Professor Elam

Accounting & Investing Info for San Antonio A & M

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Category: Audit

  • SA Mayor Seeks Ethics Auditor

    Thursday Jan 17 2013 Politicians predictably like to claim they are 'doing  something' about the latest crisis. In the wake of a letter of admonition to the Deputy City Manager, Mayor Castro calls for an Ethics Auditor. In his words,“I believe that we should create, essentially, a position … that would have the responsibility for helping…

  • UBS Admits to Rigging Rates

    Thursday Dec 20 2012 UBS pays a $1.5. billion fine admitting it rigged LIBOR Rates. UBS stock is trading virtually unchanged. Does this mean investors are unphased by such revelations?  Should they be? This is another example of why we will be requiring accounting students to read the WSJ. To wit UBS is an acronym for what…

  • SEC Pursues American Big Four in China

    Tuesday Dec 4 2012 More difficulties for American CPA firms auditing Chinese companies. have surfaced.  There seems to be a pattern of Chinese companies raising money, using American CPA firms as auditors, and then reporting losses. The SEC is pursuing them.  I frankly would not care to try to simultaneously please regulators in both China and…

  • HP Too Anxious to Make the Autonomy Deal

    Friday November 30 2012 Here is the latest on how then CEO Apotheker at HP was too anxious ot make software deal.

  • Reading Accounting Reports

    Tuesday Nov 27 2012 Globalscape GSB announced three and nine month operating results. This report is an excellent example of why we study accounting as a business language. GSB took a non cash impairment charge for its investment in notes of an Austin company which took bankruptcy. This regrettable event happened the same week that HP…

  • Before HP Autonomy’s Red Flags

    Tuesday November 27 2012 Here is a lengthy front  page WSJ article on the evidence that Autonomy was cooking the books well before the HP purchase. How did HP miss all this? There is even a parallel with Enron, the CEO of Autonomy claimed to have 500 software engineers working on various projects but the door to…

  • Texas Attorney General Blasts Daughters of the Republic of Texas

    Thanksgiving Day Nov 22 2012 The headline in the Express News today is a negative report from the Ag's office over the management of the Alamo by hte DRT. Even Senator Leticia van de Putte sponsored a bill ending the DRT 106 year run as the Alamo custodian.   I have read the overall reason for the investigation.…

  • The Bookkeeper of Venice

    Thursday November 8 2012 Here is a review of Double Entry. This book describes the evolution of double entry accounting and its first well written description in 1494 by Luca Pacioli.  This ordering of business accounts was hailed as  a near scientific achievement at the time.  As Luca comments on his creation, without it, 'it would…

  • PwC Becomes Defendant in MF Global Suit

    Tuesday November 6 2012 Lawyers preresenting customer of MF Blogal added PricewaterhouseCoopers to a civil lawsuit. The suit alleges PwC did not adequately audit MF Global's internal controls. PwC plans to 'vigorously difend itself' which is interesting considering that MF Global did indeed collapse. CEO Corzine was at a loss to explain why.  Treasurer Edith O…

  • Rita Crundwell – Most Big Time Crime is an Inside Job

    Tuesday November 6 2012 Rita Crundwell moves a small time job into big time crime. This is an amazing story, those of you that are NOT accounting majors had best read it.  Acounting majors can learn from this.  This is why there is  aneed for internal controls and outside audits.