Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Change is coming for a small but blooming corner of the marijuana industry.

Questions:
1. What is CBD?
2. Why will regulation change the industry?
3. What are some of the legal grey area with unregulated products?
4. What was the most interesting part of this article for you?

Source:
Brodwin, E. (2018). There’s a sea change coming for the $1 billion marijuana-based industry you’ve never heard of. Business Insider, June 17 (Retrievable online at http://www.businessinsider.com/marijuana-cbd-boom-cbd-2018-6)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

General Motors and Volvo have partnered with Amazon to deliver packages to car trunks in 37 U.S. cities, as the e-commerce giant seeks new delivery methods for customers who may be wary of leaving packages outside or allowing couriers into their homes.

Questions:
1. What are some of the security concerns?
2. This project follows moves by competitors. Who are these competitors?
3. What is on the horizon for geographic expansion of this service?

Source:

Rolander, N. and D. Welch. (2018). Amazon Will Start Delivering Packages Straight to Your Parked Car. Time, Apr. 24 (Retrievable online at http://time.com/5252287/amazon-gm-volvo-deliveries/)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Howard Schultz is stepping down as executive chairman and member of the Board of Directors of Starbucks and will be honored with the title of chairman emeritus effective June 26, 2018.

Questions:
1. How long has he been CEO and Chairman?
2. Briefly summarize what his tenure has meant for the company?
3. What is Starbucks third place to?

Source:
Staff. (2018). Howard Schultz Is Stepping Down As Starbucks Executive Chairman. Time (Associated Press), June 4 (Retrievable online at http://time.com/5300953/howard-schultz-retires-starbucks/)

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Underemployment may be far more widespread than we have imagined — affecting up to 43 percent of recent graduates, according to new report and it turns out that underemployment can mark the first steps to a permanent professional downturn in career opportunities.

Questions:
1. According to the article, what do the data show about the 43 percent of workers who were underemployed in their first job?
2. Are all majors in college created equal in the world of work?
3. What was the most troubling finding of the report?

Source:
Weise, M. (2018). First jobs matter: Avoiding the underemployment trap. The Washington Post, June 1 (Retrievable online at https://www.washingtonpost.com/news/grade-point/wp/2018/06/01/first-jobs-matter-avoiding-the-underemployment-trap/?utm_term=.cee37c8282d0)

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The Veteran’s Administration (VA) has a new program that provides housing and care for veterans for an alternative to nursing home care for those who cannot live safely on their own. Veterans pay their caregivers $1,500 to $3,000 a month, depending on location, saving the government about $10,000 a month in nursing home care.

Questions:
1. How much is this program expected to cost the VA?
2. What are the benefits of the program?
3. Currently, how many veterans are expected to benefit from the program?
4. Explain whether it available in all states and what limitations the program faces.
5. What is the problem with direct payment by the VA?

Source:
Kime, P. (2018). VA turns to foster care for veterans instead of putting them in nursing homes. The Washington Post, May 26 (Retrievable online at https://www.washingtonpost.com/national/health-science/va-turns-to-foster-care-for-veterans-instead-of-putting-them-in-nursing-homes/2018/05/25/badc47cc-5d26-11e8-a4a4-c070ef53f315_story.html)

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Brad A. McIntyre, 35, of Bastrop, La., was sentenced on one count of conspiracy to commit mail fraud, five counts of mail fraud and four counts of money laundering related to engaging in monetary transactions in property derived from specified unlawful activity via farm fraud. He was also sentenced to three years of supervised release and ordered to pay $4.3 million in restitution to the U.S. Department of Agriculture, Farm Service Agency and Risk Management Agency. The court also ordered him to pay a $1.6 million money judgment of forfeiture after finding McIntyre guilty in a federal jury trial that ended July 21, 2017.

Questions:
1. Briefly describe Mr. McIntyre’s fraud scheme.
2. How long did the scheme last and how does that compare to the average fraud scheme as noted by the Association of Certified Fraud Examiners?
3. How was McIntyre’s scheme identified?
4. By setting up these fake farms, what internal control of the government was he trying to avoid?

Sources:

Brown, H.C. (2017). Louisiana man found guilty of using fake farms to steal $1.6 million from USDA. The New Food Economy, July 25 (Retrievable online at https://newfoodeconomy.org/man-found-guilty-stealing-1-3-million-usda-using-fake-farms/)

U.S. Department of Justice Staff. (2017). Bastrop man sentenced to 9 years in prison for defrauding USDA over fake farm benefit scheme. U.S. DOJ, Dec. 19 (Retrievable online at https://www.justice.gov/usao-wdla/pr/bastrop-man-sentenced-9-years-prison-defrauding-usda-over-fake-farm-benefit-scheme)

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According to Huffington Post, the burrito chain, Chipotle’s, has asked the Supreme Court to exclude 2,814 workers from a massive wage theft lawsuit because they signed mandatory arbitration agreements.

Questions:
1. At the heart of this dispute, how many people who have worked for the burrito chain joined a 2014 lawsuit alleging the company systemically forced them to work “off the clock”?
2. According to the article, this case is a perfect example of what?
3. What is the range of the low wage theft from employees by the company?
4. What are some of the issues being debated regarding the”signing” of the arbitration agreement?

Source:
Jameison, D. (2018). The Supreme Court’s Arbitration Ruling Is Already Screwing Thousands Of Chipotle Workers. Huffington Post, May 27 (Retrievable online at https://www.huffingtonpost.com/entry/supreme-courts-ruling-this-week-is-already-screwing-thousands-of-chipotle-workers_us_5b0844aae4b0568a880b3e26)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to The Week, a nine-person panel unanimously approved a new $275-per-employee tax on big companies (like Amazon) in Seattle, in order to raise about $48 million annually for homeless services.

Questions:
1. In Seattle, how much has the number of people sleeping on the street grown by over the period from 2015to 2017?
2. How many homeless encampments now currently dot the city of Seattle?
3. Is this just an issue for Seattle? What is going on across the country? Explain.

Source:

Staff. (2018) Seattle’s Amazon Tax. The Week, May 26 (Retrievable online at https://theweek.com/articles/774994/seattles-amazon-tax)

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In a break with Obama administration policy, Education Secretary Betsy DeVos announced in December that some students cheated by the now-defunct schools would only get a part of their federal student loan forgiven. In order to determine how much to forgive, the agency analyzes average earnings of graduates from similar programs.

Questions:
1. What did a California district court rule regarding this loan forgiveness?
2. Why did critics slam the new rule as unfair?
3. How much has the administration spent to fully forgive the loans of tens of thousands of students?
4. How are many claims from students still currently pending at the department?

Source:

Danilova, M. (2018). Court: Gov’t violated privacy law for defrauded students. AP News, May 26 (retrievable online at https://apnews.com/af5c2a81a19c4540aeb44855f2e63953/Court:-Gov’t-violated-privacy-law-for-defrauded-students)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

According to the Associated Press, U.S. prosecutors filed a criminal charge against the CEO of Bumble Bee Foods as part of an ongoing investigation into price fixing in the packaged seafood industry.

Questions:
1. During what period did the firm allegedly conspire with others in the industry to eliminate competition by setting prices for canned tuna?
2. For more than 2 years, the government has been investigating what three companies for this type of problem?
3. Besides the new charges for Christopher Lischewski at Bumble Bee, how many other executives at Bumble Bee have pleaded guilty in the price-fixing scheme and what has the company paid in fines for them?

Source:
Associated Press staff. (2018) Bumble Bee CEO Charged With Fixing Canned Tuna Prices. Time, May 17 (Retrievable online at http://time.com/5280535/bumble-bee-tuna-ceo-price-fixing/)