Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to IRS rules, there is no minimum age to open a Roth IRA as long as certain rules are met.

Questions:

  1. What is probably the most important rule for children to meet?
  2. What are some other Roth IRA rules?
  3. Does money for a Roth have to come directly from your child’s pocket?
  4. What if the money is from self-employment?

Source:

Carrns, A. (2022) You’re Never Too Young for a Roth I.R.A. The New York Times, June 10 (Retrievable at https://www.nytimes.com/2022/06/10/business/kids-roth-ira-retirement.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the Securities and Exchange Commission (SEC) said the cheating involved hundreds of EY’s workers from 2017 to 2021, resulted in the largest penalty ever imposed by the agency against an auditing firm.

Questions:

  1. What amount was the fine imposed by U.S. securities regulators?
  2. What were the three (3) charges against the accounting firm?
  3. Which other Big 4 accounting firm had similar allegations of cheating by auditors on internal training exams?
  4. Was this the first instance of widespread cheating on ethics exams by EY employees? Explain.

Source:

Goldstein, M. (2022). Ernst & Young to Pay $100 Million Fine After Auditors Cheated on Ethics Exams. The New York Times, June 28 (Retrievable online at https://www.nytimes.com/2022/06/28/business/ernst-young-sec-cheating.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Are we headed for a recession?

Questions:

  1. What is the opinion of Goldman Sachs’ CEO?
  2. What did JPMorgan Chase’s CEO say?
  3. What did Elon Musk say?
  4. What is your opinion and why?

Source:

Mui, C. (2022). More than 60% of executives think a recession will hit soon, new survey finds. Fortune, June 17 (Retrievable online at https://fortune.com/2022/06/17/majority-executives-anticipate-recession/)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the fall in Bitcoin was accelerated in recent weeks by the collapse of two major cryptocurrency projects; this sows doubts about the stability of the overall cryptocurrency market.

Questions:

  1. Bitcoin dropped below $20,000 this week. This is the first time since when?
  2. From March 2020 to November 2021, what happened to the price of a single Bitcoin?
  3. What are the signs that Wall Street and Fortune 500 companies have become more open to cryptocurrency that they dismissed during an earlier time? 
  4. What actions have regulators taken with respect to cryptocurrencies and why?

Source:

Griffith, E. and D. Yaffe-Bellany. Bitcoin Plummets Below $20,000 for First Time Since Late 2020. The New York Times, June 18 (Retrievable online at https://www.nytimes.com/2022/06/18/technology/bitcoin-20000.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, when customers say their money was stolen on Zelle, banks often refuse to pay.

Questions:

  1. What is Zelle?
  2. What Federal Rule protects consumers in fraudulent electronic transfers of money?
  3. How much money was sent through Zelle and Venmo last year?
  4. What is Sim Swapping?
  5. What progress has been made to ensure that banks reimburse customers for fraudulent transfers?

Source:

Cowley, S. and L. Nguyen. (2022). When Customers Say Their Money was Stolen on Zelle, Banks Often Refuse to Pay. June 20 (Retrievable at https://www.nytimes.com/2022/06/20/business/zelle-money-stolen-banks.html)

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

According to the New York Times, a congressional committee looking into wrongdoing within the Washington Commanders N.F.L. franchise referred the case to the Federal Trade Commission.

Questions:

  1. What did the 20-page letter to the FTC allege?
  2. What is the basis of the team’s categorical denial of financial impropriety?
  3. If true, what would the allegations mean regarding serious concerns inside the N.F.L.? 
  4. What does the term “juicing” mean, with respect to this story?

Source:

Belson, K. and J. Vrentas. (2022). Congress Refers Commanders’ Alleged Financial Malfeasance to F.T.C., April 12 (Retrievable online at https://www.nytimes.com/2022/04/12/sports/football/washington-commanders-dan-snyder-congress.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, International Accounting, Uncategorized.

Former president and director of the Lourve from 2013 to 2021, Jean Luc Martinez, has been charged with fraud and money laundering in connection with Egyptian artifacts that were trafficked over the past decade.

Questions:

  1. Under the French legal system, what is ahead for Mr. Martinez?
  2. What is Mr. Martinez’s current role?
  3. According to Le Monde, a colleague of two French Egyptologists became suspicious of the trafficking of the provenance of a Tutankhamen stele that ended up at the Louvre Abu Dhabi. What is a stele in art history?

Source:

Breeden, A. (2022). Former Head of Louvre Is Charged in Artifact Trafficking Case. The New York Times, May 26 (Retrievable online at https://www.nytimes.com/2022/05/26/arts/design/louvre-jean-luc-martinez-trafficking.html).

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

According to Accounting Today, the IRS destroyed about 30 M paper-filed information returns in March 2021 due to its inability to process them.

Questions:

  1. What does the IRS typically use the information returns for?
  2. Since 2014, what has been the overall percentage increase of business tax returns that are e-filed?
  3. In 2018, what was the difference in the amount reported by the Treasury Inspector General for Tax Administration (TIGTA) for processing spent for paper filings versus electronic filings?

Source:

Cohn, M. (2022). IRS destroyed 30M paper information returns due to backlog. Accounting Today, May 9 (Retrievable online at https://www.accountingtoday.com/news/irs-destroyed-30m-paper-information-returns-due-to-backlog)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

On Sunday, May 9, Forbes released its fourth annual artificial intelligence (AI) list of the top companies that will shape the future.

Questions:

  1. As you can see from the list, there is significant breadth and depth of artificial intelligence. Which area do you see as most promising and why?
  2. How was the list compiled?
  3. How much does PwC predict that AI firms will contribute to the global economy by 2030?

Source:

Popkin, H. (2022). AI 50 2022: North America’s Top AI Companies Shaping The Future. Forbes, May 9 (Retrievable online at https://www.forbes.com/sites/helenpopkin/2022/05/06/ai-50-2022-north-americas-top-ai-companies-shaping-the-future/?sh=2dc517d834b5)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Augustine Osemwegie, the owner of a used car dealership in Fall River, Massachusetts, has pleaded guilty to money laundering.

Questions:

  1. How was Osemwegie caught?
  2. What was the method he used to launder money?
  3. Was this his own money? Explain.

Source:

Media Team of RegXSA. (2022). US-based owner of used car dealership pleads guilty to international money laundering. RegXSA, April 26 (Retrievable at https://www.regxsa.com/ml-tf-updates/us-based-owner-of-used-car-dealership-pleads-guilty-to-international-money-laundering/)