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, Video Updates.

After years of continually beating the market with quarterly revenue targets, Parker H. Petit, CEO of MiMedx Group, Inc., was sued by the SEC for  allegedly engaging in a “wide-ranging fraud” to inflate revenue.

Questions:

  1. What is the industry type in which MiMedx operates?
  2. What were the ways in which the company perpetrated the fraud?
  3. Who else were named as defendants in the suit and what is their current status in the company?
  4. What other incidents in the past of Petit and his former deputy point to wrongdoing?

Source:

Melin, A. (2019). SEC charges MiMedx and ex-CEO with accounting fraud. Accounting Today, Nov. 27 (Retrievable online at accountingtoday.com/articles/former-mimedx-ceo-petit-charged-with-accounting-fraud-exposed-by-short-sellers?position=editorial_7&campaignname=ACT%20Daily-12022019&utm_source=newsletter&utm_medium=email&utm_campaign=ACT_Daily_Daily_TEST%2B%27-%27%2B12022019&bt_ee=UV5Ed%2Bjn4DVfH60DSb3n%2Fq61KiVPQ4RF3iQXvEyY7gw%3D&bt_ts=1575284535891)

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According to the Associated Press, an investigation showed that the Kansas City School District falsified attendance data for three years in a bid to regain full accreditation from the state.

Questions:

1. What was the result of overreporting attendance?

2. How many officials were involved in the 3-year scam from 2013 to 2016?

3. How was the state made aware of the problem?

4. While some of the employees that manipulated the data have left the district, do you think that they could or will be prosecuted for the fraud? Why or why not?

Associated Press staff. (2019). Kansas City district falsified attendance data; owes state. The Washington Post, Nov. 20 (Retrievable online at https://www.washingtonpost.com/national/kansas-city-district-falsified-attendance-data-owes-state/2019/11/20/0e3b89c2-0bd2-11ea-8054-2)

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

According to the Washington Post, Google plans to add checking accounts from Citigroup and a credit union to its Google Pay digital wallet in 2020.

Questions:

  1. What is Google Pay?
  2. Who is Google currently working with to push its finance arena?
  3. How many banks already offer transactions via Google Pay in the U.S.?

Source:

Anderson, M. (2019). Google plans to offer checking accounts. The Washington Post, Nov. 13 (Retrievable online at https://www.washingtonpost.com/business/technology/report-google-will-offer-checking-accounts/2019/11/13/1cf5dfbe-0635-11ea-9118-25d6bd37dfb1_story.html)

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

According to a ZDNet investigation, hackers commandeered user accounts for Disney Plus’ new streaming service. As a result, hackers locked users out, changed authorization log-ins, and sold the hacked accounts for as little as $3 each.

Questions:

  1. Does this happen with other streaming services? If so, what are some of the other services mentioned?
  2. What does the article say that Disney Plus failed to incorporate in its security?
  3. Will the incorporation of this security option in question #2 guarantee that hacking will not occur?
  4. In what countries has Disney Plus launched?

Source:

Telford, T. (2019). Thousands of Disney Plus accounts were hacked and sold online for as little as $3. The Washington Post, Nov. 19 (Retrievable online at https://www.washingtonpost.com/business/2019/11/19/thousands-disney-accounts-were-hacked-sold-online-little/)

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

According to BusinessInsider.com, virtual reality (VR) has been historically associated with consumer-facing gaming, but it’s been gaining traction in companies lately.

Questions:

  1. According to the article, what companies are actively using VR?
  2. How are they using it?
  3. How has this driven up the revenue from the hardware and software of VR?
  4. What other sources can you find that reference VR usage in companies? Find at least five and summarize each one in 3 sentences.

Source:

Sarnoff, P. (2018). THE VR IN THE ENTERPRISE REPORT: How retailers and brands are illustrating VR’s potential in sales, employee training, and product development. BusinessInsider.com, Dec. 19 (Retrievable online at https://www.businessinsider.com/virtual-reality-for-enterprise-sales-employee-training-product-2018-12)

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

According to BusinessInsider.com, married millennials and Gen Xers are keeping their finances separate from their partner much more often than married baby boomers, and it shows that younger generations are thinking about marriage and finances differently.

Questions:

  1. What do you think are some of the biggest reasons that millennials and Gen Xers are keeping their finances separate, as compared to baby boomers?
  2. Do you agree or disagree with financial therapist Amanda Clayman? Why?
  3. Do you agree or disagree with financial planner Christine Centeno? Why?

Source:

Knueven, L. (2019). More married baby boomers combine finances than any generation after them, and it speaks to one of the ways money and marriage are changing. Business Insider.com, Nov. 17 (Retrievable online at https://www.businessinsider.com/more-married-millennials-gen-xers-keep-finances-separate)

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

According to the New York Times, FedEx, like much of corporate America, has not made good on its promised investment surge from President Trump’s 2017 tax cuts.

Questions:

  1. How much did FedEx owe in taxes the year before the Trump 2017 tax cuts?
  2. What does the trend show about companies with the biggest tax cuts and the average size of their capital investments?
  3. Where did most of FedEx’s tax savings go? (include amounts, if possible)
  4. Explain how FedEx’s use of its tax savings is representative of corporate America.
  5. How do you answer the question “myth or fact” after reading this article?

Source: Tankersley, J., P. Eavis, and B. Casselman. (2019). How FedEx Cut Its Tax Bill to $0. The New York Times, Nov. 17 (Retrievable online at https://www.nytimes.com/2019/11/17/business/how-fedex-cut-its-tax-bill-to-0.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 Washington Post, Amazon put $1.5 million toward Seattle City Council races this cycle, via a business-interest group to support an opponent of that spent nearly half a million dollars in support of Kshama Sawant, who has pledged to raise taxes on the retail giant. In the end, Amazon lost the race.

Questions:

  1. What party is Kshama affiliated with?
  2. How much of the vote did she receive?
  3. Explain her “head tax ” and why big business is against her.

Source:

Knowles, H. (2019). Amazon spent $1.5 million on Seattle City Council races. The socialist it opposed has won. The Washington Post, Nov. 10 (Retrievable online at https://www.washingtonpost.com/nation/2019/11/10/amazon-spent-million-seattle-city-council-races-socialist-it-opposed-has-won/)

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.

This week, Aventura Technologies in Long Island, allegedly tried to conceal the fact that Chinese-made surveillance and security equipment were made in America.

Questions:

  1. Agents from which bureaus raided the company?
  2. How long has the scheme been going on and how does that compare to the ACFE’s average time for this type of fraud?
  3. Who were the company’s largest customers?
  4. How much has the company averaged in revenues?

Source:

Sprouse, W. (2019). New York Tech Company Charged with Selling Chinese Equipment to U.S. Military. CFO, Nov. 7 (Retrievable online at https://www.cfo.com/fraud/2019/11/new-york-tech-company-charged-with-selling-chinese-equipment-to-u-s-military/)

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.

According to Business Insider, the Wall Street Journal reports that Google has teamed up with the hospital system Ascension to collect personal health information on millions of Americans, as part of Project Nightingale.

Questions:

  1. For you, what is the most troubling issue related to this story?
  2. Can you explain how it would be possible for Ascension to allow Google use of the consumer data without their consent and still comply with HIPAA?
  3. How large is Ascension in terms of operating revenue?
  4. What did Google say that it would use the data for?

Source:

Feinstein, C. (2019). Google and a massive hospital system are reportedly collecting private health data on millions of Americans in secret. BusinessInsider.com, Nov. 11 (Retrievable online at https://www.businessinsider.com/google-ascension-collecting-private-health-data-wall-street-journal-2019-11)