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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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. […]

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 […]

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 […]