Category: Ethics
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Weekend Nov 15, 2014 Hertz accounting woes continue to grow. HTZ will re state 23012 and 2013 and will go back to 2011 to investigate. The audit committee and maangement have concluded more adjustments are necessary. It may be mid 2015 before thngs are straightened out. A new CFO was named last year. The CEO stepped…
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Monday Nov 2 2014 Ethics is getting more attention at the corporate level. We study ethics in the spring in ACCT 5308. Notice that many companies are still not communicating with employees. At A & M system schools we are required to participate in on line webinars regarding topics like this. And we must pass…
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Weekend Nov 2 2014 Gillespie County, Fredricksburg, Tax Assessor Marissa Weinheimer came up $90,000 short in her collections. INterestingly no fraud is involved, just Poor Accounting Procedures. County Officials are covered by a $100,000 bond and will seek to collect on it. Frankly that strikes me as a woefully small bond. Dawson Forensic Group was hired to…
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Weekend Nov 2 2014 Here is an over view article on the recent ethical lapses at UT Austin. NUmerous state legislators have lobbied to have their under achieving children and friends admitted to UT ?Law School. Graduation from UT Law has traditionally been a ticket to employment and more at top Texas Law Firms. Regent Wallace Hall…
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Weekend Nov 2 2014 Recent events surrounding admissions to the UT Law School do justice to a JOhn Grisham thriller. Former U S Senator Kay Bailey Hutchison is on the committee to find the next president of UT Austin. A President of the Texas Exes and longtime writer of requests for admission of the children of…
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Thursday Oct 30 2014 ARCP apparently changed numbers to conceal a prior period mistake. Whoops, the stock dropped 19% after that announcement. The Chief Financial Oficer and Chief Accounting Officer both resigned. Check out ARCP here. We study the rules for reporting income. Violating those rules hs real consequences. ARCP is currently losing money. The…
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Monday Oct 6 2014 Mike Phelps is the most decorated swimmer in history. But he sure needs to hire a limo to drive him around. He just received a second DUI arrest. You can read about the suspensions as a result. And this is probably not going to help in getting endorsements, the only real…
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Thursday Oct 2 2014 PCAOB considers a compromise in revealing the name of the audit partner on an engagement. The latest idea would be to register the name on a Form Five filed separately but simultaneously with the audit report. I suppose if one can navigate the PCAOB website one might actually find the form…
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Monday Sept 29 2014 Here are more details on the departure of Bill Gross from PIMCO. Allianz has owned PIMCO since 2000. Gross apparently took the first thing he could find and will be managing a tiny bond fund at Janus. Janus has been underperforming the markets and paid fines for trading violations. As I remarked…
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Tuesday Sept 23 2014 British retailer Tesco suspended four executives and called in outside auditors to investigate a $400 million overstatement of first half profit. It's still the same old story,k according to the WSJ, early booking of income and dealyed booking of costs. Yep that pesky accrual accounting is tough to nail down. This is…
