Posts Tagged: litigation

Will it Work?

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

Norovirus, salmonella, and E. Coli outbreaks during 2015 at fresh food restaurants run by Chipotle have cost a huge loss of business. However, in mid-February, the chain plans a strategic marketing campaign aimed at trying to bring these customers back. Questions: 1. By how much did comparable restaurant sales fall in the fourth quarter of… Read more »

Arbitration Lurks in the Fine Print

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

In this article, the New York Times found that arbitration rules tend to favor businesses, and judges and juries have been replaced by arbitrators who commonly consider the companies to be their clients. According to the authors, this has created an alternative justice system with conflicts of interest. Questions: 1. What types of claims are… Read more »

Whistleblower in an Unusual Case

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

According to Newsweek, David Danon, a former Vanguard tax lawyer, became a whistleblower two years ago when he filed formal complaints with the Internal Revenue Service and many state taxing agencies claiming that Vanguard’s low fees are an illegal tax dodge. Questions: 1. According to a 2006 law, how much could Danon stand to collect… Read more »

Security Chips and Bearing the Cost of Fraud

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

New payment cards, issued over the last year, come with a small square security chip that can help make in-person transactions more secure. However, retailers complain that they have spent billions of dollars upgrading their payment terminals to accommodate a system that cuts down on the fraud shouldered by banks, but not merchants. Questions: 1…. Read more »

Litigation Finance

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

This article discusses the trend of litigation finance, where individuals and companies are turning to private companies to front the money for legal costs in expensive litigation. Despite having in-house counsel, even larger companies are selling off pieces of lawsuits to improve cash flow and reduce risk. Questions: 1. Between 2013 and 2014, how much… Read more »

Asset Forfeiture Followup

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

During 2014, law enforcement officers took more property from American citizens than burglars did. This was a new record. Questions: 1. What was the source of these data? 2. Why aren’t the asset forfeiture deposit amounts necessarily good indicators of the rise in the use of forfeiture? 3. Why are the net assets of the… Read more »

Corporate Challenges to Workman’s Comp

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

For quite a while, the state of Texas has allowed companies to opt out of workman’s comp and write their own benefit plans. As a result, benefits for the same body part can differ dramatically depending upon which company you work for. Questions 1. Who is Bill Minick and what corporate movement is his firm… Read more »

A Disturbing Trend

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

A controversial law enforcement known as civil asset forfeiture allows police to seize and keep cash and property from people, who are suspected of wrongdoing but may never be charged. Despite public outcries, the use of this procedure has increased in the past decade. Questions: 1. The figures in reports show “the size of the… Read more »

Contagion in Earnings Manipulations

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

A new study shows that after one company in an industry is found to have misstated its earnings, others in its industry often followed suit and began massaging their own numbers; this ultimately results in their own restatements. Questions: 1. Why were the regulatory actions in the study so intriguing and what did they indicate?… Read more »

Gentrification Ignites Deed Theft

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

White-collar criminals are employing a variety of schemes in New York City to snatch properties from their owners. Often, they use the secrecy afforded to shell companies to rent out vacated properties until they are caught or sell them to third parties. Questions: 1. What are some of the signs of forgery on the fraudulent… Read more »