By the Numbers: The Accounting Firms That Received $635 Million in PPP Loans
Remember PPP loans? The Small Business Administration defines PPP as “an SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis.” Remember all the layoffs and pay cuts at accounting firms we were meticulously tracking in early 2020? Transparency group OpenTheBooks.com crunched the numbers using Small Business Administration data and found $635 […]
EY Reports a Rise in Naughty Behavior Now That People Have Returned to the Office
EY Oceania has released its second Value Realised Scorecard — a wide-ranging report on how the firm is doing — and Daily Mail Australia immediately latched on to page 33: Workplace Incidents: DM’s salacious headline “EY rocked by soaring number of sexual misconduct and bullying complaints as big four accounting firm workers return to the […]
Carillion Liquidators Roast KPMG: “A Competent Auditor Would Have Detected the Misstatements”
The Carillion failure is still working its way through the courts and now KPMG is accused by Carillion’s liquidators of missing multiple red flags, the likes of which should not have been missed had KPMG had any clue what it is doing. So say the liquidators. WSJ: KPMG received £29 million from Carillion without qualifying […]
Monday Morning Accounting News Brief: Deloitte on Microtransactions; More EY Split Roadblocks; Have You Become Irritable? | 11.28.22
Happy Monday! Here’s some stuff that’s going on. Several US audit firms told the Financial Times that they had elevated some or all of their crypto-related clients to the status of “high risk”, triggering a more thorough audit that will take longer and lead to higher bills; some clients could ultimately be dropped altogether. KPMG […]
Friday Footnotes: How EY Fights Poaching; Lack of Staff Is Closing Doors; Accounting to Biglaw? | 11.25.22
Big 4 FRC to fine Deloitte £440k over 2018 audit [Accountancy Today] The Financial Reporting Council’s Audit Quality team has issued a notice of a proposed sanction on Deloitte, proposing a regulatory penalty of £440k after it was determined that the Big Four firm failed to comply with the auditing framework in its audit of […]
Friendly Reminder: If You Are Going to Commit Fraud For Clients, Charge More
Remember the Chrisleys? The flamboyantly wealthy TV couple Todd and Julie Chrisley of Chrisley Knows Best? On Monday, Todd was sentenced to 12 years in prison and Julie to seven years for an assortment of crimes like fraud, tax evasion, and conspiracy to defraud the United States. Also tied up in this bonanza of federal […]
The Elliott Davis/Whitley Penn Merger Fell Apart in the Eleventh Hour, RIP Elliott Penn (UPDATE)
This past summer, the second biggest news around the virtual watercooler of professional services (after the EY split) was that Elliott Davis and Whitley Penn would be combining forces to become — *dramatic flourish here* — Elliott Penn. “By proactively bringing these two firms together, Elliott Penn leverages the strengths of both firms and establishes […]
EY Survey Ironically Finds the Four-Day Workweek is the New Standard at Many Companies
According to the latest EY Future Workplace Index survey, many companies are moving toward a four-day workweek thanks in part to competition for talent. The survey reveals surprisingly optimistic attitudes from company leadership on real estate investment despite economic tightening, says the press release, a sign that employers want you back in the office at […]
Confirmed: People Who Work For Deloitte Are Zombies
We always suspected there was something odd about people who work for Deloitte, now we know. They’re zombies! It seems Deloitte offered up a unique recruiting ad during yesterday’s long-awaited Walking Dead series finale. Excuse the potato quality of this screen recording, I’m on a Windows 3.1 machine. I’ll see if I can dig up […]
Monday Morning Accounting News Brief: Firm Sponsors Art Contest; ‘EY Will Sell Advisory Again’; Big Spenders | 11.21.22
“While inflation continues to impact consumers at every turn, they are unwilling to let it dampen the holiday spirit,” said Nick Handrinos, vice chair, Deloitte Consulting LLP, and U.S. retail, wholesale and distribution and consumer products leader. From Jan Bouwens, Professor of Accounting, Amsterdam Business School, University of Amsterdam, The Netherlands to Financial Times: “EY […]
Friday Footnotes: Retired EY Partners Hate on the Split; It’s a Raid!; ‘An Alphabet Soup of Technology’ | 11.18.22
Big 4 EY split threatens to weaken both sides of firm, say retired partners [Financial Times] More than 150 retired EY partners have written to the accounting firm’s leadership objecting to the radical plan to split its consulting and audit businesses. In a three-page memo seen by the Financial Times, the retired US partners say […]
The Guy Who Saw Enron Through Bankruptcy Calls FTX the Worst He’s Ever Seen
If you aren’t familiar with him, John J. Ray III oversaw Enron’s liquidation many years back and now he’s stuck with the monumental task of unraveling FTX after the crypto exchange collapsed last week. @jonwu_ dug through FTX’s Chapter 11 First Day Affidavit so you don’t have to and in it, Mr. Ray has given […]
Supposedly PCAOB China Inspections Went Well, the Environment Was Not Necessarily Considered
People who presumably aren’t paid by the Chinese government to say “everything is great!” have told Reuters that the PCAOB’s trip to Hong Kong to finally inspect Chinese audit work went pretty well. Reuters: U.S. regulators gained “good access” in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection, […]
Ex-BDO Atlanta Employee Who Shot and Killed Her Former Boss Was Indicted on Murder Charges
A Fulton County grand jury on Nov. 11 indicted Raissa Kengne, a former IT audit manager at BDO USA in Atlanta, in the August shooting deaths of her ex-supervisor at the accounting firm and the property manager of the condominium building where she lived. Kengne, 34, was charged with two counts of murder, two counts […]
A Couple PwC Partners Have Been Quickly Assigned as Joint Provisional Liquidators of FTX
Kevin Cambridge and Peter Greaves of PwC were approved by the Supreme Court of the Bahamas as joint provisional liquidators of failed crypto exchange FTX. From the press release [PDF]: On 10 November 2022, the Securities Commission of The Bahamas (“the Commission”) applied to the Supreme Court to appoint Mr. Brian Simms, KC as a […]
We Feel Obligated to Tell You About This Forensic Accountant Turned ‘Professional Girlfriend’
Insider ran a story the other day about Mia Lee, a former Wall Street forensic accountant who loves collecting scotch, racing fast cars, and fighting mixed martial arts. Writes Insider: These interests, and her inability to feel shame, guilt, and fear make her the perfect girlfriend-for-hire for wealthy business and tech executives in New York […]
Monday Morning Accounting News Brief: A Billionaire KPMG Alum; EY Split Stalled (Again); NSA Accountants | 11.14.22
Good morning and happy Monday! Here’s some news: The EY split vote has been delayed, says FT: The main stumbling block in setting dates for ballots is finalizing the so-called global framework agreement, the legal document covering details of how assets, liabilities and people will be split between the businesses. Deloitte has been awarded a […]
Friday Footnotes: Behemoth Big 4 Firms Get Behemothier; Audits Get Harder; Eliminate Clients! | 11.11.22
Ed. note: if you like accounting news, which you clearly do because you are reading this, we encourage you to sign up for our newsletter for even more accounting news. Oh and a hearty thank you for your service to the veterans out there. Hopefully some of you got the day off. Hiring ‘There’s definitely an […]
The Accountant Shortage Makes One Office Get Really Desperate
You know how if you’re on Tinder for a while and you’re not getting many matches because your standards are too high so you widen the net a bit and start overlooking things like “if you can’t handle me at my worst, you don’t deserve me at my best” in people’s bios? Well that’s pretty […]
The CFO at Tyson Foods Had a Kick Ass Weekend
Tyson Foods CFO John Tyson (yep, that Tyson) was arrested in Arkansas on Sunday after he allegedly got drunk and decided to take a nap in a stranger’s bed, probably naked. A police report says a the woman whose bed he passed out in found him snoozing at 2 in the morning, reeking of alcohol […]
Some Partners at PwC Cyprus Did Not Want to Lose Their Russian Clients So They Started Their Own Firm
In March of this year, Deloitte Global posted a little message on its website about the then-developing situation in Ukraine saying the firm had “suspended business operations and client service in Ukraine as we focus on taking care of our people and their loved ones.” Within days, that message changed to saying they are “currently […]
The Supreme Court Had Better Things to Do Than Hear Appeal From Ex-Dallas Cop Who Murdered PwC Accountant
Former Dallas police officer Amber Guyger knows a thing or two about someone being shot down. The Dallas Morning News reported on Monday: The U.S. Supreme Court declined on Monday to review the case of former Dallas police officer Amber Guyger, who is serving a 10-year prison sentence for the murder of Botham Jean in his apartment. The high court’s […]
Monday Morning Accounting News Brief: Audit Fees Are Up; Salary Expectations Are Too High; Sus SEC Shizz | 11.7.22
Several of America’s largest accounting firms have explored the possibility of taking private equity cash in recent months, as money from buyout funds adds fuel to a mergers and acquisitions boom across the industry, reports FT. CFO.com wrote about the accountant shortage and suggested four ways to address it, not one of them was “pay […]
Friday Footnotes: PwC Does Some Things; Bad Client Dumps EY; ‘Going From Balloon Animals to Accountancy’ | 11.4.22
Footnotes is a weekly wrap-up of all the news in and around the accounting profession, published every Friday at 5 p.m. Eastern. To get more headlines delivered on the regular, subscribe to our newsletter. Big 4 PwC Retirees Get Early Approval for $267 Million Pension Deal [Bloomberg Tax] PricewaterhouseCoopers LLP’s $267 million settlement with retirees […]
Twitter’s Chief Accounting Officer Is Rumored to Have Left the Building (Literally)
The Washington Post has written about the abrupt culture change happening at Twitter since Elon Musk entered the picture on October 27 and buried among the complaints of secrecy and fear is a little mention of the CAO GTFOing. UPDATE: Twitter’s chief accounting officer is rumored to have been “walked out” of the building and […]
Did a PwC Partner Leak Client Financial Data? A Court Will Decide
We briefly mentioned the following case in an August 2020 link dump of several Big 4 lawsuits going on at the time, there is now a date set for court so we’re throwing out an update. The allegation is that former PwC north of England head Ian Green leaked sensitive information about his client, telling […]
Joe Ucuzoglu Ascends the Throne of Deloitte Global, Maybe Someone Will Care This Time
Deloitte announced today that the man with the hardest to spell last name in accounting Joe Ucuzoglu will be taking over for Punit Renjen as Deloitte Global CEO. Yes, there’s a press release: The Deloitte Touche Tohmatsu Limited (Deloitte Global) Board today announced the selection of Joe Ucuzoglu as Deloitte Global CEO, subject to a […]
Monday Morning Accounting News Brief: Fear and Loathing at KPMG; FASB? More Like SLOWB; EY, Esq. | 10.31.22
Happy Spoopy Day! Here are your morning headlines: As critics suggest FASB is too slow to make new rules, FASB chair Rich Jones hits back: The standards for financial statements are “designed to provide the best information for capital allocation decisions” by investors, he said, but “at the end of the day, it’s applied by […]
Some High Level Folks Have Abruptly Left BDO and No One Seems to Know Why (UPDATE)
People who know know there’s something happening at BDO USA. We are working on getting to the bottom of a few things that we can’t quite share with you until we have more information but in the meantime, we need to talk about how leadership is apparently getting axed — or leaving? — and no […]
EY Reminds Us That Audits Provide ‘Reasonable Assurance,’ Not a Guarantee That Billions of Dollars Aren’t Hidden From the Balance Sheet
The NMC Health collapse of 2020 is still haunting EY UK, this time in London High Court as NMC administrators accuse the firm of failing in their duties and not noticing “one of the biggest frauds ever alleged at a FTSE 100 company.” The administrators, whose job it is to find some funds to repay […]
EY Israel Has Rejected the Split
Financial Times is reporting that EY Israel is joining EY China in rejecting the proposed split of audit and consulting services. “From our point of view in the Israel business, the split will not create benefits,” said EY Israel Managing Partner Doron Sharabany to FT. EY China’s decision was based on regulatory hurdles that could […]
Monday Morning Accounting News Brief: CPAs Are Overworked (Duh); EY’s New Toy; Metaverse Party! | 10.24.22
From last Friday’s Footnotes ICYMI: Deloitte is delaying offers in India, KPMG flunks audit inspections at twice the rate of other firms, PwC is hiring more minorities, and EY is putting out press releases about all the hiring it is doing in the UK. Speaking of press releases, EY announced that it has expanded its […]
Friday Footnotes: KPMG Is Twice as Bad as Other Firms; Upskill or Die; Hella M&A | 10.21.22
Big 4 KPMG flunks US overseas audit inspections twice as often as rivals [Financial Times] US regulators were twice as likely to find flaws in audits conducted by the overseas affiliates of KPMG than those of any other Big Four accounting firm, an analysis of inspection data shows. The findings raise further questions over KPMG’s […]
The Dallas Cowboys Are Getting Some Extra Accountants With This CohnReznick Merger
CohnReznick announced a merger with Dallas firm BKM Sowan Horan and the Dallas Morning News took the opportunity to trumpet the happy nuptials of the official accounting firm of the Dallas Cowboys. Dallas Morning News: CohnReznick, the 15th largest accounting firm in the U.S. and the official accounting firm of the Dallas Cowboys, says it […]
A New Zealand Accountant Took Client Retention to a Whole Other, Insane Level
Stuff reports that an as yet unnamed New Zealand accountant is now in trouble with the country’s accountancy body for allegedly harassing clients with debt collectors after the clients tried to sever their relationship, manufacturing invoices for services that were never received, altering tax documents, and spreading rumors about rival accountants getting it on with […]
Monday Morning Accounting News Brief: The Diversity-est Big 4 Firm; An EY Record; PCAOB Stream | 10.17.22
EY’s Manchester office hired the most students of all EY’s UK offices; the Manchester office recruited 104 new students, the firm recruited a record 1,473 students into its UK business this year (up 35% compared to 2021). 32 leading industry commentators, CEOs, CFOs and board members from across the world have contributed their views on […]
Friday Footnotes: Big 4 Nixes Legal Practices; EY Looks the Other Way; Auditors Get Lectured Again | 10.14.22
Big 4 The drunken Big Four partners who are paid $1m+[eFinancialCareers] Combined with other recent incidents, including the tragic case of Michael Brockie, a 28-year-old PWC audit manager who lost a large portion of his brain following a fall after a drunken work outing, and the death of Aishwarya Venkatachalam, a junior at EY in […]
Deloitte Partner Who Got Sh*tfaced Drunk and Made an Ass of Himself at the Horse Races Will Be Retiring
You know how they always say accounting is a small world and you should take care not to burn bridges? Well Stephen Cahill, partner and head of Deloitte UK’s executive compensation practice, decided to say “fuck that and fuck you too” this past June when he went on a sexist, racist tirade in the company […]
Donald Trump Jr. Admits He Probably Would Have Failed Intermediate Accting, Had He Taken It
Today in Business Insider: As sole trustee for the family business, Donald Trump Jr. routinely signs his father’s financial statements — but he still insisted during a recent sworn deposition that he has very little actual understanding of accounting, New York officials revealed Thursday. Asked about “GAAP,” the generally accepted accounting principles that must be […]
When a Bank Fails, People ‘Lose Faith’ in the Auditors
Are bank failures bad PR for the firms that audit them? New research seems to show that depositors — a.k.a. bank customers — find it difficult to trust auditors when those auditors have been associated with a failed bank. Via KU (Kentucky University) News: The word “audit” has a different meaning depending on whether you’re […]
Monday Morning Accounting News Brief: PwC Gets a Perfect Score; IRS Bonuses; EY Seeks Guidance | 10.10.22
Deloitte US has acquired SFL Scientific, a Boston-area consulting firm focusing on artificial intelligence strategy and data science. EY is talking with officials at the IRS after urgently requesting guidance for the new 15% minimum tax on large, profitable corporations known as the Corporate Alternative Minimum Tax (CAMT) contained in the Inflation Reduction Act. KPMG […]
Friday Footnotes: Accounting’s Big Lie; BDO Poaching; EY Partners Get Whipped | 10.07.22
Must Read Accounting’s Big Lie — and How to Fix It [Project on Government Oversight] A colossal conflict of interest compromises the auditing of public companies and the financial security of everyone who depends on them. The Project On Government Oversight is planning a conference on what to do about it. The following is meant […]
PwC Plans to Poach Unhappy Senior Managers From EY
While the pundits are talking about how the EY split could completely change the accounting industry as we know it and inspire other firms to split once they see the truckloads of cash pulling up to EY partners’ houses, one industry vet is perched at the periphery with a stack of offer letters just waiting […]
Fat Joe is Suing BDO
TMZ reported over the weekend that Fat Joe is suing his longtime accountant Andre N. Chammas and Chammas’ firm BDO for alleged misappropriation of funds. Oh and he claims that BDO is running some kind of Ponzi scheme. According TMZ’s review of the legal documents, Fat Joe noticed “some accounting regularities” after Chammas’ assistant Vanessa […]
The SEC Is Finally Going After People With Cartoonish Butt Implants Who Shill Shady Crypto ‘Investments’
The Securities and Exchange Commission on Monday announced charges against Kim Kardashian for promoting a crypto asset security on her social media without disclosing the payment she received for the promotion. She agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation. The SEC’s order […]
Angry CPA Exam Candidates Blew Up Barry Melancon’s Email All Weekend, Here’s Why
Scrolling Reddit this weekend I noticed several posts from r/CPA littered throughout my feed among the food porn, cats, and reality TV gossip, something about some score release debacle with strong hints of outrage. What the hell happened? Whatever it was, they were pissed. Oh my. Apparently up until this weekend the official AICPA score […]
Monday Morning Accounting News Brief: The Leadership Void; KPMG Gets Fined (Again); PwC Ups Leave | 10.3.22
Deloitte launches Global Sustainability & Climate learning program that aims to enhance skills and capabilities of Deloitte people to help address a global societal challenge. Dubai’s financial regulator has provisionally fined KPMG and one of its former partners $2 million over the firm’s auditing of Abraaj, the emerging markets private equity group that collapsed in […]
Friday Footnotes: Opinions!; EY’s Blockchain Aspirations; KPMG Junior Reprimanded | 9.30.22
Psst. While you’re here, have you thought about getting on our newsletter? No? Alright. Big 4 Average income of Deloitte’s partners in UK and Switzerland tops £1m [The Guardian] Partners at Deloitte in the UK and Switzerland will receive an average income of more than £1m each for the second year in a row, after […]
The Talent Shortage Has Gotten So Bad Clients Are Now Doing Their Own Audit Documentation
The Securities and Exchange Commission has charged Deloitte China with failing to comply with fundamental U.S. auditing requirements because in numerous audits over numerous years Deloitte China asked clients to select their own samples for testing and to prepare their own audit documentation. From the SEC press release: The Securities and Exchange Commission today charged […]
Warning to Auditors: The PCAOB Is Coming For Dat Ass
PCAOB Chair Erica Williams had some strong words for guardians of capital markets in remarks she made (virtually) at the Council of Institutional Investors (CII) Fall Conference on September 22: “[T]his Board is approaching enforcement with a renewed vigilance.” She said: As our strategic plan makes clear, this Board is approaching enforcement with a renewed […]
Florida Man Accountant Defrauds His Employer for $12 Million, Spent Most of It on Camgirls
Over a period of five years, an accounting manager for the University of South Florida’s University Medical Services Association (UMSA) spent $12,860,744.07 of UMSA money on renovations, travel, yachts, and “women affiliated with an interactive adult website.” He’s now been sentenced to 10 years in prison. Department of Justice: U.S. District Judge William F. Jung […]
Monday Morning Accounting News Brief: KPMG Drama; MBA Beats CPA?; ISO: Managers and Senior Managers | 9.26.22
Why is the Ontario Securities Commission examining Canadian audit firm ethics? Spurred by some critical comments, EY UK chair and managing partner Hywel Ball shares his opinion on the EY split: “Audit quality is going to be better.” KPMG and Deloitte alumni are doing some startup automation stuff. KPMG UAE is still working out some […]
Friday Footnotes: Accounting Salaries on the Rise; PwC Sets a Record; Succession Suggestions? | 9.23.22
Psst! While we have you…get on our newsletter list if you want more headlines like these. And have a good weekend! That’s an order. Salaries Salaries in Finance & Accounting on the Rise as Executives Adapt to Fluctuating Market Pressures, Says New Report [Randstad] According to a new report from Randstad USA, finance and accounting […]
The Pope (Yes, That Pope) Has a Message for Deloitte: People Over Profits
So apparently Pope Francis had a meeting at the Vatican with a roomful of Deloitte consultants yesterday? And in his address, the Holy Father told them business has the power to help suffering people and to help tackle crises worldwide, including the pandemic and war. As if there weren’t enough pressure on people at Big […]
EY Basks in the Glory of Third-Place Revenue (Maybe for the Last Time) in 2022
The Big 4 firm with a split personality officially announced today its fiscal 2022 revenue of $45.4 billion—a figure we knew several weeks ago thanks to the Financial Times. EY has always seemed perfectly fine with being the third biggest accounting firm in the world by revenue, knowing it’ll never catch PwC for second place […]
The IRS Scheduled a Website Outage on September 15, Can’t Figure Out Why People Hate Them
Whose bright idea was this?? Helping a buddy make his estimated tax payment I see this on IRS Direct pay. Seriously IRS?! You chose the submission deadline to run planned outages?! This is a prime example of how inefficient the IRS is. So damn infuriating! pic.twitter.com/ahDpdsPgRN — Albert J. Campo, CPA, MBA (@ajthecpa1226) September 16, […]
Monday Morning Accounting News Brief: PCAOB Arrives in Hong Kong; EY Evaluates Culture; Good Luck Hiring, IRS | 9.19.22
The Wall Street Journal talks about why the IRS is not going to have an easy time recruiting in this market. A review of EY’s practices after a staff member’s suicide will look at “workplace culture, healthy work practices and psychological safety” and be conducted by an external expert. Teams of PCAOB inspectors arrived at […]
Friday Footnotes: Screw the Office; Auditor Sues EY For Doing Her Job; IRS Levels Up | 9.16.22
Big 4 Deloitte plays both sides of the field in Mercedes-Benz case [Australian Financial Review] Mercedes-Benz dealers have discovered long-time auditor Deloitte was banking huge fees from them while secretly working with the German parent company to write reports that would “disguise” the damage a switch in the business model would do to dealers’ profit […]
Would You Take a Pay Cut in Exchange For a 40-Hour Workweek in a Beachside Locale?
Citigroup has launched a new program in which a few dozen young analysts will trade big investment banking salaries for shorter work days in Málaga, Spain, a beautiful city on the southern coast known for its food, culture, and lovely weather. The best part? The analysts might even have some time to enjoy the scenery. […]
EY Might Not Make Buckets of Money From This Split Thing After All
The Wall Street Journal has an article today suggesting that the EY audit/consulting split may not be the big money pay day EY is banking (heh) on. Why? Consulting is a competitive market and the economy isn’t looking so great these days, and EY’s separated consulting biz will not necessarily have the brand recognition in […]
Idiot Who Backdated Work Papers Will Never Work in This Town Again
The PCAOB is busy sniffing out poor audit behavior to remind everyone to be on their game and don’t get caught doing boneheaded things like faking your audit homework because the PCAOB test is tomorrow. Look, the audits don’t have to be perfect. They just have to be performed correctly. Now this guy is permanently […]
Listicle of the Day: The Accounting Firms on Fortune’s 25 Best Large Workplaces in Consulting and Professional Services
Yikes that headline was a mouthful, sorry about that. Anyway, Fortune has released its 25 Best Large Workplaces in Consulting and Professional Services list and you might be surprised to learn that only one Big 4 firm cleared the top ten. Actually you might not be surprised by that at all once you learn the […]
Monday Morning Accounting News Brief: Dissecting the Talent Shortage; Big 4 Culture Kills; Are You Happy? | 9.12.22
A deal announced early this month by House Democrats for years of Donald Trump’s financial records allows his former accounting firm (Mazars) to interpret how to satisfy a congressional subpoena that was narrowed down by a federal appeals court in July, according to a settlement filed late Friday. The Denver Post wrote about the accountant […]
Friday Footnotes: Where the Audit Jobs Are; Big BDO Hires; A New Gig For PwC Alum | 9.9.22
Supply and Demand New York First in Projected Growth of Auditor and Accountant Jobs: Weekly Stat [CFO] Projections on four position categories — accountants and auditors; credit analysts; financial managers; and financial and investment analysts, financial risk specialists, financial specialists, and all others — reveal that despite a global shift in workflow and flexibility, the […]
Accountants Behaving Badly: Egg Accountant Finally Cracked, and Lots of Embezzlement
PLUS: KPMG is accused in a lawsuit of “appalling” audit work that allowed a U.S.-listed Chinese biotechnology company to carry out a “brazen” $400 million accounting fraud. Ex-Hillandale Farms accountant admits to $6.8 million embezzlement scheme [Pittsburgh Post-Gazette] Jonathan Weston, the owner of Katie’s Kandy in Pittsburgh, admitted last month in federal court that he […]
EY HAS BIG NEWS, YOU GUYS
This announcement is the most exciting thing since…uh…yeah, I got nothing. Anyway, the EY split is official. The vote, that is. “EY leaders have reached the decision to move forward with partner votes to separate into two, distinct, multidisciplinary organizations. The next steps include ongoing engagement with partners to provide them with more information in […]
The AICPA Has Written a Strongly-Worded Letter to the Treasury Department on Remote Work (UPDATE)
If you thought the AICPA’s only job is gatekeeping the CPA exam and selling you insurance offers you are WRONG. They also write strongly-worded letters, sometimes on behalf of our nation’s CPAs or, as in the case of this latest letter, on behalf of American taxpayers. Let’s see what they’ve been up to. From the […]
Some Folks at EY Spent Labor Day Working Out the Details of the Audit/Consulting Split
The Wall Street Journal is reporting that the EY split is moving forward thanks in part to the big wigs getting together over the holiday weekend to hammer out the plan. Ernst & Young’s leaders are expected this week to give the green light to splitting its auditing and consulting businesses, paving the way for […]
For a Brief Time This Past Weekend, a PwC Twitter Account Was Promoting Crypto Scams
PwC Venezuela’s Twitter account was hijacked over the weekend and started pumping out links to an obvious crypto scam involving (legit) Ripple and its CEO Brad Garlinghouse. The website the scam tweets linked to — xrpgivtoday — was registered on September 3, 2022. You’ve probably seen similar scams all over Twitter, usually involving Elon Musk […]
Tuesday Morning Accounting News Brief: PwC’s Skepticism Fail; KPMG’s Appalling Work; Marcum Deal Done | 9.6.22
Ed. note: we usually do these headline roundups on Monday but since Monday was a holiday (I know, some of you probably didn’t notice), you’re getting it on Tuesday instead. Welcome to a new work week! YAY! A former accounting specialist for WFYI Public Media in Indianapolis has been charged with conspiracy to commit wire […]
Friday Footnotes: EY Split Drags Out; Advisory Firm Defrauds Clients; Student Loan Forgiveness and Taxes | 9.2.22
Ed. note: Although Going Concern observes Labor Day because our handlers are not monsters, we’ll be back Monday as usual. See you then and have a wonderful weekend (hopefully it’s a three-day one for at least some of you). Firm Watch EY’s talks on potential split to continue into Autumn [City A.M.] EY’s talks on […]
Thank God Accounting Firms Are Still Bragging About Ping-Pong Tables at the Office
The pandemic changed a lot of things, thank goodness it hasn’t impacted the profession’s inexplicable need to brag about their ping-pong tables at every opportunity. From Dallas Morning News: A fast-growing Dallas-based accounting firm is moving its offices in Deep Ellum to a bigger location that’s closer to Fair Park. “To accommodate the growing head […]
PwC Is Still Not Forcing People Back to the Office (Really)
Since last November, PwC has graciously allowed 40,000 client-facing people to choose whether or not they want to be in the office (when they don’t have to be, that is) and as other companies begin an aggressive push to get people to return to office after Labor Day, the firm is reiterating its stance on […]
EY Staffers Feel Left in the Dark After Death of Their Colleague Last Weekend
In the early hours of last Saturday, the body of a 27-year-old woman (note: she was incorrectly identified as 33 in early reports) was found at EY’s Sydney office and since then, questions have been raised about the events of the final hours of her life. Most reports say she went out for drinks with […]
Trump’s Former Accounting Firm Will Finally Hand Over His Financial Records to House Oversight Committee
Announced today, former President Donald Trump and his former accounting firm, Mazars, have officially given up a three-year court battle and the House Committee on Oversight and Reform will finally get to see the financial records they’ve been trying to get since 2019. Mazars will hand over certain financial records and communications from former President Trump […]
Moss Adams Got Sued Because They Kinda Forgot to Tell the Client About an Important COVID Relief Deadline (Allegedly)
Thanks to the tipster who sent this over. The California comedy club that helped launch the careers of such comedy greats as Richard Pryor, Robin Williams, and David Letterman to name a few is suing Moss Adams because they say they missed out on $8.5 million in COVID relief funds thanks to Moss Adams not […]
A 27-Year-Old Woman Working For EY Died at the Office Over the Weekend in Australia (UPDATE)
Ed. note: the earliest reports identified the woman as 33 years old, this has now been corrected to 27 based on new information. Tragic news coming out of Sydney, a 27-year-old woman working for EY died at the office over the weekend. The original Australian report is behind a paywall so we’re getting some details […]
Deloitte Just Lost a Quiet Cybersquatting Dispute With a Privacy-Focused Crypto Company
Have you heard of DYKC? We haven’t. It’s not like it’s our job to know what giant accounting firms are doing across the globe at any given moment. Apparently Penultimate Media Systems hadn’t heard of Deloitte’s “Know Your Customer” services either when they registered DontKYC.com in August 2021. Deloitte decided to stomp that out lest […]
ICYMI: KPMG Is Downsizing Its NYC Digs Big Time
KPMG announced last week it will relocate its headquarters to Two Manhattan West, a new building in Midtown Manhattan’s West Side slated for completion in 2023. The new digs mean a huge 40% reduction in NYC office space, signaling the firm expects hybrid work to persist for the foreseeable future and then some (sorry, Boomers). […]
Monday Morning Accounting News Briefing: PwC India Hiring; CFO Expectations; EY’s Sales Pitch | 8.29.22
“Why aren’t there resources to help those with private loans get forgiveness?” asks a 34-year-old accountant who paid off $100,000 in private student loans. “It’s like I was told that if I went to college I’d be able to get a good job and support myself and family, and that’s just not always true in […]
Friday Footnotes: KPMG Downsizes (Office Space); CPA CPA CPA; Some Good News on Diversity | 8.26.22
Ed. note: apologies to the individual who criticized last week’s Footnotes headline for being too clickbaity and scary, our bad. This week’s consciously informative headline is just for you, buddy. While you’re here, allow us to pester you to sign up for our newsletter to get accounting headlines twice a week. Happy weekend! Big 4 […]
Anyone Looking Forward to a Highly Militarized IRS SWAT Team is Going to Be Sorely Disappointed
Because the IRS SWAT team memes your crazy aunt Kathy is spreading on Facebook are getting out of control, the AICPA has stepped forward to clarify: no, there will not be 87,000 armed IRS agents deployed to bang down the doors of American taxpayers. From the Journal of Accountancy: Reaction to increased funding for IRS […]
There is a GoFundMe for the Wife of Murdered BDO Atlanta Managing Director Wesley Freeman
Wesley Freeman with his wife, Alicia. The Atlanta Journal-Constitution reported today that a GoFundMe campaign has been started for the family of Wesley Freeman, the BDO Atlanta managing director who was shot and killed by his former BDO colleague Raissa Kengne on Aug. 22. Here is a Facebook post from Beth Lee Garner, national practice leader […]
EY Gone Wild? 1200 Rowdy EYers Are Partying Like It’s 1999 in the Netherlands
A tipster has directed us to some news coming out of the Netherlands this week that otherwise would have flown under our radar so thanks for that, tipster. The tip: 1200 Scandinavian employees of EY partying in a beach hotel in the Netherlands. OK that sounds tame enough, how much trouble can 1200 EYers cause? […]
Some Guy Quit His Job at Baker Tilly and Left the City of Palo Alto, CA Without a City Auditor
Here’s one for you. The city of Palo Alto, CA is looking for a new city auditor after its last one, Kyle O’Rourke, resigned from his role at Baker Tilly on August 15. MP Vicki Hellenbrand informed the city about the resignation two days later. O’Rourke, a principal at the firm, has been serving the […]
ATTENTION: There Is Currently a Nationwide Adderall Shortage
This is devastating news for public accounting. Bloomberg: Nearly two-thirds of community pharmacies had trouble ordering the popular attention-deficit/hyperactivity disorder drug Adderall at the end of July and beginning of August, at a time when demand is at all-time highs. The National Community Pharmacists Association surveyed store owners and managers about their experiences purchasing brand […]
PwC Manager is Suing the Firm After He Lost a Chunk of His Skull at a Drunken Work Event
In 2019, PwCer Michael Brockie (UK) was at an after-hours pub golf outing with colleagues when he got blackout drunk and awoke in the street later that night with no memory of the evening. He suffered a life-changing head injury and had to have part of his skull removed, most likely due to a fall […]
Ex-BDO IT Audit Manager Raissa Kengne Charged in Deadly Atlanta Shooting (UPDATE)
[Update at bottom of post with charges filed against Raissa Kengne; internal email from BDO about the shooting.] A woman who was arrested earlier today after allegedly shooting three people, killing two of them, in Midtown Atlanta is reportedly a former audit manager at BDO USA. As of 11:40 p.m. ET, police have yet to […]
Research: The Profession Continues to Have a Gender Diversity Problem at Upper Levels
Though some progress has been made in recent years, women continue to be suspiciously absent at the highest levels of public accounting. This fact has been amplified by new research published in Journal of Accounting and Public Policy. “Gender equity in public accounting: Evidence from single audit partner and director engagement leaders” examines vertical segregation […]
Guidehouse is Buying Grant Thornton’s Public Sector Advisory Practice (UPDATE)
Ed. note: Internal email regarding the acquisition sent to Grant Thornton staff included below. This is a developing story. A tipster reached out to us this morning to let us know the rumor mill is churning over Guidehouse potentially picking up GTPS. “This took some people by surprise when they read about it on Fishbowl,” […]
Monday Morning Accounting News Brief: PwC Auditor Hurt; Deloitte Tops a List; EY Writes the Treasury | 8.22.22
PwC is being sued by a 28-year-old auditor who claims he suffered a serious head injury after attending a work event that involved an “excessive” drinking game of pub golf. The Securities and Exchange Commission is gearing up to fine many of Wall Street’s biggest banks a total of one billion dollars; the banks’ employees […]
Friday Footnotes: EY Partners’ Snazzy Secret Meeting; PwC Talks Layoffs; Merger Mania! | 8.19.22
Ed. note: trying out a little something new for this week’s Footnotes. We’re adding accounting firm mergers & acquisitions to the weekly news as they’re happening with such frequency and regular Footnotes readers will notice the news is now sorted by topic. Neat! Don’t forget to sign up for our newsletter for more headlines, or […]
Here’s the Deck EY Put Together to Sell the Audit/Consulting Split to Staff
Australian Financial Review has published slides shown to EY staff in a July global webcast led by Carmine Di Sibio and in them we learn more about EY’s plan — code-named Project Everest — to split off consulting and audit. First up, the why. “The transformative forces reshaping professional services are evolving at unprecedented speed and […]
Only One Big 4 Firm Made This Top 100 Internship Programs of 2022 List, You’ll Never Guess Who
DEI and Early Talent Recruitment platform provider Yello has released its sixth annual Top 100 Internship Programs List to highlight “companies across all industries who have gone above and beyond for their interns.” This year’s winner is Boeing with the remaining 99 on the list unranked. Companies nominate themselves for consideration and the anonymized judging […]
Shocking News: 82.4% of Hiring Managers Are Struggling to Find Accounting and Finance Talent
What we’re about to share with you shouldn’t be news to anyone and in fact the only news here is that somewhere, 9.1% of public company hiring managers and 14.8% of private company hiring managers are not struggling to find talent. Well that’s what they reported to Deloitte, anyway. Sheryl Estrada writes in Fortune: Deloitte shared […]
Illinois Will Soon Let You Sit for the CPA Exam With 120 Units, Should All States?
“What are they gonna do, stop requiring 150 units? THAT’S CRAZY.” That’s what a stakeholder told me recently when we spoke about the accountant shortage and the growing gap between students getting accounting degrees and recent graduates sitting for the CPA exam. Fewer people are pursuing accounting degrees and the ones that are have been […]
The IRS is So Broke Staff Have to Buy Their Own Paperclips
While we continue to wonder which hat the IRS is going to magically pull 87,000 new agents out of, more stories are coming out about just how tight things are at our nation’s tax collector. Like this recent NBC News article: Will Kohler, who works as a tax examiner at the IRS office in Cincinnati, […]
Monday Morning Accounting News Brief: Yes, There’s Still a Shortage; PwC Probe; Puppers Hate EY | 8.15.22
Since February, 29,500 EY employees have gotten the firm to pay their commuting costs, all dependent care costs and all pet care costs so they can be back in the office, these reimbursements totaled $22 million for the year to EY’s FY year-end in July. The Times Record in Maine writes about the accountant shortage: […]
Friday Footnotes: Crippling Staff Shortages in Consulting; Hold Auditors Accountable; AICPA is Mad | 8.12.22
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Turns Out a Place Called “Accountant ‘R’ Us” Was Not a Legitimate Business at Which to Get Your Taxes Done
A man in Connecticut is accused of taking $373,201 in PPP loans to fund a phony accounting firm: Eric James O’Neil, 57, was arrested Aug. 9 at his Bethel home on an arrest warrant and indictment issued by federal court in Boise, Idaho, where the bank that processed the loan is based. O’Neil formed Accountant […]