Posts Categorized: Auditing

Slowing Wealth – New Study Reports

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to a new study by the Urban Institute, the American dream of working hard, saving more and becoming wealthier than one’s parents holds true for many, unless you’re under 40. Questions: 1. What are some of the factors that have negatively affected the wealth of younger Americans? 2. According to the article, if a… Read more »

The Loophole

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About 12 million borrowers turn to payday lenders each year. According to a new study by the Pew Charitable Trusts, only about 14 percent of borrowers can afford to take enough out of their monthly budget to repay the average payday loan. While 15 states that have banned the predatory, high-interest loans that payday lenders… Read more »

What’s Martha Stewart Doing in Court Again?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

In the latest Martha Stewart saga, Macy’s alleges Martha Stewart Living Omnimedia violated exclusivity terms of its contract when it agreed in 2011 to open Martha Stewart stores inside J.C. Penney’s stores. Questions: 1. Martha Stewart denied Macy’s allegations that she did anything unethical and said she was only looking to expand her brand. After… Read more »

Justice for Dixon Illinois?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

In November 2012, Rita Crundwell, comptroller of Dixon, Illinois, pleaded guilty to wire fraud and admitted that she stole approximately $53 million, admitting she stole the money from the city of Dixon while she was comptroller. She still faces 60 separate but related state felony charges for theft in Lee County. She has pleaded not… Read more »

Who spilled the ketchup? Unknown Traders, Of Course!

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting.

UPDATE 2/22/13: After the traders failed to appear at a hearing today in Manhattan, U.S. District Judge Jed Rakoff agreed to freeze the Goldman Sachs Group Inc. account until the case is resolved. The SEC on Feb. 15 sued the “unknown” traders over suspicious purchases of Heinz options through the account. Judge Rakoff was quoted… Read more »

Are you Due any Lost Funds?

Posted by & filed under Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Ohio has returned more than $3.4 million in unclaimed funds to Elyria in what it says is the largest such payment in state history. Questions: 1. Where did the funds originate? 2. Are there unclaimed funds in every state? If so, how do you access the list in your state? 3. How do you think… Read more »

Survey Shows that Out-of-Network Providers Are Billing Consumers up to Several Thousand Percent more than the Government would pay for similar Medicare Services

Posted by & filed under Accounting Principles, All Articles, Auditing, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

According to a new study from the Center for Policy and Research, the nation must address the soaring cost of medical care that continues to rise at an unsustainable rate. For consumers who choose to seek care out-of-network, their survey shows that the charges billed by some out-of-network providers can exceed several hundred or several… Read more »

Martha Stewart- Wildcard, Visionary, but Not a CEO

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Video Updates.

There are very few corporate leaders whose interests are more closely aligned with their shareholders’ than the homemaking icon, Martha Stewart. She owns 26 million shares and controls nearly 90 percent of the voting rights of her company Martha Stewart Living Omnimedia. While the company lost $50.7 million dollars in the most recent quarter, this… Read more »

Hyundai & Kia overstated mileage

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Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »

Who is the most Indebted Man in the World?

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The answer is that man is Former Société Générale rogue trader Jérôme Kerviel, who owes the bank $6.3 billion. His case tells us a lot about financial reform. Questions: 1. According to the article, how exactly do you carry out €50 billion (or about $73 billion) of unauthorized trades? (Focus on the controls mentioned.) 2…. Read more »