September 25, 2022

Friday Footnotes: Grant Thornton Flees; Hunting Down Auditors; Getting Students Hyped About Accounting | 2.4.22

Talent shortage turns audits into tactical issue [CFO Dive] As in other parts of the economy, the auditing field is dealing with a war for talent, driven in part by the rise of remote work, which has opened doors to sought-after accountants looking for opportunities elsewhere. And technology changes have led to accountants getting offers to do new types of work that fit well with their skill sets.

KPMG sued for $1.8 bln over Carillion audits [Reuters] KPMG has been sued for 1.3 billion pounds ($1.77 billion) by the liquidators of Carillion for missing “red flags” during audits of the construction giant, in one of the largest claims against one of the world’s top accountants. Britain’s Official Receiver, part of the Insolvency Service, which is liquidating the former blue-chip group, alleged that negligent failures by KPMG to detect misstatements in the accounts of Carillion – which collapsed in 2018 under 7 billion pounds of debt – cost claimants “extensive loss and damage”.

Grant Thornton U.K. Flees DX Audit Over Governance Probe [Bloomberg Tax] Grant Thornton LLP has resigned as auditor of a London-listed logistics firm over corporate governance concerns, in another case of U.K. auditors fleeing high-risk clients. In a statement Friday, DX Group Plc said that Grant Thornton had resigned because DX gave inaccurate information to an ongoing inquiry into its corporate governance.

​Mixed results for Marcum, RSM in 2020 PCAOB inspections [Compliance Week] RSM, Crowe, Moss Adams, Marcum, and Cohen & Company each had their inspection reports dated Dec. 16, 2021. Of the group, Cohen & Company fared best, with all nine of its audits reviewed returning no deficiencies. Results were less positive for Marcum, which had nine of its 14 audits reviewed flagged for deficiencies.

Five top KPMG and Deloitte Ireland partners quit for new firm [The Irish Times] Five top corporate restructuring partners at KPMG Ireland and Deloitte Ireland have handed in their notice and plan to join forces to set up an Irish operation of UK-based debt restructuring boutique Interpath Advisory, according to sources. KPMG Ireland’s 4,000 staff were told on Friday afternoon that corporate restructuring partners Kieran Wallace and Eamonn Richardson will resign with effect from the end of April 2023. It did not comment on the future plans of the two men.

Spotted on Twitter:

Deloitte ranked as the most valuable “commercial services” brand for 4th year running by Brand Finance [Deloitte] Brand Finance, a leading brand consultancy, has named Deloitte the most valuable “commercial services” brand in the world in its Brand Finance Global 500 2022 ranking – the 4th straight year the Firm has received this accolade.

EY given $14.5m to deliver ‘digital backbone’ of the APS [InnovationAus] Services Australia has handed Ernst & Young a $14.5 million contract to help deliver its GovERP project, making the Big Four consultancy a strategic delivery partner for the project touted as the “digital backbone” of the Australian Public Service. Overdue tender documents published Friday reveal the arrangement has been in place since November last year and will run until at least mid-2023. The service agency said the consultancy would be working widely across the project but declined to say exactly what the outputs of the $14.5 million contract are, how many EY staff would be working on it, or why tender documents were published nearly a month after they are required to under procurement rules.

Ex-KPMG boss Bill Michael resurfaces in new consultancy job after ‘stop moaning’ resignation [Financial News] Former KPMG chair and senior partner Bill Michael has reemerged with a new role at a consultancy, nearly a year on from his abrupt resignation as head of the Big Four firm. Michael is now a strategic adviser at AIM-listed consultancy firm Elixirr, which was founded in 2009 by the former managing partner of Accenture.

You don’t need a detailed explanation of why these were the most popular memes on r/accounting this week:

The Dirt: Regional accounting firm BDO Spokane planning office in Old City Hall building [The Spokesman-Review] BDO is working on new digs in Washington state.

Get students excited about the accounting profession [AICPA Extra Credit newsletter] Accounting isn’t always portrayed in popular media as the most exciting field. “Everyone is walking into my class with their own prejudice about accounting,” said Lyudmyla Krylova, CPA, an accounting lecturer at Texas State University at San Marcos. Stereotypes about accounting can be tough to overcome — even when they’re far from the truth. “I still see a lot of students who don’t really understand the potential of an accounting career,” said Rebecca Bogie, DBA, an accounting instructor at Louisiana State University in Shreveport.

LinkedIn and Facebook best practices for accountants [Accounting Today Voices] Developing a social media presence for your accounting firm can have a sizable impact on your marketing efforts. However, building a sustainable and impactful strategy is an important aspect of making the whole process worthwhile. If you are thinking about undertaking social media management for your own firm, there are a couple of best practices to keep in mind while building a strategy — regardless of the platform you are using.

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