When Will They Ever Learn?

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

Bank of America (BoA) is in the news again. This time, Bank of America must pay a $30 million fine after a financial regulator found numerous violations related to the accounts of 73,000 military service members. Questions: 1. What actions did the bank take against military service members that were illegal? 2. What steps did… Read more »

ATM Dogs: The Future or Just Plain Weird?

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

Soomi Park, a futuristic artist and designer currently exhibiting at Biennale Internationale Design in France, has been intrigued with the issue of privacy, security, and mass-collection of personal data by governments and corporations. In response to the changes, her exhibit, The Republic of Privacy, focuses on an imagined utopia where citizens are guaranteed total privacy…. Read more »

How many 112 year olds are taking new jobs?

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

A recent audit of the Social Security Administration revealed that thousands of workers over the age of 100 applied through the U.S. government to verify their employment eligibility in recent years. Questions: 1. About how many active Social Security numbers in the Administration’s master file belong to people who are at least 112 years old?… Read more »

Let the Punishment Fit the Crime

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The Mikado explains his ambition of letting the punishment fit the crime in Gilbert and Sullivan’s classic work. The Mikado’s song could be the new theme song of the Securities and Exchange Commission, if dissenting commissioners prevail. The debate over a “one size fits all” penalty for misconduct is at the heart of what defines… Read more »

Are you getting what is advertised?

Posted by & filed under Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Four major retailers were accused by the New York State attorney general’s office of selling fraudulent and potentially dangerous herbal supplements. The attorney general demanded that they remove the products from their shelves. Questions: 1. Who were the four national retailers? 2. What were the results of tests performed on the supplements? 3. In summary,… Read more »

Congressional Insider Trading?

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

Nineteen months ago, with only 20 minutes remaining in the trading day, a Washington-based broker-dealer, Height Securities, blasted out a “flash report” to nearly 200 clients, including hedge funds on Wall Street that predicted a raise in Medicare reimbursement rates. This sent many health insurance companies’ stocks soaring. Regulators are now trying to investigate insider… Read more »

Medical Malpractice Reform: Will it save money?

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

According to the New York Times, many people believe that medical malpractice reform is the key to removing waste from the health care system and making the practice of medicine better. But a growing body of evidence shows that belief is most likely mistaken. Questions: 1. What is the rationale for malpractice reform as cost… Read more »

Payroll Accounting Fraud

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, Intermediate Accounting, Managerial Accounting.

A former accountant for the University of Sioux Falls has been indicted for wire fraud for reportedly collecting more than $25,200 in unearned paychecks. Brent Alan Fowler, 52, faces 20 counts of wire fraud for individual payroll deposits. Questions: 1. What is the potential jail time for Mr. Fowler, if he receives the maximum punishment?… Read more »

Fraudsters are always looking for a way to rip off the Government

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

This article details a wheelchair scam that was designed to exploit blind spots in Medicare, which often pays insurance claims without checking them first. The fraud begins with criminals disguised as medical-supply companies. Questions: 1. Based on the article, which major internal control allowed this fraud to happen? 2. What type of control slowed down… Read more »

Is Herbalife a Ponzi Scheme?

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

Herbalife is a company that sells weight loss shakes, vitamins and other similar products worth billions of dollars. The company has been around for more than 30 years. It is traded on the New York Stock Exchange. So what could be more legitimate? Bill Ackman, who manages a hedge fund thinks the whole thing is… Read more »