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February 3, 2023

Accounting News Roundup: Shorter Auditor Tenure and Misconduct Allegations at KPMG, EY Down Under | 02.28.18

Study supports shorter auditor tenure [AT]
A study by Zvi Singer of HEC Montreal and Jing Zhang of the University of Alabama in Huntsville found that “Auditors with shorter tenures were faster at discovering financial misreporting.”

New accounting rules trim Tesla deficit and promise faster future revenues [MW]
Francine McKenna reports that Tesla cut its accumulated deficit by $520 million “because it could now accelerate the revenue recognition of some car sales to customers or to leasing partners with a resale value guarantee.”

Misconduct allegations have emerged at two of Australia’s biggest consultancy firms [BI]
The Australian firm of KPMG has dismissed a partner for sexual harassment and EY has suspended two people, a partner and a staff member, for “inappropriate conduct.”

Shakira Pays More Than 20 Million Euros in Back Taxes to Spanish Government [Billboard]
Spanish tax authorities are trying to determine if Shakira’s hips were in the country for more than 183 days in the years from 2012 to 2014, which would make her a “fiscal resident” of the country and obligate her to “pay taxes on all of her global income.” The 20 million euros settled her debt due to the Spanish government for 2011.

Previously, on Going Concern…

Megan Lewczyk wrote about what to do if you find yourself reverse mentoring a partner.

I wrote about a former PwC U.K. partner who is suing the firm after he was fired for allegedly groping a co-worker. He claims the firm portrayed him “as a ‘dirty old Indian man’ to force him out.”

In Open Items: #metoo shoe about to drop?

From the archives: Occupy PwC Dublin Wasn’t Even Trying

In other news:

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