 Behavioral and Role Issues 230 Strategic and Organizational Issues 230 How to Apply AI in CSR? 231 CSR Must Not Be Forgotten 232 ESG Investment 232 How Can AI Help? 234 You Must Avoid These Mistakes 236 Summary Steps 236 References 237 Chapter 18: AI Organization and Project Management 241 The New Asset Management Organization 241 Why a CAIO/COO Role? 243 What Is Changing? 244 How to Get There? 244 Issues of the New Organization 246 Change Management 248 Managing AI Projects 249 References 250 Chapter 19: Governance and Ethics 251 Corporate Governance with AI 251 Governance of AI 257 Framing the Ethical Problems from a Pragmatic Viewpoint 261 Some Obvious Ethical Issues 262 Humans and AI 262 Ethics Charter 263 References 264 Chapter 20: Adaptation and Emergence 267 The Revolution Is Real 268 Complex Adaptive Systems 270 Our Coronavirus Meltdown Prediction 271 Index 273

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Book SynopsisStrategically integrate AI into your organization to compete in the tech era The rise of artificial intelligence is nothing short of a technological revolution. AI is poised to completely transform accounting and auditing professions, yet its current application within these areas is limited and fragmented. Existing AI implementations tend to solve very narrow business issues, rather than serving as a powerful tech framework for next-generation accounting. Artificial Intelligence for Audit, Forensic Accounting, and Valuation provides a strategic viewpoint on how AI can be comprehensively integrated within audit management, leading to better automated models, forensic accounting, and beyond. No other book on the market takes such a wide-ranging approach to using AI in audit and accounting. With this guide, you'll be able to build an innovative, automated accounting strategy, using artificial intelligence as the cornerstone and foundation. This is a must, bTable of ContentsPreface ix Acknowledgments xiii Part I: Foundations For AI and Audit Chapter 1: Introduction: Staying Ahead of the Emergent Risk 3 Chapter 2: Fourth Industrial Revolution and Its Impact on Audit 23 Chapter 3: What is Artificial Intelligence? 37 Chapter 4: Rise of Machine Learning 51 Chapter 5: Machine Learning 69 Chapter 6: Building an IAA Audit Firm: The Planning Toolkit 103 Part II: Building the Automated Audit Function in the Enterprise Chapter 7: Obtain, Retain, and Preplan with AI 119 Chapter 8: Automated Inherent Risk Assessment 147 Chapter 9: Automating Internal Controls Assessment 165 Chapter 10: Automated Procedures 189 Chapter 11: Reporting and Post-Audit Management 203 Part III: Forensic Accounting Automation Chapter 12: Intelligent Automation of Fraud Detection 217 Chapter 13: Forensic Accounting 227 Chapter 14: Managing for Value and Valuation 241 Chapter 15: Tying It Together and Robots 251 Part IV: Management, Organization, and Governance For AI in Audit Chapter 16: Client Management 265 Chapter 17: AI Organization and Project Management 275 Chapter 18: Governance and Ethics 283 Index 291

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Book SynopsisAn indispensable resource for anyone wishing to understand and successfully invest in the Nikkei. Recent years have seen steady growth in investor interest in the Japanese equity market, the second largest in the world. Japanese Equities describes how the Nikkei works, explains its driving factors and presents a collection of insightful case studies to help you successfully invest in the market. Author Michiro Naito, a former equity derivatives/quantitative strategist for J.P. Morgan Securities Japan, helps you understand the ups and downs of the market and capitalise on its money-making opportunities. Already a substantial part of many equity investor portfolios, the Nikkei exhibits characteristics that respond more sensitively to global economic conditions than other developed markets. This valuable book helps you grasp the idiosyncrasies of the market and correctly time investing decisions to maximise profits. This English translation of the original JTable of ContentsAbout the Author vii Acknowledgments ix Preface xi Chapter 1 Macro Indicators and Seasonality 1 Chapter 2 Policy Impact 25 Chapter 3 Topics Derivatives 65 Chapter 4 Market Tops and Bottoms 93 Chapter 5 Other Market Movers 111 Chapter 6 September 2017–December 2018 145 Epilogue 165 Index 169

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Book SynopsisTable of ContentsForeword vii Preface ix Acknowledgments xv Chapter 1 What is My Business Worth? 1 Chapter 2 Valuation Basics 3 Chapter 3 Why is Valuing Small Businesses Different from Valuing Larger Businesses? 29 Chapter 4 Assessing the Subject Company 37 Chapter 5 Normalization of Cash Flows 81 Chapter 6 Market Approaches 107 Chapter 7 Asset Approaches 145 Chapter 8 Income Approaches 157 Chapter 9 Valuing Partial Interests in a Business 221 Chapter 10 Goodwill and the Small Business 255 Chapter 11 Accounting Issues with Small and Very Small Businesses 265 Chapter 12 Details for Business Valuators 301 Chapter 13 Assisting the Small Business Buyer or Seller 317 Chapter 14 How to Review a Business Valuation 369 Chapter 15 Final Thought 397 About the Website 399 Index 401

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Book SynopsisLinks theory and practice for investment professionals and portfolio managers, demonstrating why some portfolios consistently perform better than others Investing well, like any other business, depends on competitive advantage. Some portfolios reliably generate greater returns than others because they simply are better positioned to benefit from strengths and avoid weaknesses. Building and using competitive advantage becomes central to the daily work of the best mutual funds, hedge funds, banks, insurers and virtually every other type of portfolio. But competitive advantage commonly is overlooked in most written work for investment professionals. The literature often varies between abstract formal treatments and pragmatic workbooks with little in between. Competitive Advantage in Investing fills the gap by integrating modern portfolio theory with actual practice in one comprehensive volume. This innovative book guides investment professionals on building Table of ContentsPreface ix Acknowledgments xiii Part I Theory 1 1 Welcome, Harry Markowitz 3 2 A Sharpe Line 17 3 The Counsel of Critics 27 4 Toward a New Capital Asset Pricing Model 35 5 The Local Capital Asset Pricing Model 41 6 Creating Competitive Advantage 53 7 Building a Portfolio on Competitive Advantage 65 Part II Practice 73 8 Investing for Total Return: Mutual Funds 75 9 Investing for Total Return: Hedge Funds 99 10 Investing for Banks, Thrifts, and Credit Unions 121 11 Investing for Property/Casualty and Life Insurers 159 12 Investing for Broker/Dealers 187 13 Investing for Real Estate Investment Trusts 203 14 Investing for Sovereign Wealth Funds 213 15 Investing for Individuals 229 Part III Markets 243 16 Turning the Tables: Investor Impact on Asset Values 245 References 255 About the Author 265 Index 267

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Book SynopsisGrasp the fundamentals of real estate accounting, finance, and investments Real Estate Accounting Made Easy is just thatan accessible beginner's guide for anyone who needs to get up to speed on the field of real estate accounting, finance, and investments. Beginning with the elementary aspects of real estate to ensure that you're comfortable with the subject matter, it goes on to explore more in-depth topics in a way that's easy to digest. The book begins with discussions on introduction to the real estate industry and basic real estate accounting. Building on knowledge from the initial chapters, the book goes on to cover the different form of real estate organizations, financial statements such as the balance sheet, income statement, shareholders equity and the statement cash flow, and more. Provides theories and practices of real estate from an accounting, financial, and investments perspective Advanced transactions are discussed in an easTable of ContentsAbout the Author xi Preface xiii Chapter 1 Introduction to Real Estate 1 Types of Real Estate Assets 1 Common Industry Terms 8 Chapter 2 Basic Real Estate Accounting 17 History of Double-Entry Bookkeeping 17 Types of Accounts 18 Accounting Methods 22 Recording of Business Transactions in the Accounting System 23 Journal Entries 24 Basic Accounting Reports 26 Chapter 3 Forms of Real Estate Organizations 39 Sole Ownership 40 Common and Joint Ownership 40 Partnerships 41 Joint Ventures 43 Corporations 44 Limited Liability Companies 45 Real Estate Investment Trusts 46 Chapter 4 Accounting for Operating Property Revenues 49 Contracts with Multiple Components 49 Lease Classification 50 Lessor Accounting of Operating Leases 51 Types of Operating Leases 52 Additional Cost Recoveries 57 Operating Expenses Gross-Up 58 Contingent Rents 59 Rent Straight-Lining 60 Modification of an Operating Lease 65 Sublease of Operating Lease 67 Chapter 5 Accounting for Operating Property Expenses 69 Lessee Measurement and Recording of Operating and Finance Leases 70 Contracts with Multiple Components 71 Lease Liabilities and Right-of-Use Assets 73 Initial Direct Costs 74 Lessee Journal Entries of Operating and Finance Leases 75 Lessor Operating Property Expenses 81 Operating Costs 82 Chapter 6 Operating Expense Reconciliation and Recoveries 91 Most Common Recoverable Operating Expenses 92 Most Common Nonrecoverable Operating Expenses 92 Calculating Tenant Pro Rata Share of Expenses 93 Chapter 7 Lease Incentives and Tenant Improvements 97 Lease Incentives 97 Tenant Improvements 99 Tenant Improvement Journal Entries 99 Further Comparison of Lease Incentives and Tenant Improvements 100 Differences in Cash Flow Statement Presentation 101 Demolition of Building Improvement 101 Chapter 8 Budgeting for Operating Properties 103 What is a Budget? 103 Components of a Budget 103 Chapter 9 Variance Analysis 109 Sample Operating Property Variance Analysis 109 Salient Points on a Variance Analysis 112 Chapter 10 Market Research and Analysis 113 Market Research Defined 113 Market Analysis Defined 113 Market Research: Practical Process 114 Chapter 11 Real Estate Valuation and Investment Analysis 121 What is Real Estate Valuation? 121 Approaches to Real Estate Valuation 122 Chapter 12 Financing of Real Estate 133 Equity 133 Debt Financing 133 Other Financing Sources 136 Types of Loans 137 Debt Agreements 137 Financing Costs 141 Relationship Between a Note and a Mortgage 142 Accounting for Financing Costs 142 Chapter 13 Accounting for Real Estate Investments and Acquisition Costs 143 Methods of Accounting for Real Estate Investments 143 Purchase Price Allocation of Acquisition Costs of an Operating Property 148 Chapter 14 Accounting for Project Development Costs on GAAP Basis 153 Stages of Real Estate Development Projects 153 Pre-development Stage 154 Development Stage 156 Post-development Stage 161 Chapter 15 Real Estate Development Revenue Recognitions 163 Requirements for Revenue Recognition 164 Revenue Recognition Journal Entries 165 Revenue Recognition When Performance Obligation is Satisfied Over Time 166 Chapter 16 Real Estate Brokerage Accounting 169 Real Estate Brokerage Revenues 169 Brokerage Commissions in Real Estate Development Projects 174 Real Estate Brokerage Costs 176 Chapter 17 Audits 179 Audit Overview 179 Types of Audits 185 Index 191

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Book SynopsisGet effective and efficient instruction for the REG portion of the CPA exam in 2020Wiley CPAexcel Exam Review 2020 Focus Notes Regulation reinforce key concepts for the regulation portion of the Certified Public Accountants exam. Contained in an easy-to-carry spiral-bound book and designed to be easy-to-read and review, these focus notes will help you to learn and retain crucial accounting rules, formulas, concepts, acronyms, and more.

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Book SynopsisGet effective and efficient instruction for the AUD portion of the CPA exam in 2020Wiley CPAexcel Exam Review 2020 Focus Notes Auditing and Attestation reinforce key concepts for the auditing and attestation portions of the Certified Public Accountants exam. Contained in an easy-to-carry spiral-bound book and designed to be easy-to-read and review, these focus notes will help you to learn and retain crucial accounting rules, formulas, concepts, acronyms, and more.

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Book SynopsisSharpen your understanding of the financial markets with this incisive volume Equity Markets, Valuation, and Analysis brings together many of the leading practitioner and academic voices in finance to produce a comprehensive and empirical examination of equity markets. Masterfully written and edited by experts in the field, Equity Markets, Valuation, and Analysis introduces the basic concepts and applications that govern the area before moving on to increasingly intricate treatments of sub-fields and market trends. The book includes in-depth coverage of subjects including: The latest trends and research from across the globe The controversial issues facing the field of valuation and the future outlook for the field Empirical evidence and research on equity markets How investment professionals analyze and manage equity portfolios This book balances its comprehensive discussion of the empirical foundations of equity markets with the perspectives of financial experts. It is ideal fTable of ContentsAcknowledgments xiii About the Editors xv About the Chapter Authors xvii Chapter 1 Equity Markets, Valuation, and Analysis: An Overview 1H. Kent Baker, Greg Filbeck and Halil Kiymaz Introduction 1 About This Book 3 Structure of the Book 5 Summary and Conclusions 12 References 13 Part One Background Chapter 2 Ownership Structure and Stock Classes 17Christopher J. Barnes, Ehsan Nikbakht and Andrew C. Spieler Introduction 17 Single-Class Common Equity 18 Dual-Class Common Equity 26 Summary and Conclusions 29 Discussion Questions 29 References 29 Chapter 3 Equity Markets and Performance 33Jay T. Brandi and Xudong Fu Introduction 33 The Equity Market and the Economy 35 Market Indicators 39 Good Markets – Liquidity 40 Good Markets – Efficiency 41 Information Disclosure 43 Enforcement 43 Monetary Policies 44 Investments: Comparative Risk and Return 44 Stocks Versus Bonds: The Issuer’s Perspective 47 Summary and Conclusions 48 Discussion Questions 48 References 48 Chapter 4 Securities Regulation 51Douglas Cumming and Sofia Johan Introduction 51 Trading Rules and Rules Pertaining to Broker-Dealer Conduct 52 Surveillance 58 Enforcement 59 Impact of Trading Rules and Surveillance on Corporate Outcomes 59 Summary and Conclusions 60 Discussion Questions 61 References 61 Chapter 5 Investor Psychology and Equity Market Anomalies 63Hunter M. Holzhauer Introduction 63 Investor Psychology: Bounded Rationality 64 Investor Psychology: Prospect Theory 65 Equity Market Anomalies: Violations of the EMH 67 Summary and Conclusions 73 Discussion Questions 74 References 74 Part Two Valuation and Analysis Chapter 6 Financial Statement Analysis and Forecasting 81Somnath Das and Shailendra Pandit Introduction 81 Background 82 Technical Analysis–Based Forecasting 83 Time Series–Based Forecasting 83 Fundamental Analysis–Based Forecasting 85 Process of Analyzing Financial Statements 85 Evidence on the Usefulness of Financial Statement Analysis 86 Security Analysts and Financial Statement Analysis 88 Limitations of Using Financial Statement Analysis in Forecasting 90 Summary and Conclusion 91 Discussion Questions 92 References 92 Chapter 7 Fundamentals of Equity Valuation 97Emmanuel Boutron, Alain Coën and Didier Folus Introduction 97 What is Equity Valuation? 97 Free Cash Flow–Based Valuation 101 Dividend-Based Valuation 104 Market-Based Valuation: Multiples and Ratios 106 Modeling the Required Asset Return 108 Option Theory–Based Valuation 110 Summary and Conclusions 111 Discussion Questions 111 References 111 Chapter 8 Company Analysis 113David Craig Nichols Introduction 113 Three Steps Linking Business Activities to Equity Prices 113 Accounting Analysis 117 Fundamental Analysis 119 Summary and Conclusions 127 Discussion Questions 127 References 127 Chapter 9 Technical Analysis 131David Lundgren Introduction 131 Background 131 Pulling It All Together: Fundamentals, Biases, and Trends 138 Summary and Conclusions 145 Discussion Questions 146 References 146 Chapter 10 Discounted Dividend Valuation 149Elif Akben-Selçuk Introduction 149 The General Model 149 Constant Growth or Gordon Model 150 Multistage Models 151 Stochastic Models 155 Uses of Ddms 158 Empirical Tests of the Dividend Discount Model 160 Summary and Conclusions 161 Discussion Questions 162 References 162 Chapter 11 Free Cash Flow Valuation 165Tom Barkley Introduction 165 General Approach to FCF Analysis 166 Four Special Cases of FCF Valuation Approaches 170 Summary and Conclusions 181 Discussion Questions 182 References 182 Chapter 12 Market-based Valuation 185Sang Hoon Lee Introduction 185 Widely Used Valuation Multiples and Valuation Steps 186 Selecting Comparable Firms 190 The Efficacy of Different Multiples in Valuation 191 Common Factors Determining Different Multiples 195 Summary and Conclusions 199 Discussion Questions 199 References 199 Chapter 13 Residual Income Valuation 201Shailendra Pandit and Somnath Das Introduction 201 History and Foundations of Residual Income 201 Computing Residual Income 203 Equity Valuation Using Residual Income 205 Numerical Example 206 Applying RI to Equity Valuation 207 Evaluation and Critique of Residual Income 208 Summary and Conclusions 211 Discussion Questions 212 References 212 Chapter 14 Private Company Valuation 215Onur Bayar and Yini Liu Introduction 215 DCF Valuation Methods for Private Companies 216 The Comparable Firms Approach in Private Company Valuation 220 The Venture Capital Method for High-Growth Private Companies 224 Option Valuation for Private Companies 226 Summary and Conclusions 227 Discussion Questions 227 References 228 Part Three Equity Investment Models and Strategies Chapter 15 Equity Investing Strategies 231Nicholas Biasi, Andrew C. Spieler and Raisa Varejao Introduction 231 Value Investing 232 Growth Investing 233 Growth at a Reasonable Price 235 Income Investing 236 Index Investing 236 Quantitative Trading 237 Technical Analysis 238 Options Strategies 239 ESG Investing 240 Summary and Conclusions 241 Discussion Questions 242 References 242 Chapter 16 Factor Investing 243Aaron Filbeck Introduction 243 History 243 Factors of Prominence 246 Recent Factor Discoveries 253 Portfolio Implementation Considerations 256 Summary and Conclusions 259 Discussion Questions 260 References 260 Chapter 17 Smart Beta Strategies versus Alpha Strategies 263Timoathy A. Krause Introduction 263 What is Smart Beta? 265 Empirical Evidence from Factor Investing and Smart Beta Studies 267 Recent Empirical Evidence from the U.S. ETF Market 271 Summary and Conclusions 274 Discussion Questions 274 References 274 Chapter 18 Activist and Impact Investing 279Michael Sinodinos, Andrew Siwo and Andrew C. Spieler Introduction 279 Methods of Activism 280 Institutional Activists 281 Individual Activists 283 Impact Investing 284 Summary and Conclusions 289 Discussion Questions 289 References 289 Chapter 19 Socially Responsible Investing 291Randolph D. Nordby Introduction 291 A Brief History of SRI in the United States 292 ESG Growth in Pooled Investment Vehicles 293 Responsible Investing Growth by Institutional Investors 294 The Performance of Sustainable Investments 294 Lack of Guidelines on Voluntary Nonfinancial Disclosure 296 ESG Disclosure and Asset Manager Valuation Methodology 296 ESG Disclosure Lacks Usefulness 297 Methods for Operationalizing ESG Issues 297 Fiduciary Duty and ESG Investing 299 ESG Integration for Equities 300 Considerations for Integrating ESG 300 Case Study 301 Summary and Conclusions 302 Discussion Questions 302 References 303 Chapter 20 Pooled Investment Vehicles 305Joseph McBride, Michael Pain and Andrew C. Spieler Introduction 305 Open-End Mutual Funds 305 Closed-End Funds 309 Unit Investment Trusts 311 Exchange-Traded Funds 313 Summary and Conclusions 316 Discussion Questions 317 References 317 Part Four Special Equity Topics Chapter 21 Investing in Private Equity 321Gaurav Gupta, Tianqi Jiang and Zhao Wang Introduction 321 Performance of PE Funds 322 Performance Persistence 324 Factors Driving PE Performance 325 Risk Factors of PE Funds 327 Summary and Conclusions 329 Discussion Questions 329 References 330 Chapter 22 Investing in Emerging Markets 333Xiaohua Diao, Shantanu Dutta and Peng Cheng Zhu Introduction 333 Capital Flows to Emerging Markets 334 Issues Related to Capital Market Integration 334 Institutional Strategies for Better Investment Decisions 336 Political Connections, Investment Decisions, and Performance 338 Corporate Governance and Performance 340 Valuation Practices in Emerging Markets 340 Summary and Conclusions 341 Discussion Questions 342 References 342 Chapter 23 Disclosure Regulations in Emerging Economies and Their Impact onEquity Markets 347Xiaohua Diao, Shantanu Dutta and Peng Cheng Zhu Introduction 347 Various Disclosure Regulation Approaches 348 Environmental and CSR Disclosure in Emerging Markets 349 Insider Trading, Disclosures, and Related Regulation 351 Information Disclosure Through Private In-House Meetings 354 Summary and Conclusions 356 Discussion Questions 357 References 357 Chapter 24 Equity Crowdfunding Investments 361Dianna Preece Introduction 361 Types of Crowdfunding 361 The Jobs Act of 2012 363 Crowdfund Investment Opportunities and Incentives 365 Crowdfund Investment Challenges and Disincentives 366 Academic Research 369 Summary and Conclusions 371 Discussion Questions 372 References 372 Discussion Questions and Answers (Chapters 2–24) 375 Index 407

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Book SynopsisA look at the psychological barriers to financial success and how to create a better financial future When it comes to our relationship with money, we are in the Stone Age. Despite the relentless barrage of information and warnings from financial experts, the average American is in terrible financial shape. It turns out that human beings are just not wired to do the right things around moneysuch as saving and not overspending. That's why financial success is so difficult to attain. When it comes to our financial instincts, we are no more evolved than our ancestors who hunted the Woolly Mammoth 400,000 years ago. Recent findings from the field of financial psychology could help the many Americans who know what they need to do but just can't seem to make it happen. If you fall into this category, consider Money Mammoth: Evolve Your Money Mindset and Avoid Financial Extinction. This book looks at financial well-being from a psychological and evTable of ContentsAbout the Authors xiii Foreword xvii Introduction xxi Part I Your Origins 1 Chapter 1 Your Ancestors 3 The Ancestor Room 4 So What’s in Your Ancestry Room? 6 Why Aren’t You Rich? 7 Death to Savers 8 Notes 10 Chapter 2 Your Parents 11 Your Parents 12 Become Your Own Anthropologist 13 When Money Helps 14 When Money Hurts 15 Financial Enmeshment 15 A Family Story of Financial Destruction 16 Parents Know Best? 19 The 2008 Housing Crisis 19 Notes 21 Chapter 3 Your Children 23 Can Money Make You Insane? 24 Were You a Spoiled Child? 25 The College Admissions Scandal 26 Money Is a Powerful Reinforcer 28 Humans Are Lazy 29 Financial Enabling and Financial Dependence 30 Cutting the Financial Umbilical Cord: Five Steps 31 Raising Financially Healthy Children 33 It’s Not So Simple 34 A Big Heads-Up 35 Quick Start Tips for Healthy Financial Habits 35 Allowances 36 A Family Allowance 38 Talk About Money (But Not Too Much) 38 Notes 40 Chapter 4 Your Mate 43 Genetic Differences? 44 The Giver versus the Saver 44 Interdependence versus Independence 46 Booby Traps 50 Where from Here? 50 How Are You Doing with Money? 51 Finding the Right Kind of Help 52 The Conversation Intervention 52 Setting the Stage 53 Notes 55 Chapter 5 Your Tribe 57 Your Extended Family 57 The Hill 57 What Saves You May Kill You 58 Relative Deprivation 59 How Can We Keep Them Down on the Farm 59 What the Tribe Expects 60 The Modern-Day Tribe—Risk Sharing 61 Feeling at Home in Our Tribes 63 Your Tribes 64 Tribal Influence 65 Tribal Entitlement 66 How Tribes Handle Success 67 Professions as Tribes 69 Jim’s Reality Meets Professional Reality 69 Kill Dr. Phil 70 When Should You Seek a New Tribe? 71 Using Tribal Expectations to Evolve 73 Alex Harnesses His Money Mammoth 74 Notes 75 Part II Your Adaptations 77 Chapter 6 Your Instincts 79 Martha and Her Instincts 84 Tom and His Instincts 84 Overcoming Mindsets 85 Our Money Mindsets 85 Our Financial Instincts Toward Savings 86 Our Anti-Hoarder Bias 87 The Give-Away 87 The Modern Savers 88 The Drive to Share Is Hardwired 89 Our Subconscious Co-Pilot 89 Behavioral Finance 90 Notes 98 Chapter 7 Your Environment 101 Demographic Community 102 School Size and Diversity 103 Community Job Environment 103 Jason’s Story 104 Economic Timing 105 The Story of Rick and Carrie 106 The Belief Stew 108 The Anchor of Your Past 109 Your Chosen Environment 109 Who Takes Care of You? 110 Note 115 Chapter 8 Your Financial Flashpoints 117 Ancestral Flashpoints 117 Family Financial Flashpoints 119 Your Financial Flashpoints 120 Cultural Flashpoints 122 Filling in the Blanks 123 Coronavirus Flashpoint 124 Depression Flashpoint 125 Flashpoint Context and Growth 126 Conclusion 127 Notes 129 Chapter 9 Your Money Scripts® 131 Money Scripts® 132 The Klontz Money Script® Inventory 134 Scoring Procedures 137 Analysis 137 Changing Our Money Scripts® Can Be Tough 139 Rewriting Your Money Scripts® 140 Chapter 10 Your Financial Behaviors 143 Financial Behaviors 143 Financial Behavior Change Strategies 151 Notes 157 Part III Your Evolution 159 Chapter 11 Your Transformation 161 Six-Step Process of Change 161 Change in Action: Results of a Field Trial 163 The Employee Retirement Plan Meeting Dilemma 164 Tell Me a Story. Paint Me a Picture. Show Me! 170 Summary 173 Notes 174 Chapter 12 Your Vision 175 Avoid the “When-Then” Trap 175 Discovering Who You Are 176 Achieving Your Financial Goals 178 What We Found 179 What This Means: Seven Steps to Achieve Your Financial Goals 179 BONUS Tip: Social Pressure 183 Summary 183 Note 184 Chapter 13 Your Relationship 185 1. Assume 100% Responsibility for Your 50% 185 2. Speak Your Truth 186 3. Listen Now or Pay Later 187 4. Know the Odds 188 5. Love Is Not Enough 189 6. Love Thyself 190 7. No Carry-on Baggage Allowed 191 8. Beware of Invaders 193 9. Children Need Not Apply 194 10. Safety First 194 Exercise: Creating Your Relational Financial Vision 195 The Shared Vision Process 196 Notes 199 Chapter 14 Your Plan 201 Are You Ready to Take Action? (It’s Okay If You’re Not) 202 Money Mammoth Evolutionary Path 203 Start Here: Building Your Mammoth Foundation 203 Survival 204 Hunting and Gathering 221 Adaptation versus Extinction 227 Progress Measurement Tools 230 Notes 231 Chapter 15 Your Success 233 Your Financial Survival Guide 234 Your Evolution 239 Becoming Your Money Mammoth 241 It Is Your Time to Evolve 241 The Blue Pill or the Red Pill 243 Index 247

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Book SynopsisSmart strategies for taking control of your money from bestselling author and personal finance expert Terry Savagethe new, fully updated third edition. The Savage Truths on Money are time-tested, but new technologies and techniques make it easier and more profitable to make your money work for you! Now, financial success can be achieved simply and automatically through new apps, tools, and access to low-cost money management tools and advice. Living in financial securitynot constantly worrying about education costs, medical bills, or having enough money saved for retirementis within anyone's reach. In this new edition of The Savage Truth on Money, author Terry Savage shares the time-tested truths of financial security, guides you on redirecting your finances, and helps you create a financial plan for your futureusing all the resources of technology, the best people in the financial planning industry, and your own informed judgment. This must-have resource is a roadmap for navigatingTable of ContentsPreface ix 1 The Savage Truth on Getting Rich 2 Financial Security Demands Smart Choices 2 The Savage Truth on Money and Technology 30 Knowledge is Power 3 The Savage Truth on Spending and Debt 44 You Can Control Your Cash Flow 4 The Savage Truth on Chicken Money 70 Nest Eggs Need Some Safety 5 The Savage Truth on Financial Advice 94 Not All “Advisors” Are on Your Side 6 The Savage Truth on the Stock Market 110 It’s Less Risky Than You Think 7 The Savage Truth on Investment Choices 138 Getting Started is Easy 8 The Savage Truth on Investing for Retirement 174 The Sooner the Better—But It’s Never Too Late 9 The Savage Truth on Annuities 198 Risks and Rewards 10 The Savage Truth on Life, Health, and Disability Insurance 218 Don’t Wait until It’s Too Late 11 The Savage Truth on Protecting Your Assets 250 Your Home, Your Auto, Your Wealth 12 The Savage Truth on Paying for College 264 A Burden and a Blessing 13 The Savage Truth on Getting to—and through—Retirement 292 Time to Withdraw 14 The Savage Truth on Social Security, Medicare, and Aging Alone 312 Getting It Right is Essential 15 The Savage Truth on Long-Term Care Insurance 330 Insure Your Retirement Lifestyle 16 The Savage Truth on Estate Planning 348 It Pays to Plan While You Can Conclusion . . . and Beginning 369 Acknowledgments 371 Index 375

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Book SynopsisProvides step-by-step guidance on implementing and using a value-based management system within the government Countless books on proposed management practices have been written and published over the past century. Some of these have focused on specific management practices for government. In more recent decades, the topics of strategic planning, performance management, cost management and risk management have been extensively covered. However, little has been offered as an approach to integrate these and numerous other management methods and practices in a manner that maximizes the delivery of value to the organization's key stakeholders. A general management framework is presented in this book in a manner particularly applicable to government organizations. Value-Based Management in Government introduces a new, integrating framework for management practices that optimizes the balancing of results sought; resources supplied and allocated; and riskTable of ContentsAbout the Authors vii Acknowledgments ix Foreword xi Preface xiii Part One: Value-Based Management in Government Concepts and Components 1 Chapter 1 Challenges and Solutions to Address Dissatisfaction of Citizens and Taxpayers 3 Chapter 2 Generating Value in a World of Uncertainty 9 Part Two: Strategy Management and Governance 27 Chapter 3 Strategy Setting and Execution: Setting and Linking Goals and Capabilities 29 Chapter 4 The Strategy Map and Its Balanced Scorecard 39 Part Three: Enterprise Performance Management 59 Chapter 5 Exceptional EPM Systems are an Exception 61 Part Four: The Three Rs: Risk, Results, and Resources 71 Chapter 6 Risk Management 73 Chapter 7 Results Management 93 Chapter 8 Resource and Cost Management 101 Part Five: Management Accounting in Government 123 Chapter 9 Understanding ABC/M: A Few Basic Truths 125 Chapter 10 If ABC/M is the Answer, What is the Question? 137 Chapter 11 Fundamentals: What is ABC/M? 155 Chapter 12 Using ABC/M Attributes to Assess Quality and Value-Add 167 Chapter 13 Driver-Based Budgeting and Rolling Financial Forecasts 183 Chapter 14 Implementing ABC/M with Rapid Prototyping 213 Part Six: How Information Technology Impacts VBM 231 Chapter 15 Information Technology as an Enabler 233 Part Seven: Influencing Behavior for VBM 237 Chapter 16 Organizational Change Management 239 Part Eight: The Future 249 Chapter 17 The Future of Public Sector VBM 251 Index 257

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Book SynopsisWhat every self-employed person needs to know about their taxes! If you're self-employed, chances are the majority of your time is spent finding new customers or clients, servicing existing ones, and handling each and every aspect of your business. Freelancers, independent contractors, gig economy participants, and other individuals working for themselves need to be aware of their responsibilities when it comes to paying their taxes. Even if you have an accountant or use tax preparation software, you may not be aware of all the deductions and credits you are entitled to. That's where the experts at J.K. Lasser come in. The second edition of J.K. Lasser''s Guide to Self-Employment helps you file your taxes correctly, accurately, and on time. Using clear, jargon-free language, this bestselling guide explains the legal and financial implications of self-employment and shows you how to keep as much of your hard-earned money as legally possible. You will learnTable of ContentsPreface ix Introduction xi Part 1 Self-Employment Basics 1 1. Being Self-Employed and On Your Own 3 What Does Self-Employment Mean? 4 Legal Consequences of Self-Employment 6 Practical Issues in Self-Employment 7 Tax Terminology 8 Being 1099ed 9 What’s Ahead 9 2. Getting Set Up for Tax Reporting and Business Operations 11 Preliminaries 12 Keeping Books and Records for Tax Reporting 12 Business Reasons for Recordkeeping 14 Tax ID Number 14 Tax Year 17 Accounting Method 17 Decide Your Business Name 20 What’s Your IP? 21 Obtain Licenses, Permits, and Permission 23 What’s Ahead 24 3. Using Schedule C 25 Tax Filing on Schedule C 25 When, Where, and How to File 30 What’s Ahead 31 Part 2 Reporting Income and Expenses 33 4. Reporting Your Income 35 Payment Types Don’t Matter 36 Alternative Payments 38 Where to Report Payments 39 What to Do about 1099s 40 What to Do When You Don’t Get Paid 42 Losses 43 What’s Ahead 46 5. Writing Off Vehicle, Travel, Meals, and Gifts Expenses 49 Vehicle Expenses 50 Local Transportation 56 Business Meals 56 Business Travel 59 Business Gifts 61 Strategies for Saving on Travel Costs 61 What’s Ahead 62 6. Deducting Office-Related Costs 65 Rental Expenses 65 Home Office Use 68 Materials and Supplies 79 Furniture and Fixtures 80 Computer-Related Costs 84 Insurance 86 Utilities 86 Miscellaneous Office-Related Costs 87 What’s Ahead 88 7. Claiming Deductions A to Z 89 Advertising Costs 90 Bad Debts 91 Banking Fees 92 Casualty and Theft Losses 92 Charitable Contributions 93 Dues 95 Education Expenses 96 Impairment-Related Expenses 96 Interest 97 Legal and Professional Fees 98 Licenses and Regulatory Fees 99 Materials and Supplies 99 Moving Expenses 99 Payments for Outsourced Workers 100 Penalties, Fines, and Damages 101 Repayment of Income 102 Startup Costs 102 Subscriptions 103 Supplies 103 Taxes 103 Utilities 104 Checklist of Nondeductible Expenses 104 What’s Ahead 105 8. Protecting Yourself with Medical Coverage and Retirement Savings 107 Medical Insurance 108 Health Savings Accounts 111 Tax Deduction for Health Coverage 113 Retirement Savings 114 SEPs 116 Solo 401(k)s 118 Pension Plans 121 IRAs 121 Roth IRAs 122 Strategies for Retirement Savings 123 What’s Ahead 124 9. Taking Tax Credits 127 Business-Related Tax Credit 127 Personal Credits Arising from Business 130 What’s Ahead 134 10. Claiming Your Tax Bonus 137 General Rules 137 Limitations 138 Specified Service Trades or Businesses 139 What’s Ahead 140 Part 3 Strategies for Your Business 141 11. Paying Your Taxes 143 Self-Employment Tax 143 Additional Medicare Tax on Earned Income 146 Additional Medicare Tax on Net Investment Income 147 Estimated Taxes 148 Sales Taxes 152 What’s Ahead 153 12. Strategizing Year-Round for Tax Savings 155 Tax-Savvy Business Decisions 156 Year-End Planning 158 Post-Year Tax Elections 160 Lease Instead of Buy? 161 Don’t Overlook Carryovers 162 Audit-Proof Your Return 163 What’s Ahead 165 13. Strategies for How to Grow 167 Getting Certified 167 Getting a Mentor 168 Outsourcing 169 Using Technology 170 Continuing to Learn 170 What’s Ahead 171 14. Strategies as Your Business Grows 173 Moving to Larger Quarters 173 Hiring Employees 175 Changing Legal Status 178 Selling the Business 180 Final Thoughts 181 Index 182

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Book SynopsisThe CFA Institute has announced that all 2021 exams will continue to reflect the official 2020 curriculum. Wiley's Study Guides and Test Bank for 2020 Level II CFA (R) program exam is proven to help candidates understand, retain, and master the CFA Program Curriculum. Complete with color-coded Study Guides and coverage of every Learning Outcome Statement on the exam. With thousands of pages of distilled knowledge from our staff of charterholders and instructors, these books are a highly effective and proven study aid filled with exam tips, fundamental concepts, and in-depth examples. Our authors have used their years of personal teaching experience with students from a variety of backgrounds to develop study guides that improve the study experience of CFA Level II candidates and include practical and helpful tips and test-taking advice though-out the text. The color-coding feature, which makes it easier for you to follow cases and examples that make references to graphs and sets of f

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Book SynopsisWiley's 11th Hour Guide and Test Bank for the 2020 Level III CFA Program exam compacts all readings tested on the 2020 CFA exam into one portable volume. Organized in order, this bestselling guide has helped thousands of candidates from over 100 countries pass the CFA exam. Designed to boil it all down to the crucial concepts, formulas and rules, this guide ensures candidates are familiar with the most important testable information. Wiley's 11th Hour Review Guide condenses each reading down to two to five pages. This comprehensive guide complements Wiley's CFA Program Exam Study Guides, sold separately, but may be used with any review course. The Test Bank features more than 4,000 multiple choice questions, with rationales and full explanation for the multiple-choice questions.

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Book SynopsisGet effective and efficient instruction on all CIA auditing practice exam competencies in 2020Updated for 2020, the Wiley CIA Exam Review 2020, Part 2 Practice of Internal Auditing offers readers a comprehensive overview of the internal auditing process as set out by the Institute of Internal Auditors. The Exam Review covers the four domains tested by the Certified Internal Auditor exam, including:??? Managing the internal audit activity??? Planning the engagement??? Performing the engagement??? Communicating results and monitoring progressThe Wiley CIA Exam Review 2020, Part 2 Practice of Internal Auditing is a perfect resource for candidates preparing for the CIA exam. It provides an accessible and efficient learning experience for students regardless of their current level of proficiency.

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Book SynopsisInvest in one of the most exciting and booming industries available today Investing in Cannabis For Dummies takes readers on an illuminating and whirlwind tour of the legal cannabis investment industry. Written by a renowned expert in the world of cannabis, Steve Gormley (also known as the Cannabis Viking), this book provides an in-depth look at all aspects of publicly traded stocks (nationally and internationally) in the cannabis industry for medical or recreational use. This book covers crucial topics for a firm understanding of investing in the cannabis industry, including: How to evaluate the strength of a cannabis companyThe differences between investing in public and private companiesInvesting in different cannabis silos - from cultivation, oils, and edibles, to technologyAvoiding common scams and trapsTrading strategy tips Investing in Cannabis for Dummies is perfect for those who want to get in near the ground floor of an industry experiencing a massive expansion due to cannTable of ContentsIntroduction 1 About This Book 1 Foolish Assumptions 2 Icons Used in This Book 3 Beyond the Book 4 Where to Go from Here 4 Part 1: Getting Started with Cannabis Investing 5 Chapter 1: Taking the Nickel Tour 7 Weighing the Pros and Cons of Investing in Cannabis 8 Pros 8 Cons 9 Deciding Whether to Invest in Businesses That Touch the Plant or Those That Don’t 11 Exploring Your Investment Options 12 Starting your own business 12 Investing in cannabis real estate 13 Buying and selling stocks 14 Diversifying with exchange traded funds and mutual funds 15 Considering private investment opportunities 15 Finding Investment Opportunities 16 Researching Investment Opportunities 17 Planning Your Investment Strategy 19 Investing in a Cannabis Business 20 Chapter 2: Exploring Cannabis Business Types 23 Choosing Sides: Medical or Adult-Use? 24 Investing in medical marijuana 24 Investing in adult-use marijuana 25 Recognizing Different Cannabis Business Types 26 Cultivation 27 Manufacturing 28 Processed product brand 30 Retailers/dispensaries 30 Device makers 31 Considering Ancillary Businesses 31 Breweries 32 Banking, payroll, and other cash management services 32 Blockchain and other technologies 34 Delivery services 34 Grow equipment manufacturers and suppliers 35 Marketing, public relations, and advertising firms 35 Professional employer organizations 36 Pharmaceutical and biotech companies 36 Real estate 37 Security services and security equipment suppliers 38 Software companies 38 Chapter 3: Understanding the Political, Cultural, and Regulatory Landscape 39 Recognizing the Impact of Laws on the Industry 40 Getting up to speed on U.S federal law and enforcement 40 Brushing up on state cannabis laws 44 Considering local laws, too 45 Examining cannabis laws in other countries 46 Riding the Waves of Politics and Culture 46 Checking the nation’s pulse 47 Debunking misconceptions of cannabis and users 49 Examining activism 50 Tuning into cannabis culture 52 Accounting for the High Costs of Doing Business 53 Regulatory and compliance costs 53 Federal, state, and local taxes 54 Security costs 55 Chapter 4: Sizing Up the Risks and Rewards of Cannabis Investing 57 Weighing the Risks 58 Falling victim to con artists 58 Investing in an overvalued company 60 Accounting for dilution risks 61 Weighing the risks of potential commoditization 62 Recognizing the possibility of changes in how federal marijuana laws are enforced 63 Considering the impact of state and local regulation and enforcement 64 Evaluating risks associated with obtaining banking and financial services 65 Anticipating the impact of possible supply and demand imbalances 65 Considering the possibility of business failure 67 Assessing the Potential Rewards 67 Deciding Whether Investing in Cannabis is Right for You 68 Considering your investment goals 68 Assessing your own risk tolerance 69 Part 2: Doing Your Homework 71 Chapter 5: Exploring Your Investment Options 73 Comparing Public versus Private Investment Options 74 Understanding how companies raise capital 74 Investing in private companies 76 Investing in public companies 78 Investing Domestically or Abroad? 79 Investing in Cannabis or Ancillary Businesses? 81 Buying and Selling Cannabis Stocks 83 Going mainstream with listed stocks 83 Bargain hunting with unlisted, over-the-counter stocks 84 Diversifying with exchange traded funds 84 Betting on an index with exchange traded notes 86 What about mutual funds? 86 Buying and selling shares of Canadian cannabis companies 87 Investing as a Venture Capitalist 88 Chapter 6: Digging Up Cannabis Investment Opportunities 89 Using Online Investment Tools and Apps 90 Cannabis Stock Trades 91 Yahoo! Finance 91 Morningstar 92 FINVIZ 92 ETFdb.com 93 FeeX 93 FRED 93 The Marijuana Index 94 Marijuana Stocks 94 Barchart 94 Apps 95 Staying Abreast of Cannabis Industry News 96 Scoping Out Opportunities in Exchange Traded Funds 100 Finding Private Equity and Venture Capital Funds and Firms 101 Getting Investment Leads from a Broker 102 Chapter 7: Researching Cannabis Businesses and Stocks: Fundamental Analysis 103 Grasping Fundamental Analysis Basics 104 Researching Any Company You’re Thinking of Investing in 106 Assessing the management team 106 Evaluating the company’s financial health 109 Evaluating startups and investments in licenses 111 Looking at the company’s business strategy 112 Checking out the company’s competitive position 115 Checking any insider buying or selling 116 Looking into warrants and convertible securities 117 Following analyst coverage and conference calls 119 Digging up dirt 120 Evaluating Cannabis Cultivation Businesses 121 Sizing up the grow master 121 Checking a grower’s cost per gram 122 Comparing cost per gram 123 Considering the cultivator’s clientele 123 Chapter 8: Analyzing Market Trends: Technical Analysis 125 Comparing Technical and Fundamental Analysis 126 Grasping the principles of technical analysis 126 Weighing the pros and cons of technical analysis 128 Combining the best of both worlds 129 Gathering your tools 130 Spotting and Monitoring Trends 131 Examining different trends 131 Gauging a trend’s length 134 Following trendlines 134 Looking for resistance and support 135 Referencing Technical Charts 136 Getting to know the different chart types 136 Identifying chart patterns 138 Interpreting Technical Indicators 143 The Relative Strength Index 143 The Money Flow Index 144 Moving averages 144 Moving average convergence divergence 144 Bollinger Bands 145 Part 3: Buying and Selling Cannabis Stocks, ETFs, or Mutual Funds 147 Chapter 9: Choosing a Broker or Advisor 149 Defining the Broker’s Role 150 Distinguishing between Full-Service and Discount Brokers 150 At your disposal: Full-service brokers 151 Just the basics: Discount brokers 153 Deciding Whether to Fly Solo or Consult a Broker or Advisor 154 Finding a Cannabis-Savvy Broker or Advisor 155 Evaluating Brokers and Advisors 155 Comparing costs 156 Comparing quality and service 156 Checking credentials 157 Comparing online brokers 158 Chapter 10: Using Screening Tools 161 Searching the Marijuana Stock Universe 162 Getting Up to Speed on the Different Exchanges and Markets 165 Browsing through the Daily Marijuana Observer’s List of OTC Cannabis Stocks 167 Checking Out Other Stock Screeners 168 Screening Cannabis Investment Funds 170 What to Screen for 172 First up: The major categories 172 The main event: Specific filters 173 Valuation measures 175 Financial Highlights 176 A Few Final Points to Keep in Mind 176 Chapter 11: Placing Buy and Sell Orders for Cannabis Stocks and ETFs 177 Understanding the Bid-Ask Spread 178 Placing an Order to Buy or Sell Shares 179 Choosing an Action 182 Buy 182 Sell 182 Sell all shares 182 Understanding the Different Order Types 183 Market orders 184 Limit orders 184 Stop orders 185 Trailing stop orders 186 Specifying a Timeframe 187 Day 187 Good till canceled 188 Fill or kill 188 Immediate or cancel 188 Market on open 189 Market on close 189 Chapter 12: Exploring Advanced Trading Techniques 191 Buying on Margin 191 Registering to buy on margin 192 Examining marginal outcomes 193 Striving for success on margin 194 Shorting a Stock 195 Setting up a short sale 196 Taking a hit when the stock price keeps rising 197 Responding when you feel the squeeze 198 Recognizing the ups and downs of shorting cannabis stocks 198 Part 4: Exploring Cannabis Investment Strategies 201 Chapter 13: Following the Money: Momentum Investing (aka Speculating) 203 Spotting Opportunities to Buy: Upward Momentum 204 Watching for Signals to Sell: Downward Momentum 207 Following the Smart Money 208 Avoiding Some of the Risks Inherent in Momentum Investing 209 Watching out for the short squeeze 209 Steering clear of pump-and-dump scams 210 Avoiding cannabis stock and industry bubbles 211 Knowing when momentum investing works and when it doesn’t 211 Chapter 14: Investing in Canadian Cannabis Companies 213 Deciding Whether to Invest in Canadian or U.S Cannabis Businesses 214 The pros and cons of the Canadian cannabis market 214 The pros and cons of the U.S cannabis market 216 Scoping Out the Four Leading Canadian Cannabis Companies 217 Canopy Growth Corporation 217 Cronos Group 218 Aurora Cannabis 218 Aphria 219 Chapter 15: Investing in Countries Where Marijuana is Legal 221 Argentina 222 Australia 223 Brazil 224 Chile 224 Colombia 225 Czech Republic 226 Ecuador 226 Germany 227 Greece 227 Ireland 228 Israel 228 Italy 229 Jamaica 230 The Netherlands 230 New Zealand 231 Norway 232 Peru 232 Poland 233 Portugal 233 Switzerland 233 Thailand 234 United Kingdom 234 Zambia 235 Chapter 16: Minimizing Risks While Maximizing Gains 237 Staying Plugged in to the Industry 238 Investing in the People, Not the Plant 239 Performing Your Due Diligence 239 Trading Cannabis Stocks on Private Markets 240 Investing in the Biggest Markets 241 Diversifying Inside and Outside the Industry 241 Investing in Multi-state Operators 242 Keep an Eye on the ETFs 243 Invest in Innovative Companies 244 Use Different Stock Order Types to Your Advantage 245 Don’t Get Greedy 246 Part 5: The Part of Tens 247 Chapter 17: Ten Ways to Profit When the Market Drops 249 Be Patient, But Vigilant 250 Review Your Portfolio 250 Cut Your Losses 250 Buy More Shares 251 Focus on Value Stocks 251 Short Bad Stocks 251 Find Potential Treasures with Bond Ratings 252 Rotate Sectors 252 Buy a Call Option 252 Write a Covered Call Option 253 Chapter 18: Ten Reasons Not to Invest in Marijuana Stocks 255 Marijuana is Still Federally Illegal in the U.S. 256 Marijuana Investment Scams Are Rampant 256 Earning a Profit as a Cannabis Business is a Huge Challenge 257 Illegal Operations Undermine Demand for Legal Products 258 The Industry is Very Fragmented 258 Oversupply is More Likely Than Not 258 Bad News is Just Around the Corner 259 Marijuana Laws Are Slow to Change 259 Company Shares Are Being Diluted 260 Demand is Unpredictable 260 Chapter 19: Ten (Plus One) Criteria for Choosing a Cannabis Investment 261 Experienced and Successful Management Team 262 Steady Revenue Growth 262 Consistent Profit Growth 263 Comparatively Low Price-to-Earnings Ratio 263 Positive Money Flow Indicator 264 Expanding Free Cash Flow 264 Operations in Other States or Countries 264 Growing Market 265 Increasing Market Share 265 Positive Reputation in the Industry 266 Manageable Debt 266 Chapter 20: Ten Mistakes to Avoid 267 Failing to Diversify Sufficiently 267 Relying Solely on Online Information 268 Not Performing Due Diligence 268 Believing Federal Legalization Will Happen Soon 269 Failing to Account for Regulations 269 Failing to Consider the Possibility of Bad News 269 Buying or Selling Too Late or Too Early 270 Ignoring Business Fundamentals 270 Expecting All Marijuana Stocks to Be Winners 271 Buying a Stock Just Because It’s Cheap 271 Index 273

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Book SynopsisOutperforming the marketor alpha creation as it's sometimes calledis very possible with the proper investment discipline and methodologies. But the market-beating strategies that will work today are not the same as those that worked in the past. Central bank intervention and the accelerated pace of technology have caused an increase in the disruption of traditional business models across many industries. These industry paradigm shifts combined with macro-driven financial markets have created one of the toughest environments for active investment managers in history. Active Investing in the Age of Disruption details the disruptive forces in the market today and how to navigate them to outperform. This book discusses winning equity investment strategies with lofty goals of alpha creation. Understanding the limits and potential of each unique investment methodology and portfolio strategy will allow you to generate higher returns. Even when your luck runs out or the market works against Table of ContentsAbout the Author vii Acknowledgments ix Preface xi Part I Market Environment: The 2010s and 2020s Chapter 1 Challenges to Active Investing 3 Chapter 2 Global Central Bank Intervention 15 Chapter 3 Accelerated Pace of Technology = Disruption 29 Chapter 4 Passive Investing 41 Chapter 5 The 2020s 51 Part II Creating Alpha Chapter 6 A Cohesive Strategy 69 Chapter 7 Investment Process 81 Chapter 8 Security Selection 91 Chapter 9 Valuation 115 Chapter 10 Capital Allocation 127 Chapter 11 Portfolio Management 133 Chapter 12 Short Investing 157 Part III The Bigger Picture Chapter 13 Goal Congruence, Fiduciary Responsibility, and Learning 173 Glossary 181 Index 183

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Book SynopsisTable of ContentsA Note to Readers vii Preface ix Acknowledgments xi Chapter 1: Like Investing in Alcohol at the End of Prohibition 1 Chapter 2: The Feds, the DEA, and the War on Drugs 13 Chapter 3: The Cannabis Investment Opportunity 21 Chapter 4: Buy Low, Sell High? 29 Chapter 5: The Movement Toward Legality 45 Chapter 6: Canada Versus the United States 65 Chapter 7: The State of the States 75 Chapter 8: The Worldwide Opportunity 95 Chapter 9: Canadian Licensed Producers 97 Chapter 10: US Multi-state Operators 117 Chapter 11: Extraction and Concentrates 135 Chapter 12: Hemp and CBD Focused 141 Chapter 13: Pharmaceutical and Biotech 149 Chapter 14: Suppliers and Everyone Else 159 Chapter 15: Mergers and Acquisitions 169 Chapter 16: Don’t Get Burned 175 Appendix I: Portfolio Manager Dan Ahrens’ Cannabis Exchange-traded Fund Holdings on June 30, 2020 183 Appendix II: Portfolio Manager Dan Ahrens’ US Cannabis Exchange-traded Fund Planned Holdings in August 2020 185 Appendix III: Constituents of the North American Marijuana Index as of June 30, 2020 187 About the Author 189 Index 191

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Book SynopsisMaster new, disruptive technologies in the field of auditing Agile Auditing: Fundamentals and Applications introduces readers to the applications and techniques unlocked by tested and proven agile project management principles. This book educates readers on an approach to auditing that emphasizes risk-based auditing, collaboration, and speedy delivery of meaningful assurance assessments while ensuring quality results and a focus on the areas that pose the greatest material risks to the business under audit. The discipline of auditing has been forever changed via the introduction of new technologies, including: Machine learningVirtual ConferencingProcess automationData analytics Hugely popular in software development, the agile approach is just making its way into the field of audit. This book provides concrete examples and practical solutions for auditors who seek to implement agile techniques and methods. Agile Auditing is perfect for educators, practitioners, and students in the auditing field who are looking for ways to introduce greater levels of efficiency and effectiveness to their discipline.Table of ContentsTables and Figures Foreword Preface About the Authors Raven Catlin Ceciliana Watkins Acknowledgments Introduction List of Acronyms Part I: Building an Understanding of Agile and Auditing Chapter 1 What Is Agile? Agile Is a Framework Definitions of Agile The Agile Manifesto Agile Frameworks Scrum Framework Scrum/Agile Roles Scrum Artifacts Scrum Activities (Scrum Events) Recipe: Explaining the Concept Nuggets Chapter 2 What Is Audit? Defining Audit Types of Audits Internal Audits Government Audits External Audits Audit Customers Knowledge Areas for Auditors Governance Risk Control Finance/Accounting Technology Compliance Skills for Auditors Audit Project Life Cycle Phase 1: Initiation/Starting the Project Phase 2: Planning/Organizing and Preparing Phase 3: Execution/Carrying Out the Work Phase 4: Closeout/Completing the Project Traditional, Waterfall Audit Process: A Real-Life View of the Problems Identifying, Assessing, and Responding to Delivery Risks Recipe: Building Auditor Knowledge and Skills Nuggets Chapter 3 Traditional Audit Processes and Practices Audit Jargon Traditional Entity-Level Audit Planning Traditional Audit Engagement Planning Traditional Audit Engagement Fieldwork Traditional Audit Engagement Reporting Nuggets Chapter 4 What Is Agile Audit? The Journey of Agile Auditing What Is Agile Auditing? Overview of the Agile Audit Process Skills for Agile Auditors Nuggets Chapter 5 Why Agile Audit? Avoid the Jurassic Auditor What’s Your Why? Who Is Using Agile Auditing? Starting Your Agile Auditing Change Transformation Agile Audit Frameworks What Are the Benefits of Agile Auditing? Can Agile Auditing Help Me Solve Problems in the Audit Process? Nuggets Chapter 6 Creating the Agile Mindset What Is an Agile Mindset? Build a Passion for Being Agile Start with Auditor Self-Assessments Do I Need to Call It Agile Auditing? Recipe: Getting Auditor Buy-In Nuggets Part II: Implementing Agile Auditing Chapter 7 Implementing Agile Auditing: Deciding Your Approach and Your Agile Audit Project Roles Choosing Your Implementation Strategy Full Agile Strategy Pilot Agile Strategy Agile Lite Strategy Dealing with Titles Product Owner Scrum Master Delivery Team Members (Developers) Dealing with People Challenges Nuggets Chapter 8 Implementing Agile Auditing: The Audit Planning Process Nontraditional Audit Planning (Agile Audit Planning) Dynamic Risk Assessments and Audit Planning Data-Driven Risk Assessments and Audit Planning Risk Universe Prioritizations and Audit Planning Product Backlog User Story Epic Recipe Nuggets Chapter 9 Implementing Agile Auditing: Planning Agile Audit Engagements Planning Agile Audit Resources Agile Audit Planning Steps Step 1: Hold the Sprint Planning Meeting Step 2: Agree on the Definition of Done Step 3: Agree on the Definition of Ready Step 4: Determine Your Project Tasks and Create Your Taskboard/Sprint Backlog Step 5: Prepare the Project Canvas and Other Planning Documents Agile Jargon Using Agile Auditing to Solve Engagement Planning Problems Poor Time Budgets/Estimates to Complete Audits Nuggets Chapter 10 Implementing Agile Auditing: Executing the Agile Audit Testing with the Audit Client Workpaper Documentation in an Agile Audit Environment Managing Scope Creep Audit Findings Using Agile Auditing to Solve Engagement Execution Problems Nuggets Chapter 11 Implementing Agile Auditing: Communicating Agile Audit Results Report Writing Daily Meetings to Communicate “Bugs,” Deficiencies, and Findings Sprint Review Do I Still Need a Report? Sprint Retrospective Using Agile Auditing to Solve Engagement Communication and Reporting Problems Nuggets Part III: Special Considerations Chapter 12 Agile Auditing in the “New Normal” Environment (Remote Auditing) The New Normal Existing Technologies Virtual Conferencing Data Analytics (DA) New Technologies and Agile Audit Robotics Desktop Applications, Robotics Process Automation, Machine Learning, and Artificial Intelligence Issues to Consider When Implementing These Technologies How Are These Technologies Affecting Audit, and How Can We Use Them to Become More Agile? Recipe for Starting DA Nuggets Chapter 13 Lean and Agile Auditing What Is Lean? Eliminating Waste Using Agile Auditing Nuggets Chapter 14 Exploring Kanban Agile Auditing What Is Kanban? When Can I Use Kanban? Kanban Principles Applied to Agile Auditing Managing Workflow, the Kanban Way Nuggets Chapter 15 Merging Risk-Based Auditing and Integrated Auditing with Agile Auditing Stop Creating Kitchen Sink Audits! What Is Risk-Based Auditing (RBA)? Extreme Risk-Based Auditing Can I Still Complete Integrated Audits in Agile Auditing? Nuggets 152 Chapter 16 Building the Auditor Toolbelt and Self-Managing Agile Audit Teams Agile Auditing as a Tool Skills Needed to Be an Agile Auditor Becoming an Integrated Auditor in an Agile Audit World Using Scrum Values to Create Self-Managing Agile Audit Teams Benefits of Dealing with Self-Managing Teams Cautions of Dealing with Self-Managing Teams Nuggets Chapter 17 Preparing Your Organization for Agile Auditing/Creating the Agile Culture What Is Culture? Changing Others’ Perception of Auditors Participatory Auditing Influencing a Culture That Supports Agile Auditing The Influence of the Grateful Agile Leader What Do You Want for the Other Person? What Do You Want for Yourself? What Do You Want for Your Relationship with the Other Person? Ideal Conditions for Agile Auditing Nuggets Chapter 18 Passing Your Quality Assessment Review in an Agile Audit Environment Government Auditors Internal Auditors External Auditors Agile Auditing and Your QAR Audit Independence and Objectivity: Working with People over Processes and Tools Audit Planning: Doing What’s Right and Adding Value over Following a Preset Inflexible Plan Audit Documentation: Providing Relevant and Timely Insights over Extensive Audit Documentation Audit Report and Supervision: Client Collaboration and Relationship Building over Audit Report Negotiation Nuggets Chapter 19 Nuggets for Agile Audit Success Appendix A Glossary of Terms Appendix B Product Backlog Template Appendix C Agile Audit Example Bibliography Index

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Book SynopsisTable of ContentsSection 1 – Introduction 1 Chapter 1: About This Toolkit 3 Index of AP Tools 5 Section 2 – The New AP Department 9 Chapter 2: The New AP Department 11 Introduction 11 Case Study: Journey to Excellence 11 Focus on Corporate Productivity 12 Accounts Payable and Procure-to-Pay (P2P) Process Improvements 13 AP Tool 1: AP Process Improvement and Automation Checklist 14 P2P Reporting, Understanding, and Perspective 15 AP Tool 2: Procurement Spend Analysis 16 Strategic Sourcing 17 Other Procure-to-Pay Best Practices 17 AP Process Improvement Impacts on Working Capital 18 Average Payable Period 18 Measuring Average Payable Period 18 When to Take a Trade Discount 19 Negotiating Payment Terms 20 Overview of the Requirements of the Sarbanes Oxley Act of 2002 23 Accounts Payable, Risk, and Fraud 25 Fraud Statistics 26 Introduction to Internal Controls 28 Standards of Internal Control 28 AP Tool 3: Types of Internal Controls 29 Defining Control Activities 31 Doxey700500_ftoc.indd 5 19-10-2020 13:31:57 The Three Critical Corporate Controls 32 AP Tool 4: The Benefits of Segregation of Duties (SoD) Controls 34 AP Tool 5: Mitigating Risk with Internal Controls 35 AP Tool 6: Compensating Controls to Mitigate Risk 38 AP Tool 7: Your Roadmap for Implementing an Internal Controls Program 40 AP Tool 8: The Top Twenty Controls for the AP Process 43 Benefits of a Payment Audit Process 45 AP Tool 9: Internal Controls Checklist 47 AP Tool 10: Sample Internal Controls Program for Accounts Payable for Companies Using the SAP ERP 47 AP Tool 11: Metrics to Drive Process Improvements 52 Chapter 3: Automating the AP Process 55 Introduction 55 Benefits of AP Automation 57 A Summary of AP Automation Functionality Considerations 57 Examples of AP Automation Solutions 59 Other Types of AP Automation 61 Imaging and Workflow Automation (IWA) 64 Different Flavors of Imaging and Workflow Automation 67 Electronic Invoicing 69 Different Flavors of Electronic Invoicing 72 Convergence of Electronic Invoicing and IWA 73 Implementation of Your P2P Automation Solution 74 Developing the Business Case 75 Software Solutions, Software-as-a-Service, or Outsourcing? 75 Section 3 – Disecting The P2P Process 79 Chapter 4: What Is the P2P Process? 81 Introduction to the P2P Process 81 AP Tool 12: Dependencies and Interdependencies Within the P2P Process 83 Chapter 5: Transforming the P2P Process 85 Introduction 85 AP Tool 13: Current State Analysis 86 Visioning and Transformation Roadmap 87 AP Tool 14: P2P Transformation Roadmap 88 Doxey700500_ftoc.indd 6 19-10-2020 13:31:57 AP Tool 15: Other Recommendations for P2P Transformation 88 AP Tool 16: Managing Change 89 AP Tool 17: P2P Transformation Metrics 90 AP Tool 18: Streamlining Your P2P Process Without Automation 92 AP Tool 19: How to Begin Your P2P Automation Journey 96 Chapter 6: Structuring the AP Organization 99 Introduction 99 The Finance and Accounting Organization 100 The Finance and Accounting Organizational Chart (Example) 100 Organizational Chart for an AP Department (Example) 101 History of the Transition 101 About Shared Services 102 Organizational Chart for a Shared Services Structure (Example) 103 Shared Services and Service Level Agreements (SLAs) 103 Section 4 – How Procurement and Receiving Impact AP 105 Chapter 7: Supplier Selection and Management 107 Introduction 107 Supplier Selection and Management Process Flow 108 Supplier Selection and Management Process Insights 109 AP Tool 20: The Top Ten Best Practices in the Supplier Management Lifecycle 109 AP Tool 21: Five Steps to Use When “Fine-Tuning” Your Supplier Master 115 Another Look at Supplier Master File Management Best Practices 120 AP Tool 22: Supplier Diversity 124 AP Tool 23: Eight Critical Supplier Master Practices 128 AP Tool 24: Managing the Supplier Master File 130 Standards of Internal Control: Supplier Selection and Management 131 Chapter 8: Contract Management 135 Introduction to the Contract Management Process 135 Contract Management Process Flow 137 Contract Management Process Insights 138 AP Tool 26: Ten Recommendations for Establishing Contracts 142 Standards of Internal Control: Contract Management 147 Chapter 9: Purchasing and Ordering 151 Introduction to the Purchasing and Ordering Process 151 AP Tool 27: Five Steps in an Electronic Procurement Process 152 Purchasing and Ordering Process Flow 154 Purchasing and Ordering Process Insights 155 AP Tool 28: Four Best Practices to Consider for the Purchase Requisition Process 157 The Catalog Procurement Model 158 Standards of Internal Control: Purchasing and Ordering Process 163 Chapter 10: Receiving 179 Introduction to the Receiving Process 179 Receiving Process Flow 180 Receiving Process Insights 181 Standards of Internal Controls: Receiving Process 184 Section 5 – A Laser Focus On AP 193 Chapter 11: The Supplier Master File 195 Introduction to the Supplier Master Process 195 AP Tool 29: Supplier Master File Process Best Practices 196 AP Tool 30: Supplier Master Coding Standards 214 Standards of Internal Control: Supplier Master 218 Chapter 12: Invoice Processing 231 Introduction to Invoice Processing 231 Invoice Processing Process Flow 232 Insights into Invoice Processing 233 Types of Matching Processes 235 Automating the Matching Process 236 AP Tool 31: Establishing Tolerances 237 AP Tool 32: Five Factors Driving the Automation of Invoice Processing 239 The Benefits of Sending and Receiving Electronic Invoices 240 AP Tool 33: The Most Common Forms of Invoice Automation 241 AP Tool 34: Six Best Practices for Invoice Processing 244 AP Tool 35: Three Components of Imaging and Workflow 248 AP Tool 36: Nine Performance Indicators for Invoice Processing 249 AP Tool 37: The 25 Top Reasons for Problem Invoices 251 Standards of Internal Controls: Invoice Processing 254 Chapter 13: P-Cards 261 Introduction to the P-Card Process 261 Types of Payment Cards 262 P-Card Definitions 266 AP Tool 41: The P-Card Scorecard 278 Standards of Internal Controls: P-Card Process 284 Chapter 14: Travel and Entertainment 289 Introduction to the T&E Process 289 AP Tool 42: Red Flags for the T&E Process 293 Standards of Internal Control: T&E Process 297 Chapter 15: The Payment Process 303 Introduction 303 AP Tool 43: Effectively Managing Your Payment Process 306 AP Tool 44: Five ACH Controls 307 AP Tool 45: Preventing Duplicate Payments 308 AP Tool 47: Tackling Payments Fraud 317 Chapter 16: Accounting, Reconciliation Processes, Self-Audit Tools, and Internal Controls 325 Introduction 325 Standards of Internal Controls: Accounting, Reconciliation Processes, Self-Audits, and Internal Controls 334 Chapter 17: Customer Service 343 Introduction 343 Standards of Internal Controls: Customer Service Process 347 Chapter 18: Reporting, Analytics, and Benchmarking 351 Introduction 351 Standards of Internal Control: Reporting, Analytics, and Benchmarking Process 361 Section 6 – Other AP Business Processes 365 Chapter 19: Supply Chain Financing (SCF) 367 Introduction 367 Unlocking Supply Chain Value 368 Doxey700500_ftoc.indd 9 19-10-2020 13:31:57 Chapter 20: Escheatment 371 Introduction 371 Uniform Unclaimed Property Act (the 2016 Act) 372 Trends in Unclaimed Property Audit and Compliance Issues 372 The Three Objectives of Unclaimed Property Laws 374 Chapter 21: Sales and Use Tax 381 Introduction 381 What the Wayfair Decision Means for Out-of-State Sellers 382 Chapter 22: Independent Contractors and the 1099 Process 393 TIN Matching and 1099 Filers 393 Chapter 23: Business Continuity Planning 411 Introduction 411 How COVID-19 Is Impacting Today’s Business Environment 412 Business Continuity Basics 412 The Difference Between Disaster Recovery and Business Continuity 413 Other Definitions and Terms 413 Managing a Crisis 414 Accessing the Risk and Developing a Strategy 415 Taking Business Continuity to the Cloud 415 How to Ensure Continuous Business Continuity 416 AP Tool 56: Six BCP Best Practices 417 AP Tool 57: A Roadmap for Developing Your BCP 418 AP Tool 58: Five Recommended BCP Internal Controls 419 Section 7 – Introduction 421 Accounts Payable: Quarterly Controls Self-Assessment Questionnaire 423 Glossary 427 Index 451

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Book Synopsis

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Book SynopsisTable of ContentsAcknowledgments vii Author’s Note ix Introduction – Why This Book and Why Now xi Part I The History of Economic Cycles and Monetary Policy 1 1 The Fed and You: A Brief History 3 2 Understanding Economic Cycles 16 3 The Long-wave Economic Cycle 27 4 Safe is the New Risky 35 5 Credit and Commodity Currencies 43 6 The Fall of Credit Money and the Rise of Multicurrencies 56 Part II The Rise of Blockchain and the Age of Autonomy 79 7 A Digital Commodity: Bitcoin as Digital Gold 81 8 Blockchains 100 9 The Age of Autonomy 117 10 Clusters of Innovation in the Age of Autonomy 130 11 The Case for Investing in Crypto Assets 141 Part III Crypto Investment Strategies 155 12 A Primer on Crypto Asset Investing 157 13 Quantitative Analysis Frameworks 176 14 Understanding Crypto Asset Classes 198 15 Investment Themes 209 16 Building an Investment System 223 Notes 245 Further Reading and Resources 255 Appendix 259 Index 265

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Book SynopsisLearn to build an analytics community in your organization from scratch How to Build a Data Community shows readers how to create analytics and data communities within their organizations. Celebrated author Eva Murray relies on intuitive and practical advice structured as step-by-step guidance to demonstrate the creation of new data communities. How to Build a Data Community uses concrete insights gleaned from real-world case studies to describe, in full detail, all the critical components of a data community. Readers will discover: What analytics communities are and what they look like Why data-driven organizations need analytics communities How selected businesses and nonprofits have applied these concepts successfully and what their journey to a data-driven culture looked like. How they can establish their own communities and what they can do to ensure their community grows and flourishes PerTable of ContentsForeword ix Acknowledgments xi Part I 1 Chapter 1 If You Want a Data Culture, Build a Community 3 Why Do Organizations Aim to Become Data-Driven? 4 What Does Data Give Us that Experience Cannot? 5 What Does a Data-Driven Culture Look Like? 6 Chapter 2 What is an Analytics Community? 9 #MakeoverMonday, the Social Data Project that Changes Visualizations and Lives 10 Chapter 3 Building a Data Visualization Community at the USAA 23 Part II 27 Chapter 4 Benefits of Setting Up Communities 29 Benefits for an Organization 29 Benefits for the Analytics Industry 43 Benefits for the Individual 45 Chapter 5 Why Are Communities Important? 49 What Communities Give to the Individual 50 What Each of Us Brings to a Community 52 How to Foster Constructive Connections in Your Analytics Community 53 Chapter 6 Addressing Potential Risks for Your Community 59 Distraction 60 Groupthink/Echo Chamber 62 Lack of Buy-in 63 Disruptors 64 Chapter 7 Practical Guides for Getting Started 67 Purpose and Mission 67 Structure 68 Processes 70 People 71 Activities 71 Templates 77 Getting Started 93 Chapter 8 What Are the Success Factors for Your Community? 95 Specific Targets and Outputs 96 Communicating Your Goals and Intentions 99 Getting External Input 101 Driving Engagement in Your Community 103 Chapter 9 How to Set Up an Analytics Community 105 Phase 1: Planning 105 Phase 2: Pilot 109 Phase 3: Growth 111 Phase 4: Development 116 Summary 125 Chapter 10 Lessons Learned 127 How Not to Do It 127 Who Are the Right People to Lead Your Community? 133 How to Assign Roles and Responsibilities 142 Part III 147 Chapter 11 Where to Go from Here 149 Your Roadmap 149 What Does Your Future Community Look Like? 150 What Are Your Goals? 152 Documentation and Building a Knowledge Portal 157 Automate 159 Delegate 160 Ask for Help 161 Conclusion 163 Index 165

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