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February 5, 2023

Accounting News Roundup: 11th Hour Tax Bill Changes and Deficient Audits Across the Globe | 12.15.17

accounting news chocolate tax bill

Several Republican Senators Press for Late Changes in Tax Bill [WSJ]
Senator Marco Rubio (Fla.) is threatening to not vote for the bill if it doesn’t expand the child tax credit. Senator Mike Lee (Utah) is also undecided, while Senators Susan Collins (Maine), Bob Corker (Tenn.), and Jeff Flake (Ariz.) are not sure things at this point. Rubio’s concerns and other changes — e.g. an even lower top marginal rate — make things complicated because this expensive bill could get expensiver (that’s right, I used it) and GOP negotiators are considering ending the tax cuts for individuals a year sooner. That’s a dicey political move.

Elsewhere, in wonkier tax bill topics: How the Corporate AMT Affects Different Industries

Large firms fall foul of PCAOB inspectors [Economia]
“Of the 14 related [PCAOB] reports published this week, only three member firms – KPMG Colombia, KPMG Brazil and Deloitte Bermuda – were given the all clear by the US audit watchdog.”

Therapist Settles Charges of Insider Trading Ahead of Acquisition Announcement [SEC]
File this to…wait, what?

The SEC’s complaint alleges that, in July 2015, during counseling sessions, [a] Zulily employee told Kenneth Peer that Zulily was going to be acquired by Liberty Interactive, a media holding company. On three occasions between July 21, 2015 and August 10, 2015, after counseling sessions with the Zulily employee, Peer purchased a total of over $28,000 of Zulily stock. The complaint alleges that, before the market opened on August 17, 2015, Zulily announced that it had agreed to be acquired by Liberty Interactive in a tender offer. By the end of trading that day, Zulily’s stock allegedly had risen by 49%, with nearly 15 times the stock’s average daily trading volume. Shortly after the acquisition was announced, Peer allegedly sold all of his Zulily shares for illegal profits of approximately $10,000.

I’m no expert on psychologists — although I dated one for a time, FWIW — but this seems to be a comical breach of ethics. I suppose you could argue (pretty insincerely) that since the therapist didn’t technically break privilege because he didn’t really tell anyone. But dude used that privileged info to enrich himself, and that’s pretty messed up. Part of me hopes that the therapist was so giddy about the trade that he told his patient about it, who then rightly felt violated and blew the whistle.

Previously, on Going Concern…

We recalled one of the lowlights in auditing from the past year: That time KPMG had to fire a bunch of people for mishandling confidential PCAOB inspection details.

Accountingfly’s featured job of the week is a Tax Manager with Duggan, Joiner & Company in Ocala, Fla.

In Open Items, PCAOB Staff Guidance on the Changes to the Auditor’s Report and one user asks about the audit to accounting advisory interview.

In other news:

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