January 27, 2021

News

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

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

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

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

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

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

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

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

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

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

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

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

So How Much Work Did You Actually Get Done Today?

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

Apparently NASBA Offices Narrowly Avoided the Nashville Bombing

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

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

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

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

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

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

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

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

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

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

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

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

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

RIP, Paul Sarbanes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Accountants Behaving Badly: Get a Load of This Clown

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Wirecard Drama of the Day: The Dismantling Has Begun

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Friday Footnotes: EY Orders Mandatory Leave; PwC’s New Cootie App; July 15? | 5.8.20

EY orders consultants to take time off as work slows [Financial Times] EY has ordered consultants whose work has dried up during the pandemic to take the last week of May as annual leave as it attempts to ease a “holiday backlog”. The Big Four accounting firm sent an internal email on Thursday saying consultants […]

Friday Footnotes: About Blockchain; GDPR; Tracking Randoms? | 5.1.20

What Should Your CPA (Really) Know About Blockchain? [Forbes] Taxation, financial reporting and disclosure, and helping to instill confidence, via audits, in valuations of cryptoassets, are at least partially dependent on accountants being able to handle the workload associated with blockchain. Simultaneously there has been debate about what blockchain, and what blockchain as it connects […]

Accountants Behaving Badly: PCAOB Fines CPA, Scammer CPA Pleads Guilty, CPA’s License Suspended

Plus, an accountant from India is accused of spewing hatred, and a Michigan tax preparer allegedly stole more than $400,000 from clients. PCAOB fines CPA firm owner for not playing by the rules [PCAOB] Rizwan Ahmed, owner of Ahmed & Associates CPA P.C. in New York, was fined $10,000 by the PCAOB on April 21 […]

Friday Footnotes: Indirect Rona Impacts; KPMG LOL; Hey, How Ya Holding Up? | 4.24.20

The indirect impacts of COVID-19 on CPA firms [Journal of Accountancy] In this megapost from the JofA, CPAs in all areas of practice across the profession are offered some “what-ifs” related to COVID-19 they may not have considered. Recommended reading for firm leaders. IRS proposes rules for unrelated business income for tax-exempt groups [Accounting Today] […]

[UPDATED] Prometric Extends Site Closures For a Third Time, But There’s a Bright Side For Future CPAs

Ed. note: Updated with 4/23/2020 NASBA statement below So I have a little news on Prometric closures to share with you all, thanks to a tipster who obsessively refreshes the Prometric COVID-19 page each morning in hopes of an update. As we reported on April 15, Prometric announced just days before their planned April 16 […]

Friday Footnotes: EY Takes the L; MNP Hacked; Deloitte’s Super Bot | 4.17.20

EY Must Pay $10.8 Million to Auditor Who Blew Whistle on Refiner [Bloomberg] Ernst & Young must pay $10.8 million to an auditor who blew the whistle on wrongdoing at a Dubai gold refiner in another black eye for the U.K. accounting industry. Former EY partner Amjad Rihan had told the court that the accounting firm […]

Oh Look, There Were More Accounting Class Actions Filed In 2019 Than Ever Before

The big news that came out of last year’s Cornerstone Research report on securities class-action lawsuits involving accounting allegations was that total settlement value reached nearly $4.5 billion in 2018, the second highest total in the past decade. The big news out of this year’s report is that there were a record number of accounting-related […]

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Friday Footnotes: CPAs To the Rona Rescue; ¡Escandalo!; Someone Think of the Students | 4.10.20

COVID-19 Turns CPAs into Emergency Workers [CPA Trendlines] Donny Shimamoto writes: “The impact of COVID-19 on many of our lives will be told for years or decades to come. Through social media, I saw a lot of accountants (because I’m friends with so many of them) express concern for their clients and communities as well. […]

Pay Cut Watch ’20: It’s Not Good Friday at Moss Adams

Normally we start these posts with “and the hits keep coming” or some such thing but we’re rapidly running out of sassy intros so let’s just cut the crap and get straight to the news. We’re hearing from multiple sources this afternoon that Moss Adams has joined the ranks of accounting firms instituting pay cuts […]

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Friday Footnotes: Deloitte Tattled On; PwC Loves Forced Arbitration; Grant Thornton’s Big Choice | 4.3.20

Ernst & Young Says It First Found Accounting Issues at Luckin [Wall Street Journal] EY said it uncovered the problems at China’s Luckin Coffee Inc., which hammered the stock price of the upstart challenger to Starbucks Corp. in the country and cast doubt over a large part of its sales last year. Luckin’s Nasdaq-listed shares […]

Friday Footnotes: EY Takes a Break; KPMG’s Cootie Problem; A New King In Town | 3.27.20

EY Israel puts staff on unpaid leave [Globes] With the spread of the [coronavirus] and the new orders in the matter issued by the Prime Minister’s Office and the Ministry of Health, management has decided on a number of additional steps, including a substantial cut in compensation for all of the firm’s partners and putting […]

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Death of PwC Indonesia Staffer Marks Possible First Big 4 Coronavirus Casualty

Sad news out of Indonesia, as a member of the PwC family has seemingly lost his battle with coronavirus. This is the first suspected COVID-19-related death we are aware of involving an employee of a Big 4 firm. PwC Indonesia Territory Senior Partner Irhoan Tanudiredja released a statement in which the staffer is not named; […]

Tax Preparers Behaving Badly: Getting Barred, Facing Jail Sentence, Doin’ Time

Usually this column is reserved for accountants doing bad things. But this week we are focusing on the worst of the worst tax preparers. Federal court permanently bars former Liberty Tax Service owners from tax preparation business [Justice Department] Steven Doletzky was permanently barred by a federal court in Tampa, FL, from operating a tax […]

Friday Footnotes: KPMG, PwC Have a Rep Problem; CPAs Start Trippin; Eff You, Pay Me | 3.20.20

CPA business executives worried about coronavirus [Accounting Today] CPAs who are also business executives are concerned about the potential global fallout from the coronavirus outbreak, although their outlook on the U.S. economy has risen in recent months, according to a new survey by the American Institute of CPAs. CPAs gather at State Capitol [Edmond Sun] […]

Accountants Behaving Badly: Ex-BDO Puerto Rico MP Charged, Sick Demands, Stealing $365K

Plus, chartered accountant jailed after stealing £86,000, and bankrupt New Zealand accountant sentenced for swindling horse trainers. Ex-Puerto Rico officials charged in corruption probe [Bloomberg] Fernando Scherrer-Caillet, ex-managing partner of BDO Puerto Rico, was one of six people indicted by the U.S. Justice Department on March 11 over allegations of theft, money laundering and wire […]

COVID-19 Is In EY NYC Offices

From the tipline (thanks, tipster!) we have this email that went out to EY staff this afternoon. Last we heard there was a KPMG employee affected in Northern Virginia who visited EY offices but this is new. Dear all Tri-state EY people, There has been a confirmed case of coronavirus (COVID-19) with an EY employee […]

Friday Footnotes: This CPA Just Won the Lotto, Literally; Corona and Recruiting; Ballin’ | 3.13.20

Coronavirus forces EY to go virtual with some student hiring [Financial News] EY, one of the UK’s Big Four accountancy firms, has gone virtual with parts of its student recruitment process in response to the spread of coronavirus. The group, which hired 918 graduates and apprentices in 2019, has switched its in-person EY Experience Days […]

EY UK Selects Old White Guy to Succeed Another Old White Guy As MP

The Financial Times is reporting today that former head of audit Hywel Ball is EY UK’s new managing partner “despite widespread speculation that it would be the first of the Big Four accounting firms to appoint a female leader.” That’ll teach y’all to speculate. Ball, a 35-year veteran of EY, beat out chief operating officer […]

Accountants Behaving Badly: Ex-UAW President Charged with Embezzlement, Not Guilty Plea In Theft Case, Tax Fraud Sentencing

Plus, an accountant in India was arrested for secretly recording videos of women taking baths, and an Oklahoma City accountant was sentenced to 18 months in jail for embezzling more than $175,000 from her former employer. Former UAW President Gary Jones charged in U.S. corruption probe [Reuters] Former United Auto Workers President Gary Jones, who […]

Friday Footnotes: Dementia Hitting Clients; CPA Exam Fee Break?; A Big 4 Shake-Up | 3.6.20

Nearly Half Of CPA Advisors See Dementia In Some Clients [Financial Advisor] Nearly half of CPA financial planners report seeing a client with dementia for the first time ever in the past year, but only 17% of planners say they have created plans for dealing with client incapacitation, a new report says. The AICPA’s Personal […]

Here’s Everything You Need to Know About How Coronavirus Might Affect CPA Exam Testing

Earlier today Bramwell and I were shooting the shit in Slack and both of us wondered why they haven’t just postponed CPA exam testing altogether until this whole coronavirus thing blows over. I mean, I don’t even want to think about the cooties that live at Prometric during normal times, much less during a global […]

The Coronavirus Panic Is a Perfect Opportunity to Discuss Why We Need Better Work-From-Home Policies

So I’ve been sick lately. I never get sick. In fact, I pride myself on this. I imagine it has something to do with the fact that I spent over a decade of my life in San Francisco being exposed to Lord knows what cooties live in BART seats. I am to not getting sick […]

Friday Footnotes: CPAs Take on Climate Change; Tom Hood Goes Off; Operational Separation | 2.28.20

How Regulators and PwC Fooled Reporters—Again [Pro Market] Francine McKenna is on the war path, as usual. CPAs would be happy to help state government plot a strategy to finance education [Baltimore Sun] In which Maryland Association of CPAs CEO Tom Hood throws down in a letter to the editor: “Our opposition is not reactive […]

Accountants Behaving Badly: Jail Time for Filing False Tax Returns, and BDO Malawi Given Stiff Fine

Plus, accountants in India got into trouble for fraud, duping investors, and forgery, while an accountant in Australia was charged for allegedly defrauding a business out of $200,000. Delaware County business owner sentenced to 4+ years in prison for stealing funds from clients, filing false forms with the IRS [Justice Department] Accountant Myles Hannigan was […]

Friday Footnotes: PwC Runs to Supreme Court; Accounting Firm Hacked; CFO Accused of Fraud Shares His Story | 2.21.20

U.S. House Subcommittee Scrutinizes Accounting Rule Maker [Wall Street Journal] The new chairman of the House Committee on Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets is targeting U.S. accounting rules in a move to increase oversight of a U.S. accounting rule maker, despite a potential battle to enact legislation or alter its […]

The Fortune 100 Best Companies to Work For: Plante Moran #21 (2020)

In the early days of Going Concern, when Caleb and Adrienne were expected to post like eight to 10 articles a day, Caleb used to cover the public accounting firms that made the yearly Fortune 100 Best Companies to Work For rankings. Back then, it was the Big 4 and Plante & Moran, and that […]

Accountants Behaving Badly: Ex-Marks Paneth Partner Going to Prison, Duluth Chamber Thief Faces New Charges, Selling Unregistered Securities

Plus, an ex-IT accountant in Tokyo was arrested for allegedly embezzling more than 10 million yen, and a Portuguese accountant is accused of having aided illegal immigration and falsified documents. Prison sentence for $2M Westchester fraud marks former Stamford CPA’s fall from grace [Westfair Online] Steven L. Henning, a former partner-in-charge of a litigation group […]

Friday Footnotes: PwC Loses; Gamers Rise Up Against the IRS; Another Naughty CPA | 2.14.20

Ed. note: Happy Valentine’s Day, kids! If no one loves you, remember I always will. Sort of. ~AG Botham Jean’s Colleagues Pledge To Combat Workplace Racial Violence [BET] “As chief executives and business leaders, we may not have the power to stop tragedies like what happened to Bo from happening again,” wrote PwC Chairman Tim […]

Grover Norquist Is Unimpressed By Your Airline’s Pre-Flight Seat Belt Demonstration

GGN took to Twitter earlier this evening to air his grievances about being shown how to put on an airplane seat belt. On plane. Steward explaining how to attach and open seat belt.Everyone on this plane drove to the airport.In most of the 57 states it is legally required to wear a seatbelt.Thus since we […]

Accountants Behaving Badly: Golf Club Thievery, Ripping Off Nonprofit, Tax Collector Gets Jail Time

Plus, tax preparers from Louisiana, Mississippi, and New York got into some trouble. Former accountant at Somerby Golf Club in southeast MN charged with stealing $450,000 from business [CBS Minnesota] Gordon Craig Perkins, who was in charge of handling the money, expenses, and bills for Somerby Golf Club in Byron, MN, was charged last week […]

Friday Footnotes: Torturing Detainees With Accounting; Deloitte Loves Foreigners; Another CPA Partnership | 2.7.20

Deloitte Top Participant in H-1B Foreign Worker Program—By Far [Bloomberg Law] Deloitte’s use of skilled foreign workers under the H-1B program, which is largely associated with technology companies, is far greater than any other applicant, according to a Bloomberg Law analysis of fiscal year 2019 Department of Labor data. A total of 57,259 H-1B visa […]

RIP Bernard Ebbers, Former WorldCom CEO and Convicted Felon

So, ex-WorldCom CEO Bernie Ebbers died on Sunday at age 78. His death wasn’t a complete shock; I saw recently that he was in ill health and was granted an early release from prison after serving 13 years of his 25-year sentence for securities fraud, conspiracy, and filing false reports with regulators. My mom used […]

Accountants Behaving Badly: Screwing Over the Mennonites and Amish, Exploiting Elderly Clients, Guilty of Conspiracy

Plus, an Indiana accountant gets jail time for wire fraud, and an Arkansas church accountant is in police custody for allegedly stealing more than $70,000. Berks County accountant allegedly victimizes the Mennonite and Amish communities in massive Ponzi scheme [Justice Department] Philip Riehl was charged on Jan. 31 with conspiracy, securities fraud, and wire fraud, […]

Friday Footnotes: Where the CPAs?; Audit Relevance; Here Come the ‘Hackers’ | 1.31.2020

As Tax Season Begins, Hackers Target Tax Pros and CPAs [CPA Practice Advisor] It’s not from the “mob” or street criminals. These criminals are likely sitting behind a desk, glued to computer monitors, chugging energy drinks and developing the most effective ways to steal today’s version of gold. As you know, this bounty is data […]