http://www.seattlepi.com/business/318638_bestbuy06.html?source=rss
Summary
The article that I have chosen to base my summary blog upon revolved around the altering of documents pertaining to a lawsuit against Best Buy. The lawsuit concerned Microsoft, yes the multibillion dollar company, paying Best Buy to sign up unsuspecting customers to a trial version of MSN Internet service, and once the trial version ended customers were left with unapproved charges on their credit card bill. Timothy Block the lawyer hired by Best Buy, willingly altered two e-mails and a memo before presenting them to the plaintiffs and the judge, resulting in Best Buy losing any credibility in the eyes of the judge and the jury. Timothy Block later admitted to his mistake, resigned as Best Buy’s lawyer and now is on medical leave due to stress and depression. The lawsuit can go one of four ways, Best Buy and Microsoft losing the case, Best Buy losing, Microsoft losing, or Microsoft and Best Buy winning. But if either of the two companies or both lose, their will be tens of millions of dollars paid in damages.
Connection
This article concerning Best Buy and Microsoft connects with Chapter 12 Specialized Journals, Chapter 14 Cash Control and Banking, Chapter 15 Analyzing Financial Statements, and Chapter 16 Payroll Accounting in various ways. In accordance to Chapter 12, Best Buy and Microsoft will see an increase in the sales or income section of their synoptic journal and also an increase in their sales journal and possibly their general journal. In retrospect to Chapter 14 customers who were signed up for the trial MSN Internet service will have numerous credit card charges which will eventually lead to a decrease in their personal bank account. In accordance to Chapter 15 the plaintiffs and judge in this lawsuit, will use the financial statements to determine how much Microsoft and Best Buy benefited from the unethical practice and also victims of the unethical practice. Finally in retrospect to Chapter 16 the owners of Best Buy who agreed to the practice will probably increase their salary as the company’s gross profit increases, and the same for the Microsoft employees to implement the practice.
Reflection
Firstly after reading this article I would just like to say that Microsoft should have known better than to try to increase their sales through an unethical practice. A sale can only be defined as a sale if both or more parties agree, and what Microsoft and Best Buy were implementing can only be defined as trickery. But one surprising thing that appeared when I read the article is that a senior partner at Block’s lawyer firm, is also a director at Best Buy, which could insinuate inside influence. The accounting firm for Best Buy should have noticed money coming in from side deals with Microsoft, which should have alerted them to realize an unethical practice was taking place, and thus they should have immediately consulted a higher power. And by that I mean the police or owner(s) and not God.
Monday, April 6, 2009
Thursday, March 12, 2009
Chapter 16 Blog: Payroll Accounting
http://www.cv-library.co.uk/news/1527/Jobseekers-warned-of-employers-‘cheating’-minimum-wage-rules-.html
Summary
The article that I have chosen to base my blog upon, dealt with employers cheating employees in terms of wages. In 2009 research was conducted by TUC (Trades Union Congress) which discovered that around 1.5 million Britons above the age of 21 were being paid under the countries national wage which is 5.73 pounds an hour. The exploitation of employees can be mainly seen within retail, construction and engineering jobs. Like in the case of a 32-year old construction worker, name unknown, who was only paid a very low 4.10 pounds an hour. Currently organizations like HM Revenue and Customs are doing all they can to crack down on employers employing an ethical practice, but according to Brendan Barber general secretary at TUC they could always implement a special hotline to inform workers of their rights. Although currently the situation seems dim for these workers, for every cloud there is a silver lining, and for these employees they will only have to wait as the national wage is expected to be increased.
Connection
This article concerning the underpayment of employees by employers connects with Chapter 16 Payroll Accounting in one main way, gross pay or in greater detail wages. From the perspective of the employee he will constantly see a low payment figure on his wages, while from the perspective of an employer he will probably see an increase on the payment figure on his wages. Employees don’t have to only worry about the amount given to them by the employer, their gross profit, but they will also have to worry about the tax deductions that are inevitable.
Reflection
Firstly I would just like to say, that after reading this article I strongly hope that any of my future employers will not try to underpay me. Employers should not have the right to underpay employees, especially in this economic crisis where money is the most covenanted object. Money runs this world, and by employer’s underpaying employees they are only furthering homelessness and the likelihood of another depression as less money is being circulated throughout the economy. The blame should not be entirely put upon the employer and his unethical practice, as an accountant should be intelligent enough to notice a small wages figure and be ethical enough to report this to various wage dealing agencies. An accountant needs not only the skills taught within a classroom, but also the ethical practices taught throughout life.
http://www.cv-library.co.uk/news/1527/Jobseekers-warned-of-employers-‘cheating’-minimum-wage-rules-.html
Summary
The article that I have chosen to base my blog upon, dealt with employers cheating employees in terms of wages. In 2009 research was conducted by TUC (Trades Union Congress) which discovered that around 1.5 million Britons above the age of 21 were being paid under the countries national wage which is 5.73 pounds an hour. The exploitation of employees can be mainly seen within retail, construction and engineering jobs. Like in the case of a 32-year old construction worker, name unknown, who was only paid a very low 4.10 pounds an hour. Currently organizations like HM Revenue and Customs are doing all they can to crack down on employers employing an ethical practice, but according to Brendan Barber general secretary at TUC they could always implement a special hotline to inform workers of their rights. Although currently the situation seems dim for these workers, for every cloud there is a silver lining, and for these employees they will only have to wait as the national wage is expected to be increased.
Connection
This article concerning the underpayment of employees by employers connects with Chapter 16 Payroll Accounting in one main way, gross pay or in greater detail wages. From the perspective of the employee he will constantly see a low payment figure on his wages, while from the perspective of an employer he will probably see an increase on the payment figure on his wages. Employees don’t have to only worry about the amount given to them by the employer, their gross profit, but they will also have to worry about the tax deductions that are inevitable.
Reflection
Firstly I would just like to say, that after reading this article I strongly hope that any of my future employers will not try to underpay me. Employers should not have the right to underpay employees, especially in this economic crisis where money is the most covenanted object. Money runs this world, and by employer’s underpaying employees they are only furthering homelessness and the likelihood of another depression as less money is being circulated throughout the economy. The blame should not be entirely put upon the employer and his unethical practice, as an accountant should be intelligent enough to notice a small wages figure and be ethical enough to report this to various wage dealing agencies. An accountant needs not only the skills taught within a classroom, but also the ethical practices taught throughout life.
Tuesday, March 3, 2009
Chapter 15 Blog
Well Care Revises Past Financial Statements To Include Refunds Owed to Florida, Illinois Medicaid Programs
http://www.medicalnewstoday.com/articles/115887.php
Summary
The article that I have chosen to base my blog upon concerns the huge overstatements and understands on the financial statements of Well Care (medical insurance company). During the time period of 2004-2007 Well Care neglected to include refunds owed to Florida and Illinois Medicaid programs and the Florida Healthy Kids programs, amounting to earning being overstated by 28 million and liabilities being understated by 46 million. Since 2007 Well Care had not audited their statements, leading to huge discrepancies and thus ultimately leading to a raid by the FBI. Well Care claims that the incident was caused by the charging of certain ineligible expenses, thus supposedly reducing the amount owed. But what is surprising is that after the incident occurred the current CEO, CFO and general counsel resigned, leaving people to think if the incident was just a mere accident.
Connection
This articles concerning Well Care connects to chapter 15, Analyzing Financial Statements, in two ways. The first connection simply being that both this chapter and this article revolve around financial statements. In retrospect to the users of the financial statements this article can be related to both the insiders and the outsiders. In the case of the “insiders” the owners and management group followed an unethical practice, by not having the statements audited and having ineligible medical expenses recorded in the books, thus leading to their resignations and immense accounting errors. And in the case of the “outsiders” (FBI), by them using the financial statements, they were able to determine the sources of error and now the “victoms” of this error face reimbursement.
Reflection
Firstly after reading this article, it left me thinking about how many well known companies out there have supposed “accounting errors.” Well Care could have avoided this entire incident only if the owners and executives didn’t make the decision to stop auditing their records. For a business to thrive and for the owners and executives to keep their jobs, it’s always key to employ a strong accounting department and to always, always, always audit. If a business ever decides to veer away from an audit, then it is time for employees to question the legality of the operations and the following of the generally accepted accounting principles.
http://www.medicalnewstoday.com/articles/115887.php
Summary
The article that I have chosen to base my blog upon concerns the huge overstatements and understands on the financial statements of Well Care (medical insurance company). During the time period of 2004-2007 Well Care neglected to include refunds owed to Florida and Illinois Medicaid programs and the Florida Healthy Kids programs, amounting to earning being overstated by 28 million and liabilities being understated by 46 million. Since 2007 Well Care had not audited their statements, leading to huge discrepancies and thus ultimately leading to a raid by the FBI. Well Care claims that the incident was caused by the charging of certain ineligible expenses, thus supposedly reducing the amount owed. But what is surprising is that after the incident occurred the current CEO, CFO and general counsel resigned, leaving people to think if the incident was just a mere accident.
Connection
This articles concerning Well Care connects to chapter 15, Analyzing Financial Statements, in two ways. The first connection simply being that both this chapter and this article revolve around financial statements. In retrospect to the users of the financial statements this article can be related to both the insiders and the outsiders. In the case of the “insiders” the owners and management group followed an unethical practice, by not having the statements audited and having ineligible medical expenses recorded in the books, thus leading to their resignations and immense accounting errors. And in the case of the “outsiders” (FBI), by them using the financial statements, they were able to determine the sources of error and now the “victoms” of this error face reimbursement.
Reflection
Firstly after reading this article, it left me thinking about how many well known companies out there have supposed “accounting errors.” Well Care could have avoided this entire incident only if the owners and executives didn’t make the decision to stop auditing their records. For a business to thrive and for the owners and executives to keep their jobs, it’s always key to employ a strong accounting department and to always, always, always audit. If a business ever decides to veer away from an audit, then it is time for employees to question the legality of the operations and the following of the generally accepted accounting principles.
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