When accounting goes unaccounted for
Bernie Madoff’s auditor – and thereby, the worst auditor ever – David Friehling has had his sentencing delayed for the fourth time.
Apparently he is still “cooperating with federal investigators” which leads some to believe that he might be giving them the lowdown on the Madoffs’ tax returns but really he probably is just trying to convince someone – ANYONE – to give back his beloved CPA. [Lohud via Forbes]
European Bank Blowups Hidden With Shell Games [Bloomberg]
Today many of Europe’s largest financial institutions are seemingly on the brink again, driven by fears of pent-up losses stemming from the sovereign-debt debacle. Only you don’t hear much criticism of fair-value reporting anymore. That’s probably because the accounting mandarins gutted many of their fair-value rules in response to the financial system’s near-meltdown three years ago. This hasn’t made banks safer. It has given politicians and bankers one less culprit to blame, though.
Amnesty Program Yields Millions More in Back Taxes [NYT]
More than 12,000 American taxpayers have voluntarily revealed their secret offshore bank accounts to the Internal Revenue Service as part of the government’s latest tax amnesty program, agency officials said on Thursday. The move will allow the United States Treasury to collect at least half a billion dollars in unpaid taxes. The voluntary disclosure program, which was in effect from February until last week, is part of an initiative to deter tax evasion via offshore bank accounts. Since the I.R.S. began its previous amnesty program in 2009, more than 30,000 taxpayers have reported their secret overseas accounts, and the federal government has collected $2.7 billion in taxes and penalties.
BofA Keeps Countrywide Bankruptcy as Option [Bloomberg]
Bank of America Corp. (BAC), the lender burdened by its Countrywide Financial Corp. takeover, would consider putting the unit into bankruptcy if litigation losses threaten to cripple the parent, said four people with knowledge of the firm’s strategy. The option of seeking court protection exists because the Charlotte, North Carolina-based bank maintained a separate legal identity for the subprime lender after the 2008 acquisition, said the people, who declined to be identified because the plans are private. A filing isn’t imminent and executives recognize the danger that it could backfire by casting doubt on the financial strength of the largest U.S. bank, the people said.
UBS $2 bln loss to trigger investment bank retreat [Reuters]
Swiss bank UBS came under increasing pressure to shrink or sideline its investment bank business — source of a $2 billion rogue trading loss — as ratings agencies warned lax risk management could prompt downgrades. The bank is expected to announce a major restructuring involving the loss of thousands more jobs at an investor day in New York on November 17, the Tages-Anzeiger newspaper said on Friday, as it seeks to reassure private clients.
It’s National Tax Preparer Recruiting Week at Jackson Hewitt [AWEB]
Anyone looking for a new gig?
Chuck Woolery Responds to Warren Buffett [TaxProf]
BEC scores have been released so it won’t be long until you’re doing a happy dance or sobbing in a bathroom stall.
Either way, it’s your God-given right to react with euphoria or complete rage. Since most places of employment aren’t too keen on streaking through the cube farms or kicking over chairs, we invite you to let loose in the comments. We’ll update this post as the scores are released.
UPDATE: If you took the exam at an international location, NASBA just tweeted out a friendly reminder that you’ll have to wait a bit longer.
UPDATE 2: Yesterday afternoon while I was out playing, NASBA announced they got a boatload of AUD scores. Hopefully this doesn’t ruin your weekend.
UPDATE 3: More BEC scores were released yesterday. At 5 pm on a Friday, no less.
House Speaker John Boehner (R-Ohio) will call on the deficit-reduction supercommittee to lay the foundation for an overhaul of the tax code in a speech to the Economic Club of Washington on Thursday. In an address timed as a response to President Obama’s jobs plan, Boehner plans to restate his opposition to tax increases either to pay for job-creation measures or to reduce the deficit, according to a preview circulated by his office. Yet the Speaker is expected to voice support for closing loopholes as part of broader tax reform, which could include eliminating tax breaks for oil companies and other industries. [OTM/The Hill]
Do you work? Are you a mom? Do you wanna be one? No? Then continue shotgunning 5-hour bombs.
For those of you thinking about juggling tikes and 10-keys, Working Mother ha y it’s exactly 100) companies that they think you’re looking for. Hey! and there are even some accounting firms in there, so if you think your current employer will keep you crunching numbersup until your water breaks, you may consider some of these firms.
BDO – “To encourage its employees to use flexible schedules, this accounting and consulting firm has formalized the request process, made sure nearly everyone has laptops that enable remote work and instituted flex training for all.”
Deloitte – “As they pursue their career goals, moms telecommute, ramp up or reduce their workloads, take paid sabbaticals and even go on five-year breaks, all the while maintaining connections to office mentors and freelance work.”
Ernst & Young – “If you’re surrounded by talented people, it makes sense to seek their advice on work life matters, which is what the female employees of this professional services firm often do.”
Grant Thornton – “[Women] earned 32% of all promotions to partner in 2010 (their biggest victory ever) and now fill nearly triple the number of slots they did seven years ago. In the hopes that they will occupy 20% of the partnership by 2015.”
KPMG – “While women earned half of all promotions to manager, senior manager and executive last year, the growth of virtual meetings means they don’t have to stay in the office to be considered top performers.”
McGladrey – “Most every working mom has a vision for her own future—maybe she’d like to get a better degree, rocket up the career ladder, have more kids or just get a little free time. Goals like these are often achieved by women at the accounting, tax and business consulting firm.”
Moss Adams – “Moms-to-be can earn up to $250 through the Beginning Right Maternity Program, which evaluates their health needs, supplies a nurse to counsel them through high-risk pregnancies, and helps them get ready for delivery. When primary caregivers give birth, they may take ten fully paid weeks off; those who adopt earn four fully paid weeks of leave, plus $6,000 in aid.”
PwC – “Working a reduced schedule won’t hurt your career at this audit, tax and advisory services firm: Moms who put in just 20 hours per week still earn full benefits and remain under consideration for top jobs.”
All of the Big 4 snuck into the WM100 top ten which shocks absolutely no one except for maybe Donna Kassman. If BDO, GT, MA, and Mickey G’s get their act together maybe accounting firms will get their very own special Mom list. God, that sounds awful actually.
2011 Working Mother 100 Best Companies [Working Mother]
As of September 2010, the tax agency had 80,606 items in storage, of which 28% — or 22,486 items — had been there for at least a year and a half without being used or moved, according to [a TIGTA] report. Those items took up 34,194 square feet of warehouse space costing about $862,000 in rent annually. [WSJ]
It’s come to this.
Our immediate concern was that the imbiber would be suffering from a disturbing reaction but he informed us that he has “just about” quit shaking. Good to know, good to know. If you have your own deadline cocktail that may or may not have caused an unexpected visit to the emergency room, we’d invite you to share it with the group at this time. Happy September 15th!
UBS Hit by $2 Billion in Unauthorized Trades [WSJ]
UBS AG was rocked early Thursday by its disclosure that a rogue trader racked up about $2 billion in losses, an announcement that came hours after British police arrested a man on suspicion of fraud. A person familiar with the matter said the man arrested is Kweku Adoboli, a London-based trader on UBS’s exchange-traded-fund desk in London. British police confirmed that they arrested a 31-year-old man in London on “suspicion of fraud by abuse of position” at 3:30 a.m. Thursday, but declined to name him.
E&Y faces probe on Anglo Irish Bank href=”http://www.ft.com/intl/cms/s/0/e28c7832-ded4-11e0-a228-00144feabdc0.html#axzz1Y1fs9Tqq” target=”_blank”>FT]
Ernst & Young faces a fresh threat to its reputation after an Irish accounting regulator said it would hold a disciplinary hearing to examine E&Y’s auditing of Anglo Irish Bank, a lender that had to be rescued by the Irish government in 2009. Already contesting a US lawsuit over its vetting of Lehman Brothers’ accounts, E&Y’s handling of the Anglo Irish audit has been challenged in three key areas by a special investigator hired by the Chartered Accountants Regulatory Board. The Irish arm of E&Y on Wednesday said it would defend itself vigorously, saying it “fundamentally disagrees” with the decision to initiate a formal disciplinary process.
SEC officials ‘lawyering up’ [WaPo]
Under intense scrutiny from congressional critics and a probing inspector general, current and former Securities and Exchange Commission officials have been lawyering up, sometimes at their own expense. The practice reflects the highly charged atmosphere at the SEC and one of the costs of government service when investigations can put careers, reputations and more on the line. It goes all the way to the top.
The Last Posting [CEO Insights]
BDO’s Jeremy Newman signs off.
50 Fantastic Accounting Blogs [OAD]
Apparently there are 49 others.
How Hollywood Accounting Can Make a $450 Million Movie ‘Unprofitable’ [Atlantic]
Return of the Jedi, no less.
FAF Group Plans Changes in Accounting Standard-Setting [AT]
A trustee working group at the Financial Accounting Foundation plans to release its proposals in the next few weeks for changing the structure and process of the Financial Accounting Standards Board’s oversight of standards for private companies and nonprofits. Teresa Polley, president and CEO of the Financial Accounting Foundation, which oversees FASB and the Governmental Accounting Standards Board, indicated the proposals for structural changes at FASB should be out by the end of September or early October.
Groupon Back on Track for Its I.P.O. [DealBook]
Groupon is planning to put its initial public offering back on track even as markets remain rocky. After postponing presentations to potential investors early this month, the online coupon giant is now aiming to go public in late October or early November, according to people briefed on the matter. That would mean that Groupon could embark on its investor roadshow by the middle of next month, these people said.
From the mailbag: “The author is a newly appointed manager and a certified d-bag. His email is serious.”
Hi Guys –
It has come to our attention that there are several people making animal noises around the office. I feel it shouldn’t need to be pointed out that this is not appropriate in the office and can be very uncomfortable/awkward for others. Aside from co-workers, we also have prospects, clients, recruits, etc. walking through the halls on a daily basis. Hearing animal sounds made toward each other does not give a good impression of [a firm who, we are told, is “über-sensitive”] and our abilities to those people. It also does not go unnoticed by partners/senior managers/managers.
Please be mindful of those that could be in your audience. Please see me if you have any concerns or questions.
Thanks,
Okay, team. Lots to discuss here aside from guessing the zoo where these beasts work.
1. I alluded to a noise from a cow, pig, chicken, or maybe even a llama but obviously there is room for other possibilities. Macaws? Beluga whales? Howler monkeys?
2. Are these noises mating calls, expressions of joy, or melancholic song?
3. If our barnyard animals guess is accurate, the firm should ask themselves: why would you hire Goat Boys in the first place?
4. If this some kind of involuntary function, how does one handle this appropriately without running aground of diversity issues?
5. Other thoughts, and obviously guesses to the firm, are welcome at this time.
A couple of weeks ago, Silvercorp Metals responded to an anonymous letter that alleged that the company was engaged in some dodgy accounting practices. Understandably, the company was irked by this little stunt, responding that it was complete BS and due to some short-sellers trying to take advantage of the rash of sketchy accounting scandals involving companies that have a connection to China.
Now, a second anonymous letter has appeared and the company is again going on a PR offensive to calm everyone down because, really you guys, nothing is fucked here and that these reptiles need to come out and start cooperating with investigators if they’re really concerned about things outside their wallets. And so everyone gets the message loud and clear, this was not delivered by some everyday flak but by the Chairman of the company, Dr. Rui Feng:
“I ask shareholders to exercise common sense in assessing whether these allegations of “fraud” against the Company have any merit whatsoever in the face of very significant revenues, tax payments and dividends, and particularly when the accusations are made anonymously by parties whose only interest is in depressing the Company’s share price. I invite the authors of the anonymous allegations to come out of the shadows and participate with the regulators in their investigations, if their concerns truly extend beyond the profitability of their short positions.”
Furthermore, the company’s independent committee has engaged a KPMG Forensic team to help get to the bottom of this. And they certainly know the traits of fraudsters when they see them. Everyone just chill out.
[via Silvercorp Metals]
The Public Company Accounting Oversight Board today announced a cooperative agreement with the Financial Supervisory Authority of Norway for the oversight of audit work performed by public accounting firms that practice in the two regulators’ respective jurisdictions. “With this agreement, Norway’s FSA and the PCAOB are joining forces to improve audit quality and protect investors,” said PCAOB Chairman James R. Doty. “I am pleased that the PCAOB is continuing to make progress in overcoming the obstacles that have in the past prevented PCAOB inspections in Europe.” [PCAOB]
Similar to the recent cuts at McGladrey and KPMG, The Purple Rose of Chicago is apparently informing some support professionals that their services are no longer needed:
Layoffs occurring at director levels in the support staff and maybe other areas.
This included a director in communications, another in Knowledge Management and “others are forthcoming.” Email us updated with the latest details if you’re in the know.