Tax Dodging Clusters?

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

According to Stacy Cowley of the New York Times, only around 1.5 percent of self-employed taxpayers are audited each year. Audits are not random, because the IRS has a secret algorithm that calculates how likely each taxpayer is to have unreported income. In looking at sizing up the honesty of small-business owners, the Taxpayer Advocate… Read more »

Here we Go Again? Another Enron?

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

Short-seller and hedge fund manager, Jim Chanos, contends that the Alibaba Group is as problematic in its accounting positions as the now-defunct, corrupt energy giant, Enron. Questions: 1. What part of the company’s operations are most problematic and why? 2. What does cash flow have to do with this story? 3. What does Chanos claim… Read more »

A Fraud Caught by a Channel-Surfing Judge!

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

Dance Moms, a show on Lifetime TV is in its 6th season. The host is Abby Lee Miller, who is facing 20 counts of fraud due to allegations that she fudged specifics when it came to a bankruptcy filing. If found guilty on all counts, Ms. Miller is facing $5 million in fines and five… Read more »

Pet Valuation: A slippery slope or not?

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The Monyak family decided to board their 2 dogs when they took a vacation in France. The Monyaks gave special instructions to the caretakers to give an anti-inflammatory prescription to one of the dogs. Unfortunately, the kennel gave it to the wrong dog who died from an overdose shortly after the family returned. The Monyak’s… Read more »

Credit Card Chips

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

Did you ever wonder why so many retailers have chip-readable machines for credit cards, but tell you to swipe your card anyway? This article explains this frustrating issue for retailers. Questions: 1. Merchants have spent incredible amounts of money to get new chip-reading machines, so what is the reason for not using them? 2. Since… Read more »

Shkreli Smurks at Congress and Later Calls Them “Imbeciles”

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Martin Shkreli, the former chief executive of Turing Pharmaceuticals, repeatedly exercised his Fifth Amendment right to avoid self-incrimination, infuriating members of the House Committee on Oversight and Government Reform. Mr. Shkreli is facing federal securities fraud charges. Questions: 1. What is the scandal that Mr. Shkreli’s company is apart of? 2. What is the connection… Read more »

Lucky Pets

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According to the article, a small but growing number of dedicated food pantries have sprung up to help people feed their pets. This is in response to pleas from people who see their pets as family and will spend their last dollar on pets, despite going hungry themselves. Questions: 1. What is the ASPCA? 2…. Read more »

Secret Buyers of Real Estate Targeted

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In an unprecedented move, the Treasury Department will begin identifying and tracking cash sales of real estate in an effort to expose money laundering and secret buyers of high-end properties. Questions: 1.At which locations will the new initiative begin? 2. Is the use of shell companies legal in real estate? 3. How will the real… Read more »

The Age of the Employee-less Company

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During most of the 20th century, companies bringing in the most money also employed the most people. This article looks at a new paper from the Brookings Institute about the new age of ghost companies. Questions: 1. The article mentions Walnart as one of the five largest companies in 2012 that had 100,000 people employed… Read more »

Arbitration Lurks in the Fine Print

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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 »