Category: News

Moss Adams Announces Combination with a Non-Grant Thornton Firm

Back in the spring, any chances of a GranMA merger that originally cropped up back in January were put to rest. This was after an impassioned denial by Moss Adams CEO Rick Anderson to his fellow partners.

And maybe all the GranMA talk was just that- talk. But what’s not talk is that Moss is moving into the midwest combination with Overland Park, Kansas-based Warinner, Gesinger & Associates LLC (“WGA”).


WGA focuses on telecommunications clients, which will allow MA to expand its own telecom practice outside the west. WGA principals Bill Warinner and Jarret Rea will join Moss Adams as partners, and Andrew Denzer will join as a director. You want quotes from the particulars? You got it!

“We look forward to helping our clients further strengthen their financial operations,” Warinner said. “This is a challenging time for the telecom industry and we are excited to deepen our telecom practice. In addition, Moss Adams provides a full spectrum of telecom and value-added services that our clients will enjoy.”

For Moss Adams, the combination demonstrates the firm’s commitment to strengthening its telecom offerings and to growing the Moss Adams team. According to Rick Betts, chair of the Moss Adams telecom practice, “Moss Adams is focused on providing premier client service. A strong Moss Adams presence in the Midwest means our telecom clients have more resources at their fingertips.”

So sorry GT, Moss Adams has moved on, officially. Hope you have too.

Drug Testing at Public Accounting Firms Redux

From the mailbag:

Hi Caleb, I have a question about accounting firms in the Mid-West and whether or not drug testing is done pre-employment or on a random basis. I have searched the internet as well as Going Concern and have come up with a 50/50 mix of yes and no. It’s a tough question to find an answer to, and I can’t exactly ask around if you know what I mean. Seems like an appropriate question for Going Concern right?

Thanks,

Worried Man

It is an appropriate question, my fretful friend. Unfortunately, it is one that doesn’t have a definitive answer. Back in my House of Klynveld days in New York I worked on-site at a large investment bank that perilously close an amazing ‘shroom burger. This particular client required a drug test for all on-site contractors. KPMG did not require a drug test and I do not recall if employees were subjected to random testing.

As the headline suggests, we’ve covered this topic before, around this time last year. To my knowledge, no other Big 4 firms require a drug test as a condition of employment but clients are on a case-by-case basis. My suspicion would be that the second tier (i.e. GT, BDO, McG) would not require a test for condition of employment but anything’s possible.

Regionals are probably more of a crapshoot. Generally, it seems rare that a service-oriented business would subject anyone to drug testing since there isn’t any heavy machinery or children (aside from man-babies) around. In fact, we’ve all been privy to those co-workers who seem to be capital market servant rockstars when they’re unusually FOCUSED. Similarly, those that choose to fire up AK-47 after a rough day rather than pop Adderrall in the loo aren’t causing any harm.

My opinion is this – drug testing isn’t necessary for anyone until it starts affecting other people. Of course the policies of these firms are seemingly fluid, so if you’ve been subjected to a test randomly or just to walk in the door, let us know in the comments.

Former Bucknell Accounting Student Accused of Serial Flashing Had a MO That Would Make Most Women Suspicious

Jay Patrick Knaub, the former accounting major from Bucknell University accused of flashing four girls between the ages of 12 and 16, was back in court yesterday with his victims present. CBS21 reports that a few of the charges have been dropped and other charges consolidated but the most surprising thing we learned was that Mr. Knaub’s modus operandi was something that would have most women backing away slowly from the car with their hands in the air.

Each time the Middletown resident and former Bucknell University student would reportedly drive up to the girls and ask for directions. At least twice he’s accused of showing them a map, and then moving that map to expose his genitals. [At least twice he’s accused of showing them a map, and then moving that map to expose his genitals.]

Because of the age of these girls, chances are they’ve never been in the presence of a man admitting to being lost and needing directions since that is something simply doesn’t not happen unless A) he’s being forced to do under duress (e.g. future sex is being withheld) or B) he is not from this planet.

Any woman that has ever been lost with a man, knows that stopping and asking anyone for directions is something that men simply do not have the capacity to do. Accordingly, any man waving them down from a car and saying, “I think I’m lost and need directions,” would have send them running, arms flailing and screaming for the nearest police officer.

Unfortunately, these young girls had to learn this life lesson in a very shocking way and not in the normal course of experiencing the stupidity of men.

Serial flasher faces his victims in court [CBS21]

AICPA Announces Winner Of the Beta Alpha Psi Medal of Inspiration Award

For once, we have a heartwarming story of a person who set her mind to accomplishing a goal in spite of more than her fair share of adversity and challenge. This should shame all of you C students into at least pretending like you are grateful for what you have, at least until next semester.

Last week, the American Institute of Certified Public Accountants announced that Ms. Hefgine G. Fils-Aime, a spring 2011 graduate of the University of South Florida, has been awarded Beta Alpha Psi’s Medal of Inspiration Award. The award, sponsored by the AICPA, is bestowed upon a student who has experienced extreme hardships in his or her life and who has demonstrated an unusually high level of success dy. The award includes a $5,000 cash stipend, which Ms. Fils-Aime plans to use to help continue her education by pursuing a Master’s of Science degree in accountancy at Wake Forest University.

Ms. Fils-Aime’s story is one of overcoming persistent obstacles. In the mid-2000s, her parents sent Fils-Aime and her sister to Florida to live with relatives, fearful that their young daughters were in danger if they remained in Haiti. Then 14-year-old Fils-Amie, a native French and Creole speaker, had to learn English immediately and was enrolled as a junior in high school due to having skipped a grade in Haiti and the differences between the Haitian and American school systems. Fils-Aime graduated high school at age 16 and enrolled in the University of South Florida.

While the other 18 year-olds in the dorms were partying and trying to get her to take that route with them, she chose to remain focused on her education. As if that weren’t challenging enough, her biggest challenge arrived on Jan. 10, 2010, when Haiti was hit with a 7.0 earthquake. It would be days before she knew what happened to her parents and younger brother. Her mother did not survive the earthquake, buried in the rubble of their home when it collapsed. Port-au-Prince was so damaged that she could not fly in to attend her own mother’s funeral. Somehow during all this, she stuck to school and her extra-curricular activities, which included serving as student project support assistant at the Business Systems Reengineering Department, a candidate for Beta Alpha Psi and the Brothers Points coordinator for Alpha Kappa Psi. She attended PwC’s Florida Leadership Adventure in the summer of 2010.

“The winner of this year’s Beta Alpha Psi Medal of Inspiration Award, Hefgine G. Fils-Aime, is a shining example of a person who overcame extreme hardship, and a language barrier in a foreign country, to achieve success,” said Jeannie Patton, AICPA’s vice president of academic and career awareness. “Her dedication, motivation and courage to continue offers inspiration and hope to every one of us who has thought about quitting when the going got tough.”

Fils-Aime was presented the award on Friday at Beta Alpha Psi’s 2011 annual meeting in Denver.

“Hefgine Fils-Aime’s life story is an inspiring one for everyone who is part of Beta Alpha Psi,” said Mary Stone, president, Beta Alpha Psi. “For members, it is a story to remember when life seems overwhelming or unfair. For faculty advisors, forum members, and staff, it is a story to remember when confronted by the media stereotype that today’s students don’t work hard. For all of us, it is reminder that great challenges can be overcome with hard work, perseverance and good humor.”

Fils-Aime graduated with a bachelor’s degree in accounting with an overall GPA of 3.89 in May of 2011 and received a full-time offer from PwC. She was recognized on the College of Business’ top 25 under 25 and had been active in Beta Alpha Psi, Alpha Kappa Psi and Beta Gamma Sigma.

Current BAP students may vote for either themselves or another BAP student who they feel meets the criteria for this award, which is given out annually. There are two criteria whereby students can win. First, they may have experienced extreme hardships in their lives in pursuing their education, and demonstrated an unusually high level of success in spite of that adversity. Or, second, they may have done something particularly inspirational in the course of their young lives that had tremendous impact on someone else’s life. Either path is acceptable. Students are encouraged to participate in the program, not to bring honor or glory to themselves, but to inspire students to want to affect on the world around them in a positive way.

Kiwi Accountants Aren’t That Different From Americans, Rank Work-Life High on the Happiness Scale

According to a new survey by leading finance and accounting recruiter Robert Half, 79 percent of New Zealand finance and accounting professionals rank work-life balance as a number one priority in the workplace. Of those, 86 percent of women rank work-life #1, versus 72 percent of men.

Based on a survey of 426 finance, accounting and banking professionals and hiring managers across New Zealand, the Robert Half Financial Employment Report provides invaluable insights into the hiring intentions, staff retention rates and business confidence of organizations for the second half of 2011.

Two thirds of those surveyed (77 percent) valued “working in an enjoyable environment,” while slightly fewer (69 percent) ranked having a manager they can respect and learn from in the top three benefits most valued to them in the workplace.

Other important benefits were working for a stable company (58 percent) and job security (47 percent).

Only 28 percent of respondents cared about working for a socially responsible company (you don’t say!) while a mere 38 percent valued a short commuting distance and just 40 percent valued access to technology as important in the workplace.

Interestingly, 84% of hiring managers said that they find it challenging to find skilled finance, accounting and banking professionals. The functional area in which they are experiencing the most difficulty in finding skilled staff is accounting which has increased by 22% year on year. To help attract and retain staff, hiring managers indicated they are offering or planning to offer perks such as flexible hours/telecommuting (46%), subsidized training (52%) and additional bonus/loyalty leave (41%).

Now, back to that elusive “work-life” balance. Nearly two thirds (62%) of New Zealand professionals stay connected to work or do work-related tasks when they are on holiday. Nearly two thirds (61%) of New Zealand hiring managers expect their employees to be available to some degree while on annual leave or out of office hours. About half are only expected to be available in the case of an emergency (49%). Of the employers that expect their staff to be available when they are out of the office, over three quarters (79%) expect their senior managers to be ‘on call’, while 60% expect this of their middle management team.

Read the rest of The Robert Half Financial Employment Report here if you’re into surveys.

Former IRS Investigator-cum-Accounting Professor Claims He Took Money from 18 Year-old Prostitute ‘To Protect Her,’ Denies Pimp Status

Accounting professors can be a strange lot. This is known. Whether they’re getting ejected from basketball games, taking off their shirts for money or taking their pants for free, there is no shortage of curious behavior.

Then there’s the story of Kemp Shiffer, who was a part-time professor at the University of Nevada-Reno and IRS investigator. Prof Shiffer was arrested on August 3rd when he collected $400 from a 18 year-old prostitute:

The woman told police that before she began prostituting for Kemp Shiffer, he made her “try out” for the job by performing multiple sex acts on him, according to a probable cause affidavit filed in Reno Justice Court to support his Aug. 3 arrest.

After Shiffer took the money from the 18-year-old Eureka, Calif., woman at the Peppermill Resort Casino Spa just before 10 p.m. Aug. 3, detectives of the regional Street Enforcement Team arrested him.

“He spontaneously stated ‘I am not a pimp. I didn’t collect her money as her pimp. I collected it to protect her,’” according to the affidavit filed last week against the 58-year-old.

Apparently this isn’t Shiffer’s first attempt at “protection” as the Reno Gazette-Journal also reports that he quit the IRS after an investigation into his attempt to use “his authority and his badge to secure women to work as prostitutes for him.”

The reader who pointed us to the story simply had this to say, “And he was my favorite accounting professor when I was in school… who knew?”

Hopefully none of your female classmates.

Records: Retired IRS investigator charged with pandering said ‘I am not a pimp’ [RGJ]

Accounting Student Attempts to Explain How He Wound Up in a Looted Computer Store

Saffron Armstrong tried to explain that he had gone into a looted computer store because he was inquisitive – and a freelance journalist.

This drew sniggers from the press bench, but not from district judge Elizabeth Roscoe, who told him he faced a prison sentence. The 22-year-old pleaded guilty to burglary after being arrested in a PC World store in Colliers Wood, south London, the day after it was hit by looters. The accounting student from Mitcham, who also worked for Marks and Spencer, was remorseful and admitted his intentions had “not been for the best”. [BBC via AWEBUK]

“The Packer Franchise Has Such a Deep History,” The Email Begins

If this doesn’t convince you accountants are important, nothing will:

I noticed this article during a visit back to my hometown of Green Bay. Now this is something I think we all can aspire to. The Packer franchise has such a deep history, and especially interesting as the Packers are the only publicly-owned professional football franchise in the NFL (and maybe the only sports franchise in the US) where you can purchase shares of its stock. Go Pack.

Enjoy:

“Green Bay Packers likely owe existence to treasurer Frank Jonet”

The Green Bay Press-Gazette shares the story of guys with money who stepped up to save a team they loved:

Even casual students of Green Bay Packers history might recognize the names of the local businessmen who played the key roles in keeping the franchise afloat through its economically turbulent first 30 years.

There’s the legendary Curly Lambeau, whose statue sits in front of the Lambeau Field Atrium, and the rest of the “Hungry Five” who made sure the team stayed solvent in its most dire days: Andrew Turnbull, the former Green Bay Press-Gazette publisher and first team president; Lee Joannes, a local grocery wholesaler and team president from 1930-47; Dr. W.W. Kelly, another original franchise officer who doubled as the team’s first physician; and Gerald Clifford, the Packers’ long-time attorney who in 1923 drew up the papers for their one-of-a-kind incorporation.

And what’s early Packers history without mention of George Calhoun, the irascible Press-Gazette sports editor who relentlessly promoted the team after a chance meeting with Lambeau on a Green Bay street corner in 1919 spurred the idea for a local professional football club?

But even experts on the Packers’ early years might not have heard of Frank Jonet, the taciturn, civic-minded accountant who helped steer the franchise through bankruptcy receivership in the mid-1930s and played a key role in the desperate stock sales of 1935 and 1950 that kept the franchise alive.

“I find it strange that (Jonet) wasn’t better known, particularly because he was the financial receiver of the franchise at a time when this team was very, very close to going out of business,” said Bob Harlan, the Packers’ chairman emeritus, who will present Jonet into the team’s hall of fame on Saturday. “The Circuit Court really threatened him, either pay these bills or close up your shop. He was one of the leaders who saw to it that this team continued to exist.”

The entire thing is too long to read even for me and that’s my team but you’re welcome to.

The short version is that the team suffered through multiple financial crises and survived somehow.

When Congressman Dave Camp Says He ‘Doesn’t Want to Rule Anything Out’ He Means Raising Taxes Is Ruled Out

You should know this.

“I don’t want to rule anything in or out,” Rep. Dave Camp (R-Mich.) said, according to Reuters. “I am willing to discuss all issues that might help us reduce our short and long-term debt and grow our economy.”

“Everything is on the table until we as a group rule it out,” added Camp, who is chairman of the tax-writing Ways and Means Committee.

A spokesman for the Ways and Means Committee said Camp’s opposition to raising taxes remains firm.

“Despite a misleading and inaccurate headline that attempts to tell a story when there isn’t one to tell, Chairman Camp’s position on taxes has not changed,” the spokesman said. “When discussing the concept that all potential solutions ought to ‘be on the table’ or that he ‘won’t rule anything in our out,’ he has always emphasized that any potential solution must be looked at through the prism of jobs and whether those proposed solutions would strengthen the economy. Obviously, tax increases wouldn’t make that list.”

Harbin Electric’s Ability to Timely File Financial Statements with the SEC Falls on One Lonely CPA

Today in odd things found in SEC filings, we were pointed to this 10-Q from Harbin Electric, Inc., “a Nevada Corporation, incorporated on July 9, 2003.” However, this gives you a little better idea about what Harbin’s business is:

Through its subsidiaries, the Company designs, develops, engineers, manufactures, sells and services a wide array of electric motors including linear motors, specialty micro-motors, and industrial rotary motors, with focus on innovation, creativity, and value-added products. Products are sold in China and to certain international markets.

There it is! Another reverse merger company operation. Of course, this could be a completely legitimate business that is making money hand over fist but if Roddy Boyd is writing about you, that could be a bad sign. But that’s neither here nor there. One interesting thing we found in the company’s Q is just how much the company depends on their SEC Reporting Manager (I’ve added some italics for emphasis):

We rely on the services of our SEC reporting manager to assist us in researching and resolving certain US GAAP accounting issues and preparing our consolidated financial statements.

We employ an SEC Reporting Manager who is a Certified Public Accountant in the United States to assist our internal accounting and finance personnel in resolving complex US GAAP accounting issues. From time to time we rely on her to conduct research on complex accounting issues relating to US GAAP and to provide advice to the Company as to how to comply with US GAAP. Although our SEC Reporting Manager is not involved in our day to day operations or the management of our accounting functions, she also assists us in our consolidation process and in preparing our consolidated financial statements and footnotes. If we were to lose the services of our SEC Reporting Manager, we would attempt to hire another similarly qualified person to replace her. The loss of the services of our SEC Reporting Manager, in the absence of a qualified replacement, could adversely impact our ability to accurately prepare our consolidated financial statements on a timely basis.

There’s really no way to know who this poor, lonely SEC Reporting Manager is but based on the disclosure, it seems pretty clear that if she were to meet with an unfortunate accident, Harbin would be up shit creek without a paddle (and there’s probably a hole in the boat).

Why, exactly, isn’t there an intern, temp, custodian, someone, ANYONE that serves as the backup QB? This is not immediately known. Perhaps the company broke the piggy bank paying for the reverse merger but it seems prudent that they at least throw in Ms. SEC Reporting Manager’s best girlfriend from high school or something.

Of course if you’re job hunting and have a decent résumé, you could always ring them up.

DeVry Responds To the Keller Guy With “Useless Degree”

I have to give them credit here for monitoring the conversation about their “product” and reacting accordingly by emailing me. DeVry representatives did not demand I remove (especially “Big 4 Veteran”‘s) negative comments about Keller degrees, instead they told me about a program they’ve launched with CareerBuilder to help their graduates find jobs. As far as marketing tactics go, I have to say that’s the adult way to do it.

We’d like to see Hopelessly Frustrated get in touch with them, see what they can offer and then turn around to give us a detailed report of his experience and, more importantly, tell us if he actually gets a job.

Here’s what they had to say:

In March 2011, DeVry University and its Keller Graduate School of Management took competitive job searching to the next level and launched a first-of-its-kind, personalized career services program for its students in conjunction with CareerBuilder, the global leader in human capital solutions. Through the Keller Career Services program, eligible Keller students have access to a dedicated team of career experts – strategists, writers and coaches – for a high-level, personalized approach to career development. This underscores our mission of helping students unlock their full potential and reach their career and life goals.

Eligible Keller students are individually assigned a Career Strategist to mentor them through an intense 90-day career search that encompasses assisting with establishing goals and expectations to customizing a personalized job search strategy. Participating Keller students have access to a Certified Career Coach for live mentorship on various topics such as interviewing techniques, career path planning, networking and workplace etiquette. Additionally, a CareerBuilder professional writer assists these students in the creation of career-related materials, such as keyword-rich resumes and cover letters to help them stand out among job applicants. The new Keller Career Services program also offers eligible Keller students access to a comprehensive online portal with relevant articles, resources and webinars.

I hope we are able to get “Hopelessly Frustrated” signed up for the personalized CareerBuilder coaching. It’s a unique program that we believe will help put our students on the path of career success.

Read more about their career services here.