Category: Big 4

If it happens at a Big 4 accounting firm, we’re talking about it here.

PwC Associate Quits…To Work For a Food Truck

Sorting through Moanday’s emails, I received one from a very proud (and former) P’Dubber. He wanted to share his resignation letter, where he pretty much tees off on his former colleagues.

An excerpt: “burning bridges ain’t all that bad if people want to jump off of them.”

Thought you guys may enjoy this – my name is [redacted] and this was my resignation letter to PwC I sent to the entire group a few weeks ago…. had to get this forwarded from friends within the group as they confiscated my laptop and disconnected my phone service after i sent this out – also deleted it from everyone’s mailbox by the next afternoon. nonetheless, already has circled around like wildfire. if you do happen to use this – please take out any other names, don’t want word getting back of my moles within the group 🙂

[DWB note: names removed and yes, there’s lots of capitalization issues.]

Sent on : 10/03/2011 06:50:43 PM
Subject : dueces!

fellow underpaid laborers,

no need to bs here, it’s been a pleasure w some, a nightmare w most. my
last words –

to my friends, see you on the flipside

to the newbies, one word: dignity. you are not a part of a meritocracy and climbing the corporate ladder’s just a game. if you a snake, slither your way to the top and look down on everyone with misguided pride. otherwise be real and dont do anything that jeopardizes your values. if you plan on being the future of this group don’t bitch about it together in secret and ruin the sacredness of the pantry, with all that free milk and napkins. and soap. lead by example, not your examples. shit gets pushed down and blame gets pushed up, your boss’s boss’s boss has a boss to blame your grievances on. don’t just be a product of a farming system of the ML of finance. you may leave and feel better, but you’re leaving a bunch of people behind that will go through the same shit you did. respect and loyalty is nonexistent in this group.. act on it. if you can spare yourself a moment in retrospect that you’d remember with disdain, why not. and if this isn’t for you and you already know it stop wasting your time.

to my “superiors”, from the great and timeless Remember the Titans, “Attitude reflects leadership, captain”. oh and this whole external hiring thing is completely hit or miss, the lack of trust in organic growth is pure use-em-while-you-can turn over (pun…HA) culture and it shows.

well, I guess I won’t be getting any recs from here, but f it burning bridges ain’t all that bad if people want to jump off of them.

ohh and to the all bark, no bite HR Manager with an office for midgets, give the man credit for havin some sass, but he has memory issues. the people you told verbatim that sittin for the gmats would be enough, the email that proved it, the way you denied it and put it back on them and didn’t have a care in the world u were losing good talent (not myself of course, letsbehonest), manager of the year. I’d say you were the [redacted] of pdub managers. and don’t text message me man, cmon, seriously? i ask who u are, u reply “your HR manager”? well, not anymore (expletive). and no one likes to be text messaged by middle aged men, no one.

on that note, in the words of the amazing [redacted], dueces!

SHAMELESS PLUGS *YAY*
KorillaBBQ – the new face of Korean BBQ
As seen on the Food Network’s “Great Food Truck Race”
Web: www.korillabbq.com
Facebook: Korilla BBQ
Twitter: @KorillaBBQ

Those of you at PDubs – was it really erased from computers? Do former colleagues get a discount at the truck? We want details.

Layoff Watch ’11: KPMG Asking for ‘Voluntary Redundancies’ Down Under

From the land that brought you Michael Andrew:

KPMG is to push ahead with a round of voluntary redundancies following a slowdown in merger and acquisition activity. The privately-held firm launched the cost cutting program this week, offering voluntary redundancies and part-time working options for its 5000 Australian-based staff.

[…]”We’re seeing a tough, uncertain, challenging and patchy market,” KPMG’s Australian chief executive officer, Geoff Wilson, said yesterday. But he declined to say how many staff would be affected by the shake-up. “While we’re experiencing year-on-year growth, we’re seeing some softening in that growth. [We are trying to] create flexibility in response to the patchiness we’re seeing in the market,” he said.

Crikey. I guess by “create flexibility” Mr. Wilson means, “Your work-life balance is going to get a whole lot easier.”

KPMG calls for redundancies amid slowdown in mergers [SMH via Francine McKenna]

Let’s Get to Know KPMG’s New International Chairman, Michael Andrew

Yesterday we learned that new KPMG International Chairman Michael Andrew doesn’t think too highly of second-tier accounting firms. Sure, they might have fancy ad campaigns, or offer Starbucks cards for being tattletales but could they audit a global bank? No. Hell no. Rubes. According to Andrew, those firms are “quite lazy” about investing in their businesses which means you couldn’t trust those audits as far as you could throw them.

But perhaps that wasn’t the best introduction for the man replacing Tim Flynn (who is, frankly, irreplaceable). Luckily, in addition to the FT piece we mentioned yesterday, there was also a much longer profile of MA that will give you a better idea of the man who has to fill T Fly’s shoes.


For starters, being the chair of an international accounting behemoth can be a quite the harried job, it’s important that Drew be afforded the quickest transport possible:

Holding court in a hotel at London’s Heathrow airport, Michael Andrew is boasting about how easy it is to get from his desk to the runway back home in Hong Kong. “I basically walk out of the office and they guarantee me to be sitting on the plane in 45 minutes,” he says.

The new chairman of KPMG International is not trying to rub salt into the wounds of harried air travellers in the UK and US. Rather, the 55-year-old Australian is explaining why he recently became the first head of a major global accounting network to be based in Asia.

And since he is based in Asia, this should put everyone on notice that the House of Klynveld isn’t caught up in the old world thinking of being centered in New York or London like other firms:

The bosses of KPMG’s three bigger rivals – PwC, Deloitte and Ernst & Young – are all based in New York or London: “We are trying to say we are a much more globally balanced firm.”

Okay, so PwC had over $29 billion in revenue. And Deloitte’s results were nothing to sneeze at. Even E&Y managed to put up a decent number. But do their respective Chairmen reside in the eastern hemisphere? I think you know the answer.

But just because he is the new Chairman of one of the largest accounting firms on Earth, you might expect that Drew is caught up in the high-flying lifestyle of a rockstar accountant. Sure, he golfs like the rest of you but that shouldn’t give you the wrong idea about Mike:

Mr Andrew’s hobby of racehorse breeding suggests he is more unbuttoned than the stereotypical accountant, even though three of his horses are called Discretion, Tactfully and Chatham House – the latter a reference to the famously off-the-record UK forum. But Mr Andrews himself is certainly willing to make punchy comments.

That’s right. This means stomping through shit. Bossing stable boys around. Firing trainers when necessary. Clearly, he’ll get down in the mud if he has to.

An accountant betting on Asia [FT]

Layoff Watch ’11: Cuts a Comin’ at Deloitte?

From the mailbag:

Heard this from a Director in the firm: Deloitte layoffs coming. Lists are made…cuts coming soon. Said a lot of it has to do with thinning out the ranks (too many people jumping ship because their level is top heavy and promotion nowhere in sight) as well as letting go underperformers.


As you probably noticed, 2011 hasn’t had much in the way of layoff news with the exception of some support staff that were cut at McGladrey, Grant Thornton, and KPMG. That said, this seems like an opportune time to kick a few people to the curb. If you wait until November, well, that just looks bad.

Keep us updated with any news and if you’re in the know, get in touch.

Brits To Give Big 4 the Full Monty

Britain’s top accountants are to have their own books scrutinised after the consumer watchdog referred the business of checking companies’ figures for a full-scale competition inquiry. The Office of Fair Trading (OFT) said it had been concerned for some time that the audit market is highly concentrated with low levels of switching and substantial barriers to entry. The watchdog estimates that in 2010 the “big four” firms, PwC, KPMG, Deloitte and Ernst & Young, earned 99% of audit fees paid by FTSE 100 companies, while between 2002 and 2010 only 2.3% of FTSE 100 firms changed their auditor. [UKPA]

Schwag Watch ’11: Deloitte May Be Implying That Recruits Have Poor Personal Hygiene

Earlier this month our resident big man on campus, DWB, put out a call for all the schwagtacular gear that recruits were snatching up this fall. We didn’t get much for submissions at first but luckily a friend from the north passed along photos that ranged from “a bunch of junk” to Dr. Seuss to a PwC cookie describe as “soft” and “amazing.”

Things have quieted down since then but thankfully, another enterprising young recruit who is right in the wheelhouse of recruiting passed along a couple more pics that include examples of loot from Deloitte and Grant Thornton.


First our tipster’s thoughts on GT’s offering: “The GT cup is ok but the straw is totally useless.” And for the gazillionth time, purple just sucks.


According to our tipster, the Deloitte sanitizer is really the most perplexing item: “I am not sure what to think of Deloitte’s hand sanitizer.”

So what do we make of this? It’s not a surprise that Deloitte isn’t a “If it’s brown flush it down; if it’s yellow keep it mellow” kinda place but what does this bottle of freshness really communicate? Do they simply think college students are unkempt? Is Deloitte making the assumption that all the recruits are applying there because the Occupy movement rejected their applications? Or, since there is fairly new leadership in place, does this speak more directly to the firm’s position on germs in general? Put simply: Are Joe Echevarria and Barry Salzgerg germophobes? I’m inclined to go with option 3 but would entertain other theories.

Report: Chinese Government Asking Big 4 Firms to Take Another Look at Their Audits

The request, sources said, is seen as a direct response to the move by the U.S. regulators in the case of scandal-hit Longtop Financial Technologies Ltd, and to ensure that firms do not succumb to pressure to hand over documents to regulators outside of China. Last month the U.S. Securities and Exchange Commission (SEC) asked an American court to enforce a subpoena it sent to Deloitte Touche Tohmatsu’s China practice for documents from its audit of Longtop.Two sources from the audit industry told Reuters that the Ministry of Finance and China Securities Regulatory Commission (CSRC) met last week with the so-called ‘Big Four’ audit firms — KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte — along with two smaller firms. The firms were requested by the government to conduct an urgent review of all audits they had done on U.S.-listed Chinese firms in 2010 along with work on U.S. initial public offerings by Chinese companies. [Reuters]

Hiring Watch ’11/’12: Ernst & Young Chicago Taking Applications

They’re looking to fill 500 JITs with new Black and Yellows by June of next year.

Chicago Mayor Rahm Emanuel announced the jobs on Tuesday, saying the firm will start hiring immediately and hopes to have all the positions filled by June. Ernst and Young currently employs about 2,000 people in Chicago. The hires will be diverse across experience levels and include support workers.

Just remember that E&Y seems to be upgrading the gene pool, so uglies need not apply.

Ernst & Young to add 500 jobs in Chicago [CT]

Former Deloitte Employee Swings to Settlement with SEC Over Insider Trading Charges

Remember Annabel McClellan? She’s the wife of former Deloitte partner Arnold McClellan who sorta got wrapped up into an insider trading mess with her sister and brother-in-law last fall. Annabel is also a former Deloitte employee who gave up the glamorous life of a Salzberg solider to be a stay-at-home mom. Oh! and she was working on swingers app called My Nookie that was on the verge of taking the scene by storm. The whole insider trading thing put those ambitions on hold due to the fact that Annabel may be looking at some jail time and she settled civil charges with the SEC yesterday for $1 million. The good news for Arnie is that if judge gives the settlement the thumbs-up, he’ll be off the hook who, prosecutors say, had no clue that the Mrs. was engaging in extracurricular activities:

McClellan, who pleaded guilty in April to one count of obstructing the SEC’s investigation, said she overhead her husband talking about the deals and passed the information to her brother-in-law, according to a transcript of her change of plea hearing.[…] McClellan told prosecutors that her husband wasn’t aware of or involved in passing information, according to documents filed in the SEC case.

Of course, if Arnie wasn’t aware that Annabel was trading under his nose, it makes you wonder with whom she was researching Amazon Squat and the Foldover.

Wife of former Deloitte partner to pay $1 million [Bloomberg]

PCAOB Publishes Part II of Deloitte’s 2008 Inspection Report, First Ever for a Big 4 Firm

They really, really, really don’t appreciate it when you blow off their recommendations. Here’s the statement from the Board:

The Public Company Accounting Oversight Board, in anticipation of questions about the publication of previously nonpublic portions of its May 19, 2008 inspection report on Deloitte & Touche LLP, issued the following statement today:

“The quality control remediation process is central to the Board’s efforts to cause firms to improve the quality of their audits and thereby better protect investors. The Board therefore takes very seriously the importance of firms making sufficient progress on quality control isn inspection report in the 12 months following the report. Particularly with the largest firms, which are inspected annually, the Board devotes considerable time and resources to critically evaluating whether the firm did in fact make sufficient progress in that period. The Board can and does make the relevant criticisms public when a firm has failed to do so.”

So to clarify, Deloitte had until May 19, 2009 to get their methods up to par but failed to do so. To put this into a little bit of context, Jim Doty was not yet the Chair of the PCAOB and Barry Salzberg was still the CEO of Deloitte’s U.S. firm. Does this mean that the PCAOB has been stepping up its game and this is the first instance of many to come? Hard to say but the audits that this inspection report cover are nearly five years old, so it’s debatable as to the value of Part II being made public now.

For Deloitte’s part, here’s current CEO Joe Echevarria’s statement:

“Deloitte is committed to the highest standards of audit quality and as newly elected CEO, it is my foremost priority. Our commitment extends from the top and cascades throughout our entire organization. We place great value on the PCAOB’s input and continue to work with the Board in support of our shared objectives. We recognize that audit quality is fundamental to protecting investors and ensuring the effective functioning of the capital markets.

“We have complete confidence in our professionals and the quality of our audits, and agree that there were and always will be areas where we can improve. In our drive for continuous improvement, we have been making a series of investments focused on strengthening and improving our practice, and will continue to do so to make Deloitte the standard for audit quality.”

In other words, a non-response response. However, it’s much more measured than Deloitte’s response to the initial release of the report. Their response letter spelled out their feelings quite clearly:

Professional judgments of reasonable and highly competent people may differ as to the nature and extent of necessary auditing procedures,conclusions reached and required documentation. We believe that reasonable judgments should not be second guessed and therefore disagree with a number of comments as indicated[.]

Deloitte’s letter is located Appendix C. You can read the full report, including all the details from Part II that were previously unpublished, on page 2.

PCAOB_2008_Deloitte