Now you See it, Now you don’t.

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

The Federal Trade Commission has issued a warning to consumers that criminals are posing as government officials and asking people to use a gift card to pay a bogus tax bill or get a new Medicare card. Questions: 1. How much money was lost to this scam in 2015? 2. How much money was lost… Read more »

The Top Frauds of 2017

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

Monica Vaca, the Associate Director of the Division of Consumer Response and Operations at the Federal Trade Commission (FTC) just released the results from last year regarding the top frauds of 2017. Topping the list of reported frauds are the imposter scams, with nearly 350,000 reported. Questions: 1. How many people fell for someone pretending… Read more »

Who is watching the watchers?

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

According to the FTC, Vizio used 11 million televisions to spy on its customers. The television maker agreed to pay $2.2 million to settle a case with the FTC and the New Jersey attorney general’s office after the agencies accused it of secretly collecting — and selling — data about its customers’ locations, demographics and… Read more »

Meaningless? Exagerating Customer Savings?

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

Just as traditional retailers are faltering, so are list prices. This article exposes some of the secrets regarding list prices and online sellers. Questions: 1. Discuss the question in the article and what it means for you personally? “If everyone is getting a deal, is anyone really getting a deal?” 2. Explain the case against… Read more »

The Dirty Little Secret of “Cramming!”

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On July 1, 2014, the Federal Trade Commission (FTC) accused wireless carrier T-Mobile of adding bogus charges to customers’ accounts without their consent, in U.S. District Court. Questions: 1. How long did T-Mobile use the practice of “cramming” on customer mobile phone bills and what is the estimated amount of the total fraudulent charges? 2…. Read more »

A Dragnet for Astroturfing

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, Uncategorized.

As a result of a year-long investigation, New York regulators will announced on September 23, 2013 that they would crackdown on deceptive and fake Internet reviews on products and services. Agreements have been reached with 19 companies to cease their misleading practices and pay a total of $350,000 in penalties. Questions: 1. Where were some… Read more »

Hyundai & Kia overstated mileage

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.

Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »

Taken for a Ride When Trading in a Car

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, Uncategorized.

Under the Dodd-Frank financial reform act, the Federal Trade Commission (FTC) is now going after auto dealers that imply to customer that they have no remaining debt obligation for trade-ins. Five dealers in four states (South Dakota, North Carolina, Connecticut and West Virginia) have already agreed to settlements that order them to stop running ads… Read more »