Posts Tagged: Internal Controls

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 »

The Justice System and The Costs of Being Poor

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

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 »

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 »

Separation of Power

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

Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. Questions: 1. Who are the backers of this corporate governance issue and why do you think they are… Read more »

To compete or not compete – Upside or Downside?

Posted by & filed under Accounting Principles, All Articles, Managerial Accounting, Uncategorized.

Noncompete clauses are now appearing in far-ranging fields beyond the worlds of technology, sales and corporations with tightly held secrets, where the curbs have traditionally been used. Questions: 1. What industries have recently seen more noncompete clauses? 2. What clause were you most surprised at? 3. What are the costs and benefits of noncompete clauses?… Read more »

Billions in American Aid Money Stolen or Wasted?

Posted by & filed under Accounting Information Systems, 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.

Beginning as a small, international humanitarian not-for-profit organization in 1998, the International Relief and Development (IRD) organization has received more grants and cooperative agreements from USAID in recent years than any other nonprofit relief and development organization in the nation — $1.9 billion. Unfortunately, companies such as IRD manage hundreds of millions of dollars’ worth… Read more »

When will paper records be a thing of the past at Iron Mountain?

Posted by & filed under Accounting Information Systems, All Articles, Cost Accounting, Managerial Accounting, Video Updates.

There are 600 employees of the federal government’s Office of Personnel Management processing retirement papers of the government’s own workers deep down in a limestone mine in Boyer, PA. No, this is not a joke or prank. The operative word here is “paper.” The old mine’s tunnels have room for more than 28,000 file cabinets… Read more »

Seventeen police officers to ticket Gator fans?

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.

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 »

How do you steal Bitcoins?

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

According to McMillan, the world’s largest bitcoin exchange appeared to be a towering example of renegade entrepreneurism. However, insiders have claimed that Mt. Gox was a messy combination of poor management, neglect, and raw inexperience. Herein lies the makings of a $460 million hack of the bitcoin. Questions: 1. Would you consider a bitcoin to… 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 »