Comp adjustments are coming out this week/ next week can you start a thread?
As we’ve pointed out in the past, BDO is probably the quietest of the top tier firms. Rarely do we get news of hookers, out-of-control happy hours or milestone awards. Sure, we got under the skin of Jeremy Newman once but he has a blog. He was asking for it.
This omertà of sorts by the rank and file has been discussed amongst the GC team and we’ve come up with this: we’vegotnofuckingidea. Not that we haven’t had the opportunity to report on the consolidation of regions or $5 Starbucks cards but the tips are so few and far between that whenever something about BDO come in, it gets us all sort of excited.
But enough about us. If you’re at BDO and you’ve had your sit-down or you’re waiting and are hearing rumors of raise percentages OR you’re simply doubtful as to Jack Weisbaum’s status as most interesting accounting firm CEO in the world, please tell us below.
Well team, despite the little setback for the PCAOB earlier this week, Team Peek is not discouraged. In fact, they were so motivated by the SEC’s little stunt that they thought they’d churn out three major inspection reports today, just to show everyone that they get to say what’s what with these accounting firms (even if it is in an indecipherable combination of vague and wonky prose).
BDO, Grant Thornton and PwC all got their papers issued today, which leaves just KPMG as the last major U.S. firm to not have their report issued. We’ll give you the quick and dirty on these three but if you want the gory details, you’ll have to read them in depth yourself (some o know). We’ll go in alphabetical order so no one gets bent out of shape.
BDO had eight issuers mentioned in its report. Issues included not testing the underlying data used by a specialist, failure to identify a departure from GAAP before issuing its audit report, loan losses and “[failure] to perform sufficient procedures to evaluate the reasonableness of a significant assumption management used to calculate the gain on the sale of a business,” among others.
GT only had five issuers listed in their report with problems including two instances of departures from GAAP that weren’t identified before the issue of the audit report, testwork related to fair value determination of illiquid assets and testwork around revenue recognition. Steve Chipman got away from the teleprompter long enough to sign the letter to the PCAOB himself, along with Trent Gazzaway, the National Managing Partner of Audit Services.
Nine issuers were noted by the inspectors for P. Dubs. Various issues ranging from inadequate testing of foreign locations, loan loss issues (that’s a given) and fair value (another surprise). PwC’s response made it sound like they actually enjoy the whole inspection process, “We continue to support the PCAOB and we wish to convey our sincere appreciation for the professional efforts of the PCAOB staff.” Wonder if the engagement teams that were inspected feel the same?
From the mailbag: