Classes started for a lot of colleges in the past week and it sounds like some firms are already out there spreading their propoganda good word. At least according to one account, the early events have been well attended which fits with the notion that enrollment has remained high.
So if you’re a student, let us know what your early recruiting events have been like and if you’re a recruiter for a firm or a professional working these glad-handing fests, let us know your early impressions about next year’s newbies and interns.
Author: Caleb Newquist
Founding editor, Going Concern.
PwC Basically Says That the Lehman Brothers Bankruptcy is a Trainwreck
If you find yourself out of work but are willing to endure several sleepless nights across the pond, PwC in the UK may need some help with the administration of Lehman Brothers.
More, after the jump
Reuters, via NYT:
PriceWaterhouseCoopers, which is working with over 100 companies, mostly in the UK but also in continental Europe, said on Sunday: “We’re dealing with a large number of entities and therefore the claims could be as much as $100 billion.
“These claims are exceptionally complex and we anticipate a large amount of further work in dealing with (them).”
A significant amount of the claims arose as a result of guarantees issued by the parent company to its subsidiaries, the administrator said.
PwC said it had worked with administrators in other affiliates to understand Lehman’s accounting system so a standard approach to the reconciliation of inter company balances could be agreed.
“If this can be achieved then it should reduce the likelihood of affiliates suing each other in pursuit of amounts that are owed between the different Lehman estates,” it added.
Not sure what kind of expectations Lehman’s creditors have but we’d encourage a cynical outlook.
Lehman Claims Could Reach $100 Billion: PwC [Reuters via NYT]
Lehman Bankruptcy Won’t Be Pretty [JDA]
Labor Day: Long Weekend or Just a Long Weekend?
As the psychological end of summer approaches, there’s an issue out there that we find confusing. We heard a rumor that KPMG is requiring its remaining faithful to take Friday as PTO, even though some offices have kindly asked for their employees’ to squeeze in some extra time for the month of September.
On the one hand we’re sure lots of you don’t have to be asked twice to take an extra day of PTO. However, this is still America, which means if you’re inclined to spend an extra eight hours in your massive gray cubicle, to comply with your office’s request of 50 hour weeks, you’re allowed to do so.
The risk the firms run here is that by extending a typical three day bender into a fourth, this will allow you additional time to seriously consider saying, “To hell with this,” and fulfilling your lifelong dream of becoming a freak show performer.
So discuss in the comments the upcoming weekend and whether your firm is putting the gun to your head (and if you’re cool with that) to start the festivities early or if you’re expecting a long romantic weekend with your spreadsheets.
Preliminary Analytics | 08.31.09
• Frank Said to Back Broader Fed Audits – “In an interview Friday, Mr. Paul said Mr. Frank agreed to allow a vote on the bill and to work on language that would allow the Government Accountability Office, the investigative arm of Congress, to audit the Fed’s monetary-policy operations.” [WSJ]
• Fed makes $14bn profit on crisis loans – In case anyone needed another reason to audit the Fed. [FT]
• Big Firms Are Quick to Collect, Slow to Pay – “As credit markets remain tight and banks rein in lending, corporations are being forced to squeeze more cash from their day-to-day operations at a time when revenues are slowing and the economy remains weak. ” [WSJ]
• The Savings Rate Has Recovered…if You Ignore the Bottom 99% – Dubious government stats? The horror. [Naked Capitalism]
• Raft of Deals for Failed Banks Puts U.S. on Hook for Billions – “The agency’s total exposure is about six times the amount remaining in its fund that guarantees consumers’ deposits, exposing taxpayers to a big, new risk.” She Bair, rebuttal? [WSJ]
Review Comments | 08.28.09
• Michael Jackson’s Death Ruled a Homicide – Thank the Maker. We’re in need of a circus. [Reuters via NYT]
• MADOFF VICTIMS FIGHT PICARD OVER PROFITS – Yes, because he’s working against you people. [NYP]
• Tech Firms Drowning in Their Options Worthless paper. [CFO]
• FASB Stakes A Claim On Disclosure Of Litigation Contingencies – Let’s just go back to cash basis. Thoughts? [FEI Blog]
Grant Thornton is Making Their Passion Known Worldwide
Because, you know, some of you may have forgotten that they were an international firm. Nevermind the complete failure to coin “Global 6 Accounting Organization” as a way to sneak into the prestigous cool biggest firm club. GT is giving interviews with obscure accounting publications to make this happen.
Eddie Nusbaum, who will be the new Global CEO on January 1st, is going after Big 4 clients to continue building their international business, which kinda sorta works, we guess.
What’s most confusing about G to the T’s “strategy” is that no matter what happens, they’ll never compete with the big firms through organic growth.
Even if GT and BDO made sweet accounting firm love their total international revenues would still be dwarfed by what the fourth place Big 4 firm rakes in. Huge, Big 4-apocalyptic events that would involve government intervention are the only way GT is making it to the big time. So maybe the stars are lining up. WTFK…
Grant Thornton Plans International Growth [Web CPA]
The PCAOB Doesn’t Care for the Flagrant Disregard of Their Rules
Having never been part of a PCAOB investigation, we’re not able to attest to the uncomfortable violated feeling one must have when you have a government foot soldier crapping all over your work.
That being said, if you can at least make an argument for your shoddy work, you’ve got something to throw at them. The same cannot be said when you have no discernible argument whatsoever that will allow you to look yourself in the mirror and call yourself an auditor.
Enter Moore & Associates and its President, Michael J. Moore:
Poor auditing, after the jump
After M&A registered with the Board in October 2004, Moore began auditing
the financial statements of public companies for the first time in more than ten years.
Over the next three years, M&A accepted nearly 300 public audit engagements, with
Moore serving as the auditor with final responsibility on each of them. Respondents
added new clients at a nearly exponential rate while the audit staff was comprised of
inexperienced staff members overseen by one professional. M&A staffed the audits
with assistants who had no accounting or auditing education, experience or training.
These unqualified audit assistants planned and executed the audits with little or no
supervision from Moore.
So, you’re back in the audit game after a ten years on the bench and you really don’t have the resources to pay anyone that has any accounting background. Not being one to shy away from adversity, you go out and find whatever warm bodies you come across at the Greyhound station. Eventually you get the call that the PCAOB is on to your little game and you’ve got to think that the jig is up.
Nah. Keep rolling with it:
Respondents also failed to cooperate with the Board’s investigation…Respondents created false work papers that did not accurately reflect the work performed on the relevant audits and produced those false work papers to the Board’s Division of Enforcement and Investigations. Moore also falsely testified that these work papers produced by Respondents were true and accurate audit work papers completed during the audit, when he knew they were not.
Nothing like going down in flames. For his incredibly diligent dishonesty and disregard for the PCAOB’s rules, Moore has been banned to the CPA darkness.
Moore & Associates, Chartered, and Michael J. Moore, CPA (8/27/2009) [PCAOBUS.org]
Rumor of the Day: Deloitte Snagging Chrysler Audit from KPMG?
Maybe figuring that bankruptcy means a fresh start with everything, we received a tip that Chrysler is dumping KPMG for Deloitte as their external auditors:
“it was announced to KPMG Detroit employees late yesterday…via voicemail or conference call”
Could be the reason the Green-dots in Detroit were rumored to be getting raises but WTFK.
Right now we’ve reached out to all three members of this love triangle and only Deloitte has gotten back to us and could not confirm or comment.
If you’re at Radio Station or the D in Detriot and have details on this, let us know. We keep all sources anonymous.
Rumor of the Morning: E&Y SoCal Layoffs
Received word late last night that layoffs went down out west yesterday. According to our source, the breakdown is as follows:
• Two in LA
• Two in Irvine- tax (one staff 1)
• One in San Diego – tax (staff 2)
• A few in Vegas- Audit only
We reached out to an E&Y spokesperson, who declined to comment.
Our source says it was performance based but that particular reason has been a matter of debate for some time. If you’ve got your own theories, discuss in the comments and send us any more details if you’ve got them.
Here’s hoping that Ern isn’t getting warmed up…
Preliminary Analytics | 08.28.09
• Big Ticket Seller Tried Deal With Scalpers – Ticketmaster has obviously never tried to get Phish tickets on the day of the show after dropping boomies. You can’t reason with that scum. [WSJ]
• Frank: No Consensus In Sight On Financial Reform – As opposed to thoughts on Maxine Waters’s lunacy, which we all happily agree on. [NPR]
• SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probes – And by critical, Schape means, “If you don’t give me the data, I will end you.” [Bloomberg]
• Treasury Document Called AIG Investment ‘Highly Speculative’ – No honesty in government? Bah. [Bloomberg]
• ‘Blood Oath’ Sealed Stanford Deal, Court Is Told – What the Times isn’t saying is that the whole thing went down in a treehouse and they kept emergency antiseptic and bandages nearby just in case things got out of control. [NYT]