October 24, 2021

Friday Footnotes: PwC Pays the Poors Less; Deloitte’s New Minis; BDO Brings on Audit Staff | 9.17.21

Malaysia says auditor KPMG to pay $80 million in 1MDB settlement [Reuters] Malaysia said on Thursday audit firm KPMG has agreed to pay a 333 million ringgit ($80.11 million) settlement to resolve all claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012.

PwC reports disability and socio-economic pay gaps [Personnel Today] PwC has published comprehensive pay gap data relating to gender, ethnicity and, for the first time, socio-economic background and disability. The accounting giant’s 2021 diversity report found that its staff – including partners – from a working class background typically received 12.1% less pay than other colleagues. Kevin Ellis, chairman and senior partner of PwC UK, said the time was right to expand on the data it publishes. “Improving access to opportunity and striving towards a society where a person’s career is based on their potential and not their background remains a priority for PwC, and for me personally,” he said. “The key to enacting real and meaningful change is starting with a strong platform of data. We’ve been focused on social mobility for a number of years and, by putting their trust in us through sharing their data, our people are giving us the information we need to take action in areas where it is needed.” [Ed. note: here is the PwC diversity report]

Early Black-owned CPA firms spurred diversity efforts [Journal of Accountancy] Firms established by pioneering Black CPAs decades ago created an indelible legacy within the accounting profession. Built by Black CPAs who succeeded despite adversity, the firms continue to play an important role in the profession’s recruitment and advancement initiatives, and with the clients they serve. Here are a few examples.

Deloitte places largest Mini Electric order in Europe so far [electrive.com] At Deloitte Belgium, the branch that placed the order, one in four new employees opted for an electric company car since June, the firm reports. It ordered another 140 Mini Cooper SE from BMW to meet this demand, bringing the electric Mini fleet to 240. BMW points out that the “eye-catching” green rear-view mirrors in Deloitte colour are particularly popular with new employees.

How Clients’ Expectations of CPAs are Evolving [AccountingWEB] Sage’s recent “Practice of Now” report, which surveyed more than 3,200 accountants around the globe, found that 82 percent of respondents say their clients’ expectations have widened to include the provision of business advice. Simply put, the days of CPAs thriving simply as trusted number crunchers are over. The Society says companies and clients will need and expect their CPAs to proactively provide strategic guidance and insights in all areas of their business based on their unique needs and goals.

BDO hires record number of new trainees to its audit team [City A.M.] The hiring flurry into its audit team follows a damning report by the Financial Reporting Council (FRC) in July which found that a third of large company audits fell short of

FASB Gives Interest-Rate Relief to Private Companies, Nonprofits Renting Assets [Wall Street Journal] The move approved by the U.S. accounting standard setter on Wednesday is aimed at reducing the costs associated with implementing a new leasing standard. The rule, called Topic 842, requires businesses to put operating leases on their balance sheets—instead of in footnote disclosures—and is set to go into effect for private companies and nonprofits early next year.

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