October 6, 2022

Accounting News Roundup: Big 4 Chinese Firms Appeal Ban; Auditors’ Groundhog Day; Partnership Liabilities Allocation! | 02.13.14

China Units of Big-Four Firms Appeal Audit Ban [WSJ]
I'm sensing some desperation: "In their appeal, the firms said the potential effects of a suspension are so sweeping and damaging that the commission itself should weigh in on the matter. A suspension could leave dozens of U.S.-traded Chinese companies without an auditor, and could complicate the audits of many U.S. multinational companies that the Chinese audit firms assist with. […] The firms argued in their appeal that the judge misinterpreted a key legal standard governing the firms' actions. They also said he didn't take into account a recent agreement between U.S. and Chinese authorities that has gotten the SEC some of the audit documents it had sought, by routing the documents from the Chinese audit firms through Chinese authorities to the U.S."

Audit profession trapped in 'groundhog day' [Accountancy Age]
You want a prediction about the audit profession? You're asking the wrong Phil. I'll give you an audit prediction: It's gonna be cold, it's gonna be grey, and it's gonna last you for the rest of your life: "Auditors need to do more to increase the economic, social or environmental value of the organisations they review, if the profession is to rebuild public trust damaged by failures to spot banks' bad practices in the run up the financial crash, a report has found. According to the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA), the audit profession is trapped in an endless and irresolvable loop of discussion – 'it's very own groundhog day' – on how to regain public trust."

Accountants PwC, Deloitte, KPMG and EY face taming moves [FT] 
In Europe and China anyway. "
Even as their revenues ascend to fresh records, PwC, Deloitte, KPMG and EY are struggling to navigate new legal and regulatory pitfalls in two of their most important markets – China and the European Union. […] 'We are seeing for the first time the professions’ control of the policy debate has slipped,' said Iain Richards, head of governance and responsible investment at Threadneedle Investments in London. 'The financial crisis has really given impetus to some of the longstanding concerns there have been about audit quality and the audit market.' "

TripAdvisor dismisses Ernst & Young, appoints KPMG [Reuters]
TripAdvisor is owned by Liberty Interactive, a KPMG client, so the CFO figured this would be more efficient. Appears reasonable. PFI.

Camp expected to release tax reform plan [The Hill]
Keepin' it vague! "
House Ways and Means Committee Chairman Dave Camp (R-Mich.) plans to release his long-delayed overhaul of the tax code in the next several weeks, according to someone close to tax reform discussions. The House’s top tax writer has huddled with Speaker John Boehner (R-Ohio) and Majority Leader Eric Cantor (R-Va.), who have both been skeptical about pressing ahead on tax reform, about circulating his plan, the source said. Exactly when Camp might release his rewrite of the code has yet to be nailed down, but the Michigan Republican is expected to put the plan out after the House returns from its current recess later this month."

Tax Geek Tuesday: Allocation of Partnership Liabilities [Forbes]
Tony Nitti goes full-on nerd in this post. Fascinating stuff. Seriously.

Watch Two Teachers Rap Their School's Snow Closing Announcement [Gawker]
For those who get them, enjoy the snow day.

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