Jimbo obviously had ants in his pants and he couldn’t keep it to himself because after saying it’s a ‘done deal’ he admits, “The company is the one who would make the announcement. So I ought to be more cautious in terms of not speaking for them. We are prepared and ready to step into that role.”
Oh. So maybe JQ is talking out of school but he backpedaled nicely. We understand your excitement Jim but we also know that discretion is in order. Next time though, just throw caution to the wind. In fact, if it strikes you, don’t be afraid to mention how PwC screwed the pooch and their attempt to weasel out of the whole thing is a travesty.
Deloitte says will be auditors for Mahindra Satyam [Money Control]
Category: Big 4
If it happens at a Big 4 accounting firm, we’re talking about it here.
Rumor Mill: PwC Tax Practice Eyeing Utilization
We’ve received a tip that human resources for PwC has made calls to staff saying “the lead partner [of the] group is reviewing everyone’s utilization numbers one person at a time.”
This is occurring in at least one industry group in the New York tax practice. Although our source stated that it was not unexpected for utilization to be scrutinized, it seemed unusual for a lead partner to be examining so many individual utilization numbers. Then again, PwC isn’t really known for a transparent performance review process.
Since the forced ranking trend seems to be in full effect, this could be the new standard operating procedure. The timing also seems dubious in the wake of (or during) last week’s layoffs in the advisory practice.
If you’ve recently been informed that your utilization rate is getting a close eye (and this comes as surprise) or if you know of the motivation behind such close inspection, email us at tips@goingconcern.com.
Layoff Watch ’09: Ernst & Young
We’ve received tips that layoffs have recently occurred in both the Chicago and Dallas offices of E&Y. The reports out of Chicago were that layoffs occurred on Friday and over the weekend.
Our source told us that the Friday layoffs were seniors in the Retail and Consumer Products industry group and weekend layoffs were across as well as other industry groups. Altogether approximately 20 professionals.
We have fewer details on the Dallas layoffs except that they were a couple of managers from the asset management group in the audit practice. The small number leads us to speculate that these were performance related, similar to the cuts we reported in August.
There have been several rumors circulating about layoffs occurring this week at E&Y and other firms as well so if you have more details on the Chicago or Dallas layoffs or know of cuts in your office, send us the details to our tips line.
KPMG Has Its Reasons for Banning Google Talk
Klynveldians have been warned about certain software that should not, under any circumstances, be downloaded by any of you:
In the firm’s defense — and since they didn’t mention it — many of these programs are used by you to waste precious billable hours complaining to each other about a myriad of things including why the Phil Mickelson hats only come in black and white and where Tim Flynn and John Veihmeyer buy their suits (we hear Marshall’s but that could be total bupkis).
Furthermore, we’re not going to sit here and say that none of these programs present a legitimate risk. That would be foolhardy and insensitive.
What we do wonder about is what “disciplinary action” involves. Feel free to wildly speculate on this in the comments.
Layoff Watch: Update on PwC November ’09 Edition
We’ve confirmed that the layoffs have started.
The first casualty that we know of was out of the Boston office and worked in Forensic services. No severance details as of yet. Kindly update us with your office, service line and severance details.
Rumor Mill: ‘Meeting with Partner’ Requests Going Out at PwC
Maybe it’s just an informational sit-down for the new P. Dubs tighty-whities that you’re all going to be expected to wear but our contributor, Francine McKenna had this ominous tweet:
Apparently someone else may have an itchy trigger finger. According to the comments over at RTA the emails have gone out to an office on the east coast but nothing more specific than that.
Keep us updated if you get a notice or if you know someone who gets a notice, or you know someone who knows someone, etc.
Caption Contest Results: KPMG Scary Stories
Not a surprising choice but we thought it would be a closer race. The winner, garnering 45.5% of the vote, after the jump.
KPMG hires replacements for staff who were laid off.
What’s not known is what kind of offers they are getting. It’s an absolute certainly that it includes the standard CYA language: “Due to the volatility of the current economic conditions, your starting salary may be adjusted to market at the time you begin employment.”
Thanks to everyone for voting and we’ll have the results from our salary satisfaction poll later today.
PwC Gets a Small Win in the Satyam Case
Hey, any win is a good win, right?
A has judge ruled that there was no evidence that the Delhi office had anything to do with the actions of the Bangalore office, the statutory auditors of Satyam.
The Institute of Chartered Accountants of India (ICAI) — the AICPA of India — had brought actions against PwC offices in Delhi, Kolkata, and Bangalore but the judge isn’t buying that they are related:
“They are separate partnership firms with separate balancesheets. There is no inter-connection (between PW Delhi, PW Bangalore and PW Kolkata [ Images ]) and profit and loss of one cannot be shared by others. You cannot say that the Banglore firm which was statutory auditor of Satyam has anything to do with Delhi firm,” said Justice Sanjiv Khanna.
The court did indicate that if the ICAI wanted to take another shot at Delhi — you know, with some evidence — if it so chose.
P. Dubs has to be happy with the small victory but would probably prefer if their previous suggestion to just forget this whole thing would start getting some traction.
Deloitte: Your Source for Decision 2010
Election Day isn’t even over and while most of you probably don’t feel bad about not going to the polls, Deloitte is already getting you amped for next year’s state gubernatorial elections:
[The] 2010 election cycles are shaping up some of the most consequential state elections in decades. Many of the nation’s largest states, from California to Pennsylvania to Florida, will see new governors in 2011. All in all, there will be at least 17 open races for governor, the most in years. Control of state legislatures is also expected to be highly competitive.
Because you can never get started too early on diving into dense policy issues, Deloitte lists seven “featured insights” that will be crucial in “regain[ing] the public’s trust” in 2010. Wow, this firm is looking out for you or what? Thanks Deloitte! You’re better than Fox News!
And just in case you didn’t think Deloitte was serious about getting you informed about the issues, the 2010 site is introduced by none other than Tom Ridge, who — unbeknownst to us — is a Senior Advisor to Deloitte.
One would think that it would be impossible for us to be saturated by election coverage for next year prior to it even starting. BY AN ACCOUNTING FIRM. Deloitte, you’ve outdone yourself.
2010 Gubernatorial Elections [Deloitte]
Layoff Watch: PwC November ’09 Edition
We’re not going to say that the pending endorsement of Becks’ undies has anything to do with it but that guy doesn’t come cheap.
Our contributor, Francine McKenna, is reporting on her blog that PwC Advisory cuts will be going down next week:
I’ve just received word: There was a PwC Advisory partners emergency conference call tonight announcing upcoming involuntary staff reductions.
(This time the source is impeccable.)New US Advisory Leader, Dana McIlwain laid out the bad news: The time has come to cut. Average utilization is hovering at 69%. Cash collections are millions short. Campus recruiting for Advisory has been stopped cold. Business sucks and then there’s the 800+ BearingPoint folks to absorb.
On November 11th the rank and file partners, fortified after training and coaching by HR via a webcast in the next few days, will chop 300+ professionals from PwC Advisory, at all levels, all geographies, all practices. Most have already seen the writing on the wall via forced ranking.
Well, crap. We’re not talking Lotus Notes developers this time around. If the guillotine does indeed drop next week, it probably won’t come as a surprise with the less-than exciting revenue numbers and the rumors that the firm was phoning in no raises for fiscal year 2010.
Oh and then after whoring themselves out for AHIP, P. Dubs turned around and folded like a cheap lawn chair. That probably won’t win you clients.
We’ll keep our ear to the ground on this but in the meantime, let us know if you’ve got more details on these rumored layoffs or if you get an unexpected email much earlier than next Wednesday. It’s been known to happen.
Veteran’s Day In PwC Advisory: Say Auf Wiedersehen [Re: The Auditors]
Earlier: PwC’s Re-thinking of the Bell Curve Ranking
Also: Ratings, Raises, and Promotions: Forced Ranking in the Big 4
Caption Contest Poll: KPMG Scary Stories
It’s election day after all. Vote for your favorite caption. You have until tomorrow night, 11:59 PDT to vote.
Finalists after the jump.
Another Lawsuit Against Deloitte Is Back from the Dead
Deloitte has another lawsuit on its hands that is seemingly back from the dead. After last week’s revival of the Washington Mutual shareholders’ lawsuit, a suit in New York has gained new life after Deloitte initially won a dismissal.
The plaintiff in the case, Symbol Technologies, is proving tenacious:
…the panel found that Symbol Technologies had sufficiently alleged that the “continuous representation” exception to the statute of limitations and the company’s amended complaint “trigger[ed]” the “adverse interest” exception to the in pari delicto doctrine.
“Symbol’s pleading is sufficient to establish that the parties mutually contemplated that Deloitte’s work and representation for each audit year would continue after the issuance of the audit opinion/report and, therefore, the continuous representation doctrine applies,” Justice Leonard B. Austin wrote for the 4-0 panel in Symbol Technologies v. Deloitte & Touche, 2008-06642.
He later added, “In its amended complaint, Symbol set forth sufficient allegations that members of its senior management committed accounting fraud for their own benefit and totally abandoned its interest, thereby triggering the adverse interest exception.”
Nothing too fancy. Just a good, old-fashioned case of senior management fraud not being detected by the auditors:
Symbol’s lawsuit against its former auditing firm stems from an accounting-fraud scandal at Symbol that culminated with the technology giant agreeing to pay the Securities and Exchange Commission $37 million and shareholders an additional $100 million.
The SEC had charged Symbol, a Long Island, N.Y.,-based supplier of mobile information systems, and 11 of its former executives with numerous fraudulent accounting practices that together overstated the company’s reported revenue for the fiscal years of 1998 through 2001 by more than $230 million and its pre-tax earnings by more than $530 million.
The fraud resulted in overpayments to Symbol’s senior management of more than $100 million.
At least eight former Symbol executives have pleaded guilty to various charges stemming from the fraud. The company’s former chief executive, Tomo Razmilovic, remains a fugitive, living in Bussevik, Sweden.
Symbol sued Deloitte & Touche, now known as Deloitte, in November 2005, alleging the “Big Four” auditor had failed to detect the fraud. The company’s complaint does not specify the amount of damages sought.
The amount of damages being sought by Symbol hasn’t been disclosed but you’d figure Deloitte could cough up $137 mil just to put the company back to square one. But no, Deloitte is as equally determined, saying ‘the action is without merit and intends vigorously to defend this matter’.
Sorry. With a sub-par year in revenues and breaking ground on the new Animal House, Big D can’t spare the change. We’ll see you in another ten years when this thing is finally settled.
Symbol Technologies’ Massive Malpractice Action Against Deloitte Is Reinstated [New York Law Journal vi Law.com]