News

Friday Footnotes: CFO Pay on the Rise; EY Seeks Neurodiversity; COVID-19 Skidoo | 4.16.21

Ernst & Young opens program in Boston to attract autistic workers and other “neuro-diverse” recruits [Boston Globe] These programs at EY are designed to hire talented candidates whose cognitive differences — dyslexia, autism, or ADHD, for example — might hamper them in traditional one-on-one job interviews that rely on good social skills. EY also provides […]

GASB Changes Its ‘Offensive Acronym’ Before Gamers Pick It Up and Start Yelling It In COD Lobbies

So I’m originally from Wisconsin, and other than my tendency to store extra fat in the winter and an unfortunate affinity for drawing out my vowels in words like “mom” and “bagel,” you wouldn’t really know it. I moved to California fairly young, hence why I’m more likely to say “hella” than “uffda” (though both […]

Remembering Bernie Madoff: His Character Was Provable on the Golf Course

Bernie Madoff, the Ponzi schemer who died in prison today while serving a 150-year sentence, provided great wealth for my blog, Re:Balance, if not to the broad array of credulous customers from all levels of society, from whom he extracted over $17 billion. One of my favorites, from March 27, 2009, is re-offered here in […]

Your Naughty Tax Preparer of the Day

So this guy actually thought he could get away with this, huh? SMH. Hadi Isbaih of Palos Heights, IL, was charged in an indictment returned Monday in the Northern District of Illinois with four counts of wire fraud for allegedly fraudulently assisting customers in obtaining millions of dollars in loans under the CARES Act, authorities […]

Friday Footnotes: PwC Pays You to Go Away; EY Turned In to Rona Police; PCAOB Plans | 4.9.21

How PwC US is thanking our people for a year of hard work [Tim Ryan via LinkedIn] Writes the PwC US Chair: “Our people are the heartbeat of our organization, and their well-being is the most important thing for us to look out for. Because it is so important to take breaks, unplug, and experience […]

Accounting Stayed Real Classy In 2020

Not even a global pandemic, the likes of which we’ve never seen, could slow down the amount of accounting-related securities class actions filed in 2020. A new report from Cornerstone Research revealed that 70 federal securities class actions involving accounting allegations—all were “core” filings containing Securities Exchange Act Rule 10b-5, Section 11, and Section 12(a) […]

Botham Jean’s Killer Is Appealing Her 10-Year Prison Sentence

Amber Guyger, the former Dallas cop who was sentenced to 10 years in prison in October 2019 for murdering PwC accountant Botham Jean in his apartment a year earlier, has an appeals hearing scheduled for later this month. The NBC affiliate in Dallas-Fort Worth reported last month that Guyger’s hearing will begin at 1 p.m. […]

Your Naughty Tax Preparer of the Day

After being indicted last week on 35 counts of aiding and assisting in the preparation of false and fraudulent tax returns and two counts of willfully failing to file personal income tax returns, Ametra Q. Wooden should probably change the name of her tax preparation business to F Plus Tax Experts & Financial Services, amirite? […]

Friday Footnotes: Troubled KPMGer Kicks Rocks; Stay Home, Auditors; Grant Thornton Plays Defense | 4.2.21

Partner who led KPMG’s audit of Carillion leaves Big Four firm [Financial Times] The partner who led KPMG’s audit of Carillion, the collapsed government contractor, has left the Big Four firm as the UK accounting regulator’s investigation into the scandal reaches an advanced stage. IRS provides details on April 15 postponement [Journal of Accountancy] On […]

Nothing Is More Auditor-y Than the Concern One Derek Chauvin Trial Juror Had

As you probably have heard, the trial of former Minneapolis police officer Derek Chauvin is underway, and a jury of 12 people (and two alternates) will decide if he is guilty of murder and manslaughter in the death of George Floyd. The USA Today last weekend ran small profiles of each of the 14 jurors, […]

Your Naughty Tax Preparer of the Day

So this guy and his wife walked into MZ BIZ Tax Services in Houston last Thursday to complain about something or another regarding the tax return the business prepared for them. An argument ensued, with the owner of the business allegedly telling the couple to “get the hell out.” The wife left but the man […]

Friday Footnotes: Amazon Prime Accounting?; KPMG Office Outbreak; PwC Staff Appreciation | 3.26.21

Wirecard ‘Criminals’ Had Us Duped, EY Auditor Tells Lawmakers [Bloomberg] An Ernst & Young LLP partner said his firm fell victim to “criminals” at Wirecard AG, rejecting allegations EY didn’t do enough to uncover wrongdoing at the now defunct payment processor. Deadline for certain single audits delayed because of pandemic [Journal of Accountancy] The due […]

Your Naughty Tax Preparer of the Day

Aminta Smith, a former tax preparer in Charlotte, NC, was given 30 months to think about her choices. According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax […]

Your Naughty Tax Preparer of the Day

I don’t know which is more dumb: that El Paso, TX-based tax preparer Victor Gonzalez intentionally underreported his income by roughly $289,000 over a three-year period or that the name of his now-defunct business was Tax Preparation Services. Seriously, Victor? You couldn’t come up with a better name than that? Anyhoo, V-Gon was indicted recently—not […]

Friday Footnotes: Costly Audit Mistakes; No Bonus For You!; Accounting Education Lags Behind | 03.19.21

Bonuses Are Targeted in U.K. Crackdown on Audit Scandals [Bloomberg] Top executives at companies hit by accounting scandals could lose their bonuses under U.K. proposals for beefed-up regulation after a wave of corporate collapses including Carillion Plc and travel firm Thomas Cook Group Plc. UK audit reform set to cost businesses more than £430m a […]

Your Naughty Tax Preparer of the Day

Alternate title: “Ex-CPA with Irish Surname Gets Jail Time on St. Patrick’s Day.” Authorities say 64-year-old Mark Harmon of Evansville, IN, who was sentenced Wednesday to two years in federal prison on multiple counts of tax evasion, altered client invoices and falsified income on personal tax returns for several years: Harmon owned and operated Mark […]

Friday Footnotes: Deloitte Deals With Lookers; PwC Gets Fired; Auditors and Climate Change | 3.12.21

UK watchdog investigating Deloitte audits of Lookers [Reuters] Britain’s accounting watchdog said on Friday it had opened an investigation into audits conducted by Deloitte of car dealership operator Lookers. The investigation will look at financial statements for the years ended Dec. 31 2017 and 2018, the Financial Reporting Council said in a statement. Babcock parts […]

Your Naughty Tax Preparer of the Day

It might just be me but it seems that tax preparation businesses with unscrupulous owners have the most ridiculous names. Would you really trust getting your taxes done correctly and legally at a place called Tax Terminatorz? Well, people did and in the process were part of Tax Terminatorz’s grand plan to screw the IRS […]

Friday Footnotes: Deloitte Pays Up; KPMG Sells An Arm; FASB Doesn’t Bow to Big 4 | 3.5.21

Deloitte to pay Malaysia $80 million to settle claims linked to 1MDB [Reuters] Audit firm Deloitte PLT will pay Malaysia’s government $80 million to resolve all claims related to its auditing of accounts of scandal-linked state fund 1MDB and its unit SRC International from 2011 to 2014, the finance ministry said on Wednesday. ‘There Is […]

Your Naughty Tax Preparer of the Day

The owner of InTouch Tax Solutions in Dallas won’t be touching anyone’s tax returns for quite a while. The Feds said: A North Dallas tax return preparer was sentenced to 3½ years in prison and ordered to pay $11.9 million in restitution for filing fraudulent income tax returns, announced Acting U.S. Attorney for the Northern […]

Friday Footnotes: Did Rona Change the Industry For the Better?; Best Big 4 For Women; WFH Is Out | 2.26.21

No progress without a pandemic? [Accounting Today] Dan Hood asks the important question in AT. Federal accounting can be a more dynamic career than it sounds, industry group says [Federal News Network] LOL: “If you think federal accounting is dull and unchanging, think again. People who do federal accounting and finance say it’s a constantly […]

Your Naughty Tax Preparer of the Day

If you search for reviews on Yelp of the best tax preparation firms in the Bronx, it’s no surprise you don’t see RAP Tax Services among them. Maybe it’s because the owner admitted to submitting false and fraudulent tax returns on behalf of clients, falsely claiming dependents, nonexistent charitable deductions, or bogus business expenses. Yeah, […]

Your Naughty Corporate Controller of the Day

Edward Kelly has been suspended from appearing or practicing before the SEC as an accountant because he got caught insider trading. You can read the SEC order from Feb. 16 here. But the blog SEC Actions put together a nice little synopsis of the case against Kelly: Now the agency has brought an insider trading […]

Accountants Behaving Badly: E Is for Embezzlement, This Lady Is a Wreck, Records Destruction!

Plus, a U.K. accountant is going to spend some time in jail for stealing money from two nursery schools, which she used to treat herself to a new kitchen. Accountant arrested for embezzling $1.2 million from furniture firm [Woodworking Network] Manuel “Mendy” Goldring was arrested on Feb. 18 for allegedly embezzling $1.2 million from Academia […]

Friday Footnotes: Busy Season Vacay; PwC Fined; Bill Michael Was Right? | 2.19.21

Black CPA Centennial celebrates first Black CPA [Journal of Accountancy] The first CPA law was passed in New York 1896. It would be another 25 years before a Black person joined the profession. The primary blockers that made licensure essentially impossible for many aspiring Black CPAs included education, experience, and exclusion. Art of Accounting: Work-life […]

Friday Footnotes: China v. Deloitte; Fraud Jumps Over a Lazy Brown Watchdog; Stay Home, PwC | 2.12.21

China orders Deloitte to investigate whistleblower allegations [FT] China’s Ministry of Finance said in a statement that it “attached great importance” to the whistleblower report and that it had called a meeting with Deloitte’s management. Virtual accounting: How to succeed remotely [Journal of Accountancy] The coronavirus has changed the business landscape significantly. Many accounting firm […]

Friday Footnotes: Deloitte Gets Tattled On; KPMG Kuts; We Want Jobs! | 2.5.21

Deloitte in hot water in China after an employee makes a PPT exposing alleged accounting violations [Global Times] According to the PPT, which has been circulating on China’s twitter-like Weibo, when Deloitte was auditing the financial data of its client RYB Education in 2017, a member of the auditing project told the whistleblower “not to […]

Accountants Behaving Badly: Of Course One of the Capitol Insurrectionist Dummies Is a CPA

The owner of McAuliffe CPA Enterprises in Mineola, NY, took a field trip down to Washington, DC, and decided it would be a good idea to join a bunch of other domestic terrorist doofuses in storming the U.S. Capitol on Jan. 6 because they actually thought they could prevent Congress from confirming Joe Biden as […]

Your Naughty CEO and CFO of the Day

By making false statements and omissions to external auditors, which resulted in the improper recognition of $3.6 million in revenue related to a contract with a large public-sector client, ex-WageWorks CEO Joseph Jackson and former CEO Colm Callan had to pay their way out of the SEC’s doghouse. According to the SEC: In March 2016, […]

Your Naughty Tax Preparer of the Day

Like father, like son. On Nov. 5, 2013, Cleo Reed was sentenced to 30 months in federal prison by the U.S. Attorney’s Office in the Western District of Washington for filing more than 1,300 fraudulent tax returns between October 2007 and July 2010, resulting in a tax loss of $4.2 million. Authorities said Reed inflated […]

Association of International Certified Professional Accountants Poaches Someone From the Maryland Association of CPAs and Issues a Press Release, Part I

OK, as many of you know by now it’s not just someone, it’s our good friend Tom Hood, the longtime president and CEO of the Maryland Association of CPAs. Hood will be joining the Association of International Certified Professional Accountants (which for the purposes of this article we’ll call AICPA 2.0) as executive vice president, […]

Turns Out the Guy Who Just Brought Wall Street to Its Knees Is an Accounting Grad Because of Course He Is

By now most of you — yes, even the dad-joke-slinging boomers who hang around here — have seen the headlines about the Redditors who took on Wall Street, put their pennies into failing GameStop, and are currently locked in the weirdest game of chicken you’ll see this year. As we were strongly reminded when this […]

Your Naughty Corporate Controller of the Day

When I first started writing for Going Concern as a freelancer in October 2017, I did a series of articles about the role of the corporate controller. Caleb made me asked me to write articles on how controllers transitioned from public accounting to industry, what paths they’ve taken toward SOX compliance, how they can survive […]

Friday Footnotes: PwC Touts Audit Quality; Big 4 Doing Less Lobbying; EY Australia Goes CEO Shopping | 1.29.21

PwC reports improvement in audit quality [Accounting Today] From last week, but big if true: During the recently completed PCAOB inspection, PwC anticipates that only one of the 52 engagements that were subject to inspection will be included in Part 1.A of the report, the section where audit deficiencies are highlighted. The report also discusses […]

Here’s Another Reminder That Accounting Firms Used to Be Pretty Racist Back In the Day

Those of us who grew up post-civil rights take for granted just how bad things used to be. Sure, if you were a generic white guy maybe your odds of scraping together a half-decent life weren’t too bad, but for everyone else life was a constant chess game of “Who Shall Oppress Me Today?” From […]

Accountants Behaving Badly: DOJ Has Been Busy Busting CPAs For a Variety of Crimes

Plus, a Louisiana tax preparer who pleaded guilty to four counts of tax fraud will be sentenced on Tax Day. New York Accountant Pleads Guilty to Federal Tax Charge [Justice Department] James Guerra, a CPA from Dix Hills, NY, waived his right to be indicted and pleaded guilty on Jan. 25 to a federal tax […]

Friday Footnotes: Deloitte’s Lucrative Hookup; Big 4 ‘Hiring Spree’; Smoke Up, CPAs | 1.22.21

Partner capital account reporting gets transition penalty relief [Journal of Accountancy] The IRS provided transition penalty relief Tuesday to partnerships in complying with new rules for reporting partners’ capital account balances. 7 Reasons Accounting Firms Should Embrace Cannabis Clients in a Post-COVID World [CPA Practice Advisor] Cannabis use is up, especially with more people at […]

Friday Footnotes: Deloitte’s Drunken Antics; KPMG Killing Grandma?; Social Ch-ch-change | 1.15.21

A Glass or Two of Red Helps Square the Numbers [Bloomberg Opinion] Good long read on Deloitte and Autonomy: “The Deloitte partner leading the Autonomy work sent his client an email from his wife’s account saying that “after a glass or two of red wine” and a plate of her “medieval pasta” he’d drafted an […]

Nearly a Third of Workers Say They’d Quit Before Returning to the Office When All This Is Over

When the world abruptly turned upside down and drove everyone inside their homes last March, many (perhaps optimistically) thought it would end up being a very brief experiment in what happens when white-collar workers are forced to do their jobs remotely for a couple weeks. We know now “two weeks to flatten the curve” was […]

Friday Footnotes: Ex-CPA Sues Dolphins; Coffey Time at the AICPA; BDO Hooks Up with MBAF | 1.8.21

Can the Dolphins win this one? Former VP sues the team in federal court. [South Florida Sun Sentinel] A former accountant who says he served as vice president of the Miami Dolphins sued the football team in federal court Thursday, claiming the organization incorrectly classified him as a contract worker—not an employee—and owes him unpaid […]

So How Much Work Did You Actually Get Done Today?

None like me, who was doomscrolling through Twitter all afternoon, or did you somehow, someway do something productive that was work-related? Stay well, everyone.

Apparently NASBA Offices Narrowly Avoided the Nashville Bombing

In a letter to stakeholders, NASBA President and CEO Ken Bishop updated us on the situation in Nashville, NASBA’s ongoing work-from-home policy, and how their city is coping with the Rona. They’re fortunate that everyone is safe despite the frightening proximity of the Christmas morning car bomb that injured eight and damaged at least 41 […]

Friday Footnotes: Accountant Bros Behaving Badly; Deloitte Partners’ Haul; CLA Has a New CEO | 12.25.20

Atlanta accountants plead guilty to $1.2B in fraudulent charitable deductions [Atlanta Journal-Constitution] Brothers Stein Agee and Corey Agee, partners at the Sandy Springs firm AgeeFisherBarrett, both pleaded guilty to one count of conspiracy to defraud the United States, an offense that carries up to five years in prison. A sentencing date has not been announced. […]

PwCers Got a Holiday Concert, What’d You Get?

It’s about that time to start comparing what paltry branded goods everyone is swapping in the name of Christmas (or Hanukkah or winter solstice or whatever it is you choose to celebrate in this, the last mile of the year), a favorite pastime of accountants everywhere. We’re hearing PwCers were treated to a “concert” (via […]

Drunken PwCer Who Groped a Woman On a Plane Will Live to Reconcile Another Day

Many years ago, someone who definitely isn’t me had the bright idea to eat half a pot cookie on her way to the airport before a red-eye flight from San Francisco to New York. After all, late-night flights are rarely delayed, right? What’s the worst that could happen? Well, in her case the worst that […]

Friday Footnotes: Strapped PwC Partners; Queen’s KPMG Talks to the Queen; CLA Goes Shopping | 12.18.20

PwC’s UK partners to take 10% pay cut as profits fall [Financial Times] PwC’s UK partners are to take a 10 per cent cut in their pay following a move by the accountancy firm to protect jobs and bonuses for other staff during the coronavirus pandemic. The Big Four firm said on Thursday that revenue […]

Friday Footnotes: Someone Think of the Partners!; Audit Suffering; Deloitte’s Hot New Office(s) | 12.11.20

BDO will not repay £4.5m furlough money despite paying partners £137m [The Guardian] BDO, one of the UK’s leading accountancy firms, is refusing to pay back £4.5m in furlough money it received from taxpayers despite paying its 264 partners an average of £518,000 each. In total the company paid its partners £137m. Tips for auditing […]

Accountants Behaving Badly: Pool Guy Gets Jail, Inhumane Behavior, Trouble At the Chicken Farm

Plus, not only did a financial controller in the U.K. get five years for stealing £437,000 from her employer, but she also royally screwed over her co-workers. Accountant sentenced in federal court for embezzling $470K from family-owned business [St. George News] Richard William McDonald, an accountant currently living in Greer, SC, was sentenced on Dec. […]

RIP, Paul Sarbanes

Pour one out today for your homie, Paul Sarbanes, because a lot of you just might owe your gainful employment to him and Michael Oxley, who passed away in 2016. Here are some excerpts from the Washington Post obit today about the former Maryland Democratic senator: Paul S. Sarbanes, who as a young Maryland congressman […]

Friday Footnotes: EY Hits Back; Some CFO Drama; A New PCAOB Agenda? | 12.4.20

EY hits back at German audit watchdog over alleged misconduct [Financial Times] EY has lashed out at Germany’s audit watchdog for prematurely reporting suspected criminal misconduct by its partners to prosecutors in an escalating battle over the Big Four firm’s audit work at defunct payments company Wirecard. New Jersey Society of CPAs Announces 10 CPA […]

Friday Footnotes: We Call That ‘Cockblocking’; A Broke Accountant; PwC Sued Over Sick Leave | 11.27.20

CPA Exam gets refresh after practice analysis [Journal of Accountancy] Emphasis on understanding business processes and data analytics is being expanded while other topics are being phased out as the CPA Exam undergoes a refresh designed to maintain its relevance to the evolving work that newly licensed CPAs perform. New CPA Exam Blueprints released Friday […]

Friday Footnotes: Deloitte Cleans Up on Rona Work; More Trouble For KPMG; Coke in Tax Court | 11.20.20

Deloitte’s COVID ‘bonanza’: this is how much the British public has paid so far [openDemocracy] The Department of Health handed £38.8 million to accountancy firm Deloitte in July this year, for unspecified “services” relating to Test and Trace, new figures reveal. This is the first time we’ve known how much Deloitte is being paid for […]

Accountants Behaving Badly: Pervert Pleads Guilty, ‘The Worst Kind of Thief,’ Jailed ‘City Boy’

Being involved in a prostitution-and-drug ring is a career-limiting move. Former Lexington accountant pleads guilty in sex ring that victimized drug addicts [Lexington Herald Leader] Mark Milslagle admitted taking part in a conspiracy that victimized drug-addicted women for sex. If his plea deal is accepted, the former Lexington accountant will be sentenced to five years and […]

Friday Footnotes: KPMG Commits; PCAOB Plans; WFH Tax? | 11.13.20

Things to consider for companies preparing for 2020 year-end audits [Compliance Week] The end of 2020 is on the horizon, and auditors at calendar-year companies are already planning and beginning their audits. The usual annual challenges of implementation of new accounting standards and related internal controls persist, but this year-end is unlike any other, as […]

Accountants Behaving Badly: E Is for Embezzlement, Probation for Thief, Jailed for Bank Fraud

Also, a Texas accountant was sentenced to 10 years of probation for stealing money from a charity, and a U.K. accountant sentenced to three years in jail for defrauding a company pension scheme of £292,000 must repay that money. Kissimmee Accountant Pleads Guilty To Embezzling Funds From Two Different Employers [Justice Department] Kavita L. Harack, […]

Friday Footnotes: Another Day, Another Lawsuit; Naughty CFO Let Loose; Grant Thornton Fined By PCAOB | 11.06.20

Tax Change Needed to Level the Playing Field for Small Businesses, Minorities and Women in Cannabis Marketplace [NJCPA] Deducting business expenses is a routine and integral part of operating a business and is critical for a company to be profitable. However, cannabis businesses do not have access to this tax benefit even though it is […]

Friday Footnotes: Two Firms Get Bashed; KPMG Considers Selling Off; Equality LOL | 10.30.20

Ed. note: Happy Halloween, y’all. Remember October 31st is the early application deadline to register for .cpa domains. Stay safe inside or out whatever you decide to do this weekend. BOO! Former New York City accountant convicted of aiding al Qaeda to be released from prison early [Jurist] A Manhattan federal judge on Tuesday ordered […]

The Profession Desperately Needs to Rebrand As ‘Cool’ Before There’s No One Left to Do the Work

Earlier this month, we shared an article from The Korea Times that outlined a critical surplus of accountants with Big 4 firms in that country stating they would be unable to extend offers to 330 of 1,100 new incoming professionals, whereas last year, firms offered jobs to all 1,009 new CPAs. This situation stands in […]

Friday Footnotes: Tomorrow’s Accountant; Some Horny Deer; Risky! | 10.23.20

Ed. note: Happy 10/23 to my fellow Fallout fans out there. Only 57 years to go! The Accounting Professional of Tomorrow [The CPA Journal] A long (but good) read that tries to answer the following questions: Is the accounting professional of tomorrow an endangered species? Supply and demand seems to be a key issue; why […]

Friday Footnotes: Is EY Cursed?; Big 4 Revenue Grab; AICPA Hands Out CPA Exam Cash | 10.16.20

String of Firms That Imploded Have Something in Common: Ernst & Young Audited Them [Wall Street Journal] This year, $2 billion is missing at a German fintech company, $300 million of sales has been found to be fabricated at a Chinese coffee chain and $5 billion in undisclosed debt has been uncovered at two related […]

Friday Footnotes: Australia as Punishment; SEC Takes on GE; Some Generic Awards | 10.9.20

KPMG bank auditor avoids prison for ‘regulatory corruption’ [Reuters] A Manhattan federal judge sentenced former KPMG audit partner David Britt to home confinement on Friday over his role in a scheme to get access to a regulator’s audit inspection plans, saying his deportation to Australia after living for decades in the United States was itself […]

Accountants Behaving Badly: Get a Load of This Clown

A Minnesota accountant was sentenced last week for stealing from his client and is now on the hook to pay back $355,000. The StarTribune reports: A Duluth accountant says he will pay back more than $355,000 he stole from two local businesses, including the Duluth Area Chamber of Commerce, after pleading guilty on Monday to […]

Friday Footnotes: Marcum Gets Slapped; FASB Foot-Dragging; PwC Makes a Promise | 10.2.20

FASB Further Delays Accounting Rule on Insurance Contracts [Wall Street Journal] The rule maker, which sets accounting standards for companies and nonprofits in the U.S., in June proposed a delay of another year for the new rule amid the economic harm caused by the coronavirus pandemic. The rule was first delayed by a year last […]

Friday Footnotes: No More Loaning Staff?; It’s a Trap; SEC and Social Change | 09.25.20

AICPA and CPA.com See Strong Initial Response to New .CPA Internet Domain [Business Wire] Thousands of CPA firms, including many of the nation’s largest, have moved quickly to reserve their existing branded domains under the new restricted Internet domain, .cpa, according to CPA.com. Well over half of the 100 biggest U.S. firms – as well […]

Friday Footnotes: EY CEO Has Ragerts; PwC Saves the Planet; KPMG Gives Up | 9.18.20

Ed. note: we are continuing to experience some intermittent website issues, so please be patient while these are addressed on our end. Even the server has a touch of the ‘rona mental breakdown going around, it happens.  EY chairman admits ‘regret’ over Wirecard failures in letter to clients [Financial Times] The global chairman of EY […]

Friday Footnotes: CFE a Success; Non-Profit Break; KPMG Back Pay? | 9.11.20

2020 CPA CFE successful despite hotel room exam setting [Canadian Accountant] CPA candidates were not allowed to sleep in the rooms but could book the rooms in the same hotel. While they were anxious about this new format and possible technological problems, the three-day exam appears to be a success. “It was amazing, I got […]

Friday Footnotes: EY Gets Fired, Maybe Sued; Partners Will Work For … Work; A Ronatunity | 9.4.20

Commerz, Deutsche Money Management Arm Fire Auditor In Case They Decide To Sue It [Dealbreaker] Commerzbank is on the lookout for a new auditor. Deutsche Bank’s asset management business, having already chosen one, has changed its mind. The loser in both cases is Ernst & Young, which has found itself with a bit of egg […]

laptop with illuminated keyboard

It’s Official: Firms Can Now Snag a .CPA Domain For Added Public Trust (Or Something Like That)

In June of last year the AICPA announced it finally managed to convince ICANN — the Internet Corporation for Assigned Names and Numbers — to let it manage the .cpa domain, citing consumer trust in an increasingly dangerous internet landscape. After all, you wouldn’t want Certified Parking Attendants or Citizens of Pennsylvania hijacking that all-important […]

Friday Footnotes: Drugs, Man; Millennials Ruined … Accountants?; PwC’s Diversity Report Isn’t Very Diverse | 8.28.20

More Workers Testing Positive for Drugs [CPA Practice Advisor] Relevant, maybe: The rate of workforce drug positivity hit a sixteen-year high in 2019, according to a new analysis released today by Quest Diagnostics, the world’s leading provider of diagnostic information services. Positivity rates in the combined U.S. workforce increased in urine drug tests, climbing to […]

Wirecard Drama of the Day: Hundreds Got Pink Slips at German Headquarters

This was actually reported on Wednesday by several outlets, including the Financial Times, so in case you were spending more time on your OnlyFans side hustle than on work yesterday and missed it: Wirecard’s administrator has cancelled the contracts of its chief executive and two other senior managers while cutting 730 staff at the collapsed […]

Wirecard Drama of the Day: The Dismantling Has Begun

Parts of way-too-fraud-y German payments company Wirecard are being sold off in the U.K. and Brazil, according to the Financial Times: The break-up of the collapsed German payments company Wirecard has started after it agreed to sell the remnants of its UK business to Railsbank, a UK start-up backed by Visa, and sold its Brazilian […]

Friday Footnotes: IRS Priorities; Deloitte’s ‘Crazy’ Plan; PwC Pushes Back | 8.21.20

AICPA Makes Recommendations on IRS Guidance Priority List [CPA Practice Advisor] AICPA’s high priority recommendations relate to guidance on regulations found in the Tax Cuts and Jobs Act (TCJA); the Coronavirus Aid, Relief and Economic Security (CARES) Act; and the Setting Every Community Up for Retirement Enhancement (SECURE) Act. These recommendations address many significant tax […]

Friday Footnotes: Covid CPEhhhhh; How Much You Make; PwCer and Priest? | 8.14.20

CPA Group Pushes for Clarity on Trump’s Payroll Tax Deferral [Bloomberg Tax] Treasury and the IRS should issue guidance on President Donald Trump’s order delaying collection of some payroll taxes to clear up confusion among accountants and businesses, the American Institute of CPAs said. The group said one of its biggest remaining questions is whether […]

Wirecard Drama of the Day: Where, Oh Where, Is Jan Marsalek?

Jan Marsalek, the former Wirecard chief operating officer who is considered one of the maestros of the multibillion-euro accounting scandal that obliterated the German payments company, is on the lamb lam. He might be in the Philippines. He might be in Russia. He might be in Belarus. But no one knows exactly where the dude […]

Friday Footnotes: MLB Poaches KPMG; PwC Gets Back to Work; No to Deloitte | 8.7.20

Major League Baseball taps KPMG diversity exec to lead HR [The Business Journals] Major League Baseball has named Michele Meyer-Shipp to oversee all of MLB’s human resources activities, including talent processes and programs, workplace culture and diversity and inclusion. Meyer-Shipp joins MLB from KPMG LLP, where she served as chief diversity and inclusion officer. While at […]

What Percentage of Straight White Businessmen Don’t Give a Crap About Diversity and Inclusion?

In the year of our COVID Lord 2020, it’s a shame that nearly six in 10 straight white dudes who are college-educated professionals still don’t really give a damn about their employer’s diversity and inclusion efforts. From a survey recently conducted by the Center for Talent Innovation: Majority men are defined as white straight cis-gender […]

Friday Footnotes: KPMG’s Illinois Loot; Deloitte’s State Contracts; EY Poaches PwC Tech Partners | 7.31.20

As new pot licenses delayed indefinitely, global accounting firm pockets $7M from state to rank applicants [Chicago Sun-Times] KPMG was awarded nearly $7 million in no-bid contracts [in Illinois] to grade applications for new recreational pot licenses. State officials didn’t open the contracts up to competitive bidding to speed up the process. But as it […]

Looks Like There Will Be a Very Different CPA Exam by 2024

The Journal of Accountancy reported this week that the NASBA Board of Directors voted unanimously to support the proposed CPA Evolution, which would mean a slightly different exam with a stronger focus on technical skills, though core content is expected to remain the same. The AICPA Governing Council endorsed the model in May. We first […]

Friday Footnotes: Pens Down, PwC; What Women Need; BDO Copies Big 4’s Homework | 7.24.20

After Google, PwC India declares a company-wide holiday for its employees this Friday – offers time off for a ‘well-deserved’ break [Business Insider India] After Google, PwC India has introduced a ‘Pens down Day’ on Friday, turning into a Three-Day Weekend for its employees. With the ‘Pens down Day’, PwC has asked its employees to […]

Accountants Behaving Badly: Ex-Deloitte India CEO Gets 7-Year Audit Ban, KPMGer Fired for Facebook Rant, Ponzi Schemer Gets 10 Years

Plus, the engagement quality review partner for Deloitte India also got banned by an audit regulator in connection with IL&FS audit failures. NFRA bars former Deloitte head from audit for 7 years over lapses at IL&FS [Livemint] Former Deloitte Haskins & Sells CEO Udayan Sen was banned from auditing for seven years and fined Rs […]

Accountants Behaving Badly: PCAOB Fines Australian Firm, Larcenies In Massachusetts, Slammer Time

Plus, a former chartered accountant in India is accused of murder, and a U.K. accountant is jailed for three years for stealing thousands of pounds from car dealership. PCAOB fines Australian accounting firm $50,000, revokes registration for not following auditing rules too well [PCAOB] The PCAOB recently revoked the registration of Sydney-based HLB Mann Judd […]

Friday Footnotes: A Spate of Scandals; Client Acceptance; Fed Lending | 7.17.20

AICPA Digital Assets Practice Aid Examines Client Acceptance and Continuance [CPA Practice Advisor The American Institute of CPAs (AICPA) has updated its Practice Aid Accounting for and Auditing of Digital Assets, to include nonauthoritative guidance on how to audit digital assets. This new material will complement accounting guidance issued last year. It is based on […]

Here Are the Accounting Firms That Received PPP Loans Because We Know You Want to Know

As you may have seen by now, the U.S. government has recently released data on which companies received PPP funds, and anyone with more than $150,000 from Uncle Sam in their pocket had some ’splainin to do had they also laid off staff en masse. We figured a few accounting firms would be on the […]

Friday Footnotes: Still Working on Diversity; What’s the Watchdog Up To; Record Fine for Deloitte? | 7.10.20

Strategies for CPAs to encourage positive changes in diversity [Journal of Accountancy] The racial injustice taking place throughout the United States has hit home hard for members of the AICPA National Commission on Diversity and Inclusion, who spend much of their time developing strategies and resources for improving the diversity of the accounting profession. Commission […]

Friday Footnotes: LOL, EY; ‘That’ KPMG Girl; SEC Enforcement Slowdown | 6.26.20

EY failed to ask for Wirecard bank statements for 3 years [Financial Times] EY failed for more than three years to request crucial account information from a Singapore bank where Wirecard claimed it had up to €1bn in cash — a routine audit procedure that could have uncovered the vast fraud at the German payments […]

Accountants Behaving Badly: Ex-KPMG Auditor Arrested, Embezzler Gets 5 Years, Fraudster Gets 2 Years

Plus, Australian accountant caught up in cheese scandal, and an accountant in Fiji accused of defrauding a client pleads not guilty. Sipho Malaba arrested in connection with the R2,7 billion VBS Bank robbery [Pindula News] Former KPMG South Africa auditor Sipho Malaba was one of seven people who were arrested on June 17 for their […]

Friday Footnotes: Robots Are Coming; The Gayest Big 4 Firm; How to Fire People | 6.19.20

EY faces an existential threat [Reaction] Let’s play guess which firm: “Auditing is little more than an entry ticket to the boardroom. Inevitably, there are many conflicts of interest, as one firm is brought in to investigate the failures of another, but one of the four seems particularly accident prone.” How to deliver the news […]

Accountants Behaving Badly: KPMGer’s Racist Facebook Rant, Wife Killer Charged Again, Thankful For the Rona

Plus, serial embezzler sentenced to nearly three years in prison, and United Arab Emirates accountant jailed for money laundering. KPMG distances itself from manager’s ‘racist’ Facebook rant [Trinidad Express] Sachin Boodram, an audit manager at KPMG in Trinidad and Tobago, probably should’ve just stuck to posting selfies, inspirational quotes, and recipes on his Facebook page. […]

Friday Footnotes: Oh Not Again, KPMG; Deloitte Goes Viral With TP; PwC Is ‘Watching’ Staff | 6.12.20

KPMG Gets Reprimand From U.K. Regulator Over Reserves Audits [Bloomberg] The U.K.’s accounting watchdog reprimanded KPMG after the firm admitted shortcomings in three years of work for a client, which had to restate its distributable reserves twice. The Financial Reporting Council said the accounting firm admitted problems in its reserves audits of Foresight 4 VCT […]

Look Out, Australia, You Have a Wild Accountant With an Aggressive Foot Fetish on the Loose

In my many, MANY years on this website, I’ve somehow been tasked with the job of writing up every perverted accountant who comes across our collective desk. I’m not entirely sure why this is, I think it started as a joke many years ago as my former colleague knew I loved to binge on old […]

Accountants Behaving Badly: Insider Trader Settles with SEC, Embezzler Gets Jail Time, Maritime Thief

Plus, accountant’s tax fraud conviction upheld in court, and a Canadian accountant is banned by financial regulator. SEC charges biotechnology company CPA with insider trading [SEC] Jana Faith Kiena, CPA, a former contract accountant in the revenue recognition group at biotech company Illumina, will pay about $374,000 to settle insider trading charges for using confidential […]

If the Economy Gets Any Worse You Can Always Find a Promising Career In Snitching

Browsing our stats on any given day, I can’t help but notice how many people arrive at this website by Googling “careers after public accounting” or some variation of such. “Fuck public accounting” is also a popular one, I can’t possibly imagine why. Given the current economic environment, we’ve seen an uptick in searches of […]

CPA Canada Is Like Your Grandma Who Sincerely Believes Nigerian Royalty Wants to Give Her Money

You know, I’m kinda starting to feel bad. We rarely write about CPA Canada and when we do, it’s because of some epic technological snafu that has disrupted their exam process or, as is the case with the news I’m sharing with you today, otherwise adversely impacted its member base. I don’t think there’s ever […]

Friday Footnotes: Deloitte’s Gift to ID Thieves; FU China; EBITACV-19? | 5.29.20

NASBA proposes changes in CPA requirements [Accounting Today] The National Association of State Boards of Accountancy has proposed a set of revisions to the Uniform Accountancy Act Model Rules for CPAs, including the addition of more course content on data analytics and digital acumen, and the ability to take courses outside a school of business. […]

Accountants Behaving Badly: Boozin’ It Up, Embezzling Old Folks’ Home, Fake Robbery In India

Plus, two bookkeepers—one for a church and the other for an accounting firm—are busted for stealing money. Trainee accountant stole £60,000 from boss to fund six months of hard drinking [Metro] Jake Currie used his job as a trainee accountant to fake invoices and frittered away £40,000 of the money he stole on getting wasted […]

Friday Footnotes: KPMGers Happily Take Slashed Pay; New CPA Model Still a Go; No Rona Accounting | 5.22.20

AICPA Council supports advancement of new CPA licensure model [Journal of Accountancy] An effort to transform the CPA licensure model took a step forward Wednesday when the AICPA governing Council voted to support its advancement during its virtual spring meeting. Council voted to support the CPA Evolution initiative, which is being undertaken by the AICPA […]

Is Trump’s Latest Executive Order Another Sign of a PCAOB-less Future?

On May 19, President Trump issued Executive Order on Regulatory Relief to Support Economic Recovery, directing federal agencies to address coronavirus-related economic emergency “by rescinding, modifying, waiving, or providing exemptions from regulations and other requirements that may inhibit economic recovery, consistent with applicable law and with protection of the public health and safety, with national […]

Accountants Behaving Badly: Whitley Penn and 3 CPAs Fined, Misappropriation and Mail Fraud, Gambling Away Client Money

PCAOB fined Whitley Penn $200,000, three CPAs for really crappy auditing Back in March, the PCAOB disciplined top 45 firm Whitley Penn and three of its partners for ignoring the fact that there are PCAOB rules in place for public issuer audits. With all the coronavirus hysteria that has been going on, we failed to […]

‘Reality Star’ Charged With Fraud Says the Government Totes Didn’t Make It Clear That PPP Loans Weren’t Meant for Cars and Jewelry

A mere two weeks ago we saw the first of what promises to be many, many PPP loan fraud charges when a pair of fine, upstanding gents from Rhode Island were nabbed by the Department of Justice. David A. Staveley, aka Kurt D. Sanborn, 52, of Andover, MA, and David Butziger, 51, of Warwick, RI, […]

Friday Footnotes: KPMG’s Open Plan; Accountants’ Latest Worry; Vacation Time? | 5.15.20

KPMG LLP Introduces Dynamic, Risk-Based, Policy And Technical Framework To Help Organizations Safely Reopen Their Workplaces [PR Newswire] “Reopening organizations and bringing employees back on-site presents technical challenges complicated by the fluidity of the situation, public policy responses, and different challenges faced by businesses, their suppliers and their individual employees,” said Atif Zaim, Customer and […]