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February 2, 2023

Accounting News Roundup: Big 4 ‘Global’ Structures and ‘Disappointing’ Liabilities | 03.07.18

kpmg auditors pcaob partners conspiracy

KPMG Acts Globally But Keeps Scandals Local [WSJ]
Michael Rapoport revisits the “global structure” of Big 4, which is really just a bunch of individual firms agreeing to put the same logo on their letterhead. Big 4 audit slayer Steven Thomas has it right: “The only time you hear ‘Well, we’re not all KPMG’ is when they get sued.”

Planned Sale of the Weinstein Company Collapses Again [NYT]
An investor group nixed the sale after it received “disappointing information,” and you might thinking, “WHOA, NOW WHAT?” But actually, it’s a far more boring Hollywood twist:

[O]nce the buyers began looking deeper into the Weinstein Company’s finances, they discovered that it had more debt than they had been led to believe, according to two people briefed on the matter, who spoke on the condition of anonymity to discuss confidential information. Additional liabilities totaling between $55 million and $65 million were discovered, including $27 million in unpaid residuals and profit participation; and $20 million in accounts payable.

Ah yes, the hidden liabilities. They’re “the butler did it” of business mysteries.

Corporate tax departments not so diverse [AT]
A Bloomberg Tax survey of 400 accounting and tax professionals found that tax departments are not so woke: “76 percent majority of corporate accounting department respondents consider diversity and inclusion as important to their departments, but only 46 percent of tax department respondents felt that way.” C

laims Court Tosses PwC VA Deal After Ernst & Young Protest [Law360 (sub req’d)]
The Department of Veterans’ Affairs didn’t consider “inherent conflicts of interest” in PwC’s proposal bid for a $110 million contract.

Previously, on Going Concern…

From the archives: No, We Can’t Help You Pass the Ethics Exam

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