TPTB, in their never-ending quest for world domination, have requested the CPAs out there to answer the following harmless question. Your help is appreciated.
Category: Uncategorized
Jeremy Newman Has Had It
So much so that he wrote a letter. The BDO International Global Coordiation CEO and infrequent blogger sent his letter to the Financial Times today in response to previous letters to the FT that unequivocally placed the blame for the financial apocalypse on accounting rules.
Newman, who strikes as the mild-mannered sort, comes as close to telling all the haters out there, “OH, HELL NO” as one might expect:
Sir, It is unfortunate if people are persuaded that accounting rules are to blame for bad lending decisions and poor investments (Letters, December 29). Banks, and other financial institutions, needed injections of monies from governments (and others) because they lost money and were short of cash – not merely because of accounting issues. Inadequate bad debt provisions, if such was the case, may have resulted in unduly large bonuses being paid but it was not the bonuses that created the cash shortages – it was the poor lending decisions that resulted in such bad debts. Equally, accounting rules did not result in companies overpaying for acquisitions – it was the poor investment decisions that resulted in a decision to overpay.
It’s pretty clear that J. New is sick and tired of everything being blamed on accounting rules and he figured writing a stern (but cordial) letter to the FT was the best way to draw the line in the sand. While that might have some effect, we would invite him to cut loose (read: go completely ape shit) on his blog to tell those IFRS haters what they can do with their pointer fingers. If you want us to read a draft JN, we’re here for you buddy.
Poor business decisions were behind losses [FT]
For Those of You Not Already Walking on Water
Many of you have promised promised promised to stick with your resolutions this year and we think that’s admirable. Personally, we think you’re all fine the way you are but we understand that lots of you are perfectionists.
Whether it’s more appropriate use of work email or actually billing the hours you work, you’ve probably got some resolutions in mind. If we’ve nailed yours below, pull the lever or if you’ve got other ideas on how you’re going to be more kick-ass in 2010, share in the comments.
This Should Catch You Up On 2009
What a great year, amiright? Okaaay, it sucked. Well, let’s just take a moment to get sentimental.
Typically we leave that to the JDA but the least we could do is present you with some of the more popular posts that graced these pages (?) since our launch back in July. This will allow you to get caught up on conversations that you may have missed and add your own dash of wisdom.
• Big 4 Salaries: Open Thread – Surprise, surprise. Our thread about what you’re making from two weeks ago on salaries is the most popular to date.
• IRS Doesn’t Care for Kirk Herbstreit Burning Down His Own House – Back from the launch week, Herbie sued the IRS for disallowing his donation of his home as a charitable deduction. Michigan fans finally have something to cheer.
• Are We Experiencing a Big 4 Exodus? – There was no parting of the Red Sea, just a lot of unhappy people.
• Life After Big 4: Open Thread – It does exist.
• Eating Hours: Are You in Denial? – Well. Are you?
• Is David Beckham PwC’s Answer to Natalie Gulbis? – We came up with the best idea ever to be presented to a Big 4 firm and it remains out there for the taking. On a side note, what qualifies as an athlete seems to be a matter of debate.
• PwC is Thinking About Your Health – For reasons that remain completely unclear, soda — and its side effects — got some people fired up.
• Layoff Watch 2009 – E&Y (November), KPMG (September), KPMG (August), PwC (November).
• The Year of the Freeze (and maybe 2010?) – KPMG; E&Y; PwC but not if Bob Moritz has anything to say about it; Deloitte.
• And the Award for Deloitte Analyst Most Likely to Sleep His Way to the Top Goes To… & Does This Mean We Aren’t Going to Find Out Who’s Sleeping Their Way to Partner? – The awards that could have been…
If we missed something that you enjoyed, feel free to let us know and keep us updated with whatever anything and everything. Thanks for a great 2009 and we’ll see you in 2010.
Are Three Letters Enough for You?
Back when we did our initial survey of you — our brilliant readers — we asked you to share with us the certifications that you boast behind your name.
As you well know, the mother of all certifications for accountants is the CPA. You hear about it in your college courses until graduation and the accounting firms put you under the gun to knock it out so you can make manager witho��������������������this coveted status, Adrienne gives you the latest in CPA exam fodder every week in her >75 column.
After dominating the CPA, your careers mosey along and eventually you may consider obtaining another certification. The motivation for more of the alphabet are many but most likely you’ll want to hold yourself out compared to your slacker co-workers or maybe you’re just obsessed with the notion of having as many letter combinations behind your name as possible.
Some of the more common certifications include:
• Certified Management Accountant (CMA) – Implemented by the Institute of Management Accountants, the IMA states “As many as 85% of accountants today work inside organizations, where expertise in decision support, planning, and control over value-adding operations are crucial elements of operational success.”
• Certified Financial Manager (CFM) – A complement to the CMA, the CFM can be obtained by taking one additional exam in addition to the portions under CMA.
• Certified Fraud Examiner (CFE) – The sexiest certification going. As long as you can keep from soiling yourself.
• Certified Financial Planner (CFP) – Among other requirements, a three part, 10-hour exam is administered three times a year for this certification.
• Certified Internal Auditor (CIA) – The Institute of Internal Auditors issues this global certification that “demonstrate their comprehensive competence and professionalism in the internal auditing field.”
• Certified Information Systems Auditors (CISA) – Sponsored by the ISACA, this is another global certification for information systems, audit, control, and security professionals.
• Chartered Financial Analyst (CFA) – Issued by the CFA Institute. Check out the requirements here.
• Certified Valuation Analyst (CVA) – Issued by the National Association of Certified Valuation Analysts, this certification involves a five day training program and a 40–60 hour exam.
Although the thought of studying and testing for another certification may make you nauseous, it’s worth considering if you’re looking to make yourself a smidge more noticeable than your competition counterparts. Vote in our poll and discuss any thoughts or experiences in the comments.
Your CPA Success Is Paying Peter Olinto Back in Ways He Couldn’t Have Possibly Imagined
There are seven days left in the year decade and, so far, the bean counter that has made the biggest mark in the last ten years for you has been Peter Olinto.
The man that bludgeoned mnemonics into your gray matter day after day, week after week, during the Aughts is taking a commanding lead into the final week of voting.
We’re keeping the poll open until the very last minute so if your candidate is lagging (TF needs to start calling his fellow sweater vest club members) jump back to the poll and make your voice heard.
Is Beckstead & Watts a Real Firm?
We kid, we kid. We’re sure it’s a real firm but they don’t seem to have time for professional services these days.
B&W is the audit firm plaintiff in Free Enterprise Fund and Beckstead and Watts, LLP v. Public Company Accounting Oversight Board that was heard before the SCOTUS earlier this month.
We were pointed to the B&W website which you might notice, is entirely devoted to its case against the PCAOB. As far as we can tell, there isn’t any indication that the firm provides, you know, professional services.
The page does link to the 2006 Accounting Today article that mentions Brad Beckstead as one of the “100 Most Influential People” because he serves as “the symbol of the very opposition to reform the law” but there’s no mention of his superstar auditing abilities.
Even stranger is the firm’s latest PCAOB report which could indicate that the firm is indeed open for business except the report states that the firm doesn’t have any professional staff or issuer audit clients.
So can we assume that the firm’s purpose of being is to serve as the poor audit firm that is taking on the PCAOB? We admire the gusto but what happens when the case is over? Seems like a lot of trouble just for spite.
2006 Top 100 Most Influential People.pdf
Beckstead & Watts PCAOB Report 6.29.09.pdf
Non-Knights Don’t Think Rule Convergence Is All That Important
Not everyone is as hung up on converging U.S. GAAP and IFRS as Sir David Tweedie.
As you may recall, Tweeds delayed his retirement in order to see the rules copulate and bring forth debit and credit harmony.
As admirable as his commitment to the project is, not too many people share his enthusiasm:
A survey by CFA Institute , an international association of more than 16,000 investment professionals, showed that three quarters of respondents believe that improving standards so they are more useful for making investment decisions is “at least as important if not more important” than reducing complexity or convergence.
While respondents generally support convergence, only 6 per cent of those surveyed, including research analysts, portfolio managers, corporate financial analysts and accountants, believe converging the International Accounting Standards Board and its US rival should be the primary objective.
It’s bad enough that Tweeds gets hassled by non-knighted clowns that don’t know a debit from their ass but now there’s a survey out there that says his pet project isn’t that important.
Plus, the SEC doesn’t seem too hung up on it and the FASB has its own problems. Has double-entry chivalry lost all its meaning?
Investors cool on audit convergence [FT]
The FASB Is Still Trying to Get Everyone to Buy into this Codification Thing
Despite your best efforts to resist the new FASB codification as the source for all things GAAP, the FASB is not disheartened. Herz and Co. are cognizant of the desire of many accountants to have reference books on shelves in their offices in order to maintain their double-entry wonk image. In order to feed this natural inclination, the FASB is now offering the codification in a four volume set for the low, low price of $195.
Call us skeptical but this particular attempt by the FASB to get more people on board with the whole codification thing is doomed. DOOMED, we tell you. If they really want to get accountants to buy this stuff it will require a marketing campaign the likes of which Ronco and the Shamwow guy have never seen.
FASB Offers Codification in Four-Volume Set [Compliance Week]
Layoff Watch ’09: Catching up with Crowe Horwath
Earlier this month we told you about layoffs that went down at Crowe Horwath in late November.
We’ve now received additional details that indicate that Crowe has had several rounds of layoffs this past year that started with non-client serving personnel late in 2008 and culminating with the November round.
Our source told us that the second round occurred in spring of this year and at that time, firm leadership communicated that no further layoffs would be necessary. Apparently things didn’t goes as plan as a third round occurred in July that consisted of professionals in the risk consulting practice and many in the Financial Institutions practice that were not chargeable were asked to take sabbaticals. This report of “sabbaticals” is consistent with our report earlier from a source that indicated that “there was a lot of forced time off during the summer.”
It sounds as though Crowe has consistently notified their employees about the layoffs, although our sources have indicated that details (i.e. number of professionals) are always scarce for “morale purposes.” One could assume that since anything after the spring round was not supposed to happen, morale was probably all but wiped out anyway.
The second and third rounds were rumored to be in the nabe of 150 each and our source told us that the third round included many “Executives, Senior Managers, and Managers over 40.” and that “Agreeing to not sue Crowe for age discrimination was part of the Severance Package.” So if you’re 40+ at Crowe it sounds like your best years are behind you or maybe you’re just too damn expensive?
Middle-aged dismissal rumors notwithstanding, Crowe has seen its own exodus, which seems to be the natural progression of things when layoffs reach bodily function regularity.
Crowe Horwath has not responded to our repeated requests for comment.
If you’ve been involved in any of these layoffs at Crowe, or have additional details discuss below, or email us and we’ll continue to keep you updated.
Accenture Is Giving Tiger the Arthur Andersen Treatment
You’ve got to hand it to Accenture, if you’re not the ‘metaphor of high performance’ any more (i.e. a married man with two kids screwing everything that moves), they will make Enron audit workpapers out of you.
After the hammer came down on Sunday, the marketing crew — who spent the last six years making T. Dubs’ mug the mug of Accenture — has some work to do:
By Monday afternoon, Accenture staffers had swept through the company’s New York office and removed any visible Tiger posters. The next day, marketing and communications employees around the world were asked to turn in any remaining Tiger-emblazoned posters and other materials.
Considering the fact that Accenture is one of the remaining derivatives of Arthur Andersen, destroying all this stuff should be a piece of cake (shredder sure but we’re guessing they’ve got an incinerator chute). The best part for them is, they aren’t obstructing justice, they’re maintaining their sterling (?) reputation.
Maybe easier said than done since they spent “$50 million on advertising in the United States last year, and Mr. Woods appeared in 83 percent of the company’s ads.”
They really just need to get someone (anyone!) else in there ASAP to make us sorta forget (but not really) that T Dubs was shilling for them for six years.
Accenture, as if Tiger Woods Were Never There [NYT]
Accountant of the Decade Poll
Picking nominees for Accountant of the Decade was not an easy task and we hope we’ve presented you with some appropriate nominees. If you don’t like the any of them then you should’ve been more vocal during the nomination process.
Or put another way: piss off.
Personally, we would have nominated Stella but we vowed to let the people speak on this matter and not allow our personal preferences to cloud the democratic process.
The nominees are as follows:
Peter Olinto — CPA; JD; Rival of P. Diddy; CPA Exam Maven; Lover of mnemonic devices.
Tim Flynn — Chairman of KPMG; Servant of capital markets; Part-time caddy to Phil Mickelson; Full-time sweater vest buddy to Phil Mickelson.
Tim Gearty — CPA; Infrequent Tweeter; CPA Exam Maven; Kicks it with Bob Herz on boats.
Andy Fastow — Enron CFO; Book cooker; Asshole (so we hear); Inmate #14343-179.
David Friehling — Former partner at Friehling & Horowitz; Bernie Madoff pal; Worst auditor ever; Inmate #TBD.
Now vote.