Philosophy - Plato Essay Example for Free

Philosophy Plato Essay 2. What is the role of philosophy for Socrates and why is it valuable in itself? Explain three argu- ments Socrates gives for the immortality of the soul. Briefly explain Cebes and Simmias’ coun- terarguments using examples from the text for support. Finally, based on your understanding of the Phaedo give your interpretation of the last words of Socrates and back it up by citing the text. In Plato’s The Last Days of Socrates, Phaedo gives an account of the last few hours of Socrates’ life, to Echecrates when he encounters him after Socrates’ death. In Phaedo’s telling of the story, we learn about why Philosophy was so important to Socrates, and why he spent his final hours explaining his arguments about the body and the soul, to his two friend Cebes and Simmias. Socrates presents four separate arguments as to how the soul lives separately from the body, the first being the theory of opposites, seconded by the theory of recollection, and followed by his theory of Affinity. After he presents his first three arguments, Simmias and Cebes interject with their opinions and counterarguments to Socrates’ first three, which is then when Socrates comes up with his fourth and final argument – Theory of the Forms. The last and final argument is one of the most important arguments that Socrates will make throughout the whole story. Phaedo ends his account to Echecrates by telling us of the final words of Socrates. Socrates was a well known Greek philosopher, known chiefly through the writings of his students, such as Plato who wrote the novel in which we are reflecting. Socrates did not write down any of his ideas or knowledge, but instead instilled it upon other people who took the re- sponsibility of writing it down for themselves. During Socrates’ final hours, we find out why Phi- losophy was so important to him. He argues that the soul is a separate entity from the body, and that we must separate the soul as far as possible from it. He relates this to death, by saying that death is this freeing and parting of the soul from the body. Socrates states, on page 100 line 67d exactly why Philosophy is important – â€Å"†¦those that go in for philosophy in the correct way who are always eager to set the soul free; what philosophers practice is exactly this, the freeing and parting of soul from body. † He believes that Philosophers live their lives being as close to death as possible, â€Å"those occupied correctly in philosophy really do practice dying, and death is less frightening for them than for anyone else (Plato 67a). † He states that if philosophers desire that one thing, separating the soul from the body, then they must always be close to death and to nev- er be afraid of it. Socrates presents his initial argument that â€Å"everything comes to be through opposite things coming to be from no other source than their own opposites (Plato 70e). † He believed that everything that exists, has an opposite and must have came from that opposite. He provided examples such as â€Å"the beautiful is presumably opposite to the ugly† or â€Å"when something comes to be bigger, it must be from being smaller before (Plato 70e). † In explaining this argument, he presents that between the two members of the pair, there are two-processes for the pair to come into being. In order for something to be big, it had to come from being small, it increased in size but it could go the opposite way and decrease in size as well. This argument relates to the soul and the body by saying that being alive has an opposite, which is being dead. In order for the op-posites argument to be logical, one must be able to come back from the dead and be alive, so it is from the dead that living things come to be alive. This leads us to believe that the soul is immor- tal, and existed before the body. Socrates sums up this argument by stating, â€Å"the living have come from the dead no less than the dead from the living; and I think it seemed to us that if this were the case, it would be sufficient proof that the souls of the dead must be somewhere from where they were to be born again (Plato 72a). † Following the argument about opposites, Socrates poses the question that if we are going to recollect something, we must have had knowledge about it at a previous point in time. This is then the second argument that Plato recounts in his telling of Socrates’ last hours. What he is pre- senting in this argument, is the fact that when we recognize something, it brings us back to think- ing about something else. So when we recognize this first object, it triggers our minds to remem- ber something that is associated with that object. Therefore, when we remember something we are recollecting back to a previous state or time or object. He argues that these recollections canat are unlike the items we have recollected. He sums this thought up by saying, â€Å"So long as, on seeing one thing, you come to have something else in mind, like or unlike, from seeing the first one. What occurs must be recollection (Plato 74d). † He doesn’t stop at this, but then goes on to explain that we had this knowledge before we even obtained our senses. When we were born, we obtained the ability to see, hear, and possess all of the other senses, but we had this knowledge before our senses, so therefore we had this knowledge before we were even born. This argument leads back to his original point that the soul exists outside of the body. â€Å"Whereas if we get our knowledge before we are born but lose it on being born, and then later through the use of our perceptions we get back those pieces of knowledge that we had at some previous time, what we call learning would be a matter of getting back knowledge that was ours anyway; and we’d be surely correct if we called that recollection (Plato 75e). † Socrates’ third argument before Cebes and Simmias provide their counterarguments is his theory of Affinity. This suggests that we must distinguish between things that are material, visi- ble, and perishable and things that are immaterial, invisible, and immortal. In this case, the body is the thing that is perishable, while the soul is immortal and lives on. While arguing this to Sim- mias and Cebes, Socrates states, â€Å"the soul is something that’s very like what’s divine, deathless, the object of intellect, uniform, undissolved, and always in exactly the same state as it ever was; while body in its turn is something very like what’s human, mortal, mindless, multiform, tending to dissolution, and never the same as it was before (Plato 80b). † This is yet another argument that proves his point that when the body dies, the soul still lives. He brings up the point in this argu- ment that the soul may wander, but eventually it is put into a different body or it will spend its time with the Gods. After his third argument, Simmias and Cebes finally interject and give their counterargu- ments to Socrates. Simmias is the first to present his counterargument, by comparing the topic of the soul existing after the death of the body, to the attunement of an instrument. He states, â€Å"The argument would go, there’d be no way that the lyre could continue to exist as it does, with the strings broken, or that the strings could, while the attunement, which is of the same nature and the same kin as the divine and deathless, had already perished, before the mortal (Plato 86a-c). † He is comparing the body to an instrument, and the soul to the attunement. When the instrument is no longer there, if it was completely broken or burned, there would no longer be a tune. The tune of one instrument does not just travel to a separate instrument when the original one is gone. Cebes then gives his counterargument, not agreeing with the one Simmias just made and not ful- ly agreeing with all of Socrates’ arguments. Cebes argument states that the soul does still live on after the body is dead, but that it is not entirely immortal. He then compares the body to a cloak and the soul to the body, stating â€Å"someone might say the very same things about soul and body as about the weaver and his cloak, that the soul is something long-lived, while the body is a weaker and shorter-lived thing, but all the same, he’d say, every single soul wears out many bod-ies, especially if it has a long life for if the body is in flux, and is perishing even while the per- son is alive, still the soul always weaves again whats being worn out. (Plato 87e). † This argu- ment he presents states that a soul can live through many bodies, as a person can go through many cloaks each as they wear out. He finishes his argument by stating that â€Å"there’s no justifica- tion yet for relying on this argument of yours, and it gives us no reassurance that when we die our soul still exists somewhere (Plato 88a). † Socrates final words at the end of Phaedo’s account were, â€Å"Crito, we owe a cock to As-clepius; pay our debt and no forgetting. † According to Greek myth, the cock symbolizes a peace offering to the god Asclepius in order to receive a cure. In this case, Socrates was getting ready to die. This could mean only two things to me, the first being that he was being cured of his life by dying and being closer than ever to the one thing that philosophers dedicate their time to, sep- arating his soul from his body and having that soul be free. The second interpretation I came up with is that he offered this cock to the god Asclepius to avoid any misfortune after he dies, while his soul is still living. All in all, Socrates had many deep and thought provoking arguments as to why the soul and the body are separate, and why the soul continues to live after the body has perished. Whether or not these arguments seemed logical, or were very believable, Socrates spent his whole life dedicated to the ideas of Philosophy, and he spent his final hours instilling his beliefs upon those who cared about him. Socrates died for what he believed in, and that’s what makes Phaedo’s account of his life so interesting. Works Cited: Plato, , and Christopher Rowe. The Last Day of Socrates. New York: Penguin Classics, 2010. 87-169. Print.

War and Influenza Epidemic :: Creative Writing Essays

A View from the Chelsea Naval Hospital BOSTON, September 12, 1918 Dear Journal, The Great War rages on. An influenza epidemic claims the lives of several Americans. But, the Boston Red Sox have done it again. Last night, in a 2-1 victory over the Chicago Cubs at Fenway Park (thanks to Carl Mays' three-hitter), the Boston Red Sox won their fifth World Series championship--amid death and disease, a reason to live ... Babe Ruth and the 1918 Red Sox. If I die today, at least I lived to see the Sox win the championship. For, it could be a long, long, time before this happens again. From the Chelsea Naval Hospital, overlooking the Boston Bay, I sip on a cup of Joe and browse over the Sports Section of the Los Angeles Times. Earlier this month, three Bostonians dropped dead from influenza. In examining the extent of the epidemic, Surgeon-General Blue commented to the Times , "People are stricken on the streets, while at work in factories, shipyards, offices or elsewhere. First there is a chill, then fever with temperature from 101 to 103, headache, backache, reddening and running of the eyes, pains and aches all over the body, and general prostration." I gaze out my window, the sun seems brighter than usual and the town more radiant. It must be the victory, for the threat of death due to influenza is pervasive. Outside, children jump rope. With every skip of the jump rope they chant. "I had a little bird." Skip. "Its name was Enza." Skip. "I opened up the window." Skip. "And in-flu-enza." Here at the Chelsea Naval Hospital, the influx of patients arriving home from the war inflicted with "battle wounds and mustard gas burns," has created a shortage of physicians and it is becoming increasingly difficult to fight this influenza. Even our own physicians are falling ill from the disease and dying within hours of its onset. Today I received a letter from Dr. Roy, a friend and fellow physician at Camp Devens, who describes a similar situation: "We have lost an outrageous number of Nurses and Drs., and the little town of Ayer is a sight. It takes Special trains to carry away the dead. For several days there were no coffins and the bodies piled up something fierce, we used to go down to the morgue (which is just back of my ward) and look at the boys laid out in long rows . War and Influenza Epidemic :: Creative Writing Essays A View from the Chelsea Naval Hospital BOSTON, September 12, 1918 Dear Journal, The Great War rages on. An influenza epidemic claims the lives of several Americans. But, the Boston Red Sox have done it again. Last night, in a 2-1 victory over the Chicago Cubs at Fenway Park (thanks to Carl Mays' three-hitter), the Boston Red Sox won their fifth World Series championship--amid death and disease, a reason to live ... Babe Ruth and the 1918 Red Sox. If I die today, at least I lived to see the Sox win the championship. For, it could be a long, long, time before this happens again. From the Chelsea Naval Hospital, overlooking the Boston Bay, I sip on a cup of Joe and browse over the Sports Section of the Los Angeles Times. Earlier this month, three Bostonians dropped dead from influenza. In examining the extent of the epidemic, Surgeon-General Blue commented to the Times , "People are stricken on the streets, while at work in factories, shipyards, offices or elsewhere. First there is a chill, then fever with temperature from 101 to 103, headache, backache, reddening and running of the eyes, pains and aches all over the body, and general prostration." I gaze out my window, the sun seems brighter than usual and the town more radiant. It must be the victory, for the threat of death due to influenza is pervasive. Outside, children jump rope. With every skip of the jump rope they chant. "I had a little bird." Skip. "Its name was Enza." Skip. "I opened up the window." Skip. "And in-flu-enza." Here at the Chelsea Naval Hospital, the influx of patients arriving home from the war inflicted with "battle wounds and mustard gas burns," has created a shortage of physicians and it is becoming increasingly difficult to fight this influenza. Even our own physicians are falling ill from the disease and dying within hours of its onset. Today I received a letter from Dr. Roy, a friend and fellow physician at Camp Devens, who describes a similar situation: "We have lost an outrageous number of Nurses and Drs., and the little town of Ayer is a sight. It takes Special trains to carry away the dead. For several days there were no coffins and the bodies piled up something fierce, we used to go down to the morgue (which is just back of my ward) and look at the boys laid out in long rows .

The Effects of Social Media on Traditional Marketing

The Effects of Social Media on Traditional Marketing and Advertising Social media is not new. Facebook has been around since 2004, YouTube since 2005, and Twitter in 2006. What is new is how social media sites like Facebook, YouTube and Twitter are affecting the way businesses market their products and services. Never before in our history have consumers been able to communicate so effortlessly with each other and with the businesses they frequent.Never before have businesses been able to interact and react to customer feedback so quickly and efficiently. However, just because businesses have the ability to use social media for their marketing and advertising efforts, does not necessarily mean they should. This paper intends to answer the question of how social media has affected the way businesses market their products and services. This question is significant not only to the business, as it directly affects not only their profit, but also their brand, their image, and their reputa tion.It is also significant to consumers, because as a consumer you will be able to see how you have the power to shape a company’s products and services, as well as shape a company’s image and reputation. No longer can a company run an advertisement on television or radio promoting how ecologically friendly they are and assume people are just going to believe them. 10 years ago that might have worked.Now, consumers can research to see if that company is in fact ecologically friendly and if they are not, consumers can start a Facebook group, a Twitter profile, a YouTube channel, and endless other social media profiles in order to spread the word about the company’s false or misleading advertising. The reverse is also true. If a company creates an amazing quality product which solves a consumer’s need at a fair price, that company may have to do very little traditional advertising as consumers would spread the word about the products through their vast soc ial networks.Social media has forever changed the relationship between business and the consumer and this relationship affects the way businesses market their products and services. In order to see how social media is defining the way businesses have traditionally marketed their products, it is helpful to look at case studies of multiple businesses and social media marketing experts. This paper will center on multiple different businesses and how they are using social media effectively to market their products and services to consumers.According to â€Å"Corporate reputation in the era of Web 2. : the case of Primark† published in the November 1, 2009 issue of the Journal of Marketing Management, Brian Jones, John Temperley, and Anderson Lima draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they answer how companies, specifically Primark, position themselves on the internet in order to build relationshi ps, control their image, and build their brand and reputation to indicate that the new era of company reputation is built not only by the company, but rather by both the company and the consumer.According to the authors, â€Å"the new rules for engagement on the social web are explored in relation to how they contribute to, damage, or improve corporate reputation and brand image. † (Jones 927-928) What these new rules mean is that, â€Å"management of corporate reputation is a two-way, top down and bottom up process. † (Jones 928) This means that not only are companies trying to portray a certain image through social media, but that also consumers are projecting their own images on to these companies through social media as well.This information is useful because it shows how social media allows consumers to shape a company as well as how companies can use social media to shape public opinion. According to â€Å"Marketing in a Hyper-Social World† published in th e September 2010 issue of the Journal of Advertising Research, Francois Gossieaux, and Edward Moran draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they study the results of a survey of several hundred companies using online marketing in order to determine the best practices for those advertising strategies.The authors ascertain that social media marketing is only as effective as the prevailing psychological factors in which social media works. These factors are inherent in human communication, not only on the internet, but in the real world as well. The authors state that there are communities of people using social media and that â€Å"these communities often thrive because the members primarily are drawn to one another.The importance of person-to-person affinity – and the ability to interact with these other humans – typically trumped the role of the sponsor’s goods or services or the presence of other features in the online communities. † (Moran 232) What the authors are saying is that social media is a new tool in order to bring similar consumers together and that if a company wants to be successful in social media marketing, they must concentrate on the human connection rather than their product or services.According to â€Å"Social marketing meets interactive media† published in the 2011 issue of the International Journal of Advertising, Ronald Hill and Nora Moran draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they seek to resolve the dilemma of how models of social marketing have not been easy to implement or analyze effectively. They assert that companies must face opportunities and challenges in implementing social media or otherwise lose their target customers of new and younger generations.The authors propose that a great deal more study and research need to go into how to successfully implement social media, however their research states that, â€Å"overall, studies examined indicate that greater levels of interactivity, feedback and encouragement, customisation, and clarity and support are fundamental components of successful programmes. † (Hill 829) What the authors suggest is that social media allows consumers to interact with each other and with the companies they buy from, and these basic human form of interaction is what makes social media so successful.According to â€Å"Social Media ROI† published in the December 2010/January 2011 issue of Marketing Management, Robert Duboff and Scott Wilkerson draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they focus on finding a solution which will help them measure a return on investment for implementing social media and whether or not to invest in social marketing. The authors put forth and interesting questi on as to who actually is in control of a brand with the advent of social media.The peer-to-peer aspect of the Internet, which has been made much more efficient through social media, has prompted the debate about who owns a brand. Some commentators and marketers maintain that consumers, users and the public now own every brand, given their ability to use social media to: laud or criticize the brand and immediately communicate their experience or opinion to everyone they know; send links to websites, video or to articles and information, etc. ; and create and post content. Duboff 34)The idea the authors are putting forward is that consumer are able to control a brand and the perception of that brand because of the immense power of social media. According to â€Å"Marketing on a Shoe String† published in the Winter 2012 issue of Marketing Health Services, Ann Marie Gothard and Kate Sotiridy draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they discuss the marketing strategy of Mount Sinai Medical Center in New York City.They discuss how Mount Sinai determined that traditional media would not work for targeting their market and instead opted for using a grassroots approach which included the implementation of social media. The authors show evidence of how using social media effectively was able to increase the percentage of clientele who were exposed to Mount Sinai Medical Center. While using a specific social media campaign, there was, â€Å"an 83 percent increase in Web traffic, coupled with a 42 percent increase in call volume [which is] substantial at any cost. And for a very low cost, it is remarkable. (Gothard 15)The authors here are able to use a case study to show how social media marketing can be used as an effective tool and for a minimal cost. According to â€Å"Evolution of Blogs as a Credible Marketing Communication Tool† published in the June 2011 issue of Journa l of Case Research, Mohit Maurya draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author discusses how a two way communication between consumers and corporate brands are being shaped through the use of blogs.The author presents case studies from different companies who have successfully and unsuccessfully used blogs to communicate with consumers. The pace of evolution and adoption of internet has facilitated the development of Consumer Generated Media – CGM or user generated content on the cyber world, which has compelled the marketers to rethink their marketing communication guidelines†¦Consumer Generated Media has begun to prove itself as an outstanding tool for not only social networking, but also as an effective interactive communication medium in the realm of business. Maurya 71)The author proposes that as consumers, we are able to control the messages we receive and that companies need t o recognize these channels of communication if they are to be successful in their marketing efforts. According to â€Å"Social media etiquette: A guide and checklist to the benefits and perils of social marketing† published in the September – December 2010 issue of the Journal of Database Marketing and Customer Strategy Management, Matt Ramsay draws from the work of multiple authors from multiple publications.Using the multitude of resources the author draws from, the author summarizes lessons learned from the successes and failures of social networking as well as compiles a list of best practices for social networking. According to Ramsay, â€Å"businesses that succeed in social media are those who maximize their customer service levels through listening and responding to what people are saying about their brand. † (257) Ramsay is again solidifying the fact that social media is a two way process in which the consumer and business have an equal stake in forming how marketing will take place and whether or not it will be effective.According to â€Å"Social media in branding: Fulfilling a Need† published in the August 2011 issue of the Journal of Brand Management, Jack Yan draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author looks at how new media can have an impact on branding. Yan shows how user connection and interactivity are important. â€Å"It is, therefore, necessary for brands to build a connection with users and fostering a sense of belonging through the engagement itself. (Yan 690) According to â€Å"2011 Social Media Marketing Industry Report.How Marketers are Using Social Media to Grow Their Businesses† published in April 2011 for the website SocialMediaExaminer. com, Michael A. Stelzner draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author surveyed over 3300 marketers with the goal of understanding how marketers are using social media to grow and promote their businesses. Stelzner, in compiling his survey, was able to determine the benefits of social media marketing. The number-one advantage of social media marketing (by a long shot) is generating more business exposure, as indicated by 88% of marketers. † (Stelzner 5) The more exposure a business has, the easier it is for consumers to talk about it and spread the word to their peers. According to â€Å"Social Integration† published in the November/December 2011 issue of the Journal of Property Management, Karen Altes draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author focuses on the integration of social media into business.The author ascertains that social media is a tactic rather than a strategy, which should be used in all aspects of marketing, public relations, and communications. à ¢â‚¬Å"However, social media is different from other communication tools you may already be using. It is participatory, and is as much about what your customers, tenants and clients are saying about you and your properties as what you are saying to them. † (Altes 60) The author is again reinforcing that social media is effecting advertising in that marketers are not only able to speak directly to consumers, but that consumers are also able to speak to companies and marketers.Social media has significantly affected the way businesses and consumers interact with each other. It has been shown how important having a two way conversation is in order to implement and manage a company’s brand and reputation. This is significant because it is important to know just how much power we have as consumers. Until the recent advent of the internet and social media, traditional advertising and marketing was a one way conversation. A company advertised their product or service and the co nsumer was just forced to believe them.Now, consumers are able to provide their own voice and have a say in what they believe. This is essential for companies to understand because now they have to not only provide products and services, they need to communicate those products and services with consumers without being false or misleading, otherwise these companies will not be in business very long. Works Cited Moran, Edward, and Francois Gossieaux. â€Å"Marketing In A Hyper-Social World. † Journal Of Advertising Research 50. (2010): 232-239. Business Source Premier. Web. 6 May 2012. Hill, Ronald P. , and Nora Moran. â€Å"Social Marketing Meets Interactive Media. † International Journal Of Advertising 30. 5 (2011): 815-838. Business Source Premier. Web. 6 May 2012. Duboff, Robert, and Scott Wilkerson.â€Å"Social Media Roi. † Marketing Management 19. 4 (2010): 32-37. Business Source Premier. Web. 6 May 2012. Jones, Brian, John Temperley, and Anderson Lima. â₠¬Å"Corporate Reputation In The Era Of Web 2. 0: The Case Of Primark. † Journal Of Marketing Management 25. /10 (2009): 927-939. Business Source Premier. Web. 6 May 2012. â€Å"Marketing On A Shoe String. † Marketing Health Services 32. 1 (2012): 12-15. Business Source Premier. Web. 6 May 2012. Maurya, Mohit. â€Å"Evolution Of Blogs As A Credible Marketing Communication Tool. † Journal Of Case Research 2. 1 (2011): 71-90. Business Source Premier. Web. 6 May 2012. Ramsay, Matt.â€Å"Social Media Etiquette: A Guide And Checklist To The Benefits And Perils Of Social Marketing. † Journal Of Database Marketing & Customer Strategy Management 17. /4 (2010): 257-261. Computer Source. Web. 6 May 2012. Yan, Jack. â€Å"Social Media In Branding: Fulfilling A Need. † Journal Of Brand Management 18. 9 (2011): 688-696. Business Source Premier. Web. 6 May 2012. Stelzner, Michael A. â€Å"2011 Social Media Marketing Industry Report. How Marketers are Using Social Media to Grow Their Businesses. † SocialMediaExaminer. com. April 2011, Web. 16 March 2012 Altes, Karen. â€Å"Social Integration. † Journal Of Property Management 76. 6 (2011): 60. Business Source Premier. Web. 6 May 2012.

A Mechanism to Check Corporate Frauds - Free Essay Example

Sample details Pages: 7 Words: 2107 Downloads: 8 Date added: 2017/06/26 Category Law Essay Type Research paper Did you like this example? FORENSIC AUDIT: A MECHANISM TO CHECK CORPORATE FRAUDS ABSTRACT Satyam, Enron, Worldcom, Tyco are few of the big brands which were charged with financial frauds. Corporate are separate legal entities wherein directors and managers are supposed to act for the welfare of shareholders. Various regulators, rating agencies, auditors are part of external check system. Don’t waste time! Our writers will create an original "A Mechanism to Check Corporate Frauds" essay for you Create order However the financial frauds around the globe has raised several questions. The current paper focuses on the concept of forensic audit. It is now believed that the regular audit system was not successful in detecting the symptoms of fraud at correct time. Was it the negligence, incapability or willingness on part of auditors that these frauds occurred and led to collapse of big companies. This has led to emergence of a new concept- Forensic auditing. The current paper discusses about the concept of forensic auditing, its techniques and investigation procedure. Several institutes are now providing certified courses and producinf forensic auditors who will be experts in detecting the financial frauds. The rising numbers of forensic audits in India, specially banks, have created demand for forensic auditors. The accounting firms are now training their employees to meet the growing demad. The paper discusses the rising importance of forensic audit in context of India. It is recommended t hat there should be independent agenies conducting forensic audits to ensure that cases like Satyam do not occur again. KEYWORDS: Auditors, Forensic audit, Frauds. JEL Classification: M41, M42 INTRODUCTION Corporates scams around the world since 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s have highlighted various corporate governance issues. They have resulted in development of numbers of codes, standards and laws to improve the governance of companies. However, when one analyses the scams like Satyam, Enron, Worldcom, Tyco, BCCI etc., we find that failure of auditors was one of the important cause of the failure. The auditing companies came under the scanner during the corporate frauds. PWC, Arthur Anderson, KPMG, have been penalised in different cases. It is known to everyone how Arthur Anderson compromised with its auditing standards in case of Enron. The result was that Arthur Anderson, who was once among the à ¢Ã¢â€š ¬Ã‹Å"Big Fiveà ¢Ã¢â€š ¬Ã¢â€ž ¢ is no more a part of it and the world is left with à ¢Ã¢â€š ¬Ã‹Å"Big Fourà ¢Ã¢â€š ¬Ã¢â€ž ¢. Similarly in the case of Satyam, its auditors PWC failed to detect the fake cash and bank balances. PWC was fined $6 million by the SEC for not following the c ode of conduct and auditing standards while performing its audit duties in the case of Satyam. The history shows that auditors have not performed their duties efficiently in case of the large scandals around the world. They failed to detect frauds in the big corporates, many of which later collapsed. Ironically the companies which failed were big corporate houses and the auditors involved were also global names. When the big names can have such frauds, it would be easier for smaller companies to do fraud and get away with it. Due to rising importance of corporate governance and increasing awareness among stakeholders, it is becoming tougher for companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s management and auditors as they are under constant scrutiny of the stakeholders and regulators. Many changes have been made over the years to improve the governance of companies, like increased disclosures; fixing accountability and responsibity of Board of Directors (BOD), management and auditors; changes in composition of BOD etc. One of the latest emerging area in fraud detection and prevention is forensic audit. Let us understand what is forensic audit all about and why is its on demand, specially in banking sector. OBJECTIVES The paper aims to explore the rising concept of forensic auditing. Objectives are as follows: To understand the concept of forensic auditing. To understand how forensic audit is conducted. To analyse growing importance of forensic audit. FORENSIC AUDIT: THE CONCEPT The term forensic means à ¢Ã¢â€š ¬Ã‹Å"suitable for use in a court of lawà ¢Ã¢â€š ¬Ã¢â€ž ¢. Forensic audit refers to the examination and evaluation of the financial information of company which can be used as an evidence in the court of law. The purpose of forensic audit can be different, it may be for prosecuting a party charged of fraud, or embezzlement or for any other financial claims. We all are aware of the financial audit which involves verification of the financial statements of a legal entity, with a view to express an audit opinion. It is supposed to be an unbiased examination and evaluation of the financial statements of an organization. But the past financial scams have proved that internal and external auditors have failed to be unbiased. Forensic audit is done by an expert group. These experts are supposed to have knowledge of not only accounting standards and finance, but also skills to detect frauds. The experts are trained to investigate frauds unlike the co nventional auditors at the likes of PwC who ignored the seven-year long Satyam scam. Forensic Audit is useful due to following reasons:- The evidences collected serves as readymade proof from a third party in relation to any audit, It gives expert comment on any fraud, Forensic Audit reports can be directly placed in the court of law for prosecuting. The forensic experts need to go beyond investigation of the financial statements and explores number of questions such as:- Figure 1: Forensic Audit: Going beyond traditions questions Types of Forensic Audit: Forensic audit can be classified into two broad categories- reactive and proactive forensic audit. They are summed up in the figure below: Figure 2: Types of Forensic Audit Forensic audit should focus on significant transactions both as reflected in financial statements and off balance sheet items. In the corporate scams some of the companies had material off-balance sheet items, which if would have highlighted at right time, would have prevented the frauds. The techniques used for forensic audit are: a. Critical Point Auditing: It aims at filtering out the symptoms of fraud from the normal transactions in which they might be mixed or concealed. In order to do it, the financial statements, records etc are analyzed in order to find out unusual trends, accounts, discrepancies, inflated sales etc. b. Propriety Audit:- It is conducted by the supreme audit institutions. It uses the à ¢Ã¢â€š ¬Ã…“value for money audità ¢Ã¢â€š ¬Ã‚  technique which aims at lending assurance that economy, efficiency and efficacy have been achieved in the transaction for which expenditure has been incurred or for which revenue collected. THE INVESTIGATION PROCESS The process of conducting a forensic investigation is similar to the process of conducting a financial audit with some additional considerations. The various stages are summarized in figure 3. Figure 3: Procedure of Forensic Auditing RISING POPULARITY If we go back two years, India had only about 30 forensic auditing experts. Today the number stands at 300 that means it has multiplied 100 times! KPMGs forensic audit team conducted 220 inquiries in India in the nine months through December 2013 compared with 77 in the full fiscal year 2010-11. The rising demand is due to several reasons. The investors and stakeholders are pressurising companies to have mechanisms to identify and mitigate risk of fraud. Finaincial scams of the past has also increased the pressure on Board to seek third party investigation as a precautionary measure. After the NSEL crisis, promoters are ordering forensic audits of their firms to ensure there is no such employee fraud. Independent directors who are now considered as watchdogs, also prefer forensic audits. Also to comply with the Foreign Corrupt Practices Act, foreign companies might go for forensic audit of the books of their Indian arms or firms they intend to invest in. Countries such as the UK and US have tightened their anti-bribery and corruption laws in the past few years. Many other countries are also enacting similar laws that companies must follow to do business. NSEL scam has brought forensic audit into public discussion. The Forward Markets Commission had ordered forensic audits of NSEL and one special audit of Multi Commodity Exchange. The forensic audits are also catching up in banks. Banks are opting for forensic audits themselves as well as RBI is also ordering the same in order to investigate money laundering, fraud etc. For example, KPMG has been hored by Axis Bank to conduct forensic audit. This was due to a sting operation done by Cobrapost that alleged executives of the bank had indulged in money laundering. KPMG has also been appointed to conduct forensic audit of Universal Commodity Exchange(UCX) after it found that its promoter allegedly siphoned off funds from the exchange. UCX is the countrys sixth national level commodity bourse. RBI has i nstructed banks to include forensic auditing practices. A clean and transparent banking system is the key to detect and fight accounting frauds and other white-collar crimes like that of money laundering. RBIà ¢Ã¢â€š ¬Ã¢â€ž ¢s circular dated 16 September 2009, titled à ¢Ã¢â€š ¬Ã…“Fraud Risk Management System in banks à ¢Ã¢â€š ¬Ã¢â‚¬Å" Role of Chairmen / Chief Executive Officersà ¢Ã¢â€š ¬Ã‚ , have urged the banks to identify and train staff in forensic auditing to investigate à ¢Ã¢â€š ¬Ã…“large value fraudsà ¢Ã¢â€š ¬Ã‚  or scams involving more than 1 crore rupees. In 2013 October, RBI has mandated forensic audit of all loans of Rs 1,000 crore or more where the bank plans to move them for corporate debt restructuring. For smaller loans too, banks are advised to take the help of these auditors. The Ministry of Corporate Affairs has also established the Serious Fraud Investigation Office (SFIO), which seeks the help of forensic auditors. CONCLUSIONS Forensic audit appears to be the need of the hour to detect and prevent white collar financial frauds in corporates. The forensic audit market is at nascent stage in India. Changes have started at national level. The introduction of the Companies Act, 2013 has a significant impact on fighting and preventing frauds.Setting up of NFRA, definition of à ¢Ã¢â€š ¬Ã‹Å" fraudà ¢Ã¢â€š ¬Ã¢â€ž ¢, enhanced responsibility of auditors and directors aim to keep a check on the frauds. National Financial Reporting Authority (NFRA) have been set up by Central Government which will have wide powers to recommended, enforce and monitor the compliance of accounting and auditing standards. The auditors role has come under scrutiny as they will be regulated by the NFRA and heavy penalties have been prescribed for auditorsin case of failure. As per section 245 (1g) the depositors and members of a company can claim damages from auditors, management and other consultants for the wrongdoings by the company and its management. Many consultants and senior executives are expected to become part of the certified community. Due to increased demand, there is new career area for the young auditors. As already mentioned, a forensic investigation requires highly skilled team members who have experience not only in accounting and auditing techniques, but also of the relevant legal framework. It is believed that personnel having such skills would be in great demand and would be valuable assets to a bank for their fraud risk management activities. ICAI and ACCA are providing courses on forensic auditing that will prepare individuals to act as watchdogs in companies. Youngsters can look upto this avenue and pursue to become forensic auditor who are going to be in great demand in near future. They will be skilled and have distinct identity from regular auditors as they will be trained in muti-disciplines and relevant regulations so that they can detect and prevent frauds. However on must pay att ention to the fact that the big auditing firms who were involved in frauds themselves, will be able to detect frauds with help of forensic techniques or will it be better to have separate forensic auditing institutes who would be independent agencies and conduct independent investigations which would be complementary to the regular auditing function of the company. REFERENCES Adukia RS.FORENSIC ACCOUNTING.Last Retrieved on October 1, 2014 from www.caaa.in/Image/Forensic%20Accounting.pdf Bhattacharjee S. Despite RBI norm, forensic audits of only 12 banksfiled. Last Retrieved October 15, 2014 from https://indianexpress.com/article/business/business-others/despite-rbi-norm-forensic-audits-of-only-12-banks-filed/ Chatterji A.N. Forensic Auditing. Last Retrieved October 15, 2014 from https://www.asosaiorg/journal2001/forensic_auditing.htm Gopakumar G. Rising NPAs: RBI initiates forensic audit at United Bank. Last Retrieved October 8, 2014 from https://www.moneycontrol.com/news/cnbc-tv18-comments/rising-npas-rbi-initiates-forensic-audit-at-united-bank-_998640.html Gopalakrishna G. Forensic Auditing in Banks- Perspectives Challenges. Last Retrieved September 15, 2014 from https://cab.org.in/CAB%20Calling%20Content/FORENSIC%20AUDIT%20IN%20BANKS/Forensic%20Auditing%20in%20Banks%20-%20Perspective%20and%20Challenges.pdf Gupta T. Forensic Audit. Last Retrieved October 15, 2014 from https://www.forum.charteredclub.com/threads/forensicaudit.50/ Jaitley orders forensic audit of UCO Bank. Hindustan Times. Last Retrieved September 10, 2014 from https://www.hindustantimes.com/business-news/jaitley-orders-forensic-audit-of-ucobank/article1-1257237.aspx KPMG to Conduct Forensic Audit of UCX: Regulator. Last Retrieved 15, 2014 from https://profit.ndtv.com/news/corporates/article-kpmg-to-conduct-forensic-audit-of-ucx-regulator-665592 Malusare LB. The Effectiveness of Forensic Accounting in Detecting, Investigating, and Preventing Frauds in India. Last Retrieved October 15, 2014 from www.oiirj.org/oiirj/may-june2013/26.pdf