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

Deloitte LLP was fined 4.3 million pounds for audit failures of a unit of Serco Group Plc. Additionally, audit engagement partner, Helen George, was fined 97,500 pounds for failure to act in accordance with the fundamental principle of professional competence and due care.

Questions:

  1. After admission of misconduct by both Deloitte and Helen George, what happened?
  2. Serco Group Plc agreed to pay 19.2 million pounds to settle a six-year fraud probe into false accounting related to what intentional mistatement?
  3. Deloitte’s fine comes just weeks after PricewaterhouseCoopers fine for what?
  4. How much was PWC’s fine in #3 above?

Source:

Miller, H. (2019) Deloitte fined $5.4M over Serco Group audit failings. Accounting Today, July 5 (Retrievable online at https://www.accountingtoday.com/articles/deloitte-fined-54m-over-serco-group-audit-failings?utm_campaign=audit%20%26%20accounting-jul%208%202019&utm_medium=email&utm_source=newsletter&eid=57251c705b8682bf40d8936b8b0be222)

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

Germany’s largest bank, Deutsche Bank, has begun a string of layoffs that will result in 20 percent fewer employees or 18,000 jobs.

Questions:

  1. This slashing in jobs happened on the first day takeover of the new CEO. Who is the CEO?
  2. What happened to shares of Deutsche Bank after word of this sweeping overhaul?
  3. How much does Deutsche Bank plan to spend on the restructuring this year?
  4. Essentially, why is the bank being restructured?

Source:

Mohamed, T. (2019). Deutsche Bank begins brutal cull of 18,000 bankers in a $8.3 billion overhaul. Business Insider, July 6 (Retrievable online at https://markets.businessinsider.com/news/stocks/what-we-know-about-deutsche-bank-restructuring-plan-2019-7-1028333237)

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

A newly released block chain report about banking was previewed on Business Insider.com.

Questions:

  1. According to Bloomberg, how much money has been poured into block chain technology, annually, as of 2018 within financial institutions?
  2. What are key difficulties or roadblocks associated with block chain application?
  3. What are the companies mentioned in the report?

Source:

Tesfaye, M. (2019). BLOCKCHAIN IN BANKING: An inside look at four banks’ early blockchain successes and failures. Business Insider, June 17 (Retrievable online at https://www.businessinsider.com/the-blockchain-in-banking-report-2019-6)

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

According to Business Insider, sarin, a deadly poison, has been detected in a mail facility at the Silicon Valley Facebook headquarters. Evacuation and FBI investigations were reported.

Questions:

  1. Is it possible that the detection was a false positive and according to whom?
  2. What is the business park where Facebook is located?
  3. Based on the article, why would you think that they evacuated 4 buildings and 3 are now back in use?
  4. If you were the accountant calculating miscellaneous losses for the one-day threat, what information would you need and why?
  5. Would a loss be allowed for this day per the tax code and why?

Source:

Price, R. (2019). The deadly poison sarin was detected in a mail bag at Facebook’s offices in California. Business Insider, July 1 (Retrievable online at https://www.businessinsider.com/sarin-poison-detected-in-facebook-mail-menlo-park-california-2019-7)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, IFRS, Income Taxes, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

One of the most popular purchases that people are making this summer is the Samsung Galaxy Fit e, previously announced in March 2019 at Samsung’s big 2019 Unpacked event.

Questions:

  1. In your opinion, what are the best features of the Samsung Galaxy Fit e and why?
  2. In your opinion, what are the worst issues associated with the Samsung Galaxy Fit e and why?
  3. Compare the projected price in U.S. dollars off the Fit e in the article with actual U.S. prices you find online. (This will require some currency exchange calculation.)

Source:

Sumra, H. (2019). Samsung Galaxy Fit and Fit e: Everything you need to know about the new trackers. Wareable.com (Retrievable online at https://www.wareable.com/fitness-trackers/samsung-galaxy-fit-e-specs-price-launch-date-7004)

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

Amazon.com Inc has just unveiled its online professional beauty store to sell supplies to licensed professional stylists, barbers and estheticians, and this move is causing the value of shares of other beauty retailers to drop.

Questions:

  1. Which beauty retailers does the article mention?
  2. What will Amazon require for purchase?
  3. Do you think this will be a profitable part of Amazon’s business and why?

Source:

Reuters staff. (2019). Amazon’s new beauty store for professionals poses threat to beauty retailers. Reuters.com, June 24 (Retrievable online at https://www.reuters.com/article/us-amazon-beauty-products/amazons-new-beauty-store-for-professionals-poses-threat-to-beauty-retailers-idUSKCN1TP21H)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, International Accounting, Uncategorized.

As Business Insider notes, Goldman Sachs is saying that the wide valuation gap between cheap and expensive stocks could close shortly in favor of bargain hunters. 

Questions:

  1. Why are investors reassessing the dynamics of value investing (or the strategy of buying stocks that are trading cheaply relative to the broader market)?
  2. According to Goldman equity analysts, how should stocks that benefit from this shift be identified?
  3. What are the stocks where Goldman sees the highest earnings-related upside relative to the consensus price targets? 

Source:

Oyedele, A. (2019). GOLDMAN SACHS: An investing strategy that’s been left for dead is now poised to triple the market’s returns. Buy these stocks to profit from the reversal. Business Insider, June 24 (Retrievable online at https://www.businessinsider.com/stock-market-investing-strategy-cheap-stocks-to-buy-goldman-sachs-2019-6)

Posted by & filed under Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to Business Insider, a cottage industry of companies has sprung up to grab a piece of the revenue flowing to over the top (or OTT) advertising. OTT refers to film and television content provided via a high-speed Internet connection rather than a cable or satellite provider. OTT does not mean free, as the term encompasses services such as Netflix, Amazon, iTunes and HBO Now.

Questions:

  1. What is causing this marketing shift?
  2. Why is this shift causing problems for ad buyers?
  3. Who are the 13 ad-tech companies that stand to win the most in OTT and who have you heard of, if any?
  4. Based on the article, which company do you think will ultimately become the largest ad-tech company?
  5. Which company do you think is the most innovative and why?

Source:

Johnson, L. (2019). Ad-tech companies are moving full speed ahead to chase OTT ad dollars. Here are the 13 companies poised to win the most. Business Insider, June 24. (Retrievable online at https://www.businessinsider.com/top-ad-tech-ott-companies-2019-2019-3).

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

According to the New York Times, Parisian food-delivery couriers are exploiting desperate migrants as gig workers.

Questions:

  1. What is the London-based platform similar to Uber eats?
  2. How large is the food-delivery industry in terms of Euros?
  3. Why is this exploitation and what percentage of earnings do courier brokers usually take of earnings from chat apps?
  4. Why does the article explain that these jobs have become more precarious?

Source:

Alderman, L. (2019). Food-Delivery Couriers Exploit Desperate Migrants in France. The New York Times, June 16 (Retrievable online at https://www.nytimes.com/2019/06/16/business/uber-eats-deliveroo-glovo-migrants.html)

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

According to the Washington Post, cash registers at Target stores are working again after an hours-long outage on Saturday afternoon that brought checkout lines across the country to a standstill.

Questions

  1. What problem does Target say caused the outage?
  2. Has this ever happened before at Target and if so when? Do you see any possible connection?
  3. How much did the 2013 data breach cost Target?
  4. What would you have done or did you do when caught in the Saturday outage?

Source:

Bhattarai, A. (2019). Target stores’ registers are working again after hours-long outage. The Washington Post, June 15 (Retrievable online at https://www.washingtonpost.com/business/2019/06/15/target-stores-registers-are-down-across-country/?utm_term=.a29401a7e1ff)