October 3, 2022

Accounting News Roundup: More on KPMG vs. CFTC; Freddie Mac Drops Suit Against Deloitte; Tax Prep at the Bar | 01.21.16

KPMG and CFTC Dispute Agency’s Lease Accounting [WSJ]
This Wall Street Journal story, filed last night, adds a bit more color to the Reuters report we discussed yesterday. Most notably, a few more details around the CFTC's feelings about KPMG's findings:

The auditor issued only a “qualified” opinion, indicating its judgment that the CFTC’s financial statements for fiscal 2015, which ended Sept. 30, were flawed. The CFTC has a material weakness in its internal controls as a result, KPMG said.

The CFTC said it “does not concur” with KPMG’s position, but in a letter also included in the 2015 financial report, the agency acknowledged it was “reasonably possible” KPMG was correct. The CFTC said the Government Accountability Office, the congressional watchdog agency, is investigating the matter.

I adore the indecisiveness. "Do we agree with KPMG's findings? NO. No, we do not. Is it possible that they are right and we are wrong? Yes. Yes, it's reasonably possible." Admitting that both scenarios are possible is a wonderful way to avoid looking like you have any idea what's going on.

In more other KPMG news, the UK's Financial Reporting Council is investigating the firm over its audit of HBOS.

Freddie Mac Ends $1.3B Taylor Bean Suit Against Deloitte [Law360 (sub req'd)]
Freddie Mac was suing Deloitte for "alleged complacency in the fraud and eventual collapse" of mortgage lender Taylor, Bean & Whitaker. They accused Deloitte of "put[ting] amateurs on the job […] and overlook[ing] inconsistencies," which sounds like a run-of-the-mill audit to me. Court papers give the impression that both sides were happy to be done with this:

The two sentence filing states that Freddie Mac and Deloitte agree to the dismissal of the suit, with prejudice. The filing also states that each party will “bear its own costs and fees.”

Deloitte has been dealing with the fallout from TBW for years and settled a big case with their trustee back in 2013 for an undisclosed sum.

Get your taxes done by an accountant at Brooklyn bar Yours Sincerely [Metro
There are plenty of gimmicks out there when it comes to getting your tax returns done, but Shane Mason setting up shop at Yours Sincerely three nights a week is the best one I've heard about so far.

Shane Mason, a certified CPA, will be working out of the bar on Sunday (6-10 p.m.), Monday (8-10 p.m.) and Tuesday (8-10 p.m.) beginning Feb. 1. At least if the news is bad, it just makes sense to have a bracing drink one desperately panicked gesture away. Mason's fee is $135 per hour, which should be sufficient for most filers, though special cases like freelancers and itemized deductions will cost more. That price considerately includes one of the bar's 20 batch cocktails, and it's easy enough to keep things rolling when drinks cost $4-$9.

Baker Tilly Makes Everyday Denim Dreams Come True [GC]
I wrote about Baker Tilly's new everyday jeans policy which should bring out the pearl clutchers.

In other news:

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