Posts Tagged: litigation

Under-capitalization costs lives

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

According to the Washington Post, investigations show that Life Care Centers of America, one of the largest chains in the industry, violated federal standards meant to stop the spread of infections and communicable diseases even after outbreaks and deaths from COVID-19 began to sweep its facilities from the Pacific Northwest to New England. Questions What… Read more »

Executives Defraud Chinese Pharmaceutical Company

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

According to Bloomberg, China’s securities regulator blacklisted six executives for their role in a $4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of the country’s biggest drugmakers. Questions: What did the executives do? What did the firm admit to that allowed the fraud to occur? What was the problem with the fine ordered for… Read more »

Deceptive Practices

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, Managerial Accounting, Uncategorized.

Progressive Leasing, which offers rent-to-own programs at major retailers like Best Buy and Lowe’s, has agreed to pay $175 million to settle allegations it misled consumers, the Federal Trade Commission said Monday. Questions: What trade violations did the complaint allege? Why did FTC Commissioner Rebecca Kelly Slaughter say that the settlement did not go far… Read more »

Drowning in Arbitration

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, as companies face a flood of claims, they are employing new strategies to thwart the very process that they have upheld as the optimal way to resolve disputes. Questions: Why are some companies trying to short-circuit the process? How are some companies trying to short-circuit arbitrations? What is FairShake… Read more »

Bernie Ebbers, the Telecom myth

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

According to the New York Times, the former chief of WorldCom, convicted in one of the largest corporate accounting scandals in U.S. history, died yesterday, just over a month after his early release from prison. Questions: What happened to World Com in 2002? How long was Ebbers sentence and what were the allegations against him?… Read more »

Who can you trust?

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 New York Times, L Brands (the parent company for Victoria’s Secret and Bed, Bath & Beyond) has somehow avoided the messy board scrutiny of cronyism and time devoted to gender misconduct and sexual harassment training. Instead, the company has focused on the practice of retaliation against those alleging sexual harassment complaints. Questions:… Read more »

Ghosn Update

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

According to the New York Times, Carlos Ghosn, former automobile CEO who proclaims his innocence, was aided in his escape from Japan by an American security consultant on a Turkish chartered jet. Questions: Who was the American security consultant? How did MNG Jet, the charter company, allow Ghosn on the plane? After Ghosn got to… Read more »

Stay Tuned: Carlos Ghosn – On the Lamb?

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

At the time of this writing, Carlos Ghosn has unexpectedly left Japan. Questions: What charges is Carlos Ghosn facing? In exchange for Mr. Ghosn’s release from prison on bail, earlier this year, what were the terms? In which country are anonymous sources reporting that Mr. Ghosn is staying? Source: Flitter, E. (2019). Carlos Ghosn, Fallen… Read more »

Bernie Ebbers Gets Out Early

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

According to Accounting Today, Bernie Ebbers, infamous for the World Com fraud was granted early release for health reasons. Questions: What is the First Step Act and why did the author think that this had a bearing on the case? How long had Bernie Ebbers served? When MCI went bankrupt as a function of the… Read more »

Stealing Streaming

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

According to the Washington Post, a pair of Las Vegas computer programmers pleaded guilty last week to operating massive unauthorized streaming services that authorities say rivaled the libraries of Netflix, Amazon Prime and Hulu and cost copyright owners millions. QUESTIONS; 1. How did the two men steal these amounts of money? 2. What was iStreamitAll’s… Read more »