Partners at mid-tier accountant BDO paid more than at EY [Financial Times] BDO, the UK’s fifth-largest accounting firm by revenue, paid partners a record average of £760,000 before tax in the year to the end of June, surpassing the £749,000 paid out by EY. PwC Germany Offices Raided by Police in Tax Fraud Investigation [Bloomberg […]

Carillion Liquidator Seeks $336 Million From KPMG [Bloomberg] The U.K. government agency charged with liquidating Carillion Plc has lodged a claim at the high court against auditor KPMG, the Sunday Times reported. The official receiver has accused KPMG of negligence in its audit of the U.K. contractor and quantified claims of about 250 million pounds […]

EY faces staff backlash over handling of sexual harassment case [Financial Times] EY is facing a backlash by staff over the accounting giant’s handling of an incident in which a partner sexually harassed a female trainee on a work trip. On an all-staff webcast on Tuesday, EY promised staff it would do more to combat […]

KPMG Sued for $600 Million Over Alleged Sloppy Auditing in Dubai’s Abraaj Scandal [Bloomberg] KPMG LLP was sued for at least $600 million over its role in the insolvency of Dubai private-equity firm Abraaj Group, the latest in a string of complaints of sloppy auditing made against the Big Four firm. The claimants, two units […]

.CPA Web Domain Launches in Canada [Business Wire] The restricted web domain, administered by the American Institute of CPAs (AICPA) and its business and technology arm, CPA.com, officially launches in Canada this morning at 11 Eastern time. To be eligible, Canadian CPAs and CPA firms must be licensed. Preferred names will be awarded on a […]

Wealthy retired accountant is found guilty of murder [Daily Mail] The pregnant daughter of a wealthy retired accountant who was today jailed for life after stabbing her husband to death has told the court of her heartbreak, saying: ‘I lost my dad but I’ve also lost my mum.’ Isabelle Potterton said on Friday that her […]

How CPAs can rise above a polarized political climate [Journal of Accountancy] Aside from being prepared for these possible changes, [Publisher and editor-in-chief of The Cook Political Report Amy] Walter recommends that CPAs break away from the polarization that has made each side feel like an election is an existential fight for the real America. […]

‘What do you actually do?’: Redditors scratch heads at consulting firms [Yahoo News] We’ve often wondered about this too. Deloitte Workers Sue Over ‘Astronomical’ 401(k) Fees [Law360] Deloitte workers slapped the accounting giant with a proposed class action in New York federal court, claiming the company allowed two multibillion-dollar retirement plans to get saddled with […]

FRC’s changes to fraud auditing standard explained [ICAEW Insights] The Financial Reporting Council (FRC)’s UK Auditing Standard on Fraud (ISA (UK) 240) has been significantly updated for the first time in 16 years. The changes are a response to recent public discussions on the role of audit in identifying fraud, including high profile cases in […]

Deloitte UK profits boosted by public sector pandemic work [Financial Times] Deloitte has confirmed a surge in UK profits helped by public sector contracts during the pandemic, saying that its work on the response to Covid-19 was “essential”. Revenues at the firm’s UK and Swiss businesses, which operate as a single partnership, rose 4.2 per […]

China Evergrande Auditor Gave Clean Bill of Health Despite Debt [Wall Street Journal] Last year as China Evergrande Group’s stock and bond prices seesawed, it offered deep discounts to keep sales growing during the pandemic and the government effectively said it had borrowed too much. Yet the property developer’s auditor [PwC] gave it a clean […]

Malaysia says auditor KPMG to pay $80 million in 1MDB settlement [Reuters] Malaysia said on Thursday audit firm KPMG has agreed to pay a 333 million ringgit ($80.11 million) settlement to resolve all claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012. PwC reports disability and […]

KPMG’s UK arm among first to set targets for working class staff [Reuters] “We’re setting a socio-economic background representation target for the first time, alongside our other diversity targets,” KPMG said in a statement. AICPA Foundation Grants 25 Minority Doctoral Fellowships [CPA Practice Advisor] The funding comes from the AICPA Fellowship for Minority Doctoral Students […]

KPMG faces complaint of providing ‘false’ information on Carillion audit [Reuters] KPMG allegedly provided “false and misleading” information about its audits of collapsed builder Carillion and data erasure company Regenersis for regulatory checks, Britain’s accounting watchdog said on Wednesday. EY teams up with NYC to offer pro bono advice to Black businesses [Consulting.us] Through the […]

Staffing and COVID-19 relief programs are firms’ top concerns in 2021 [Journal of Accountancy] Finding qualified staff is an enduring concern that continues to challenge CPA firms this year, according to the 2021 AICPA Private Companies Practice Section (PCPS) CPA Firm Top Issues Survey. Hiring staff emerged as the No. 1 issue affecting firms that […]

Revenue, lease accounting still challenge private companies [Journal of Accountancy] Revenue recognition and lease accounting remain a challenge for private companies after a one-year, pandemic-related delay in effective dates provided financial statement preparers some relief. For tax & accounting firms, the time to learn blockchain is now [Reuters] One question these professions should be asking […]

Accountant who stole $1.7M from corporate client, Little League group, should get his CPA license back, Pa. court says [Penn Live] A Commonwealth Court panel on Wednesday overturned a state licensing board’s refusal to allow an accountant who stole more than $1.7 million to resume his profession. Instead, the panel ordered the state Board of […]

Your Auditor Is Not Your Friend [Bloomberg Opinion] Accounting is an unusual professional-services business because a lot of what accounting firms do — tax and structuring advice, consulting, etc. — is very much in this vein of wise trusted advice, but one core function of accounting firms — public-company auditing — is … only partly […]

The future of auditing: why plans to sharpen up the industry could actually make it worse [The Conversation] To rebuild trust, the UK government is proposing 150 reforms in a weighty consultation that closed recently. Building on three recent independent reviews into the profession, the FRC is to be replaced by a new body called […]

EY Accused of Actively Concealing NMC Health Audit Fraud From Investors [Bloomberg] Ernst & Young faces accusations it “actively concealed” a six-year fraud from investors in a fresh lawsuit over its auditing work for the troubled NMC Health. The hospital operator’s founder, Bavaguthu Raghuram Shetty, said the accounting giant enjoyed a “deep and cozy” relationship […]

Civilisation will collapse completely by 2040 – MIT model, confirmed by KPMG [Cape Talk] The most dystopian headline you’ll read all week (hopefully). SEC Whistleblower Issued Award of More Than $1 Million for Assistance in Investigation [National Law Review] According to the SEC award order, the anonymous SEC whistleblower alerted Commission staff to securities law […]

Content for redesigned CPA Exam takes shape [Journal of Accountancy] The AICPA released Wednesday a survey seeking feedback on the preliminary content proposed for the redesigned CPA Exam, which would be assessed in three sections that will comprise the Core of the Exam, plus material that would assess candidates’ knowledge in one of three Disciplines […]

Business implications of AI within tax & accounting [Reuters] According to the 2020 World Economic Forum Outlook Report, the time spent on current work tasks by humans and machines will be roughly equal by 2025. Given that, what will workflow, operations, and our tax teams look like in four years? KPMG takes bold step towards […]

Signs you or a colleague could use mental health support [Journal of Accountancy] Some of you may need to give this podcast a listen. KPMG Study: Majority Of Female Executives Taking On Expanded Leadership Roles At Work While Responsibilities At Home Increase During The Pandemic [PR Newswire] “Advancing the Future of Women in Business: A […]

AICPA, CAQ support SEC’s exploration of climate change disclosures [Journal of Accountancy] The AICPA and the Center for Audit Quality (CAQ) voiced support for the SEC’s exploration of disclosures related to climate change and environmental, social, and governance (ESG) issues in comment letters sent to the commission on Friday. KPMG delays hybrid working plans after […]

Deloitte Sued for Allegedly Failing to Find ‘Irregularities’ in Audits of Singapore Oil Trader [Insurance Journal] A failed oil trader in Singapore that owes creditors more than $3.5 billion is suing Deloitte & Touche LLP, alleging the auditing firm failed to detect “serious irregularities” in its financial statements for more than a decade. KPMG shouts […]

Wealthy KPMG clients continued to dodge taxes for years after CRA detected offshore ‘sham’ [CBC] The KPMG scheme involved setting up shell companies for Canadian multimillionaires and billionaires in the Isle of Man, a British crown dependency in the Irish Sea. A client would purport to give away their wealth to one of the shell […]

KPMG launches relaxed work policies to combat remote work fatigue [Accounting Today] “Since the start of the pandemic, the firm has employed a continuous listening approach, using regular experience surveys and other feedback channels to stay connected with people and better understand the challenges they’re facing and support they need,” Darren Burton, vice chair of […]

How to ask for a raise when the pandemic nears its end [Journal of Accountancy] With a growing portion of the population in the United States and some other countries vaccinated and at least some aspects of life set to return to normal, you may feel it’s time to raise the question of compensation with […]

Deloitte, KPMG, PwC Units Fined in Spain Consulting ‘Cartels’ [Bloomberg Tax] Deloitte, KPMG, and PwC are among 22 consulting firms to be fined a total of almost 6 million euros ($7.3 million) for forming cartels that manipulated Spanish public contracts for at least 10 years, the country’s market watchdog has said. The firms worked in […]

These are the snacks powering CPAs during tax season [Journal of Accountancy] Wait, it’s not black tar? Huh. KPMG UK staff to work in offices up to four days a fortnight from June [Reuters] “As part of the firm’s new hybrid way of working, from June onwards, the expectation will be that KPMG’s people spend […]

AICPA, NASBA and AAA to Announce New Model Accounting Curriculum at Free Online Event [AICPA] The free online event, to be held June 15-16, will provide attendees with a thorough overview of the Model Curriculum. The event is open to all who are interested, including members of the media. To attend, register online. Local CPA’s […]

Deloitte reveals number of staff complaints [Financial Review] Consultancy giant Deloitte has become the first major professional services firm in the country to voluntarily disclose the number of workplace investigations conducted each year – roughly 15 a year over the past three years – with the pressure now on rival firms to disclose similar data. […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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. […]