When accounting goes unaccounted for
Saw this in PwC’s 2022 Audit Quality Report and wanted to get the peanut gallery’s opinion on this math:
My first thought is imagine how much worse these numbers would be if you people didn’t eat as many hours as you do. Though judging by this, you’re getting much better at it.
Thoughts? Concerns? Outrage? Have at it in the comments.
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It appears that Overland Storage’s audit committee was pissed off enough about a second consecutive going concern audit opinion that they just up and fired PwC last week.
San Diego-based Overland filed the 8-K, notifying the Commission of the dismissal, on October 16th which also named Moss Adams as the new auditors. At the request of Overland, PwC sent a two sentence letter to the SEC stating that they “agree with the statements concerning our Firm in such Form 8-K.”
The Register states that Overland was all bent out of shape because PwC didn’t explain why they issued the going concern opinions:
While even accountants are entitled to a view about the state of the struggling business, Overland was upset because PwC didn’t actually identify any specific factor in the accounts that led them to that conclusion.
Presumably PwC was expressing a view based on such business events as Overland avoiding running out of cash by factoring arrangements, repeated staff headcount reductions, Nasdaq delisting, declining revenues and losses. Overland’s thinking is that, if so, it shouldn’t have.
The most recent 10-K has all the gory details and as The Register pointed out, Overland didn’t think all those negative things really matter, so obviously, firing the auditors was the next logical step. Moss Adams will get the esteemed pleasure of holding Overland’s hand to the bitter, tragic end.
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What a super misleading graphic. They conveniently fail to mention that low level staff often don’t declare overtime worked outside of their contracted hours cause they get in s**t if they do LMAO
Just shows the world how inefficient our profession is.
I am skeptical about the completeness and accuracy of this information.
How much of that is travel and client meals…
The PCAOB would be so proud 🥰
Agreed.
Do it again but for charge hours only. Yeah, partners log a ton more hours, it’s just BD getting evening happy hours and weekend golf with clients paid for by the firm. Partners aren’t sitting in front of their computer logging those hours.
Signed – a partner.
From experience, these figures are questionable, and point to a problem in work allocation of responsibilities.
I call bullshit on all of this. Staff don’t work nearly as hard now as they did even 10 years ago. When I send an email to my audit team at night or on a weekend, I almost never get a response until the next business day. There’s no eating hours going on anymore. If anything, staff are charging hours they didn’t work. The inmates now run the asylum at all the big firms, due to the shitty work ethic and lack of caring by staff entering the workforce, and the shortage of talent that is the subject of almost half the articles on this here website now.
Bro, your hard core attitude is what is making it difficult to attract people to become CPAs. The pay is poor and there are people like you that expect 50 or 60 hour work weeks just because it’s the big 4. Knowing darn well that 25% of your people are going to quit every year because they can make more money working for minimum wage in half the states.
Start paying people properly and treating them with respect. Remember your staff isn’t your staff. They work for the firm and probably five other people just like you.
I think that implies the partners are the sane ones… More like cows running the slaughterhouse.
Exactly! This generation has no idea how lucky they have it.
Given manager and below are told not to log all their hours I mimick the other comments and say this is incorrect.
349/52 = 6.7 hours per week over 40 hr weeks. So they take a 1.5 hour much, book to a client, call it work! Not really working more than the associates… Get a real title… Partner takes paid luck break, calls it work.
at least they can (probably) spell L-U-N-C-H
LOL someone was drunk when writing the comment…new book idea: 100 ways to misspell the word lunch
What a load of **click-bait**.
First, you’re only looking at Audit so may want to correct the title…”…work much, much harder than everyone else IN AUDIT at PWC”
Relatedly, the idea that audit staff work similar hours to transaction advisory staff or strategy is funny to me…having seen both sides, they don’t. I do consistently get a kick out of reading about audit folks complaining about 50-hour work weeks.
Yes, the pay’s better on the transaction/strategy, but the hourly rate may be worse.
What a lier. Mostly drinking, lunch, play golf, partying …. count as working
What a misleading stats. Why didn’t mentioned junior and entry level staff’s hours? That’s make approx 47 hours per week, approx 1.4 hours daily. However junior staffs are easily expected for staying 1-2 hours daily.