When accounting goes unaccounted for
We’re told from multiple sources that BDO has begun layoffs in audit today, don’t have numbers for you at this time but are actively trying to hunt down more details. It’s likely there will be another batch of layoffs in tax post 10/15 but not confirmed. No word on advisory.
That’s about all the information we have right now. If you have more, text or email (anonymous, always).
Earlier and definitely related:
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?
People who know, know BDO … just L-O-V-E-S poaching the Big 4, especially in Canada. […]
People who know, know BDO USA has had some of the suckiest audit inspection reports […]
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This firm is the unchallenged leader of audit failure reporting for the PCAOB. Maybe it is coming to haunt them now? Interesting graduates continue to join this firm in audit as they’re just unaware.
They do an unbelievably good job of selling the ESOP while on campus.
BDO is trash
That ESOP interest rate strikes again!
Some layoffs have already come and there are some high performers on the list. Those are being let go due to differences in thoughts on success in remediating products and National making their choices on who they believe should be axed. The cultural change ant BDO over the past 10 years is sad. It’s not the company I started with and definitely isn’t the company I work for anymore.