文档内容
12345679．Communication technologies are far from equivalent. A recent study
comparing honesty across a range of different media revealed that people were twice
likely to tell lies when using the phone than when communicating via e-mail. It had
previously been assumed that people would be more inclined to fabricate the truth
when using e-mail, due to the remoteness of the interaction making people more
comfortable about deceiving others. On the contrary, it seems that anxiety over the
accountability afforded by the recording of e-mail exchanges induces greater
truthfulness. However, the research also noted that people are much more likely to be
rudeor insulting overe-mail, outweighing any benefits ofincreased honesty!
An implication of the study is that if telephone conversations are recorded and
people are aware of this fact, they are likely to be more truthful over the phone.
T
Peopleare unconcerned about therepercussion ofe-mail untruths. F
It had been assumed that people would communicate more honestly when using
e-mail than when using thetelephone. F
10．There is often considerable scientific disagreement both about available
reserves of natural resources and about the extent of environmental damage caused by
8particular pollutants. Even where the scientific evidence is incontrovertible. There
may be political conflict, based on different vested interests, over the degree to which
particular environmental controls should be accepted. Governments may, for example,
refrain from introducing effective control if they fear these will adversely affect
company profitability or jobs, even where the environmental cost of not introducing
controls are considerable.
There is always scientific debate around the facts regarding the reserves of
natural resources. T
Very rarely is there conflict over the degree to which particular environmental
controls should beaccepted. F
Parties with a vested interest are more influenced by politics than science when
deciding whether to implement environmental controls. T/C
11．Whilst high visibility crime such as night-time drunken disturbance has
increased, total urban and rural crime, both reported and unreported, has fallen over
the last two years, yet paradoxically people feel less safe, believing that the converse
is the case. This fall in crime has coincided with a drop in the number of police officer
on the street. A citizen’s fear of crime seems not to be a matter of reality at all- the
visibility of law enforcement officials has a greater impact on their view of reality
than hard facts.
Reducing thenumber ofpoliceofficer has led to areduction in crime. C
Crimestatistics support popular beliefabout thelevel ofcrime. F
Peoplefeel safer when there are morepolice onthestreet. C/T
12．There is no task more difficult than that of ensuring the education of children
in modern society. Not only school, but also teachers and their roles have changed out
of all recognition in the past few decades, thanks to the impact on teaching institutions
by indoctrinating, and indoctrinated, reformist intellectuals bearing revolutionary
ideas. To the perpetual indiscipline of youth has now been added the indiscipline of
parents, many of whom interpret any reports of wrongdoing in school on the part of
their offspring as a personal affront, or as the manifestation of the malice of teachers.
As for the teachers themselves, whilst many are respectable and learned men and
women, who view it as their vocation to induct their charges into a civilization and a
way of behaving, others attempt to influence youth merely to further their political or
ideological ends.
Someof thoseworking in education havetheir own hidden agendas. C/T
Teacher with revolutionary ideas will attempt to influence their pupils for their
own political ends. F
Some teachers who report children of wrongdoing do so because of malice, rather
than nay legitimatereason. C
913．Last week, the competition commission outlined two packages to regulate
the sale of extended product warranties, which provide repair/replacement for faulty
goods beyond the manufacturer’s original guarantee. Whilst warranty sales are
currently highly profitable, with some retailers attributing up to ¾ of their profits to
this income stream, they are also criticized for offering poor value for money due to
obscure clauses, which restrict payment in many, but the most unlikely claim
scenarios. The first package-to ban retailers selling a full warranty on the day of
purchase was condemned by all as draconian-whilst the other, rather milder, option of
forcing retailers to provide full information on warranty exclusions and an obligatory
60–day “cool-off”period for customers, received amore balanced hearing.
Because no one believes that the first option will ever be implemented, investors and
analysts have focused more closely on the implication of the “milder” package. In a
recent leaked research note, one analyst suggested that the implementation of the
reform in the second package would place a staff-training burden on the retailer,
which would lead to a significant increase in the cost of warranty sales, and a
predicted 20%fall in actual sales.
“Cool-off” periods are not currently offered by companies selling product
warranties. T
It islikely that neither packagewill beimplemented. C
Preventing retailers from selling warranties on the day of purchase of a product
was felt tobe toosevere arestriction. T
14．All scientific knowledge is provisional. Everything that science knows, even
the most mundane facts and long-established theories, is subject to re-examination as
new information comes in. the latest data and ideas are scrutinized the most. Some
recantations will be unavoidable, but this is not a weakness of science, but rather its
strength. No endeavor rivals science in its incremental progress towards a more
completeunderstanding oftheobservable universe.
Science improves understanding on the basis of leaving unchallenged those
theories that appear towork. F
Somefacts in science cannot bechallenged ifany progress isto bemade. C/F
That which is not observable cannot bepart ofthedomain ofscience. C
15．The Statute on workplace safety requires that an employer should ensure, so
far as is reasonably practicable, the health, safety and welfare at work of all full and
part time employees, and also those not in direct employment who may be affected by
acts or omissions at work. However, it is also the duty of employees to take
reasonable care for their own health and safety and also that of other persons who
10may be affected by their acts or omissions at work, for example by complying with all
notices on health and safety that are posted.
If a workplace visitor is hurt due to an act of negligence by an employee then the
employeemay beheld solely responsible. C/F
An employer has responsibilityfor thesafety ofvisitorsto his factory. T
Employees have negligibleresponsibilityfor workplace health and safety. F
16．Today’s historians aim to construct a record of human activities and to use
this record to achieve a more profound understanding of humanity. This conception of
their task is quite recent, dating from the development from 18th and early 19th
centuries of scientific history, and cultivated largely by professional historians who
adopted the assumption that the study of natural, inevitable human activity. Before the
late 18th century, history was taught in virtually no schools, and it did not attempt to
provide an interpretation of human life as a whole. This is more appropriately the
function ofreligion, of philosophy,oreven perhaps of poetry.
That which constitutes thestudy ofhistory has changed overtime. T/C
Professional historians did not existbefore 18thcentury. C
In the 17th century, history would not have been thought of as a way of
understanding humanity. T
17．Whilst having similar effects on employees, there tend to be major difference
between a merger and an acquisition. In an acquisition, power is substantially
assumed by the new parent company. Change is often swift and brutal as the acquirer
imposes its own control systems and financial restraints. Parties to a merger are likely
to be evenly matched in terms of size, and the power and cultural dynamics of the
combination are moreambiguous, integration is amore drawn out process.
During an acquisition, there is often more overt conflict and resistance and a sense of
powerlessness. In mergers, because of the prolonged period between the initial
announcement and full integration, uncertainty and anxiety continue for a much
longertimeas theorganization remains ina stateof limbo.
There tends to beamajor power difference between parties inan acquisition. T
Mergers and acquisition tend to have distinctlydifferent impacts onemployees. F
Mergers yield ashorter period of anxiety and uncertainty amongst employees. F
18．Management is, in effect, the catalyst that is essential for converting the
resources and raw material inputs of the operation into valued outputs and, in the
process, ensuring that stakeholder needs are satisfied. Managers represent the critical
factor, which economists refer to as “enterprise”, without which the other factors
(land, labor and capital) cannot function. Managers are effectively the custodians of
11the organization’s resource, responsible for deciding what the resources should be
used for, how best to use them, and to which customers the outputs should be
targeted.
Stakeholderneeds are best served through thecreation ofvalued outputs.C
Management has at least two major but different responsibilities.T
Managers must decide howbest tohandle all theresources at theirdisposal. T
19．There is no doubt that vegetarian food can be healthier than a traditional
diet – indeed, research has demonstrated that vegetarians are less likely to suffer from
heart disease and obesity than those who eat meat. One long-standing concern about a
vegetarian lifestyle is the risk of failing to take in enough protein. However, historical
calculations as to the amount of protein needed for a healthy lifestyle have recently
been shown to overestimate the quantities needed, and if vegetarian select their food
carefully they should beable tomeet theirprotein needs.
A balanced diet is more likely to promote health than any particular food or food
group in isolation. C/F
Too much protein in thediet can lead toheart disease. C
Over time the recommendations as to what constitutes a healthy balanced diet
have changed. C
20．Water, the most common liquid used for cleaning, has a property called
surface tension. Molecules in the body of the water are surrounded by other molecules,
but at the surface a “tension” is created as molecules are only surrounded by other
molecules on the waterside. This tension inhibits the cleaning process, as it slows the
wetting of surface due to tension causing the water to bead up. This is where water
droplets hold their shape and do not spread. For effective cleaning to take place
“surface tension” must be reduced so that water can spread. Surface-active agents, or
surfactants,are chemicals, which are able todothis effectively.
Surface-activeagents, or surfactants, are only used for cleaning. C
Water is theonly known liquidused forcleaning. F
If surfactant chemicals are added to water when cleaning a surface, surface
tension willoccur. F
Themolecules onthewaterside hinder thecleaning process. C/T
21．The biggest risk facing the world’s insurance companies is possibly the rapid
change now taking place within their own ranks. Sluggish growth in core markets and
intense price competition, coupled with shifting patterns of customer demand and the
risingcost oflosses, are threatening tooverwhelm those tooslowto react.
Insurancecompanies are experiencing aboom in theircore markets. F
Insurancecompanies are competing to provide best prices to customers. T
12 Insurance companies are coping well with increased price competition and rising
losses. F
22．Short-sightedness is to a large extent inherited, its incidence varies from one
family to another. The reason behind the link between the common incidence of
short-sightedness and high intelligence is unclear. Previous generations thought that
eyes could become strained by years spent poring over books, but a few decades ago
the popular medical view was that short-sighted people gravitated towards the library
because they found it hard to excel at sports. Recently there has been partial support
for a theory that high intelligence and short-sightedness may, in fact, be part of a
geneticpackage.
The genetic link between intelligence and short-sightedness has recently been
disproven. C
Peoplefrom all families stand at an equal chance ofbeing short-sighted. F
Intelligence isto a largeextent inherited. C
23．The cosmic microwave background (CMB) radiation is the afterglow from
the Big Bang, and weak as it may be today, these primeval microwaves hold valuable
information about fundamental properties of the early universe. Slight differences, or
anisotropies, in the brightness and polarization of the CMB reveal clues about the
nature of the primeval plasma: that the discrepancies exist at all shows that the plasma
was not perfectly uniform. The variations in the brightness seen in the CMB reflect
differences in the density of the primordial plasma, whereas the anisotropic
polarization reveals information about the dynamics of the early universe, such as the
movement of material and the number of gravitational waves. The CMB, however, is
not the only source of polarized microwaves and the cosmological polarization must
thus be measured at different wavelengths so as to isolate them from foreground
signals.
The anisotropies of the CMB show solely that the primordial plasma was not
uniform. F
The polarization of cosmic microwaves is measured at different wavelength so as
toseparate theforeground from thebackground signals. T
Through studying the cosmological microwaves, one may learn about the forces
ofgravity in theearly universe.
24．Internet experts are warning of a new multitude of extremely dangerous
computer viruses that have recently been causing devastation and could potentially
cripple entire global computer systems. These viruses can replicate thousands of
copies within hours and are capable of extirpating security software that, in turn,
enables hackers to appropriate control of the machines. Criminal gangs can then
establish bank accounts using stolen identities, sabotage a company’s computer
13system and extort money for its restoration, and sell computers that have been
interfered with on the black market. Computer users are often advised to refrain from
opening suspicious program attached to the emails and to continually update their
security software.
Internet experts are advising computer users to replace their software if they
suspect it has been tampered with. C
25．For most people, any reference to hypnosis brings to mind images of
individuals involved in amusing, and often out of character, behavior. However,
hypnosis is also a topic of scientific research. Research by scientists over the last few
decades has revealed ways in which memory processes, and processes involved in
pain perception can be changed using hypnosis. It has also been found that hypnotic
suggestions can regulate activity in identifiable sections of the brain and can
contribute to the effective management of cognitive conflict. Findings from several
related brain imaging studies, for example, have suggested that people under hypnosis
cab exhibit reduced level of brain activity in both visual area and the anterior
cingulate cortex. Disparate research has already established the role of these brain
structures inthemonitoring thecognitiveconflict.
Workers are becoming increasingly concerned about company relocation due to its
association with employee distress and isolation, which can be caused by issues such
as the management of property transitions and loss of community ties. Furthermore,
moving home can put a strain on worker’s financial resources and close relationships,
especially for those working parents who may feel guilty about moving children to
new schools. Regardless of the disruption created, some individuals are very willing
to relocate, due to the potential for enhanced career prospects and long-term financial
stability.
Somepeople may feel guilty about theconsequences ofrelocating. T
Company relocation has increased. C
The potential benefits of job relocation are seen, by some, to be worth the
associated distress and strain. T
26．Political, economic and demographic developments are combining to
increase the wealth of individuals leading economies. These individuals take a much
more active role in managing their personal financial affairs and in determining how
their assets should be invested for their long-term benefit. As a result, we are seeing
the emergence of a new market, consisting of so-called “affluent individuals”. This
structural trend is set to continue and will provide significant opportunities for
financial services providers. This band of individuals has traditionally been dominated
by old money inheritance, and this will remain a factor, but the rise of new affluent
money is increasing as individuals benefit from higher salaries and compensation in
14the form of stock options. These new affluent individuals are also creating wealth as
smallbusiness entrepreneurs.
Affluent individuals want to manage their own assets rather than use financial
service providers. F
Individuals cannot become “affluent” through inheriting old money. F
Inherited oldmoney willbe completely replaced bynewaffluent money. F
That which is not observable cannot bepart ofthedomain ofscience. C
27．At the moment of GTC, like other European producers, is able to relieve at
least some of its over-capacity by exporting, partly to Central America. A decade
from now, that region will be largely self-sufficient and trade will be starting to flow
the other way. However, for GTC investors, the company’s recent restructure could
herald better times. The group’s lack of focus and lack-lustre returns have been much
criticized oflate.
Central America will, in thefuture, begin toexport less to Europe. F
Central American producers will find a ready market for their products in Europe.
C
Restructuring generally produces an increase in profitability. C
28．The increasing fragility of the rural economy will be the biggest challenge
facing country communities over the next ten years. Agriculture, which accounts for a
quarter of rural job, is in decline. Tourism provides no more than half this number of
job. The rural manufacturing sector, however, has grown over last ten years. Despite
this, it still employs fewer than one in twenty people living in rural area, and is
threatened by companies based in industrial areas, which benefit from access to a
larger skilled workforceand bettertransportation networks.
Industries based in rural areas benefit from bettertransport links.C
Manufacturing provides thefewest jobsin thecountryside. C
The manufacturing sector is likely to be the main source of employment for rural
workers in thefuture. C
Industries based in rural areas suffer from poorer transport links.T
29．In recent years, many issues have been considered when attempting to
ameliorate the wellbeing of patients and the efficiency of hospital administration.
Patients have often complained about endless waiting lists, low standards of
cleanliness, poor hospital food, and unsatisfactory doctor-patient communication and
now, according to an expert from a leading image consultancy, doctors’ dress codes
and their general appearance must come under close scrutiny. Of healthcare
15professionals have an unwashed appearance, dirty nails or unkempt hair, this exudes
the impression of recklessness, wearing red reminds patients of blood, and power
dressing is discouraged because patients may feel undermined and less relaxed.
Although campaign groups approve of healthcare professionals leading by example
with high standards of hygiene in hospitals, some individuals argue that this potential
new image legislation is merely a case of jumping on the bandwagon of the current
mediatrend forhomeand lifestylemakeovers.
Individuals have argued that the current media trend for lifestyle makeover is direct
result oftheconcern over theimageofnew legislations.
New hospital legislation states that healthcare professionals must have clean
fingernails.T
It isalways preferablefor healthcare professionals to wear blue instead ofred. C
30．One of the great paradoxes of entrepreneurship is that entrepreneurs must
develop the capacity to engage the urgent with the emergent. Routine pressures force
us to allow the urgent to dominate us, quarterly reports, market share, and tangible
return on investment become paramount in this paradox, emergent (strategic) issues
are often lost.
The urgent presents itself in tangible shape and form, whereas the emergent is subtler
in its appearance. Entrepreneurs need to pre-sense emergent reality, thus they require
more than ordinary attentiveness. However, information consumes the attention of the
recipient, and urgent information is by nature more demanding of attention than
emergent. Yet it is an awareness of the emergent that frequently distinguishes the
successful leader, the individual who can see through the reactive demands of
day-to-day urgency to act rapidly upon the emergent trends that, if capitalized upon,
can ensure commercial triumph. One way of ensuring time to identify the emergent is
to make time for reflective moments in work life in order to restore the quality of
attentiveness and seethrough thefog oftheimmediate.
It iseasier tospot an emergent trend than an urgent issue. F
Thepresent tends to begoverned bythe immediatedemands. T
It is easy to lose sight of the strategic issues given the demands that immediate
issues make. T
31．Some doctors claim that any information received from a patient during a
medical consultation is subject ethically to absolute confidentiality and can in no
circumstance be revealed without the patient’s permission. Without such a rule, they
believe that patients would not supply all of the information needed to treat them.
Most however, believe that their obligations to society override their obligations to
their patients; for example, being prepared to report to the police a patient who
persisted in driving, despite the existence of a condition that rendered them unsafe.
16One reason for such a conflict is that whilst courts recognize the confidentiality of
exchangebetween lawyers and clients, thisis not extended to doctorand patients.
Adoctorwould report to thepolicea patient who was adanger to others. T
Patients rarely give permission for a doctor to discuss their medical details with
others. C
Doctors are in agreement about the ethics and practice of patient confidentiality.
F
32．Private airline companies have always been determined to operate a transport
system that is safe for passengers, whilst still remaining competitively priced and
commercially viable. However, a private sector business can only remain viable if it
generates profits for its shareholders. Recent reports suggest that if all aircrafts were
fitted with military derived ground-to-air missile defense system, and at all airports
there was infallible screening for weapons and explosives then the system would be
much safer. However, totally effective screening would preclude all possibility of
profit, and current systems are still very thorough, whilst also providing a good
cost-benefit ratio.
Military aircraft are safer than commercial craft. T
Moreeffective airline security systems than are currently in useare available.T
Current airline security systems provide the best possible mix of cost against
benefit. C
33．The location of a shop operated by a charity in an affluent neighborhood
could be deemed extremely advantageous because this increases the potential for a
continuous supply of highly valuable donations. However, this may be
counterbalanced by an exorbitant rent for the property. Of fundamental importance to
the success of the shop is a dedicated group of volunteers who should sort through
donations promptly to ensure that items are quickly made available for purchase, in
order to promote financial prosperity. Volunteers and staff must be vigilant of thieves,
to which these shops are particularly susceptible, usually due to a lack of security
cameras or barcodes ontheitem.
The only factor affecting the financial success of a shop operated by a charity is
itslocation. F
Shops operated by charitable organizations are particularly vulnerable to
shoplifterifthere are nosecurity cameras orbar codes onitems.T
It is less likely that shops operated by charities which are situated in affluent
neighborhoods will have volunteers who are more dedicated, than those in less
wealthy neighborhoods. C
1734．The prospect of accepting negative feedback about ourselves elicits conflict,
as we need to assess the immediate emotional costs of negative information about
ourselves against the long-term benefits of gaining useful feedback. Studies have
confirmed what most managers seem to have known already, that the mood we in
whilst receiving feedback often influences the relative weight people assign to
emotional costs versus the informational benefits of receiving negative feedback. The
studies that have been carried out have demonstrated that positive moods can function
as a buffer and therefore enable people affected in this way to both accept, as well as
betterhandle, theemotional costs ofnegative self-related information.
Managers are increasingly taking employees’ moods into consideration when
providing them withnegative feedback regarding theirperformance. C
Accepting negative feedback involves a trade-off between short-term and
long-term costs and benefits. T
An individual’s mood will have no effect on how negative feedback is received.
C
35．Over the past decade there has been a steady growth in the holiday industry
whilst the number of travel agencies has declined. This is due to the increasing
number of customers who are booking their holidays online, because of a quicker and
more financially viable service. However, specialist travel agencies, such as those
focusing on particular regions or holiday activities, remain successful as they have an
in-depth understanding of a region and the customers who gothere. The staffs are also
multilingual, and thanks to their specialized knowledge they can provide good deals,
meaning that their prices are often lower than non-specialist travel agents and online
companies.
A travel agent’s specialist knowledge can be used to the financial benefit of the
customer. T
It is not always more expensive for the customer to book holidays with a travel
agent. T
More people are booking their holidays online rather than through a travel agent,
even thoughit takes longer to find theright holidaythis way. F
36．Significant advances in float furnace design and operation, in the
development of glass compositions, and in the glass forming process itself have all
played a role in the optimization of glass manufacturing. For example,
thermodynamic modeling assists with the enhancement of glass composition and
offers control over devitrification characteristics, and studies examining burner design,
to ensure flames have maximum luminosity and impinge on the glass at the correct
angle, aid the minimization of fuel consumption. The exploitation of such advanced
research allows glass manufacturers to reduce their expenditure on fuel, decrease their
18defect rates and produce glass of the highest quality, all of which are important if they
are to retain theircommercial standing and customerloyalty.
Glass of a higher quality is produced when the float furnace is at its maximum
temperature. C
The radiance of furnace flames has no direct impact on the amount of fuel used in
theglass-forming process. C
Ensuring the flames come into contact with the glass at a particular point can
reducetheamount of energy required in theglass manufacturing process. T
37．Amateur scientists have long been attracted to the discipline of astronomy,
and professional astronomers are frequently supportive of their contribution to the
science. Indeed, amateur astronomers have often been the first to spot an uncharted
comet or star. Until now, the required scientific equipment has, unfortunately, been
largely very expensive, varying according to the intricacy and size of the apparatus.
According to some scientists, however, the spread of new, cheap technology,
particularly in information and date management, promises to dramatically change
and facilitateamateur-professional interaction, and collaboration.
Amateur-professional collaboration will contribute to the advancement of
astronomy. T
In the past, all scientific equipment required for research in astronomy was very
expensive. C
Following the spread of new, and cheaper technology, more amateur scientists are
collaboratingwith professionals. T
38．Scientists believe we are experiencing a dramatic change in the overall
climate system, verified by the 10-15 cm rise in sea levels over the last 100 years and
the increases in severe weather conditions. Although climate change occurs naturally,
scientists believe human activities have led to increased carbon dioxide, methane and
nitrous oxide concentrations, leading to climate changes and, in turn, observed
increases in sea levels, atmospheric temperatures, and erratic weather systems. This
means that today’s climate shift differs dramatically from previous shifts in climates
in both magnitude and rate. Scientific research suggests that advancing sea levels,
rising temperatures and severe weather conditions caused by climate change will
result in a host of negative consequences such as a threat to international trade
patterns, an increase in the movement of tropical disease, and an increased risk of
forest fires and landslides.
Only the difference in velocity distinguishes current climates shifts from previous
shifts. F
The enormity of alterations to our climate system has never been experienced by
human beings before. T
19 Peoplewillcatch more tropical disease dueto climate change. C
39．Human mortality, whilst consisting of unpredictable individual events, has a
statistical regularity when averaged across a large group. This makes possible a whole
host of products, of which the annuity is one. The price of an annuity paying a fixed
regular income for life is based upon the statistical life expectancy of the purchaser at
the time the annuity is to begin. The company selling the annuity will benefit from all
those customers that die earlier than predicted, while customers are attracted by the
prospect of guaranteed income for as long as they live. Annuities have the
disadvantage that the capital invested is unrecoverable (i.e. upon the death of
annuitant nothing is left for the heirs), but that fact also enables annuities to guarantee
higher payments than could be obtained if the same sum of money were invested at
interest.
Theheirs ofaperson who buy an annuity tend to be against thepurchase. C
Essentially, the purchaser of an annuity is gambling that they will live long
enough to receivea goodreturn ontheirinvestment. C/T
Annuity returns are generally similar to returns from investing the money in an
interest bearing accounts. F
40．In casual language, the terms theory and model are often used
interchangeably. From a technical point of view there is an important difference.
Theories provide a general framework, but because of the generality of the
specification, a theory cannot be shown to be useful or useless until it is fully
specified in the form of a model. A model, on the other hand, needs by definition to
be formulated within the concepts, along with a set of assumptions about the concepts
and their relationships. The appropriateness of a model must then be evaluated with
respect to a particular set of test data. The evaluation may be done by conducting a
suitably designed set of empirical investigations, by rational inspection of the model
assumptionsin relation to thetest data, orideally both.
In the strict sense, all models provide incomplete representations of the data
to which they to fitted. Therefore the meaningful question is not whether a model is
correct or incorrect, but rather whether the model fits the data well enough to be
useful in guiding the process. Statistical evidence and judgment play important roles
inanswering thatquestion.
It is more meaningful to look at the practical utility of a model than its absolute
veracity. T
Mostpeople fail to understand thedifference between a theory and amodel. C/T
Amodel can exist inthe absence ofa theory. F
2042. Financial fraud is a crime of growing significantly. In 2003, 8% of reported
business-related crimes were fraud, averaging $35000 in losses. By 2005, whilst
financial fraud was found to be the sixth-most frequent crime, it was the
third-highest concern amongst business leaders. Researchers found that, globally,
internet-based fraud was rising dramatically in 2005. The main reasons for fraud
included poor supervision and lack of proper division of duties, inadequate
control of access to system, and poor authorization controls. Internal detective
measures uncovered less than half of the cases, with an increasing number of
cases being discovered by accident. One third of the cases were committed by
managerial-staff, whilehalfwere committedbynon-managerial staff.
Detectivemethods were operating very effectively in 2005.F
Over halfofall cases offraud in 2005were discovered byaccident. C
Business leaders are more concerned about financial fraud than before because of
thegrowth of theInternet. C
21
