A Legalized Scam?

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

Most people do not shop around for title insurance when they buy a home. Instead, they usually just go to the title insurance company that the real estate agent recommends.This article highlights the problem with this model. Questions: 1. Using the fraud triangle, discuss what factors are at work in the title insurance industry. 2…. Read more »

An Expensive Glitch

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

On April 24, a computer outage hit 7,000 U.S. Starbuck’s company-owned stores and 1,000 Canadian company-owned Starbuck’s locations. The outage was resolved Friday night after several hours. Questions: 1. Did all locations deal with the problem in the same way? What did they do? 2. Why do you think that the outage did not affect… Read more »

Fraud at Florida-based adult entertainment businesses

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Paul Anthony Ruggieri, accountant, pleaded guilty Friday to assisting in the tax fraud scheme of Anthony Andreozzi, the owner of two Florida-based adult entertainment businesses. Questions: 1. Based on the information in the article, how long had Mr. Ruggieri been Andreozzi’s accountant? Go to the Certified Fraud Examiner’s website and compare this amount of time… Read more »

Should After-Work Screenings be Part of the Payroll?

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The nation’s retailers are paying close attention to the hotly contested issue before the Supreme Court this week. On Wednesday, the justices will determine whether security checks and the related waiting time should be part of an employee’s regular, compensable workday. Questions: 1. As part of the opposition of compensation for antitheft checks, retailers’ groups… Read more »

The Justice System and The Costs of Being Poor

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According to Mr. Edsall, the new growth industry, on the backs of the poor, seems to be private probation, correctional, and detention companies. In fact, Corrections Corporation of America, is listed on the New York Stock Exchange and reported revenues of $1.69 billion in 2013. Questions: 1. This collection of private probation companies and the… Read more »

An expensive proposition

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Currently, it is estimated that an average middle-income family in the United States can expect to spend about $245,000 over 18 years to raise a child. This is from the Department of Agriculture’s annual “Cost of Raising a Child” report. Questions: 1. If you adjust for inflation, how much more will an average middle-income family… Read more »

Questions about Sales Tax

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

Is a Twix bar food or candy? In 24 states, a Hershey’s bar is candy but a Twix isn’t. That’s because Twix contains flour, and in those states — which all share a sales tax code — candy is defined as being flour free. And since groceries aren’t taxed, you’ll pay taxes for the Hershey’s,… Read more »

Royal Fraud?

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.

Spain’s Princess Cristina was questioned in court over whether she and her husband illegally used company funds for personal expenses, including lavish parties at their modernist Barcelona mansion. Her her husband, Inaki Urdangarin, former Olympic handball medalist turned businessman, is accused of defrauding regional governments of millions of euros of public money. Questions: 1. Summarize… Read more »

Conflict of Interest?

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The commercials may sound wonderful, but unfortunately, patients are being victimized by medical credit cards. The cards, issued by specialty finance companies and commercial banks, carry huge interest rates after an initial zero interest period expires. There are also heavy penalties for late payments. Questions: 1. What types of services can be paid for with… Read more »

Where are the Controls?: Corporate Ethical Breaches Identified by Auditors

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According to a 2011 internal audit, executives at the British drug maker GlaxoSmithKline were warned about critical problems with the way the company conducted research at its drug development center in China. Potential financial risk and regulatory action are likely due to the sales practices that are currently at the center of a bribery and… Read more »