When accounting goes unaccounted for
C’mon, guys. No one is willing to scrape together $700k to help this girl out?
Robert Snell’s latest scoop has Ms Pressly owing California $57k in addition to the $95k lien he reported on last month. The IRS is asking for a bit more – $542,069 to be exact. Maybe a couple partners could team up on this? Seems like a small price to pay to be a hero to Joy Turner.
Recently we came across a version of Ke$ha’s “Tik Tok” for auditors. The battle over who actually coined this ode to opining was up for grabs but now it’s been brought to our attention that throwback tunes are also being rewritten to express the plight of auditors.
Surely there’s a divergence of opinion – right down generational lines – on which rewrite is better but working in “fat finger” and “Friends think I do tax ’cause of the ‘CPA’ ” scores big points in our book.
To the tune of “No Sleep ’til Brooklyn” by the Beastie Boys
(chorus) No sleep ’til – Filing
Hand on the tenkey – never a fat finger
Got work to do, I hope this client don’t linger
My job ain’t a job – it’s a damn good time
Gonna get this tied-out to the dime
On location – cursing damnation
Why’re my client contacts always on vacation?
Eight of us crammed around this audit table
I do what I do best because I’m willing and able
Ain’t no fakin’ – audit fees I’m rakin’ in
Goin’ coast to coast vouching money you’re makin’
While you’re at the job working nine to five
I’m still at the office when you arrive(bridge) No sleep ’til –
Another spill, another thrill
Another freaking fire drill
Caffiene gum – another SUM
I wish this Diet Coke had some rum
Now where’s my contact? – he always disappears
This is the guidance, why can’t he just adhere?
Been so long since I’ve seen my fam’
I wish my computer had more RAM
We’re thrashing financials like it’s going out of style
Getting paid along the way cause it’s worth your while
Quarter after four – IA’s out the door
I’m chained to my computer for six hours more
We got a drawer with a lock to hold our files
Aside from the ones all over our table in piles(repeat bridge)
(repeat chorus)
Ain’t seen the light since we started this audit
All we need is in this room- we got it
Born and bred to document all day
Friends think I do tax ’cause of the “CPA”
That’s not right but I don’t care
‘Cause whenever I explain it they just stare.
Got coffee, cola, chips and candy
I’ve gained ten pounds ain’t it just dandy?
Step off homes – get out of my way
‘Cause our signed opinion is the final say
Waking up before I get to sleep
Cause I’ll be rocking this party eight days a weekNo sleep till filing ….
No sleep till filing …
No sleep till filing …
No sleep till filing…
No sleep till filing…
And just in case you’ve got no idea what this should sound like:
McGladrey has announced that this busy season will be managing partner Dave Scudder’s last. Technically, Scudder is the MP of McGladrey & Pullen but honestly, we were confused about the whole situation after the rebranding.
The McGladrey & Pullen, LLP Board of Directors announced today that Dave Scudder, managing partner and member of the Board, has decided to resign as the managing partner of the Firm effective April 30, 2011.
“Dave is highly respected by the partners and has lead the Firm through significant change,” said Jerry Bourassa, Chairman of the McGladrey & Pullen Board of Directors. “He has contributed tremendously to the success of the Firm and has been an exemplary leader.”
The Board has commenced a selection process to ensure a smooth and timely succession and transition.
“I believe the Firm is well positioned to continue its success in serving our target markets including private equity groups and their portfolio companies along with our public and international companies practice,” said Scudder.
Scudder will continue to assist in the transition through at least June 30, 2011, and will continue to represent the Firm in various professional and industry organizations during this time.
So you could easily conclude that DS just figured it was time to move on after spending the last 24 years at the firm. You could also easily conclude that with all the excitement that has occurred at firms with various forms of “McGladrey” in the name may have taken its toll with Scuds or perhaps with the McGladrey board. Then again, they could be making room for another golfer that isn’t Natalie Gulbis.
Reactions and speculation are welcome at this time.
Last month, we shared with you the concerns of a Deloitte partner who has a lot of issues with the processes around electing the firm’s leadership. As the partner explained it to us, “The elected individuals are the Chairman, the CEO, and a CEO ‘Alternate.’ The CEO ‘Alternate’ is there in the event that the CEO elect is also elected as the Global CEO (which will typically happen).”
Recently, we were able to confirm the candidates and thought we’d share them with all of you since some of you might not be aware of who they are:
• Punit Renjen, for Chairman of Deloitte LLP (Current CEO of Deloitte Consulting)
• Barry Salzberg, for CEO of Deloitte LLP (Current CEO of Deloitte LLP)
• Joe Echeverria, for CEO Alternate (Current Managing Partner of U.S. Operations)
What’s not immediately known is when Deloitte partners will be voting “Yes or No” on these candidates. One of our sources speculated that the vote could be as early this week.
In our previous post, we learned that the partners vote up or down on these candidates as a group as the partner in our last post explained “The partners get to vote ‘YES or NO’ on the ‘slate’ of candidates that is advanced.” Since we know a lot of you out there in Internetland are Deloitte employees but not partners, we thought we’d get your perspective on this slate of candidates and whether you would give them a “Yes” or “No.” And since the comments box allows for further explanation, feel free to elaborate on your vote. We know of one person who will be voting no.
A message left with Deloitte spokesperson Jonathan Gandal was not immediately returned.
Earlier:
Deloitte Partner Encourages Brethren to Take Back Their Firm
Last week’s unseasonably warm weather in New York had one KPMG employee – who had recently put in her notice – taking advantage of the pleasant temps to show off the gams. According to a conversation we overheard on Twitter:
To which someone responded:
This infraction, it’s our understanding, occurred at the friendly confines of 345 Park Ave. Now, anyone familiar with the House of Klynveld knows that shorts are definitely frowned upon, especially at 345 Park where backpacks are rumored to get the crook-eye. Showing this amount of flesh in the middle of February, in a staunchly business casual environment, is about as an awesome disregard for the dress code we’ve ever heard.
The most important question, however, remains unanswered: what kind of shorts? Are we talking boxers? Boy shorts? Daisy Dukes? We need a witness (or two or three) and pictures obviously get bonus points.
Christie to Propose Small-Business Tax Cuts [WSJ]
Less than a week after he vetoed a slew of Democratic job-creation and tax-cutting bills, New Jersey Gov. Chris Christie will present a budget Tuesday that includes around $200 million in tax cuts, mostly for small businesses, a source familiar with the budget said. The figure represents a small portion of Mr. Christie’s overall state budget, details of which were kept tightly under wraps. However, the move underscores Mr. Christie’s determination to be seen as a tax-cutter even amid one of the worst budget crises in years.
KPMG to Provide Broader Global Outsourcing rough Acquisition of EquaTerra [PR Newswire]
“EquaTerra is an ideal fit for KPMG and we look forward to welcoming the EquaTerra team to the KPMG network family,” said Timothy P. Flynn, Chairman, KPMG International. “Through this acquisition, clients of KPMG member firms will benefit from the addition of a market-leading sourcing adviser to help them transform their organizations into more flexible enterprises in a way that meets today’s complex market demands.”
Satyam Settles; PwC Left In Lurch [Forbes]
Yes, this story is still out there. No, this doesn’t mean it’s over.
Big Increases in Tax Prosecutions (27%), Convictions (15%) [TaxProf Blog]
You’ve been warned.
Rothstein Kass Hires Three New Tax Principals [PR Newswire]
Rothstein Kass today announced the addition of three new principals to its ranks. Moshe Biderman, an alternative investment industry expert, has boarded as a Tax Principal in the Rothstein Kass Financial Services Group, and will be based in the Roseland, New Jersey office. David Logan, well-known within the alternative investment community, has also joined the company as a Tax Principal in the Financial Services Group. He is based in the firms’ New York office. Meanwhile, Robert Siegel, a tax planning and advisory services specialist to both public and private companies, has re-joined Rothstein Kass as a Tax Principal in the Rothstein Kass Commercial Services Group. He will operate from the firm’s Roseland location.
Women Still Earning Less than Men in Finance [FINS]
According to the data, with women in financial activities earn only 71% of what men earned: women made $732 a week, compared to $1,039 a week for men.
Dynegy to Replace CEO, Board After $665 Million Icahn Bid Fails [Bloomberg]
Bruce Williamson, 51, has resigned as chairman and will step down as CEO effective March 11, Dynegy said yesterday in a statement. Patricia A. Hammick, 64, who headed a board of independent directors reviewing the Icahn bid, succeeds Williamson as chairman, the company said. Board member David Biegler, 64, will become interim CEO. Chief Financial Officer Holli Nichols, 40, also will resign as of March 11.
Travel With the Boss: The Pluses and the Chasms [NYT]
Traveling with the boss offers an array of both professional opportunities and minefields. After all, a week of meetings, meals, airport delays and taxi rides can add up to more time together than a junior employee may normally experience in a year. There are also plenty of chances to err — a less-than-stellar client presentation, a technology mishap or perhaps a suggestion to eat at a famous barbecue place when the boss is a vegan.
Considering E&Y was, ya know, the auditors and all, they should have been aware that these assets were a grade or two (or three) below human excrement and probably had some name for them.
Lehman Brothers Holdings Inc (LEHMQ.PK) filed for bankruptcy on Sept. 15, 2008 and then quickly sold its prize investment banking assets to Barclays Bank (BARC.L). JPMorgan had been Lehman’s banker. The court papers, filed in U.S. Bankruptcy Court in Manhattan on Thursday, said that Barclays and Lehman called certain Lehman assets “toxic waste” and “goat poo” and knowingly excluded them from their sale agreement.
Jim Turley has been a willing participant in this whole thing so far but were far more interested in what you guys think.
As we’ve discussed, the sudden departure of Wells Fargo’s now-former CFO, Howard Atkins, has been a bit of a mystery. The bank stated that Howie quit for “personal reasons” but Chris Whalen, for one, wasn’t buying that story and stated that it was an “internal dispute” at the Stagecoach Shop and “public behavior suggests significant problems in the bank’s internal systems and controls as defined by the Sarbanes-Oxley law.”
Then John Carney got all heresay yesterday, reporting:
Others say that the departure stems from a heated argument between Atkins and the CEO of Wells Fargo, John Stumpf. Still others say that there could be even more personal reasons for Atkins leaving.
This is pretty fun because this “heated argument” could have been over something awesome like Atkins’s using Stumpf’s private commode without permission or a spurious challenge in their weekly Scrabble® match. Whatever the reasons for Atkins’s departure, all this speculation got the gang over at The Street wondering that maybe – just maybe – KPMG’s risk management team had soiled themselves over the whole situation and asked the audit team to start drawing up their resignation papers.
KPMG said Friday that it remains Wells Fargo’s […] external auditor, though the firm wouldn’t comment on recent criticism that Wells’ financial disclosures aren’t up to snuff. KPMG spokesman George Ledwith confirmed that the Big Four accounting firm is still working with Wells Fargo, which plans to file its 10-K annual report by the end of the month. Howard Atkins, who had been CFO of Wells Fargo for nearly a decade, resigned unexpectedly last week and won’t be signing off on that report. His replacement, Tim Sloan, will do so instead. “Yes, KPMG LLP is the external auditor for Wells Fargo & Company,” said Ledwith.
So what prompted this brief line of questioning is, in itself, a mystery. KPMG resigning as the auditor of Wells Fargo is about as likely as John Veihmeyer throwing all his copies of Rudy into an incinerator. But then again, maybe The Street knows something we don’t. Was/is/will there be any doubt that KPMG will remain the auditor of Wells Fargo? Rampant speculation and nightmare scenarios are welcome. And if you’re in the know, email us.
This is a new one.
We found out about an external recruiter impersonating PwC late yesterday and apparently it’s gotten on the nerves of the brass that they sent an email to let everyone know that you shouldn’t talk to strangers, even if they say they’re from PwC and know a bunch of internal acronyms.
External Recruiters Impersonating PwC Staff
There have been recent reports of an unethical recruiter attempting to collect PwC staffing information by presenting themselves as a PwC employee. This individual has proven to be very convincing and knows some of the PwC terminology to support their deceptive practices. One of PwC’s best defenses to this type of activity is to protect our information and to not readily disclose it without verifying the requestor and their need for the information.
What to do if you receive a request for staffing information
If you should receive a call from an individual requesting staffing information, e.g., names, staff levels, phone numbers, etc. , do not provide this information by phone and do not send it to an external e-mail address. Politely obtain the caller’s information and inform them you will look into the their request. Do not be fooled by the information displayed on your phone. The caller typically blocks their caller id and the firm has also experienced instances of phone spoofing where the phone displays a false PwC extension from a call originating from outside of the firm. You can verify if it is a legitimate caller by contacting the individual through their PwC office phone number or e-mailing their PwC account. If you determine the call did not originate from the PwC individual, please report the situation to your HR representative or e-mail the call information to security@us.pwc.com and a US Security representative will respond to you.
We’ve contacted the firm about this sly impostor and are waiting to hear back. In the meantime, if you’ve heard from this crafty character, send us the email or voicemail.
Having a good document shredding company on speed-dial is a must for any accounting firm. Because of the sheer volume of documents that need destroyed, there’s room for plenty of competition but as is the wont of our society, it can be fierce out there and businesses have to pull out all the stops to get a leg up on their rivals. Thanks to our former sister site, Dealbreaker, we’ve now learned about a business who may be offering a new feature for any of you that don’t have the stomach for ugly this business can be.
Now sure, maybe you’ve got a Dahle 20835 EC on site or maybe a Kobra Cyclone is more your speed but what if you really need a problem taken care of?
You can’t possibly rub someone out on the hallowed grounds of a Big 4 firm now, can you? Best to call some experts.
House Committee Sends 1099 Repeal to the Floor [JofA]
The House Ways and Means Committee approved a bill Thursday that would repeal the expanded Form 1099 reporting requirements, voting 21–15 to send the measure to the full House of Representatives. The bill, called the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 705), would repeal both the expanded information reporting requirements enacted as part of last year’s health reform legislation and the requirement that taxpayers who receive income from rental property issue 1099s to service providers. To pay for this repeal, the bill would increase the amount of the new are credit that is subject to recapture.
Kabul rebukes outsiders over bank crisis role [FT]
A dispute over how to tackle Afghanistan’s biggest banking scandal has added a new strain to ties between the government of Hamid Karzai, the president, and the west. After a visit by Neal Wolin, the US deputy Treasury secretary, the finance ministry said that weak international support had exacerbated the crisis.“ Afghan and US officials agreed that (the crisis) … was compounded by the erroneous audit by PricewaterhouseCoopers, and ineffective international technical assistance and supervision,” the ministry said.
Year after plane hit, repairs continue at Echelon I [AAS]
Echelon I has been closed since the crash, but city officials later said an engineer’s inspection determined the building was structurally sound. Currently, plans are being designed for the remaining work, Kimball said. Those are mostly complete, and work will commence after city approval. Kimball said that the next step will be finding new tenants; none of the building’s former occupants are returning.
Millions at stake in IRS audit of Oakland medical marijuana dispensary [Sacramento Bee]
Harborside Health Center proclaims itself the world’s largest marijuana dispensary. For certain, it is California’s most ambitious – a holistic care center with a naturopathic physician, acupuncturist, chiropractor, yoga instructors and therapists in “universal life force energy.” Its Oakland facility handles $22 million in annual medical marijuana transactions. Now Harborside is attracting scrutiny from the Internal Revenue Service. Since last year, the IRS has been auditing 2008 and 2009 federal tax returns for the Oakland location, one of two outlets Harborside operates for 70,000 medical marijuana users.
Bubba’s bro Roger Clinton bungles tax bills [Tax Watchdog]
Robert Snell’s tax delinquent du jour: “Roger Clinton, the bumbling half-brother of former President Bill Clinton, owes more than $90,000 in delinquent state and federal taxes, according to public records.”
The Financial Accounting Foundation Reappoints Thomas J. Linsmeier To a Second Term on the FASB [Business Wire]
The Financial Accounting Foundation (FAF) today announced that Thomas J. Linsmeier has been appointed to a second five-year term as a member of the Financial Accounting Standards Board (FASB) beginning July 1, 2011. The reappointment was made by the FAF Board of Trustees, which oversees the activities of the FASB and the Governmental Accounting Standards Board.
I do yoga with my bosses [NYP]
Getting yoga stoned with the boss.
Stanford Sues U.S. Prosecutors, SEC and FBI Agents [Bloomberg]
R. Allen Stanford, the indicted financier, sued U.S. prosecutors and agents of the FBI and Securities and Exchange Commission, accusing them of “abusive law enforcement” and seeking $7.2 billion in damages.
You can just see the perverse enjoyment on Larry’s face as he badgers Utah’s Jason Chaffetz.
I especially enjoyed:
• “Have you sought an advisory opinion from the IRS yada yada yada”
• “Will you seek to do it? TOMORROW!”
• “DOES YOUR WIFE HAVE ANY INCOME?”
• “As far you know, the rest of them are criminals too.”
[via TaxProf]
