Please ensure Javascript is enabled for purposes of website accessibility

Footnotes: Independence or Lack Thereof; KPMG to Defend Again; WTF Is FICA IDK | 07.09.14

Danville accountant drowns on vacation in South Carolina [GDR]

Parsippany memory-stick maker PNY accuses California accountant of fraud A suit filed by PNY in U.S. District Court in Newark claims that accounting firm Miller, Kaplan, Arase & Co. LLP falsely claimed that it could act as an "independent third party auditor" that was able to assess the amount owed in royalties by PNY. In fact, Miller Kaplan had a serious conflict of interest in the case, in the form of "significant financial connections" to SanDisk, and couldn't make an impartial estimate, alleges the suit, filed June 30. The connections included the fact that Miller Kaplan was an auditor for a "multimillion-dollar SanDisk retirement fund," the suit claims. []

Australian accountants are having trouble competing with immigrants for work The decision by the Department of Immigration to keep accounting on the skilled occupation immigration list has upset many accountants, who say there aren’t enough jobs, and competition for positions is fierce. [National Review]

KPMG says it will defend Poseidon claim Meanwhile, in Canada: "On Wednesday, law firms Siskinds LLP, Siskinds Desmeules and JSS Barristers announced they would file against KPMG in Ontario, Alberta and Québec, claiming that KPMG was Poseidon’s auditor as it overstated revenues and assets before claiming court protection from creditors. They are seeking $651 million in damages. “Canadian investors rely on gatekeepers — including auditors — to review and opine on the finances of Canadian companies in exchange for substantial fees,” said Dimitri Lascaris, a partner with Siskinds LLP. “When reviews and audits fail to uncover reporting issues, the financial impact on investors can be devastating.” [Calgary Herald]

Fewer than 30% of American teens understand their own paycheck [MW]

New Internal Audit Leadership Designation Unveiled by the IIA [AWeb]

Lois Lerner’s attorney now says former IRS official saved ‘some e-mails’ Lois Lerner’s attorney on Wednesday revised recent comments he made suggesting his client, the former Internal Revenue Service official at the center of the agency’s targeting controversy, did not save any of her e-mails, a fact that would put her in violation of federal record-keeping laws. [Federal Eye via WaPo]

Dumb stoners stole Froot Loops from an elementary school [Gawker]