ID.me

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

The IRS has implemented a new verification process for taxpayers who want to access their online tax accounts and self-help tools that includes taking a selfie and submitting a photo of their driver’s license or passport to the third-party service, ID.me. Questions: Why are they requiring this new authentication procedure? True or False: Selfies from… Read more »

Is your state one of them?

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.

In a recent article in Accounting Today, Michael Cohn presents the standout states for the highest rate of business fraud. Questions: Which state is the highest? Which state is the lowest? Which state were you most surprised about and why? Which state had the highest single amount per fraud? What was the difference in how… Read more »

Jury Still Deliberating

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, Video Updates.

According to the New York Times, a federal jury in California is struggling to reach a unanimous verdict on three of 11 charges against Elizabeth Holmes, former CEO of Theranos. Questions: What is the maximum sentence for each federal fraud count? How many counts of fraud is Ms. Holmes facing? What is the makeup of… Read more »

Another Ponzi Scheme

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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

A recent Department of Justice (DoJ) press release indicates that John Piccarreto, Jr., 38, of Rochester, NY, was convicted of conspiracy to commit mail fraud and filing a false tax return in connection with a Ponzi scheme. Questions: What was Mr. Piccarreto’s sentence and the amount of restitution required? How many investors were defrauded? What… Read more »

The Giving Season is Always Open Season for Fraudsters

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, Uncategorized.

According to New Jersey Advance Media, a Burlington County, N.J. man, Mark D’Amico, 42, and his then-girlfriend admitted setting up a GoFundMe page, based on a lie about a helpful homeless man, and ultimately bilked online givers out of $400,000. Questions: What did D’Amico and his girlfriend use the money for? The page said that… Read more »

Hiding in Plain Site

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, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Accounting Today, the IRS failed to spot $20.6M in bogus nonresident tax refunds in 2018. Questions: How many returns did this account for? In a short paragraph, explain how this happened. In a report by the Treasury Inspector General for Tax Administration (TIGTA), what recommendations were made for the improvement of IRS identification… Read more »

The Challenges of an Intern: Evidence Destruction

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

According to the Washington Post, Mary Goddard, a former intern at the Sununu Youth Development Center in New Hampshire, says a supervisor suggested she destroy her notes and lie about a teen’s sexual assault allegation. Questions: What did the intern do? What happened to her supervisor? What would you have done as an intern? What… Read more »

Trustify cannot be Trusted

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According to the Washington Post, the CEO for a sort of “Uber for private investigators” called Trustify was sentenced to 97 months this week for fraud. Questions: What is the CEO’s name and age? Did the company make a profit? Explain. Originally the CEO was sentenced for 9 years. Why was his sentence shortened? How… Read more »

New SEC disgorgement provisions

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, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Insights Commentary, the U.S. Congress recently passed the National Defense Authorization Act (“NDAA”) for Fiscal Year 2021, which includes important changes to the Securities and Exchange Commission’s (“SEC”) ability to seek disgorgement. Although President Trump vetoed the bill, the House of Representatives and Senate voted to override the veto on December 28,… Read more »