Category: Big 4

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

KPMG UK’s Sweet New JPM Gig

KPMG_chair.jpgNothing like a good (alleged) fraud story to finish up our week, eh?
Just in case you missed the story, it appears as though KPMG UK will be a tad busy in the near term trying to unravel this little mess. I suppose that’s good news for the kids working those 4 day work weeks across the pond, though the same cannot be said for JPM, who is facing an unlimited fine as a result.
UK’s Daily Mail:
More, after the jump

The FSA has called in a top firm of accountants to examine the bank’s London activities after evidence emerged that JP Morgan had mixed customers’ funds with its own.
Banks are meant to maintain a strict segregation of their own money from that which is held on behalf of clients.
But JP Morgan managers in London discovered last month that client and bank money used for trading futures and options – a way of speculating on movements in currencies, share prices and commodities – had apparently been put into a single pool.

This isn’t the first time regulatory authorities have busted firms for pooling client money and using it to play craps in the market but it is certainly the first time the FSA has gone after a big player like JP Morgan.
JP Morgan claims an “operational error” in their options and futures arm dating as far back as 2002 caused the “mix-up” though we aren’t sure we buy that line. “We identified an operational error that was corrected within 24 hours of its discovery. No clients have lost money as a result of this error and we are cooperating fully with the FSA,” a spokeswoman for the bank said.
Sure, okay. Just because no clients lost any money doesn’t make it legal. It’s now up to KPMG to slog through 7 years of transactions (at JPM’s expense) to see if any clients missed out on interest due as a result. Prelim findings are due to the FSA by the end of August, with a final report expected in September.
Have fun, KPMG UK!

Rumor of the Day: KPMG Layoffs in Dallas Next Week

As if you didn’t need another excuse to go on a three day bender, we received a tip that audit professionals will be getting laid off at the Dallas Radio Station next Tuesday, the 18th. Tax professionals will get their turn in September, most likely after the filing deadline.
Word is that no one level is safe as the cuts will be made at all levels including partners.
KPMG did not immediately respond to our request for declined to comment.
If you’ve got more information on the sitch or you’ve heard similar rumors for other offices, drop us a line at tips@goingconcern.com.

E&Y SoCal Intern Offers: Don’t Spend it All in One Place

It may still be a little early for the citizens of Arnie, especially if you’ve got the Friday morning cocktail flu, but whatevs. We got word that E&Y audit interns have gotten their offers nationwide and Whale’s Vagina San Diego and L.A. are both getting $50k, no bonus. If you got a Masters, you’re getting $52k, no bonus (seems worth it now, eh?). No word on tax or advisory, so if you know these, fill us in.
Last year’s lucky little Ernies got a bonus so at the very least, that makes for a smidge of animosity. For all the love we’ve been giving Ern we haven’t got a lot of specifics on the actual details. Discuss in the comments or drop us the numbers at tips@goingconcern.com

Phil Mickelson 9 Box Update

Fill had a less than ideal first round, shooting +2, which is seven shots behind the leader. On the one hand, he’s well on his way to not winning the tournament. On the other, he’s well on his way to not finishing second.
Check our initial rating if you need to get caught up.
So after not considering a hell of a lot, we’ve come up with Fill’s new ranking:
Check out where the Radio Station billboard falls, after the jump


Phil_9box_Fri.jpg
As you can see, Fill has dropped from the relative safety of SP5 to the less than acceptable position in NI7. He teed off at 9:35 EDT so Radio Station employees can waste their entire Friday watching Fill try to step it up.
Discuss the current ranking in the comments and if by chance you’re at the tournament following Fill, let him know that Going Concern (and Tim Flynn) would like to see more out of him today.

Phil Mickelson Gets 9 Boxed

We’re upping our coverage of Phil Fill Mickelson’s quest to not come in second place at this year’s PGA Championship.
In the spirit of performance review season, we thought we’d see where Phil Fill would fall on the illustrious Radio Station 9 box.
See the initial ranking, after the jump


Phil_9box.jpg
As you can see, Phil Fill is right where he needs to be. We’d like to see him step up his game and shoot for that EP though. Right now we hear that he’s +1 at the turn for his first round. We’ll update you tomorrow morning with his first round results and his updated ranking.
Feel free to approve or disapprove of the current rating and give us your suggestions about where you think Phil Fill should be.

Deloitte is Baiting the New Hires

iphone.jpgOn a day like today, we never thought we’d be telling you about a firm actually spending money but color us surprised.
Deloitte will start issuing iPhones to partners, principals, and directors starting Monday, according to a tip we received and will be available to “eligible personnel on Monday, September 14.”
So the obvious question is who the hell is eligible? The trend seems that senior associates haven’t been getting squat so our money would be on the new hires getting the new toys gadgets business tools in order to write down everyone’s order for take out but we’ll keep our fingers crossed for you SA’s.

Ernst & Young Ups the Ante

8ball.jpg
Guest 46 @7:17 makes a good point and wants everyone to get some perspective on a firm’s priorities. Don’t even think for ONE SECOND that your office is thrifty stingy until they axe a corporate volunteering event because it conflicts with the FSO All Hands Webcast*.
More, after the jump


Uncle Ern would like you to forget about these difficult times by staying within the confines of your cube farm and getting down with a mandatory webcast because there are plenty of people without jobs out there that could volunteer instead.
The Radio Station takes a slight different approach, clearly thinking that if everyone sacrifices one night of open bar to help others, the joy you feel will certainly beat puking and then passing out in the bathroom at some hotel.
So now the debate looms: what firm currently wins the award for the best example of a company channeling its inner-George Costanza: E&Y or the Radio Station? Discuss in the comments and if you’ve got additional examples to bolster the case for/against your firm, please share.
*That’s the word we got from E&Y, so if someone can elaborate on just what the hell that is, that’d be great.

KPMG Takes Phil Mickelson FTW

Phil-Mickelson_Tim Flynn.jpgBecause we’re big fans of shameless promotion, we’re starting our coverage of the quest of the Radio Station’s walking billboard, Phil Mickelson, to win the PGA Championship. He’s teeing off circa now, so drop what you’re doing and get to at TV Radio Station duffer geeks.
Phil won the tournament back in 2005 but gets lots of attention for being a bridesmaid at the U.S. Open five times. Most notably for our purposes, he has not won any majors since he signed with the Radio Station back in early 2008.
No word on where Phil is falling on the 9 box rating system or if his visions of sugar plums have been dashed but if someone could put us in touch with his performance counselor or get us a copy of his contract with KPMG, that would be great.

KPMG Incommunicado?

We’re getting mixed reports on the email going out to Radio Station employees about canceling the one thing to look forward to in the month of December.
We heard the email got sent out to some offices in the West but also that New York hasn’t heard a peep so we’re getting suspicious if the big dogs in NY are reconsidering their Grinchiness.
Let us know whether or not your visions of sugar plums have been dashed or not in the comments.

Rumor of the Morning: No raises for SA’s at Deloitte

Big D is the now officially in the toilet frozen pay camp, as we have received a tip that senior associates in the Northeast region will not receive raises this year. On the less-bleak side, B. Salz and his fellow partners are doling out bonuses out of 2.2% pool which will probably amount to barely enough to pay for one night of your now three day drinking binge.
Rumor is that the disappointing word for associates should come down tomorrow but if you’ve got the scoop for us early or have more details on the cold news let us know at tips@goingconcern.com.

Hey Big 4, How’s Gen Y Working Out for You?

I read an article awhile back in CFO mag about Generation Y, or more specifically how large firms were preparing for this ‘special’ crop of soon-to-be new grads.
I’m not sure ‘panic’ is the appropriate word but let’s just say these kids had partners freaking out; technologically-inclined, lazy, and pre-programmed with a sense of entitlement normally reserved for royalty and Nobel prize winners, you knew something was up with these kids if management was stressing their arrival. The Big 4 went so far as to hold trainings for partners on how to tame this hyped generation as they prepared to descend on the corporate world.
More, after the Jump


Now that the first wave of Gen Yers have successfully penetrated the corporate fortress, we figured it might be a good time to check in and see how that’s working out.
‘Screw our SEC deadlines’ may not be an exact quote but that was the typical Millennial attitude impressed upon us by one of our sources, a 40-something CPA lucky enough to be stashed away in private accounting out on the East Coast. He also called working with Gen Y ‘horrid’ but private accounting can be horrid in and of itself so we won’t credit that fully to the Under 30 crowd.
Gen Y is driven by… Well we haven’t figured out if they are driven at all. All reports are that they think ‘work ethic’ means avoiding checking their Facebook pages on company time, expect the corner office as soon as the ink dries on their offer letter, and have absolutely no grasp on the concept of performance-driven bonuses.
What’s worse, say sources, is they don’t seem fazed in the least by economic turmoil. Though employers using performance above seniority as a lay off gauge naturally look to their poor performers as first in line to get sliced, the Millennials are so dosed on the illusion of their own greatness that they seem absolutely stunned when the pink slips come.
So why would the Big 4 continue the tradition of recruiting new hires from college campuses, blocking out the 35 year olds who understand that just getting up in the morning is not cause for a gold star?
You’ll have to talk to the hiring managers if you want an answer to that. Perhaps it’s that we’ve got them all wrong and the generalization itself is what’s driving the conflict.
In the meantime, we are looking forward to seeing how Gen Y breaks out of the stereotype to impress the pants off of us and inherit the empire. With all that ambition and talent, we’re sincerely hoping they learn to apply that to the Big 4 to shake things up for the better. Hopefully they can also bury the billable hour once and for all while they’re at it. Go, kids, go!

KPMG Europe Makes an Announcement that Won’t Upset Anyone

8ball.jpgIn a demonstration of spreading the wealth or possibly just a strategic international ploy, KPMG Europe is adding seven new nations to its firm.
Regardless of the motivation, it clearly demonstrates that the most positive news that the Scrooge American firm is capable of announcing is that it is ruining everyone’s holiday season prior to the start of football season so you have plenty of time to get over it.
KPMG Europe will add Turkey, Russia, Ukraine, Kyrgyzstan, Kazakhstan, Armenia and Georgia to its stable of bean counters. They join the UK, Germany, Switzerland, Spain, Belgium and the Netherlands and will increase the Europe revenues to over £4bn which probably could pay for a few parties (but not full bar) in the States.
KPMG Europe spreads wings to take in seven nations [Accountancy Age]