Blake and David examine the mysteries and motives surrounding the recent Macy's accounting scandal, where a single employee allegedly concealed $132-154 million through improper accrual entries. They also examine Trump's proposed 25% tariff plan on imports from Mexico and Canada (plus an additional 10% on China), discussing its potential impact on American businesses and consumers.

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Chapters

(00:46) - Macy's Accounting Error: Breaking News
(01:40) - Understanding the Impact of Macy's Error
(02:46) - The Mystery Behind Macy's Accounting Error
(02:53) - Join the Live Discussion
(03:42) - Upcoming Topics and Teasers
(05:15) - Thanking Our Sponsors
(06:42) - Diving Deeper into Macy's Accounting Mystery
(19:29) - Exploring the Fraud Triangle
(27:54) - Auditors and Materiality Standards
(32:04) - Auditors' Role in Detecting Fraud
(33:25) - Impact of Fraud on Macy's Stock
(33:47) - Challenges in Auditing Practices
(34:08) - Internal Controls and Their Limitations
(38:53) - Expense Fraud: A Growing Concern
(44:01) - AI in Auditing: The Future of Fraud Detection
(52:28) - Trump Tariffs and Their Economic Impact
(01:03:13) - Thanksgiving Reflections and Closing Remarks

Show Notes

Macy’s says employee hid up to $154 million in expenses, delaying Q3 earnings

https://apnews.com/article/macys-accounting-quarter-b1cb0927d9b6a58ee4396838df7973c9

Macy’s says accountant hid as much as $154M in expenses

https://www.cfodive.com/news/macys-says-accountant-hid-as-much-as-154m-in-expenses-retail-retailing-consumers/733960/

UPS to Pay $45 Million SEC Penalty Over Improper Valuation

https://finance.yahoo.com/news/ups-hit-45-million-penalty-144424675.html

Strippers, Christmas gifts and an RV: Workers push it with company cards

https://abcdpf.livemint.com/industry/strippers-christmas-gifts-and-an-rv-workers-push-it-with-company-cards-11732157906943.html

Ex-Jaguars employee who stole $22 million from team files lawsuit against FanDuel

https://www.nytimes.com/athletic/5809925/2024/10/01/jaguars-lawsuit-fanduel-amit-patel/

Trump's Truth Social tariffs pledge is a teachable moment for America

https://www.msnbc.com/opinion/msnbc-opinion/trump-truth-social-tariffs-deportation-thanksgiving-rcna182079

What does Trump’s latest tariff plan mean for the U.S.?

https://www.pbs.org/newshour/politics/what-does-trumps-latest-tariff-plan-mean-for-the-u-s

Walmart CFO Says They Don't Want To Raise Prices, But 'Prices Will Go Up For Consumers' Due To Upcoming Tariffs

https://finance.yahoo.com/news/walmart-cfo-says-dont-want-161640110.html

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Transcripts

The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Macy's Thanksgiving Accounting Mystery

The Accounting Podcast