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November 30, 2022

Friday Footnotes: EY Gets Extra Empathetic; Broke KPMG Partner Sues; Auditor Pay Cuts? | 5.27.22

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Accounting Giant EY Created A Chief Wellbeing Officer To Uplift And Empower Their People [Forbes] EY investing in that empathetic leadership everyone loves so much.

Bankrupt former KPMG partner sues law firm over job loss [Financial Times] A former KPMG partner who went bankrupt after investing in French ski chalets is suing law firm Herbert Smith Freehills for allegedly causing him to lose his job by tipping off the accounting group about his debt problems when he asked for legal advice.

How the path to partner has widened for women, minorities [Journal of Accountancy] The possibilities for women and ethnic minorities are confirmed by their growing representation at the partnership levels, demonstrated in the recently released AICPA Trends report. After many years of work by accounting leaders to improve the diversity, equity, and inclusion (DEI) in the profession, diverse representation at the partner level is growing.

Accounting Firm EY Considers Split of Audit, Advisory Businesses [Wall Street Journal] Big Four accounting firm Ernst & Young is considering a world-wide split of its audit and advisory businesses amid regulatory scrutiny of potential conflicts of interest in the profession, according to people familiar with the matter. A split would be the biggest structural change at a Big Four firm since Arthur Andersen fell apart some 20 years ago.

Splitting auditing and consulting: EY auditors fear a pay cut [eFinancialCareers] Many auditors also aspire to move out of audit and into jobs in the more lucrative consulting arms. While this has never been easy, it will be almost impossible when the two are separate entities. If other members of the Big Four don’t quickly separate the two businesses too, there’s a danger that EY’s audit business will be less attractive to anyone who sees auditing as a stepping-stone to a consulting career.

Exclusive: KPMG to hire 3,500 tech workers to staff newly launched digital products business [City A.M.] KPMG today launched a new digital solutions business which is set to see the firm more than double the size of its 3,000 strong technology focused workforce by hiring 3,500 new data scientists and engineers. The UK arm of the Big Four firm said it plans to create 1,000 London tech jobs, in its efforts to hire 3,500 additional engineers and data scientists over the next three years.

The Great Resignation looks set to continue — 1 in 5 say they’ll change jobs in the next year [CNBC] The Great Resignation is set to continue, according to a new global survey by PwC, with one in five saying they are likely to switch jobs in the next 12 months. PwC launched its “Global Workforce Hopes and Fears Survey 2022” at the World Economic Forum in Davos on Tuesday, which surveyed more than 52,000 workers in 44 countries. The consulting firm said in a press release that higher pay, more job fulfillment and wanting to be “truly themselves” at work are the factors pushing workers to change jobs.

China and U.S. are committed to reach audit deal, Chinese regulator says [Reuters] China and the United States are committed to reach an arrangement on the audit inspection issue that is in line with legal and regulatory requirements for both sides, China’s securities regulator said on Wednesday. The statement from the China Securities Regulatory Commission (CSRC) came in response to a U.S. Securities and Exchange Commission (SEC) official saying “significant issues remain” in reaching a deal over U.S.-listed Chinese company audits.

Supreme Court rejects red states’ bid to block Biden accounting metric [The Hill] The tool in question, known as the “social costs” of greenhouse gases, is a set of values that help the government calculate the climate costs or benefits of its actions.

H&R Block?

FASB to Tackle Rule-Making on Accounting for Environmental Credits [Wall Street Journal] The Financial Accounting Standards Board on Wednesday said it would add the project to the technical agenda featuring its rule-making priorities, which might produce a new rule U.S. companies would need to follow. The board earlier this month added a project on accounting and disclosure for certain digital assets such as bitcoin and Ethereum to its agenda.

Allstate, Assurant Ask for Tweak to Insurance Accounting Rule [Bloomberg Tax] Allstate Insurance Co. and Assurant Inc. want US accounting rulemakers to tweak a part of forthcoming insurance accounting rules so insurers that no longer offer customers long-term policies such as life and annuities don’t get tripped up by the details of following the rules.

It really do be like that:

Accounting Rulemaker Grapples With 10-Q Disclosure Requirements [Bloomberg Law] It was supposed to have been a simple lift: Insert into US accounting rules a concept about disclosures that used to be enshrined in Securities and Exchange Commission regulations. It’s turned out to be more complicated than that, members of the Financial Accounting Standards Board said Wednesday.

Deloitte’s Russian Branch Restarts Operations Under New Brand – Reports [The Moscow Times] Deloitte’s former Russian business, which employs more than 2,000 people across eight cities, will operate independently under the brand name Business Solutions and Technologies, Kommersant reported.

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