PropheZy, Z/Yen’s world-class risk/ reward prediction engine, keeps getting it right. A year ago, Michael Mainelli, Alan Helmore-Simpson & Ian Harris used PropheZy on the BvD FAME database of UK companies to predict that audit fees would rise by 58% over two years in response to tighter regulation and the loss of non-audit income by the “Final Four” accountancy firms (see “The Auditor's Cross-Subsidy Or Anti-Dumping”).

In April 2004, Time Magazine published “Revenge of the Bean Counters” highlighting, amongst other things, a 38% annual increase in audit fees paid by large US companies. There’s little more irritating than hearing Mainelli and Harris saying “told you so” ad nauseum, but it seems that PropheZy will be helping them to do just that in more and more areas.

Ian Harris, for example, is currently working with two grant-making foundations extending the use of PropheZy to predict the potential effectiveness of charitable grants. Early indications show that their grant-giving could be better targeted using what is effectively a “score card” in PropheZy. The technique can similarly be used to help evaluate financial investment propositions. Ian claims that he anticipated a favourable result for his PropheZy tests. “Told you so”, he said. (I saw that punch-line coming – Ed.)