December 6, 2021

News

a cat wearing a royal crown

Friday Footnotes: PwC Germany Raided; BDO Ballers; Deloitte’s Unexpected New Hiring Push | 12.3.21

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 […]

Black Friday Footnotes: Carillion Liquidator Wants Lots of KPMG Money; EY Can’t Handle the Truth; Mattel and PwC Settle with Investors | 11.26.21

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 […]

Friday Footnotes: EYers Fed Up; KPMG Love Triangle; CGMA For Young’uns | 11.19.21

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 […]

Friday Footnotes: More Big 4 Lawsuits; The White Way In the UK; EY-Parthenon Found a Guy | 11.12.21

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 […]

Friday Footnotes: KPMG Sued (Again); Accounting For Weed; Less Travel Equals Profit For EY Partners | 11.5.21

.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 […]

ESG Is the Next ‘Hot Thing’ In Accounting, Say MIT Researchers

For years we’ve been hearing how blockchain and AI will transform accounting, and this recent article from MIT Sloan School of Management (aka MIT Sloan) about the five forces remaking accounting gives them both the obligatory nod. But we’re not here to talk about blockchain. We’re here to talk about ESG. After a brief introductory […]

Friday Footnotes: A Very Guilty Accountant; Beware Audit Independence; Grant Thornton Does a Thing | 10.29.21

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 […]

Friday Footnotes: Deloitte Complains Its Way to a Contract; Deficiencies Abound; Beyond the Windowless Audit Room | 10.22.21

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. […]

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

[Updated original post from April 16. Update is at the bottom of this article.] 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 […]

Friday Footnotes: Deloitte Sued; RSM Sued; PwC Not Sued But Incompetent | 10.15.21

‘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 […]

[UPDATED] PwC Australia Diversity and Inclusion Manager Who Mocked Chinese Accents Had to Be Told You Aren’t Supposed to Mock Chinese Accents

[Updated original post from Sept. 28 with additional information on PwC Australia’s internal investigation. Update is at the bottom of this article.] Australian Financial Review has a blockbuster of an exclusive this morning, one that involves “a human resources executive dressed as a bat from Wuhan” and a senior manager of diversity and inclusion mocking […]

Elizabeth Warren Shocked to Learn Big Public Accounting Firms Do Shady Sh*t

Uh-oh, the Big 4 firms have gotten Sen. Elizabeth Warren’s dander up. The Massachusetts Democrat was appalled at a recent New York Times report that found at least 35 examples of big public accounting firm tax lawyers who left to join the US Treasury’s tax policy office or other government positions and then were rehired […]

Friday Footnotes: Firm Fined For Data Breach; Deloitte Named Most Attractive; EY Expands Legal Arm | 10.8.21

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 […]

Maine’s ‘Utterly Unqualified’ State Auditor Just Stepped Down Because He Couldn’t Pass the Certified Internal Auditor Exam

In January of this year, seasoned bureaucrat Matthew Dunlap took the helm as state auditor in Maine despite having no background in accounting, much less auditing. Rather, he has a bachelor’s degree in Roman history and a master’s in English literature, the former of which would come in handy should Maine have a vacant State […]

Friday Footnotes: Deloitte’s Plush Profits; Britney’s New CPA Conservator; KPMG Gives a Partner the Boot | 10.1.21

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 […]

PwC Just Announced That You Never Have To Go Back To the Office If You Don’t Want To (Sorta)

Big news today! PwC just announced that effective November 1, its people will need to be fully vaccinated against COVID-19 in order to access PwC facilities and client sites. Deloitte announced a similar vaccination policy toward the end of August, as did KPMG, just a handful of days before President Biden announced the country’s own […]

Friday Footnotes: PwC Has an Evergrande Problem; Too Hard to Be a CPA; Big 4 Rot | 9.24.21

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 […]

Friday Footnotes: PwC Pays the Poors Less; Deloitte’s New Minis; BDO Brings on Audit Staff | 9.17.21

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 […]

Private Equity Is Now Dipping Its Toes In Public Accounting Firms

In early August, EisnerAmper announced a “strategic investment” in the firm courtesy of investment management firm TowerBrook Capital Partners, the first of its kind for a firm of that size. The door is now wide open for private equity to get a piece of the accounting pie. Per the press release: TowerBrook’s significant capital infusion […]

Friday Footnotes: KPMG Woos Broke People; PhD Pay Day; Guy Sues Deloitte | 9.10.21

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 […]

Friday Footnotes: KPMG Lied; EY Works For Free; Macaroni and Cheating | 9.3.21

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 […]

Friday Footnotes: Firms Sweating Staff Losses; Who Got Fined This Time?; Accountant’s XXX Problem | 8.27.21

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 […]

Beginning October 11, You Won’t Get Into Deloitte US Offices Without a COVID Vaccine

In a firmwide email today, Deloitte US announced that the firm is strongly suggesting its 113,257 people get their Rona jabs if they haven’t already, and should they not do so, they can expect to be shut out from Deloitte offices beginning October 11. The “no shirt, no shoes, no vaccine, no service” policy has […]

Friday Footnotes: That’s Weak; Disclosing Turnover?; One Heckuva Farewell | 8.20.21

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 […]

Friday Footnotes: Bad Guy Fights For His License; EY’s New Buddy; IRS Improvements? | 8.13.21

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 […]

Friday Footnotes: Don’t Trust Your Auditors; KPMG Partners Score; A PwC TikTok Star | 8.6.21

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 […]

Not the Onion: Deloitte Is Using Spoken Word Poetry to Teach Its Employees About Climate Change

Not sure if you heard but the giant rock we all call home is in trouble. Glaciers are melting, sea levels are rising, and I don’t have to tell you that the weather has been absolutely terrifying the last few years. The good news is it’s looking more and more like the Earth will give […]

Olympics Tracker: These Athletes Who Toiled At Accounting Firms Are Going For Gold In Tokyo (NEW UPDATE)

[Updated post from July 26 with additional athletes, event results.] If time spent consecutively looking at spreadsheets, eating hours, and submitting timesheets late were Olympic events, accountants would be among the strongest contenders for a gold medal during the summer games in Tokyo. But there have actually been accounting Olympians—Gwen Jorgensen and Alexandre Bilodeau to […]

Barry Melancon

The Profession Is Well-Positioned For Change Says Guy Who Has Held the Same Position Since 1995

Last week, CPA Practice Advisor shared remarks made by AICPA CEO Barry Melancon at this year’s ENGAGE conference and … uh. Let’s just get straight into it. That resiliency will be needed going forward, with more changes to come from technological disruption, expanded categories of non-financial reporting, and the rapid evolution of new service lines […]

Friday Footnotes: Breaking Broken Audits; Casual CFOs?; Back to Office Pressure Builds | 7.30.21

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 […]

Friday Footnotes: EY’s Deep and Cozy Trouble; KPMG Avoids Audit Trial; GT’s New Digs | 7.23.21

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 […]

This PwC Tax Manager Got So Bored Working From Home During Quarantine She Ended Up on Top Chef

It only took a year for 32-year-old Danie Baker of Seattle to go from working from home for PwC during lockdown to appearing on the new Top Chef spin-off Top Chef Amateurs, which debuted on July 1. The show lists her as a “tax accountant” but you know we snooped LinkedIn to find out she […]

The Pandemic Paid Off For PwC Partners Across the Pond

Good afternoon and happy Monday, grunts. Boy do I have something that is going to warm your cold black hearts. As we can all agree, the last year and a half has been rough. We’ve all had to make sacrifices, though thankfully many of us have at least gotten through it without having to put […]

Friday Footnotes: A Very KPMG Collapse; PwC Asks the Wrong People; Deloitte Denied | 7.16.21

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 […]

Friday Footnotes: New CPA Exam Rolls Along; (More) Big 4 Lawsuits; Meanwhile, on the Dark Web | 7.9.21

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 […]

Man Hired By Amazon Who Passed the CPA Exam Outraged That Loading Trucks and Sorting Packages Was Not Covered in BEC

Got a bit of a weird story for you today, one that hopefully reminds those of you among us who are bemoaning the unacceptable working conditions you wake up for six days a week that it could always be worse. A California man has filed a wage and hour lawsuit against Amazon after he says […]

RIP Michael Altman, Accountant Who Died In Surfside Condo Building Collapse

The death toll has now risen to 36 in the partial collapse of the Champlain Towers South condominium building in Surfside, FL. One of the residents of that building who died was accountant Michael Altman. According to the Miami Herald: Michael David Altman was born in Costa Rica, but moved to the United States with his […]

Friday Footnotes: Robots When?; KPMG Digs Dads; Deloitte Still Cashing In on Corona | 7.2.21

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 […]

Friday Footnotes: Deloitte Hates Old People; Australia Anyone?; Interview Intel | 6.25.21

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 […]

More People Quit Their Jobs In April Than Ever In Recorded History

Have you heard? They’re calling it “The Great Resignation.” Gee, if only there were a way to get people to stay! Guess they’ll have to bring in some consultants to tell them this is millennials’ fault somehow and can easily be fixed with a few recycling bins and Jeans Friday.

Accountants Behaving Badly: Old Guy Decided Stealing a Sh*t-Ton of Money Would Be the Best Way of Getting Back At His Bosses For Downsizing

Eighty-year-old Charles Esposito of Hainesport, NJ, who worked as an accounting manager for Oldcastle BuildingEnvelope for 45 years, was sentenced to five years in state prison on June 9 after admitting to stealing $2.5 million from his former employer, according to the Philadelphia Inquirer. Assistant Prosecutor Joseph Remy said during the sentencing hearing that ol’ […]

Friday Footnotes: Too Hot For Immateriality; Deloitte Ditches the Office; Diversity? I Hardly Know Her! | 6.18.21

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 […]

Accountants Behaving Badly: Ex-Missouri CPA Would Have Made Bernie Madoff Proud

Former Lebanon, MO, accountant Douglas Richardson found out on June 10 how long he’ll be spending in federal prison for the Madoff-esque crimes a jury in November 2019 said he was guilty of committing. According to the U.S. Attorney’s Office for the Western District of Missouri: A former certified public accountant in Lebanon, Missouri, was […]

Friday Footnotes: A Deloitteful Failure; PwC Hunts For Missing Emails; CPAs Tell Clients GTFO | 6.11.21

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 […]

Accountants Behaving Badly: Fraud Isn’t All It’s Cracked Up to Be

I never thought I’d ever write the words “egg accountant busted in embezzlement scheme” but here we are. The egg accountant, Jonathan Weston, was indicted by a federal grand jury in Pittsburgh June 3 on charges of fraud conspiracy, money laundering conspiracy, and tax fraud. According to the U.S. Attorney Office for the Western District of […]

There’s a Coup Going Down as We Speak at the PCAOB

Here’s a nice little Friday news dump for y’all to hand-wring over as we head into the weekend: Securities and Exchange Commission Chairman Gary Gensler has fired the U.S.’s top accounting regulator, a move that is certain to please investor advocates and progressives who had demanded an overhaul of the watchdog. The SEC announced the […]

Friday Footnotes: PwC Thinks You Miss Your Office Friends; KPMG Clients Kept Tax Dodging; Deloitte and Diversity | 6.4.21

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 […]

Here’s Why the Millennials and Zoomers In Your Office Stink

If you’ve chosen to awaken from your work-from-home slumber and returned to your firm or accounting department, you may have noticed a foul smell coming from some of your younger colleagues. No, they aren’t reeking of entitlement (unless they work at EY). They are reeking of body odor. Lockdowns and social distancing have triggered a […]

Friday Footnotes: The Future of Remote Work; Talent Crunch Gets Crunchier; SEC Sucks | 5.28.21

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 […]

Friday Footnotes: You Deserve a Raise; Data Literacy; IRS Wants Your Body | 5.21.21

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 […]

Accountants Behaving Badly: Guy Liked Gambling and Porn a Little Too Much

After pleading guilty last February to two counts of wire fraud for stealing more than $1.2 million from his former employer, accountant Christopher May of Paoli, PA, was given 16 months to think about his choices. The U.S. Attorney’s Office for the Eastern District of Pennsylvania said: From roughly October 2019 until May 2020, while […]

Friday Footnotes: Big 4 Consulting Cartels; Ex-PwCer Takes an L; KPMG Has the Hots For Orlando | 5.14.21

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 […]

Friday Footnotes: Feed Me Snacks; KPMG Gets Back to the Office; Deloitte Dorks Out on Crypto | 5.7.21

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 […]

Friday Footnotes: CPAs Get Pied; EY Beats BBC; A ‘Critical Shortage of Auditors’ | 4.30.21

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 […]

Your Naughty Tax Preparer of the Day

Yes, busy season sucks. But getting sentenced to nearly three years in federal prison during busy season sucks way more. Still, I don’t think any of our friends on Tax Twitter are going to feel sorry for Nikia Tull of Norfolk, VA, who was recently sentenced to 33 months in the pokey for wire fraud […]

Friday Footnotes: Is KPMG a Bunch of Bullies?; Deloitte’s Karen Problem; Firm-Mandated Jabs | 4.23.21

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. […]

You Can Now Take the CFP Exam From Home (Pants NOT Optional)

Back in September, we informed everyone who isn’t a regular reader of NASBA state board reports (so, everyone then) that The Powers That Be were seriously considering remote testing for the CPA exam, mostly because what we all thought would be a couple weeks at home in March 2020 turned into … well … you […]

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 […]

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 […]