Posts Tagged: Internal Controls

Exploding Water Pipe – Fraud Alert

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

Forty-five government entities are now joining whistleblower John Hendrix’s suit against JM Eagle. The suit alledges that the largest PVC pipe manufacturer committed fraud by intentionally selling pipe to governments, where the company’s internal quality controls showed 50 to 80 percent failure rates. Questions: 1. What was Hendrix’s position with the firm and what did… Read more »

The Cost Disease

Posted by & filed under Accounting Principles, Advanced Accounting, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Much of our political debate is fueled by the rise in the cost of healthcare, education, and other necessary services. Interestingly, the new book “The Cost Disease” is based on the work of William Baumol, who as a young economist in the 1960s promoted the idea tagged “Baumol’s Disease,” which explains that our current predicament… Read more »

An Ugly Tale: Double-Life and Secret Fortune

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

CFO John Franklin Howard, the trusted CFO and CPA for Raley Holdings, Inc., a defense contractor based in Grapevine, Texas, now has more than just $32 million to account for from his embezzlement; he is also facing solicitation of murder charges. Interestingly, he used some of the embezzled money to pay someone to murder his… Read more »

Feds Catch Bid-Rigging Bankers

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Federal authorities are pursuing legal action against bankers accused of systematically defrauding states, local governments and non-profits. The ongoing probe is focusing on bankers who have colluded about the offers they’ve made as they bid on contracts to invest municipal bond proceeds. Questions: 1. What is bid-rigging? Summarize the way in which the suspect bankers… Read more »

Money Market Funds: A Safe Bet?

Posted by & filed under Accounting Principles, Advanced Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

Should we risk another 2008 financial meltdown? The answer is no. However, late last month the Securities and Exchange Commission (SEC) abandoned efforts to impose new regulations on money market funds intended to prevent another panic like the one that occurred then. Because money market funds are typically invested in short-term, low-risk assets (like United… Read more »

Spreading money on your skin

Posted by & filed under Accounting Principles, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

What are the most often prescribed drugs written for by dermatologists? They include generic creams and ointments that are used to treat skin rashes, scabies, and athlete’s foot. So aren’t generics suppose to be inexpensive. Unfortunately, not any more’; significant price increases in these generics are stumping doctors and patients. In a world of prescription… Read more »

Online Gambling Settlement

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

Poker Stars, the world’s largest poker company and its rival, Full Tilt, agreed to settle federal money laundering and fraud charges by paying hundreds of millions of dollars to reimburse online gamblers. Questions: 1. Who were the founders of these companies and what charges do they face? 2. Through what means did the companies deceive… Read more »

Number One Winner!

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.

A new study by the nonprofit, Integrity Florida, ranks the Sunshine State as the nation’s most corrupt state. Since 1976, 1,762 of Florida’s public officials have been convicted of public corruption, with an average of 71 convictions per year over the period from 2000 to 2010. The study gives Florida a C minus grade on… Read more »

Security for the Super Rich

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

Dan Clark has been Warren Buffett’s bodyguard for almost two decades. Since Clark has cultivated his security skills, he has started a security company that now employs 150 guards and he has safeguarded others like Sarah Palin, George Clooney, Barack Obama, and the Iraqi Judge who oversaw the trial of Saddam Hussein, when they visited… Read more »

Another Loan Modification Nightmare!

Posted by & filed under All Articles, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, IFRS, Intermediate Accounting, Video Updates.

When will these stories end? Lily Washington started a loan modification process with Bank of America (BoA). However, shortly thereafter her son was injured in Iraq and she had to travel to a military hospital in Germany to be with him. Although she had notified the bank and received a written response that they would… Read more »