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December 2, 2022

Accounting News Roundup: PwC Trial Moves On; No One Likes the AMT; Wells Fargo Keeps KPMG | 03.16.17

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PwC on trial

Although the big news in the MF Global/PwC trial was the judge’s rejection of the firm’s motion, the Wall Street Journal also noted that one of the key players also testified yesterday:

On Wednesday, Linda McGowan, the chief PwC audit partner on the MF Global account, testified about her work vetting the accounting treatment for the Eurobond transactions. She said she conferred with a colleague, Frederick “Chip” Currie, regarding the RTMs and their treatment as sales in MF Global’s financial statements, for “10 to 15 minutes” in January 2010.

During his opening statement, Daniel Fetterman, a lawyer for MF Global, told the jury that during depositions Mr. Currie couldn’t recall that conversation taking place. Mr. Currie hasn’t yet testified.

I haven’t attended this trial so I can’t give you a first-hand sense of how things seem to be going, but it’s been suggested to me that, now that the firm’s Hail Mary has gone unanswered, the only thing left for them to do is settle this thing.

If PwC truly has had enough and isn’t interested in seeing this through, my suggestion is that they announce the settlement some time tomorrow afternoon when a mixture of basketball fans and St. Pat’s revelers start hitting their stride.

Everybody hates the AMT

This New York Times story discusses why no one likes the alternative minimum tax. In short, the AMT was supposed to “ensure that the richest taxpayers were not able to skip out on paying altogether.” It hasn’t really done that. Only 20.5% of taxpayers earning $1 million or more pay any AMT.

Wells Fargo

American Banker reports (subscription required) that the bank is keeping KPMG as its auditor “even though the accounting giant failed to detect rampant sales abuses.”

Brought to you by Accountingfly

The latest Meet This Firm video features Ryan & Wetmore, a firm based in the DC area. You can see all their open positions here.

Previously, on Going Concern…

Greg Kyte’s Exposure Drafts cartoon looked at the fight over the Andersen name. I wrote about the judge rejecting PwC’s motion in its trial with MF Global. In Open Items, someone is asking about GPAs.

In other news:

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