Category: PwC

Bonus Watch ’11: PwC Tax Senior Has Nothing to Be Thankful For

This just in:

Folks at GC,

Last year, PwC announced in November Mid Year bonuses that were tax free (you did a story on this). This year, nothing so far. They need to be called out for this. Mark Mendola: WHERE THE BONUSES AT?

Love,
Tax Sr at PwC

To clarify, this is the story we did and, correct me if I’m wrong, the bonus was not “tax free” rather it was a net payment of $1,000/$500 (lower amount was for those hired after June 30). As for this year, our little Tax Senior with dirty diapers is right. We haven’t heard anything about mid-year bonuses, from Mark Mendola or anyone else. If you’ve spoken to him and know either way what the scoop is, please let us know. Someone’s Thanksgiving may be RUINED if we don’t get to the bottom of this fast.

PwC Now Picking Up Talent From a Big Law Firm

Namely, Skadden, Arps, Slate, Meagher & Flom LLP. Pamela Olson will head up PwC’s Washington National Tax Services practice when she leaves her position as Skadden’s Washington office tax group on January 1st. From the sounds of it, everyone is pretty giddy about this, mostly because Ms. Olson is kind of a big deal. “Everyone in the tax community knows Pam,” said Mark Mendola, PwC’s U.S. Tax leader. “Now our clients will be able to gain from her wisdom. In the current uncertain economic environment, the counsel she will provide to PwC clients is certain to be more invaluable than ever before.”

Why does everyone know her? Well she’s pretty good at what she does and she’s been around. She’s been an assistant secretary of tax policy with the Treasury department, chair of the American Bar Association’s Section of Taxation, a senior economic adviser to the Bush-Cheney campaign (we won’t hold that against her), a tax adviser to the National Commission on Economic Growth and Tax Reform and “repeatedly in Chambers USA: America’s Leading Lawyers for Business and The Best Lawyers in America for tax law.”

So not exactly a lightweight. All this and she never worked a day at KPMG. Amazing.

[via PwC]

In Case the Tryptophan Doesn’t Work, Here Are the KPMG and PwC PCAOB Inspection Reports for Your Reading Pleasure

Actually, if you’re in to this sort of thing, it could make for some pretty interesting reading.


We pointed to a couple of reports this morning (and there are more) out there on the Board’s criticisms of the two firms, so we won’t repeat them here. The most notable thing seems to be each firm’s response to the report. KPMG went with the standard three-paragr��������������������er that promises that they’ll suck less at auditing in the future.

2011_KPMG_LLP_US


But as Floyd Norris pointed out, PwC’s Chairman and Senior Partner Bob Moritz as well as Assurance Leader Tim Ryan put their names on the firm’s response to the Board’s inspection that outlined what steps were being taken to improve the audit quality, which is a first. The firm also released this statement from BoMo, acknowledging the slight uptick in deficiencies:

PwC is built on our reputation for delivering quality. We also recognize that the role we play in the capital markets requires consistent, high-quality audit performance. We therefore are focused on the increase in the number of deficiencies in our audit performance reported in the 2010 PCAOB inspection over prior years. We are working to strengthen and sharpen the firm’s audit quality, including making investments designed to improve our performance over both the short- and long-term.

2011_PricewaterhouseCoopers_LLP

So you can all this – signatures, action plans, etc. – for what it’s worth but the messaging has certainly changed and it differentiates PwC from KPMG. Will have to wait and see if Deloitte or E&Y follow suit.

PwC Sustainability Partner Blames His Dull Job for Not Rocking “Green” Shoes

If you’re a sustainability professional, people might make the assumption that you are a tree hugger. A green weenie. A dirty hippie. A person who has as much need for a pair of wing tips or business appropriate pumps as a fully loaded H2. Well you can put those suspicions to bed my friends.

Above is PUMA CEO Jochen Zeitz along with a couple of guys from environmental consulting firm Trucost and PwC sustainability partner Alan McGill. As you can see, Mr. Zeitz and the Trucost boys opted for some “green” sneakers to go with their Brooks Brothers. Mr. McGill, on the other hand, is in the standard issue Allen Edmonds. The reason for not getting on board with the hip skids? He’s lame:

The firm’s sustainability partner jokingly suggested his job was too dull to warrant a jazzy pair of sneakers.

Sceptic Tank reports that a PwC spokeswoman clarified the meaning of “dull” to be “PwC can’t be seen to be promoting their clients products in any way.” Which probably also explains why McGill wore a tie as well. Can’t be too careful about these things.

PwC and the fashion faux pas [The Sceptic Tank]

PwC Is Still Looking For (Other Big 4’s) Talent

We didn’t say poaching. But if we did say poaching, we’d also mention PwC is pretty damn good at it.

A non-PwC but Big 4 tipster shares an unsolicited email received on LinkedIn. Names have been redacted to protect the innocent (and guilty):

Significant Audit Opportunity with PwC in Chicago!
Dear ______,

Hello! I took some time to review your profile and felt that it would be mutually valuable for us to connect. I am a the manager of the talent acquisition team for our Assurance group at PwC, and we are currently experiencing substantial growth in this area across the US. In fact, our Chicago region ranked # 1 out of 6 markets with respect to growth in 2010.

Therefore, I’d appreciate the opportunity to set up some time with you to have a dialogue around industry and marketplace trends and PwC’s current expansion plans.

Even if you are not currently exploring outside opportunities, I would welcome the chance to network with you. Alternatively, if you know of anyone else who is open to considering new ventures, please feel free to pass on my details. With all the changes going on in the industry, especially at PwC, it’s always good to do a little information gathering.

Please feel free to contact me, or _____, Experienced Recruiting Associate – Assurance, at________ or at _______.

I look forward to hearing from you.

Is it just me or is “a little information gathering” a totally creepy proposition? And really?! “Significant” position? That’s the best they could do? I’m sorry but if I were a Big 4 grunt happy with my employer, it would take more than “significant” to get me to double cross them by abandoning them for the enemy.

Of course, this teaches those of you miserable in your current positions that it is important to have an updated LinkedIn presence that will draw in those anxious recruiters in like flies to Caleb’s armpits after a marathon yoga session.

Go get ’em, PwC!

PwC India Consultant Did Not Technically Die From Work-Related Hazards

Over the weekend, we got news that a 34-year-old PwC India senior consultant was found dead at his Calcutta home. A maid noticed smoke and alerted the man’s parents, who lived downstairs. When the parents rushed into the room, they found their son’s bed partially in flames. Police and fire department officials initially suspected Sayan Chowdhury died of electrocution after discovering his charred body lying close to his charging laptop and iPod, headphones still in his ears. Police believe the man fell asleep with the laptop on.

“The preliminary post-mortem suggests he died of carbon monoxide inhalation, apparently while asleep,” joint commissioner of police Damayanti Sen said.

A friend told The Telegraph (India) that Chowdhury was “a very bright professional and had been rising fast in the organisation since switching from Cognizant Technology Solutions.” He leaves behind a six month old daughter and a wife, who also happens to work for PwC.

It is suspected at this time that Chowdhury died of carbon monoxide poisoning after the laptop charger short circuited in his tightly closed bedroom. The victim’s wife and newborn daughter were not in the home at the time, as they have been staying with his wife’s parents, who have been helping to care for the baby.

Experts suggest that it is possible the adapter attached to the power supply cord may have failed, leading to a 230-volt alternating current surge into the laptop, turning it into a death trap. Or, the battery may have got overcharged and exploded, spilling lethal chemicals on Chowdhury. Aside from the short circuit scenario, investigators have not ruled out the possibility that the fire and subsequent fatal CO inhalation was caused by a burning cigarette. “To identify the source of the CO, we have to wait for the forensic reports. The state forensic science laboratory officials collected samples of charred wire, the sample of half-burnt cigerettes,” an officer said.

What is the lesson here, kids? Well for one, don’t work too hard. Two, don’t leave your laptop on the charger. Three, don’t pass out with your laptop on the charger. Safety first!

 

PwC Didn’t Do CME Group Any Favors

The CFTC’s action against PwC probably came as a result of a shocking CME Group announcement late Wednesday: “It now appears that the firm [MF Global] made … transfers of customer segregated funds in a manner that may have been designed to avoid detection.” These transfers, CME Group said, appeared to have taken place after its audit team showed up last week at MF Global to take a look and found everything to be in order. CME Group couldn’t have been hoodwinked like that if PwC had been doing its job all along. You can’t circumvent controls unless there are none or there are holes. It was PwC’s job to review controls and the adequacy of policies and procedures to support them. [Francine McKenna/AB, Earlier]

Bloomberg: PwC to Receive CFTC Subpoena UPDATE – Yeah, They Got It Yesterday

Don’t an expect an apology from PwC, like some firms.


PwC declined to comment.

UPDATE: Can you believe that they didn’t bother to call us? BBW reports:

The Commodity Futures Trading Commission sent the subpoena seeking information about $633 million missing from customer accounts, said the person, who spoke on condition of anonymity because the matter isn’t public. The subpoena was received yesterday, the person said.

[@BloombergTV, Earlier]

PwC’s MF Global Audit Team Really Could Have Used This Artificial Intelligence a Few Days Ago

Or maybe months ago. Or years ago. Unfortunately this news just came out today:

Free iPhone 4S at PwC! Well, for some people anyway – Email went out this morning that if your current contract is up for renewal, you can switch your service to AT&T (keeping your existing #) and receive a FREE iPhone 4S 16GB. Only question remains is what will Siri’s bill rate be?

Obviously the opportunity here is to delegate some of the more important intern duties to Siri such as where the team will get takeout, advice on how to fix the copier, among others.

How Much Trouble Is PwC Looking at for All This MF Global Business?

As has been reported, MF Global may have done some commingling of client money with its own which is a big no-no. This means the Feds are now on the case, which means typically cool-as-a-cumcumber cucumber Jon Corzine could be sweating a bit. MF Global’s auditor, PwC, on the other hand, has it made in the shade (at least somewhat). Why? How? Alison Frankel over at Reuters tells us:

[E]ven if it turns out that MF Global was illicitly dipping into customer accounts, if that commingling of funds helped keep the business afloat, PwC is protected by in pari delicto.


If you’ve never heard of in pari delicto, that’s the obscure doctrine that says a bankruptcy trustee that’s representing the corporation can’t go after another party for stunts pulled by said corporation. In other words, if MF Global commingled funds, if (probably more like “when”) the trustee attempts to recover funds from PwC, the firm will be protected. Francine McKenna has been writing about in pari delicto since early 2010 saying that it’s “like a pair of needle nosed pliers by audit firm defense lawyers to diffuse a bomb” and last year’s ruling for KPMG in Kirschner v. KPMG and the favorable ruling for PwC in Teachers’ Retirement System of Louisiana v. PricewaterhouseCoopers LLP reaffirmed that sentiment. PwC probably isn’t sweating this.

But what about PwC’s audit opinion on MF’s financial statements? The Grumpies pondered the idea of what might constitute grounds for P. Dubs to issue a going concern opinion for MFG:

Might that include four years (2008-2011) of massive losses, as occurred at MF Global? Might that include severely negative free cash flows for three of the last four years? Might that include an exposure to European sovereign debt that will lead to greater future losses? Might that include several downgrades in the credit ratings?

Say you’ve got a broker-dealer client that has no European sovereign debt exposure and isn’t covered by a ratings agency. You simply have massive losses for four straight years and negative free cash flow for three out of the last four and few signs that things are turning around. Do you think there’s any doubt about this business’s ability to continue as a going concern? What about substantial doubt? Throw in the Eurotrash debt and junky bond ratings again and where do you stand now? Yikes.

But PwC was cool with it. We probably know the why (money and client retention, natch). But how? Love to hear some opinions on that. No matter the answer, our lawyer friends will do well by it all.

MF Global Owes CNBC More Money Than PwC

As you may have heard, MF Global Holdings filed for Chapter 11 bankruptcy protection this morning. You may have also heard that for some strange reason, MF owes CNBC about $845k and change. Turns out, that is more money than it owes to PwC ($312,598), Alvarez & Marsal Tax Advisory Services ($65,000), The Siegfried Group ($30,000) and KPMG ($10,000) combined.


The bright side for P. Dubs is that they got most of the $12 million that they charged the company with last year. Of course if the shareholders take this bankruptcy as well as Lehman’s have (not to mention the NYAG and the State of New Jersey), then that really doesn’t serve as much consolation.

MF Global Bankruptcy Filing [via DB]

PwC Wasn’t About to Let October Pass Without Announcing Their Latest Talent Acquisition From KPMG

If you’ve been paying attention, you know that PwC has made KPMG it’s own personal farm system for partners and directors. It seems that P. Dubs follows all the talent out there and then simply calls the men and women up when they’re ready for the big leagues. We’ve noted four press releases put out by PwC announcing appointments of partner/directors that were brought over from the House of Klynveld. And who knows how many other, non-PR worthy partners, have also joined Team Autumn. Trust us, it’s happening; we hear things.

ANYWAY, in today’s Daily Grind newsletter, I wondered if PwC would take the opportunity of All Hallow’s Eve to pull a trick on KPMG, announcing that yet another partner or director had recently joined up with P. Dubs. My wonderment was largely in jest but I guess I’ve misunderestimated the scamps in PwC’s communications department:

Eric Israel, who joins PwC as a managing director, is a former KPMG managing director and that firm’s US advisory practice leader on climate change and sustainability. He has more than 25 years of experience with KPMG where he began his career in the Netherlands as a Chartered Accountant. Later, Israel moved into sustainability consulting where he has focused his work for nearly 14 years. Israel has global experience in sustainable development concepts and application, finance and sustainability assurance, climate change and carbon consulting & verification, business research and development, as well as knowledge management and corporate governance. He also has participated in the work of organizations such as the Global Reporting Initiative (GRI), the Sustainability Consortium and the AICPA’s and CICA’s joint Sustainability Task Force.

Israel co-founded KPMG’s Global Sustainability Services practice and wrote KPMG’s first Sustainability Audit Manual. He received his BA in Accounting and Business Administration from the University of Amsterdam, Netherlands. He will be based in PwC’s New York office.

In other words, Izzy is was KPMG’s Global Sustainability practice. He wrote the audit manual for crissakes! Of course since he’s just a co-founder, that hopefully means that his fellow co-founder is still around. At least until he/she gets their own press release.