A Fraud Caught by a Channel-Surfing Judge!

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

Dance Moms, a show on Lifetime TV is in its 6th season. The host is Abby Lee Miller, who is facing 20 counts of fraud due to allegations that she fudged specifics when it came to a bankruptcy filing. If found guilty on all counts, Ms. Miller is facing $5 million in fines and five… Read more »

The Shipping News

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

According to a study released last Tuesday, U.S. multinational companies are saving $100 billion a year by shifting their profits overseas to lower their tax bills. Questions: 1. Is this tax fraud? Why or why not? 2. Explain the mechanism they are using. 3. Which countries are companies shifting profits to and why (be specific)?… Read more »

The new global business shield

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

Some Chinese state-owned entities, backed by the key government agency that oversees major state industrial companies, have adopted a controversial defense when they face U.S. lawsuits – we enjoy sovereign immunity. Questions: 1. The article says that this policy is an indication of something much deeper. What is that? 2. The article mentioned Chinese audit… Read more »

Fine Print – Gotcha!

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Tara Zoumer thought she had found her dream job when she was hired at WeWork, a $16 billion start-up that rents office space to young entrepreneurs. As a salaried employee, she was soon asked to expand her duties to include many things that an hourly custodian should do. When she tried to get other employees… Read more »

Suit without merit?

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A $5 million suit was filed in Federal court alleging that Starbuck’s is deceiving customers by filling drinks with too much ice. Questions: 1. Based on the allegation, do you think that Starbuck’s should report the lawsuit as a contingency in their upcoming annual report? Why or why not? 2. Besides claiming that too much… Read more »

Collateral damage

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The government set up an elaborate sting operation to expose a network of recruiters for visa mills. The only problem was that some students claim that they thought the “honey trap” was a legitimate organization and were duped by the U.S. government. Questions: 1. Briefly explain the sting scheme. 2. After reading the article, do… Read more »

A Good Case for Whistleblower Status?

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The executive director of an arts charity, D. Alexandra Dyer, was attacked with drain cleaner last year. On Friday, she was fired by the board of the charity, along with the financial officer who helped her unearth what the authorities have called a $750,000 embezzlement scheme. Questions: 1. What led up to the “Drano” attack?… Read more »

HUUUUGGGGGEEEEE Shift!

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In an apparent rejection of the basic principles of the U.S. economy, a Harvard University poll shows that most young people do not support capitalism. Questions: 1. What percentage supported socialism? 2. Why are the results of the survey difficult to interpret? 3. What did the survey say about health insurance? 4. What did you… Read more »

Here we Go Again! Contracts for Deed!

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, Uncategorized, Video Updates.

In the 1930s through the 1960s, most African-Americans could not get mortgages. This was because the U.S. government deemed neighborhoods where they lived ineligible for federal mortgage insurance, which was the Depression-era innovation that made mortgages widely affordable. As a result, hucksters moved in and peddled homeownership through contracts for deed, where the home seller… Read more »

What a Heist!

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Swift — the Society for Worldwide Interbank Financial Telecommunication — is billed as a supersecure system that banks use to authorize payments from one account to another. However, last week, Swift announced that hackers had captured $81 million from Bangladesh’s central bank in February and that other similar heists have been attempted. Questions: 1. According… Read more »