Tui Travel is “an international leisure travel group” (which is fancy-speak for a travel agent) out of the UK. KPMG has been audited the books for awhile but this year they found a booboo that resulted in a £117 million write off. At the time the company copped to the error, although you don’t get the impression they were grateful.
From today’s report in the Guardian:
Just two months ago, Tui chief executive Peter Long said: “KPMG identified some system weaknesses and ledgers that had not been reconciled … Yes, they identified some of these control weaknesses which had then manifested themselves into the issues subsequently identified through a detailed investigation.”
Nothing unusual really, these things happen, clients usually grin and bear it but not our “international leisure travel group.”
KPMG said its relationship with “certain [Tui Travel] directors became increasingly strained” following “extensive discussions with the directors”. Among the areas where KPMG had raised concerns, the letter added, were the implications arising from the restated accounts and “their disclosure and accounting treatment in the financial statements”. Relations had reached such a low ebb, KPMG concluded, that “we are not confident that in the future we could carry out an audit of the company to the appropriate standard, but others may be able to do so.”
So it kinda sounds like their annoyance with the whole thing slowly boiled over into flat-out bitterness, leading to some increasingly unpleasant conversations. Sure, the directors in question would start out acting cool about it, “You know [chuckling], you really didn’t do us any favors there.” But eventually it became, “Boy, you’ve really outdone yourself, this time.” And finally, “For crissakes! You couldn’t leave it alone, couldja? [extremely patient KPMG partner explaining on the other end] What?!? [increasingly steamed, drumming fingers] We don’t care if it’s your job; we don’t like being embarrassed. [Pause, eyeroll] Stewards of generally accepted accounting principles?!? What does that even mean? [brief pause] Whatever, you can plan on us being uncooperative going forward.”
Or something like that.
Tui drops KPMG after it found £117m hole in accounts [Guardian]
“Companies are under pressure from investors to get the best auditor they can,” said Paul Gillis, an accounting professor at Peking University in Beijing. More than 200 Chinese companies are listed on U.S. exchanges, and hundreds more trade on over-the-counter bulletin boards. In the last five months, at least 15 have upgraded to a Big Four auditor — Deloitte, Ernst & Young, PricewaterhouseCoopers or KPMG — from a smaller firm, according to an analysis from Audit Analytics. [
So much for having difficulties in finding enough US qualified graduates. Is it too late to go back to the 150 hour requirement?
30 credits in volleyball at the community college doesnt make people more qualified
I’d have to imagine 195 people is also roughly similar to the amount of people that decide to give notice after busy season. Is 2% ever really considered significant with respect to public accounting workforce?
Surprised the usual anonymous poster hasn’t said one of the following:
“good, they trimmed the fat”
“good, they over hired during covid”
“good, these lazy millennials and gen z’ers earned it”
It’s a rough job market, and I feel for those affected, they will definitely have it harder landing their next role because of this…wild they worked at one of the top firms in the country/world and still will have to convince people in interviews they are not discarded trash.
It’s not just accounts. The firm has also riffed admins, the ASK group, a type of admin service, and 140 partner “retired” the last week of September
I suspect AI is behind a lot of these moves. Great for the bottom line, not great for the employees.