Barclay’s Dark Pool

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

Despite Barclay’s private and public assurances to investors in its pool that they were continually shielded from high-speed trading, the bank is being sued for actively attracting high-speed traders to its venue, as well as bolstering high-speed trader strategies with privileged information about the pool. Questions: 1. Summarize why the article essentially called this a… Read more »

Maybe not such a good business plan.

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

In Crumbs Bake Shop’s most recent Form 10-Q filed with the SEC, the company disclosed that its auditors, Rothstein Kass, “expressed substantial doubt about our ability to continue as a going concern.” Questions: 1. Since the IPO of Crumbs, how much has the stock dropped? 2. Explain the statement that Crumbs published in its 10-Q… Read more »

Oh, to get a hole-in-one!

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

Matt Ramsey’s joy of winning the $10,000 prize for sinking a hole in one was not dashed by his own skills, but the scamming of Kevin Kolenda. Like other hole-in-one winners around the country, Matt learned that he was the victim of a scam whereby Kolenda sold insurance without a license in several states to… Read more »

Seventeen police officers to ticket Gator fans?

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Only 1,260 feet of Route 301 runs through Hampton, Florida, a city with a population of under 500. Yet between 2011 and 2012, Hampton officers wrote 12,698 speeding tickets. Now Hampton, an 89-year-old city, is fighting the state legislature threatening to wipe the town off the map, after a state audit last month uncovered significant… Read more »

Warning about Emails

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Four former leaders of the law firm, Dewey & LeBoeuf, were charged by New York prosecutors with orchestrating a nearly four-year scheme to manipulate the firm’s books during the financial crisis. In emails they talked openly about “fake income,” “accounting tricks” and their ability to fool the firm’s “clueless auditor.” Questions: 1. Explain the role… Read more »

How do Nonprofit Organizations Deal with Fraud?

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Nonprofit organization, all too often take a common approach of foregoing legal action against fraudsters rather than prosecuting them. This article covers a recent fraud and explains why many nonprofits bypass legal action in exchange for cash. Questions: 1. Summarize the case of fraud at the Progressive Policy Institute and include red flags of fraud… Read more »

Biotechnology Firm, Amgen, Acquires Anti-cancer Drugs

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Although Amgen is the world’s largest biotechnology company, they have not been in the anti-cancer drug market until now. Amgen, like other drug makers, is trying to refresh aging product lines through the acquisition. Questions: 1. What is the ranking of this takeover of biotechnology firms, in terms of historic purchases? What are examples of… Read more »

IPO Fever

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U.S. companies are on track to raise the most money through initial public offerings since before the financial crisis. It appears that this trend is driven by the same thirst for risk among investors that has pushed the stock market to new highs. Questions 1. Based on the information given in this article, what is… Read more »

Did you know that cash absorbs the smell of marijuana?

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, Video Updates.

John Davis, CEO of Northwest Patient Resource Center, runs two medical marijuana dispensaries in Seattle. In Washington state, Davis runs a legal enterprise that generates thousands of dollars each quarter in state tax revenues. However, since selling pot is still a federal crime and banks are regulated by the Federal Deposit Insurance Corporation, banks are… 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 »