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!

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.

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 »

Collateral damage

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

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?

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

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 »

Can you Alter what the Internet says about you? Ask UC – Davis.

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To improve the reputation of the University of California, Davis, and its Chancellor, Linda P.B. Katehi, after the November 2011 pepper spraying of students, the university contracted with consultants for at least $175,000 to scrub negative online Internet postings about the incident. Questions: 1. Explain what percentage the strategic communications budget increased by from 2009… Read more »

Security? Maybe not.

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Under legislation passed by Congress in 2014, potential cuts are possible for the first time for financially distressed multi-employer pension plans who want to reduce benefits for retirees in order to improve the solvency of the fund. Questions: 1. Which fund is among the first to apply to take advantage of the legislation and who… Read more »

Fantasy Accounting?

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According to the New York Times, a recent study shows that 90 percent of companies in the Standard & Poor’s 500-stock index reported non-GAAP results last year, which is up from 72 percent in 2009. Questions: 1. Do you think investors truly understand the consequences of this? 2. Which one of the tactics used do… Read more »