Tag Archives: audit

In the back of my mind

Today is not the same as yesterday. Yes, the same issues are playing still. They will remain an issue for some time to come. Whether we look at Yemen, Iran, Grenfell or the Saudi Consulate at Istanbul, the media has decided to make this a long term event. Some events cannot be resolved easy or quickly, that is merely the stage we find ourselves in and as such I accept that. It was this mindset that was awakened rudely by a thought that I have had for the longest of times. Now, this is pure speculation and perhaps it is all utter BS. I accept that, yet it remains in the back of my mind, it will not delete itself from my thoughts and this morning it woke up again as I read the headline ‘Yes, I ‘cheat’ at video games – it’s half the fun‘.

I respectfully disagree, it just ain’t cricket!

Yet the thought has been there for a while. You see, the latest adult generation is different. It partially grew up with that thought. So as we read the article by Stephanie Munro (at https://www.theguardian.com/commentisfree/2018/oct/19/cheat-video-games-gaming-performance), we get a little more than we bargained for.

The cornerstone here is: ‘some games are worth a bit of cheating‘, we can agree that this is a thought every gamer has had, but I believe it transcends gaming. I believe that game makers have created the shits that audited Tesco (and devaluated it by billions). The people willing to quickly skate around the edges of Market Research to create a story that fits the bill, yet when we dig into the data, when we consider the weighting used, we see another issue. Some of these stories are more often than not, not worth the paper they were printed on. More importantly, the people mentoring these ‘younglings’ making (as a mere example) are achieving linear correlation by plotting two points. Even as they know that straight-line relationships between two variables can be achieved, they sometimes forget to tell them (implying that the newbie should have known) that it takes more than two observations. Yet a mentoring position is not about assumption. Even as reality is not this far-fetched, we see that there is a stage that counts. TU in Norway is one source giving us the most common example of unethical behaviour. It is: ‘Taking shortcuts / shoddy work‘ and it scored 72%, which is huge! I believe that there is a growing group of people relying on making deadlines and the entire issue is found there. It will almost always be on the new kid, getting advice left right and centre and not getting proper mentoring. Even when we see some parts not being violated, in some cases we see extreme examples of weighing data where weight values of well over 25 are achieved, an issue to be sure (when the population was increasingly small and unbalanced).

And here is where the shoe becomes too tight for comfort. You see behind this is the ‘golden rule’: ‘It’s important to realize that what is unethical may not always be illegal‘, it is a dangerous truth as it can at times be both.

Now this reflects back to the gaming article.

The quote: “I wonder whether cheating at video games is really anything to feel bad about. While downloading unverified cheat programs and exposing yourself to malware is not something to encourage, there are wider and greyer areas of game manipulation that deserve consideration“. There it is! The intentional push to consider cheating! We have all taken shortcuts; some are glitches within the game. Some are merely flaws in game design, the other part is exploiting a gaming bug and then there is God mode. God mode goes back to the beginning of gaming. A code that will set damage received to zero, or perhaps usage is now staged to a decrease of nil and the final part where build time and cost are set to zero. These are all stages that give you an immediate upper hand in the game. The codes tend to be there for testing purposes and were in the older days never removed, in some cases they still are not. Yet when we see the application done in Business Intelligence it becomes a different issue altogether, it has impact and it is too dangerous at present.

When we go back to Tesco in 2014, the Guardian gave us two parts. The first was: “what has already come out raises profound questions about how one of Britain’s biggest companies allowed itself to be run questionably – and about the role of its auditor. The making up of the profits figures was not in a report signed off by PwC. That happened in August – three months after PwC had given the supermarket chain’s figures a clean bill of health. Even then, it noted that there was something potentially funny with the numbers, and expressly warned about “the risk of manipulation” – but allowed them to pass anyway“, and the second one was “The audit is a key part of the scaffolding of shareholder capitalism. It is one of the primary ways in which investors, business partners and regulators can tell the true state of the company they are dealing with. If you can’t trust the audited accounts, you can’t really trust anything. This is why the vast bulk of public limited companies – and hospitals and charities – are legally obliged to submit audited accounts. And the vast bulk of those are done by PwC or one of the other Big Four auditing firms“. Now we get back to the gamer side. The bulk of people now becoming CPA have a gaming life. Whether they stay in the console closet is up to them, yet in a healthy life gaming will be part of it. It is a social interaction or perhaps a challenge to be among peers and see if you can Fortnite the hell out of your buddy and Overwatch him/her to death at the same time, nothing wrong with that. Yet we see more and more that the stage of normal gaming no longer suffices and we start relying on glitches and weaknesses, which is not altogether wrong, but when we knowingly have codes that give us 10% more, what then?

Gamers are actually getting pushed into that frame of mind and the industry as a whole loves it as the person willing to take every legal shortcut is a revenue asset, yet is it a long term solution and what happens when the border of legality was a grey area altogether? Consider the impact of Tesco, the most visible case in the last decade. And that is when we get to the 2017 New York Times (3 years after the event). Here we see: “The regulator said that finding did not suggest that any of Tesco’s directors “knew, or could reasonably be expected to have known, that the information in the August trading statement was false or misleading.” It did note, however, that there was knowledge at a sufficiently high level below the board as to the false and misleading nature of the trading statement to constitute market abuse under British law.” That is now the ball game. The two points ‘could reasonably be expected to have known‘, in opposition of ‘there was knowledge at a sufficiently high level below the board as to the false and misleading nature‘. So someone got a massive raise, someone got an overwhelming promotion and no one went to prison. This is what I would call an orchestrated cheat. When we look at PwC and we see: Tyco, Tesco, Taylor Bean & Whitaker, Bank of Tokyo-Mitsubishi and MF Global. All stages that are massive and all stages where in the end it is merely about the fine, the pressure for using ‘cheats’ is increasing and it seems that the gaming industry is banking on this. What is more appealing when an almost impossible task is achieved by someone who should not have been able to make it to level 2?

This is where Stephanie gives us the gem: “In the world of competitive sport, the line between a so-called clean win and one in which the performance of an athlete has been chemically enhanced is blurred – but we leave it up to governing bodies to decide what’s acceptable and what’s not. This leads us into the moral quandary of whether something being legal makes it acceptable“.

It is the moral quandary that is the switch, which is no longer an on and off switch, but a level that goes from 100 to zero. A lever that is pushed again and again a staged setting with online and single player achievements where we learn to do what it takes to get all the achievements, yet to keep a much more high profile stage to make us seemingly clean players.

So when we see a Battlefield example: “John is on the extreme end of a spectrum, because his tactics are so lethal, so outside of what the game’s creators intended, so far beyond what rival players can defend against and, oh yeah, he paid some hackers to have them. John pays to be able to kill your character instantly in Battlefield. He’s surely crossed some line, though it’s anyone’s guess just where that line must be” (source: Kotaku), we see the issue that is the stage on all this. This now directly reflects Apple and their mobile battery game. a conviction with a 10 million euro fine, whilst the payout makes crime a joke. The article (at https://lawlordtobe.com/2018/10/25/crime-as-a-business-model/) where in ‘Crime as a business model‘ we see: “Apple required the sale of 16,000 phones just to break even on that fine“, against “the means to sell 123 million iPhones through what the court is seen as deceptive conduct gets a fine that amounts to 16,000 units. A fine received that represents a mere 0.013% of their cost of doing business” and we see not only the progression of what should be regarded as unethical conduct, governments are actually encouraging it by giving fines that were a joke on a scale that is a mere 1% of what was done here.

So whilst we see: “For some of us, the idea of using a walkthrough is anathema, to others it is a means of bringing us back to a point where we can have fun. I’ll admit that I never completed the Ocarina of Time. It was too hard and I got bored. I’m sorry, Princess Zelda, I abandoned you“, we ignore that Ocarina of time is one of the best designed and most overwhelming puzzle journeys ever seen (I never got to 100%), the exclusivity of getting there is merely brushed on and the cheaters are given a pass. That is actually beyond the point where those with a gaming guide are not really cheaters, they merely walk the journey to get to the 100%. Apart from Ocarina of Time, there is Metroid Prime. A game I worshipped almost forever, I ended up only getting 98%, which is an achievement I was proud of (I never found all the missiles). And I played it a few times, loving that journey again and again. Yet the BI industry is merely hiring those with a 100% score and they had no interest how the player got there and that is actually the sad and worrying part in all this. Wall Street does not care how the revenue was achieved as long as it is and that is a much more dangerous setting in the upcoming future. To get the required numbers some analyst proclaimed no matter what. And when it is revealed in some scandal and the media is all over it, it is the mere ‘could reasonably not have been expected to have known‘ is what keeps the board members out of their well-deserved Rikers Island excursion (3-5 years). This sad evolution is not merely the creation of another Star Chamber, an old reference to a tribunal abolished in 1641, where we saw the king in council exercising criminal jurisdiction. It was inquisitorial, and torture is believed to have been used, with no accountability in any way shape or form. It is an upgraded system, evolved from those settings that allows corporations to do whatever they need to appease Wall Street and other financial centers, to exceed analyst expectations, whilst we see that these findings are increasingly becoming more and more unrealistic because that is what the market needs.

In all this holding these analysts and their formula’s up to scrutiny and accountability in the long run will not happen, making the need for these players to find the people who are willing, not to bend the rules, but to cheat their way across, increasingly more and more important to corporations and as such, the danger is that we get into a world where cheating is not half the fun, it is merely the only way to keep ahead of the curve and avoid being classified as no longer relevant.

When did we sign up for those values in our lives?

 

Advertisements

Leave a comment

Filed under Finance, Gaming, Law, Media, Politics, Science