Professor Elam

Wednesday April 12, 2017

Going Viral on You Tube for all the Wrong Reasons

United Airlines literally dragged a paying passenger which was videoed by another passenger. The passenger is being forcibly dragged off the plane by Chicago Airport Workers no less. Worse the reason was to fly four United employees to another city. Now United is the subject of a series of you tube satires.

UA CEO Oscar Munoz only made things worse by describing this as a 're accomodation.'  In this WSJ column today Holman Jenkins calls for a boycott of UA.

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KPMG fires five partners over leaking information on PCAOB auidt inspections.

Apparently a KPMG employee who had worked at PCAOB previously received word about  which audits the regulator would examine. And this goes all the way up to and including now fired David Middendorf, KPMG's national managing partner  for audit quality and professional practice.

And in the when it rains it pours department, KPMG audits Wells Fargo, and well, where were the auditors as thousands were fired for not meeting quotas as Wells created non requested credit cards and accounts?

And among the Big Four, KPMG had the highest number of deficiencies in audits examined by the PCAOB the last two years. No wonder the national audit manager was seeeking to head 'em off at the pass.'  KPMG responded that the firm has zero tolerance for  such behavior.

We study accounting ethics or rather the need for them in ACCT 5308. How is it that individuals at such high levels can engage in the very behavior the PCAOB was created to eliminate?  They just don't get it. I suppose they will retain their CPA licenses.

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Toshiba admits it may not survive.

Between huge losses at its US nuclear facility and an accounting scandal in  2015, teh firm may

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Jack Young, the driver who hit the church bus, had taken prescription pills and possessed marijuana at the time.

The investigation will include blood samples from the hospital stay of Young as he was too injured at the scene for examination.

Reports grow that he was texting while driving.  The DA will wait for the entire investigation to conclude but not looking good for Jack here.