Category: Firms

Moss Adams CEO Denies Grant Thornton Merger Rumor in Email to Partners

In reaction to our post yesterday about the rumor of Grant Thornton and Moss Adams being united in wedded CPA firm bliss, Moss Adams Chairman and CEO sent an email to MA partners yesterday afternoon. The email, sent to us earlier today, let the partners know that no one is out of the loop, “[L]et me start by assuring you that you did not miss a partner call, a partner memo or any other such communication dealing with this.”


Mr Anderson also wrote that he has spoken to Grant Thornton, “Since we last had the all partner webinar, there have been no substantive discussions with GT – I say no substantive discussions because I have been at an AICPA major firms meeting where I not only had casual discussions with the GT leadership team, but I had similar discussions with the leadership of most of the 30-50 largest CPA firms in the country, exclusive of the Big 4.”

So you can interpret things like, “no substantive discussions with GT” and “casual discussion with the GT leadership team” how you like but Mr Anderson made himself a little clearer near the end of the email, “I can absolutely assure you that while we have had discussions with a large number of firms (of all sizes) over the past 12 months […] there are currently no negotiations under way with any firm regarding merger. But I can also tell you that I and other [Executive Committee] members will be talking to some west coast firms over the next several weeks.”

Moss Adams has not responded to our most recent request for comment. Grant Thornton sent back our carrier pigeon with it’s head cut off (very Chicago), which is the closest thing resembling a response that we’ve ever received from the firm. We’ll keep you updated.

Unfounded Rumor of the Day: Grant Thornton and Moss Adams in Merger Talks

This week we learned that Dixon Hughes and Goodman & Co. would be wedded in CPA firm bliss on March 1st. We’ve also seen a couple of smaller mergers announced this week in the tri-state area: Rosen Seymour Shapss Martin & Company LLP and Kahn, Hoffman & Hochman, LLP formed Kahn Hoffman & Hochman and Morrison, Brown, Argiz & Farra, LLC and ERE, LLP.

But eheard a rumor that trumps all of these:

The new rumor is that Grant Thornton and Moss Adams are merging. I have it on good authority (an industry consultant and the MP of a California firm).


Okay, so not exactly rock solid but intriguing enough for us to ask around. So far, Grant Thornton spokeswoman Kristi Grgeta has not returned our emails or voicemails and Moss Adams has declined to comment at this time. We’re poking around with other sources but still waiting to hear back.

So for now, let’s just go with the hypothetical. If GT and Moss were to combine, it would make them the 5th largest firm in the U.S., narrowly edging out McGladrey, with about $1.5 billion in revenues, going by Accounting Today’s most recent figures. Currently they are 6th (GT) and 11th (MA) on the AT100 list and 6th (MA) and 23rd (GT) on Vault’s flagship ranking. Their combined forces would have nearly 800 partners and over 7,100 total employees, if you assume no layoffs.

While all that might serve Stephen Chipman’s desire more dynamic clients (and perhaps more blogging fodder?), it would certainly require a few more hand-written notes. Not only that but GT already has a presence in every major market that Moss Adams does unless they’re looking to mine the Eugene, Oregon market for LOSERS and have reconsidered their divestment in Albuquerque. Also culturally, this seems like a strange fit as GT strikes us as pretty buttoned-down while Moss Adams is more laid back but maybe we’ve got that wrong. You tell us.

Regardless, Grant Thornton has voiced interest in merger possibilities and picked up Huron Consulting’s Disputes & Investigations practice last year, so who knows!? Both firms just closed the books on 2010 and maybe they’re laying some groundwork?

So, what do the GT and MA people make of this? Hell, anyone can chime in, we’re just finding this particular rumor pret-tay interesting. Some things make sense and some don’t, so we’ll leave it to you to hash out. And of course, if any of this sounds familiar because, you know, you heard something in a meeting about this very topic, email us. We’ll update you with anything we hear.

Sue Sachdeva Was Needlessly Paranoid About Grant Thornton’s Fraud Detecting Abilities

About a year ago at this time, we just started learning about Sue Sachdeva, the convicted embezzler extraordinaire of headphone cobbler Koss. It took a little less than a year for everything to get sorted out including quite the inventory of luxury loot, her emerging talent for stealing money, lawsuits, a guilty plea and a sentence of 11 years.

Since all that’s settled it’s on to the lawsuits and Suze was recently deposed in Koss’s lawsuit against Grant Thornton where she testified about many interesting things, including being a nervous nelly from the get-go:

Former Koss Corp. executive Sujata “Sue” Sachdeva worried each day that she would be caught embezzling money that eventually totaled $34 million.

“Fear was one thing. I thought it was imminent,” she said in a recent court deposition. “Their auditors, every time they walked in, I’d say, ‘This is it. They’re going to catch me.’ 

Turns out, S-squared was paranoid for no good reason because – as we all know – GT had no clue that she was lifting millions every year to pay off her AMEX, partly, she says, because they were throwing green auditors at the company every year:

Sachdeva said in the deposition that Grant Thornton considered Koss to be a well-run company and a good training ground for its new auditors.

“Every year, we’d have at least one or two new auditors come through, and I know Michael (Koss) and I both objected to that – getting kids right out of college and had to explain the business to them every time,” Sachdeva said.

Sachdeva said she never held back documents from the auditors. They didn’t question the amounts of money flowing in and out of the company, nor did they question the internal controls, she said. The lack of inquiries surprised her, she said.

Then there were the allegations that she was having regular three-vodka-shot lunches, according to an October article in Milwaukee Magazine:

Retailers who lunched with Sachdeva say she downed vodka shots at the North Shore Bistro with Julie and Tracy. “Then they all went back to work bombed,” says one shop owner.

One consignment shop owner recalls picking up Sachdeva and taking her to Harvey’s restaurant in Mequon. “Sue told the waiter she wanted her ‘juice.’ They knew that meant vodka,” says the shop owner, who was surprised by how much Sachdeva drank.

Well, it all kinda makes sense now doesn’t it? She was either paranoid because she drank or drank because she was paranoid. OR the amateur auditors drove her so batty and she had no choice but to get a little loaded. Anyway you slice it, the auditors seem to be ones to blame, which seems like a trend these days.

Koss embezzler feared discovery from start [MJS]
The Diva [Milwaukee Magazine]

Should an “Acting Senior Manager” Take a Job with Grant Thornton That Promises a Transfer?

Welcome to the Holly Jolly Hump Day edition of Accounting Career Emergencies. In today’s edition, an “acting” senior manager is being recruited for a gig with GT in a Mid-Atlantic office with the promise to transfer to another office after the upcoming tax seasons. Can he trust GT to make the deal happen?

Worried that your career (or bonus) is in jeopardy because your firm is in a bit of a jam? Not sure how to approach a potential dance partner? Caught in an awkward situation that involves hookers and cash but it’s really just one big misunderstanding? Email us at advice@goingconcern.com and we’ll do our best to right these wrongs (or at least make you feel better about them).

Back to the actor:

I have 8 years experience in tax compliance as an acting senior manager on a large client. A former co-worker is recruiting me for a [Mid-Atlantic] GT tax position as a senior since I have no CPA. They are willing to have me work in [Mid-Atlantic] until 09/11 and then allow me to transfer to another office after 9/11.

My interview will be next week and will be with [Mid-Atlantic] partner and the partner from the office I want to transfer to. My questions for the group are the following. Does anyone know what the staffing is like in the tax group in [Mid-Atlantic]? (i.e. all new staff or good experienced people) Does GT pay well? My current salary is $98,000. Can I trust them to honor their word about transfering me after 9/11?

-Acting Senior Manager

Dear ASM,

We have to say, this is a very odd situation you’ve got so we’ll do our best to help you out. For starters, why don’t you have a CPA license? We’re sure there’s an explanation but an 8 year vet of the business with no CPA strikes us as odd. Written exam too scary? You’ve got a JD and figured the CPA wasn’t necessary? Perpetual BEC failure? Whatevs. Secondly, we’re get the impression that you want this job mostly for the transfer, so we’ll skip the “climbing down the corporate ladder” lecture.

Now, then. We can’t speak to the staffing situation in the office you speak of but it would be shocking if all the staff at GT south of Philadelphia and north of Raleigh were completely incapable of doing their jobs (if we’re off base, please share). The pay at GT will be fine but your work experience is a big bargaining chip. Use it wisely and be ready to lay out why your extensive experience should result in more money for you.

As for taking the word of GT partners, it’s a pretty good sign that a partner from your desired office will be there for your interview. Also, what motivation would anyone have by going back on this deal? Would they really give you the job only to betray you less than a year later? This strikes us as unlikely. Staffing needs are always up in the air so for them to give you this opportunity seems us as a pretty exceptional deal. Regardless, we’d ask to get something in writing. Chances are this has already happened, as we assume some of these discussions occurred over email but something official would be ideal. If they balk, then you’ve got cause to question their sincerity. Good luck.

Oh, and get your CPA for crissakes.

(UPDATE) Grant Thornton Employees Prohibited From Accessing WikiLeaks, Even in Their Spare Time

~ Update includes email sent to all KPMG employees and further details on communication within PwC.

Confirming some chatter in last Friday’s post on the banishment of WikiLeaks at Deloitte, notification at Grant Thornton was sent out late on Friday.

So not even after a long, hard day doing Stephen Chipman’slowed to read catty messages between diplomats or war logs on your personal computer. What’s next? Firmwide emails instructing lonely accountants not to visit Fleshbot (NSFW)?

Personal time aside, judging by the conversation on the Deloitte post, it appears that KPMG has also communicated ‘no peeky at wiki’ but we haven’t seen the official communiqué. And since all the major firms have contracts with the Feds, we decided to call around to see find out the scoop. So far, a source at PwC did inform us that the WikiLeaks website is accessible but no official policy on accessing the site has been communicated to the firm at large.

[UPDATE: We have learned that PwC’s Washington Federal Practice did receive communication prohibiting access, downloading, etc. etc. to WikiLeaks, however, as we’ve updated above, a firm-wide communication was not sent.]

Messages with E&Y and KPMG were not immediately returned. If there has been official lines have been drawn in the cyber-sand, kindly email us with any communication.

Earlier:
What if Accounting Firms Had Their Own Version of WikiLeaks?

UPDATE: The message from KPMG, courtesy of the sagacious Judge Sven Erik Holmes:

Date:December 10, 2010
To:All KPMG Personnel
From: Sven Erik Holmes, Vice Chair, Legal and Compliance
Subject:Government Notice Regarding Web site Access

PLEASE DO NOT DELETE THIS E-MAIL WITHOUT READING

In response to the recent well-publicized release of government documents on the WikiLeaks Web site, the federal government has begun notifying its contractors regarding restrictions on accessing classified documents included in that release. As a provider of services to several federal agencies, KPMG is a federal government contractor and has begun receiving such notices from its federal agency clients. This e-mail contains important instructions regarding access to such classified information, which are applicable to all firm personnel.

KPMG personnel should not access information marked or labeled as classified (including material publicly available on the WikiLeaks Web site or other Web sites) using government or KPMG computers or other devices that access the Web (such as PDAs or Smartphones) as doing so risks placing material that is still classified on non-classified systems. This restriction does not limit employee or contractor access to nonclassified, publicly available news reports (and other nonclassified material) that in turn reference classified material, as opposed to the underlying classified material itself (whether or not in the public domain).

The government’s notices remind us that federal contractors are obligated to protect classified information pursuant to all applicable federal laws, and to use government information systems, whether classified or unclassified, appropriately. Unauthorized disclosures of classified documents (whether in print, on a blog, or on a Web site) do not alter the documents’ classified status or automatically result in declassification of the documents. To the contrary, classified information, whether or not already posted on public Web sites or disclosed to the media, remains classified, and must be treated as such by federal employees and contractors, until it is declassified by an appropriate U.S. government authority.

If you believe that you may have downloaded classified information to a government or KPMG computer or other device that accesses the Web (such as a PDA or Smartphone), please contact [a KPMG lawyer who will ask you a ton of questions and probably scold you] in OGC at [lawyer’sname]@kpmg.com.

KPMG personnel are also reminded that firm policy requires personnel to maintain the confidentiality of any information that they obtain from a client in connection with a client engagement. It is important that the confidentiality of any such information be maintained.

Compensation Watch ’10: Grant Thornton Kicks Off Hanukkah

From the mailbag:

I work at GT as an associate in [a Southwest] office. Partner called to tell me i got a 1k bump to salary. It appears that GT is giving out raises in December. They are calling them market adjustments…

There seems to be confusion as to whether this is a bonus, lump sum raise, or spread out over the year. My partner told me it’ll be spread out over the year and it was a permanent raise. Others have been told it is a lump sum bonus. The new A1’s found out yesterday their starting pay was increased. I’ve talked with seniors and none of them have heard anything I know about, and they seem pretty pissed at the whole situation.

Are SAs getting blanked? Is this happening anywhere else? Inform everyone below or email us if you know the scoop.

A Partner Hopeful Can’t Decide Between KPMG and a Mid-Tier Firm

Welcome to the light-the-menorah edition of Accounting Career Emergency. In today’s edition, a lucky co-ed who is convinced she wants a career in public accounting has internship offers from KPMG and GT and maybe another from BDO. Multiple choice study skills won’t really help her so she turned us for our sage advice.

Is your career on life support? Worried that the long hours during the upcoming busy season might finally cause you to crack? Does your family remind you of Arrested Development? Email us at advice@goingconcern.com and we’ll have no problem crushing your brother-in-law’s dreams of playing with the Blue Man Group.

Back to the multiple choice exercise:

I recently received an internship offer from both Grant Thornton and KPMG in Chicago. I more than likely will be getting an offer from BDO as well. Unlike many who go Big 4 then jump ship to industry, I want to make a long term career out of public accounting (i.e., hopefully make partner some day).

I liked the supposed “culture” and the people at all of the firms, but now I can’t decide which one I want to go with. I don’t know if going midsized will mean quicker promotions, and somewhat better hours (relatively speaking), or if the Big 4 prestige is even relevant long term within the public accounting field. Please help me make sense of this…

Dear Partner Hopeful,

Pardon us but we’ll briefly delve into semantics for a second – “midsized” isn’t really representative of GT or BDO (we’re not crazy about mid-tier either but we’re open to suggestions) as they both have vast international networks. It is also true that the Big 4 dwarf GT and BDO combined so a moniker for the non-Big 4 firms (because that also sucks) could be the most important debate to come out of your question. But that’s a discussion for another day.

Now, then. We’re impressed that you have your mind made up that you want a long-term career in public accounting. That was our initial aspirations as well and look how that turned out. All we’re saying is, don’t get ahead of yourself and the culture will wane, trust us.

As for the Big 4 vs. GT/BDO question – for starters, the promotion pace will be similar no matter where you go. Besides, do you really want to get to senior manager in 5-6 years just to sit there for 10 more before you make partner? Our guess is, nofuckingway.

Secondly, don’t ask about hours. They will be long no matter where you go. Get over it.

The most provocative part of your question is related to prestige. GT and BDO rank #5 and #6 in Vault’s latest ranking, so it’s not like you’re working for complete schlubs. Plus, Chicago, as you’re well aware, is where Grant Thornton and BDO are headquartered. Conventional wisdom may tell you that KPMG is a more prestigious firm regardless of location and that very well may be true. But if you’re working in the HQ city of GT or BDO, you’re likely to hobnob with some of the most high-ranking professionals within those two firms. Not taking anything away from KPMG Chicago, but you simply won’t get the same exposure to the firm’s national leadership as you would at Grant Thornton or BDO.

Bottom line is that all the firms are solid and if you’re sold on the people and culture, you’ll have no problem fitting in at any of them. But if you’re concerned with prestige and building your network, it’s worth considering the opportunity of getting exposure to the bigwigs at GT and BDO.

BDO Culminates 100th Anniversary with a Two-Hour Disney Production on the History of the Firm

As you probably know, BDO has spent 2010 celebrating the firm’s 100th anniversary in the U.S. Throughout the year there has been various celebrations along with Jack Weisbaum’s successful run as Dos Equis dopplegänger.

The apex of the firm’s centennial is going on as we speak in Orlando, at the firm’s Centennial Partners Meeting where 700 some-odd partners, alums and their better halves are celebrating the big one hundo.


A brief word from the most interesting accounting CEO in the world:

“In 1910, there were a little more than 2000 certified public accountants (CPAs) in the United States, that’s approximately the same amount currently working at BDO. Today, there are hundreds of thousands CPAs, but just a handful of national firms that have been able to grow and prosper across the country and build networks with member firms around the world,” said Jack Weisbaum, CEO of BDO USA. “Our firm bears little physical resemblance to the firm Maximillian L. Seidman started a century ago, and it is sure to change drastically in the coming century. What will stay the same is our unwavering commitment to clients, our capacity to adapt to change and our ability to find opportunity in every challenge.”

In addition to the Weisbaum speech, last night attendees were treated the aforementioned two-hour Disney production about the history of the firm.

Entitled “Proud Past – Bold Future,” the firm’s story is told with an extensive cast and musical arrangements, interspersed with video interviews of BDO partners – from both past and present – as the firm’s progress is tracked over the past century.

A Disney production sounds nice but two hours? Beauty and the Beast was nominated for Best Picture and it only ran for 84 minutes. Not that you can fairly compare the 100 years of getting to know BDO to animated bestiality. There really is no comparison but we’re just hoping – for the sake of the audience – it was screened before the comfort food and booze.

Grant Thornton Employees in Chicago Feeling the Heat to Join Big 4

After reporting rumors that PwC was chasing Deloitte seniors in Chicago, now comes another report out of the House of Chipman:

Is it just me or is pwc trying really hard to bring in seniors in Chicago? The other day at GT, the same pwc recruiter called every S1 in audit asking if we’d be interested in moving over.

A few of us actually answered just to see what he had to say and he was pushing real hard in getting people to accept that if we made a move, we’d have to take a step down (S1 to move over to A3), and that they’d be making a large investment in keeping us long-term (at least through a promotion to manager). This is after we lost a S2 and an A2 who both moved to pwc. Plus, we’ve received several emails from other outside recruiters gauging our interest in the Big 4, not to mention my friends at the Big 4 trying to get me to send them my resume so they can refer me (for a much larger referral bonus, I’m assume). Not sure if this is juicy enough information, but that’s pretty much what’s happening right now over at G to the T.

Here’s the deal people – all the firms need people at the Senior Associate level. All the firms have made it known that they are hiring aggressively, both experienced and entry-level employees and the recruiters within the firms have jobs too. Besides, where are they supposed to look for the appropriate talent to fill their empty positions? Dunkin’ Donuts?

Grant Thornton, believe or not, has plenty of talented people and the Big 4 will take those people if they can get them. Management probably gets tired of all the bellyaching by employees about how short-staffed they are so the pressure is on the recruiters to get asses in the seats.

If you don’t want to be hassled by Big 4 recruiters, simply say, “I’m not interested, thanks,” and go on your merry way. But judging by all the complaining at GT, lots of employees are probably happy to entertain some options.

Sandra Guy, Recognized for Leadership in Diversity, Leaving BDO

We’ve learned from a tipster that BDO’s Head of Human Capital Sandra Guy was leaving the firm to ‘pursue other interests’ which we have confirmed with a BDO spokesman.

As of Monday, Sandi Guy, executive director of Human Capital, has left the firm to pursue other interests. Barbara Taylor, the firm’s general counsel, will oversee the Human Capital function on an interim basis until a replacement is identified.

“We thank Sandi for her many years of service to our firm and are grateful for her significant contributions,” says Jack Weisbaum, chief executive officer. “We wish her well in her future endeavors.”

Ms. Guy was recognized just last year for her work in diversity by American Society of Women Accountants (ASWA) and Profiles in Diversity Journal’s “Women Worth Watching in 2010.”

Grant Thornton’s New CPA Policy: Bonuses and Requirement for Promotion

Grant Thornton rolled out some policy updates today related to obtaining a CPA (full email after the jump), including some impressive bonuses for its newest employees (hired after April 15, 2010). The largest available is $10k if you happen to be of the Elijah Watts types and “are among the top 10 candidates earning the highest cumulative scores on the four sections of the CPA Exam in the country.”

Other bonuses include:

• $5k for passing all four sections within one year of full-time hire.
• $3k if you pass within 18 months of full-time hire.
• $7.5k for those in the top ten in their state but not good enough for national recognition.

The firm is also paying a small bonus ($1k) for current employees who have epicly failed so far but��������������������exam between August 1, 2010 and July 31, 2011.

While most people easily get hung up on the money aspect of things, the bigger change is the requirement for new employees (again, those hired after April 15, 2010) to have passed all four sections of the CPA prior to being eligible for promotion to Senior Associate. That goes for both audit and tax employees.


We covered CPA exam policies in a couple of posts earlier this year and the only other firm that has this requirement is PwC for the audit practice. The tax practice requires a CPA for promotion to manager.

So some pretty interesting developments at GT and it seems to be a fair transition – from a timing standpoint anyway – as those hired in the last six months can hardly find their ass with both hands, let alone be ready for a promotion to SA. But again, this is major policy change going forward and GT is, at the very least, making the case that they will be holding all of their associates to a higher threshold of performance than firms that don’t have such requirements.

Sound off your support or displeasure in the comments on the bonuses or promotion requirements below. And for the non-GTers out there, what do you think of your firm’s policy? Does it need updated to keep the pace with GT’s move? Are changes in the works? Keep us updated by emailing us at tips@goingconcern.com.

Policy update
Important information regarding CPA licensure
At Grant Thornton, we are a dynamic global organization that is committed to making a difference to our colleagues, clients, the profession and our communities. As part of our commitment to providing our clients with distinctive service and the highest quality, I am pleased to announce two important changes effective immediately.

Introducing the CPA Pass Bonus
It is our goal to continue to attract intellectually curious, talented individuals to our firm and to encourage them to pass the CPA exam and earn their license as soon as possible. As such, I am delighted to announce that Grant Thornton will now offer a CPA Pass Bonus.

Grant Thornton will pay professionals who joined the firm as entry-level associates from campus on or after April 15, 2010
· $5,000 – For passing all four parts of the exam prior to or within one year of their full-time date of hire

· $3,000 – For passing all four parts of the exam within 18 months of their full-time date of hire

· $10,000 – For those who are among the top 10 candidates earning the highest cumulative scores on the four sections of the CPA Exam in the country

· $7,500 – For those who are recognized as earning the highest cumulative scores on their initial sitting for the four sections of the CPA Exam within their state and were not national winners

To recognize a transition within the spirit of the new policy, Grant Thornton will pay a one- time “catch up” to experienced associates through senior associates

· $1,000 – For passing all four parts of the exam, if they pass during the August 1, 2010 and July 31, 2011 time period only

CPA requirement for promotion to senior associate
In addition to paying a bonus to those passing the CPA exam, the firm has made the decision to require audit and tax employees to have passed all four parts of the CPA exam in order to be promoted to senior associate.

For employees hired on or after April 15, 2010

· This new promotion policy is effective immediately.

For employees hired before April 15, 2010 or as experienced associates and senior associates:

· Employees who have not yet passed the CPA exam will be “grandfathered” under our current policy. In that regard, we encourage all individuals currently at the associate 2 level or above to pass the CPA exam within the next 2 years. However, they must be a licensed CPA prior to being promoted to manager.

For additional information, please see the CPA Pass Bonus Policy linked here.

If you have any questions about either of these changes, please contact your practice leader or local HR professional.

Lou

There’s Still Some Confusion About the BDO/Grant Thornton Situation in Hong Kong

The Wall St. Journal’s China Real Time Report stumbled upon the BDO/Grant Thornton poaching exodus merger situation (some may say, “clusterfuck”) in Hong Kong and we have no choice but to take issue with it.

The headline reads, “Missed It? Hong Kong’s Big Accounting Merger” and they mention the original report from the South China Morning Post. They manage to tone down the narrative but more or less tell the same story, full with quotes from BDO Hong Kong’s CEO Albert Au Siu-cheung:

On Wednesday, about a month after the joint press release, the South China Morning Post featured a front-page article describing the merger as a mass poaching of staff by BDO, “the biggest such raid in the city’s accounting sector.”

“It’s a bit sensational,” Au said, adding there was no raid. “Poaching is I pick a few heads here and there,” he said. “What you’re seeing here is the whole firm, meaning the partners and staff, coming to join us in BDO.”

In other words, “Sure it sounded bad but really it was just people making a choice”:

“There is no goodwill payment of any kind,” Au said. “I like to think they are voting with their feet. By that, I mean they think they’re joining a platform they have commitment to and believe in.” Clients were informed of the change and had the option to find another accounting firm. All clients have stayed with Grant Thornton for this merger.

Of course if someone at the Journal had rang up Grant Thornton International they would have likely gotten the story that we reported on last Friday which is that GTI booted the affiliate firm in Hong Kong and that BDO is kinda, sorta misrepresenting the situation:

They did not choose to leave, they were told to leave…[I]t is disingenous, or possibly wishful thinking, on the part of BDO to suggest that Grant Thornton is pulling out of Hong Kong. Many partners and staff from the former Hong Kong firm have already contacted the new Grant Thornton firm and clients will, of course, decide for themselves whether to move to BDO, which operates in the region as a loose affiliation, or remain with the more integrated, ‘one firm’ approach of Grant Thornton.

And of course there are the opposing press releases. The joint one issued by the BDO/GT firm dated October 7th that states:

Leading accounting firms BDO and Grant Thornton are pleased to announce that their firms have agreed in principle to merge their businesses and practise in the name of BDO Limited.

And the one from GTI, also dated October 7th that states something quite different:

Grant Thornton International gave its Hong Kong member firm notice on 20 September to leave the global organisation by March 2011.

With that mandate and probably few options, it appears that GTHK ran into the arms of BDOHK. BDO is using the Journal to disseminate a story that makes them look proactive and ambitious when in reality, none of this would even be happening if GTI hadn’t told their HK firm to get lost. The Journal – like the South China Morning Post – doesn’t mention that. Some people might consider that a major piece of the story.

We’ve put out a warning in the past about wandering into our corner of the sandbox without knowing what the hell you’re doing (or at least checking with us first) and you can consider this a friendly reminder about that. We’re more than happy to help because this accounting/accounting firm stuff is tricky when you don’t spend every single day reading and writing about it.