Good morning! Up and at ’em, it’s another week.
The weekend discussion was about tight-ass firms in Madison offering $15/hr. nO oNe WaNtS tO wOrK!
Cheap firms aren’t news though. Here’s some actual news.
Financial Times dropped a bomb the other day: PwC asks for silence from departing staff in program of UK job cuts
PwC has launched a round of “silent lay-offs” in the UK, with affected staff told they must not inform colleagues why they are leaving and have to follow a “suggested wording” if they want to send goodbye messages.
In guidance sent to affected employees, reviewed by the FT, PwC said: “Should you decide to accept this voluntary offer, it is possible for you to send out a note to a defined group, however this must not refer to the voluntary severance offer or the circumstances of leaving (suggested wording for this note is given below but we recognise that you will naturally want to personalise this).
“Naturally, it must also not be derogatory to PwC or its employees/partners. It is down to business discretion as to when this message can be sent out and if the business wishes to review messages before they are sent out.”
The balls on this firm!
If it makes you feel any better, they’re still getting shit on by the Australian press. Here’s Sydney Morning Herald:
The tax office brawl that almost ended investigation of PwC scandal
The Senate committee that uncovered the PwC tax scandal is due to release its final report this Wednesday, but it will not end the fallout that has already torn the consulting firm in two and sent shockwaves throughout the entire industry.
The tax office now faces fresh scrutiny over allegations it actively attempted to derail the investigation that led to former PwC partner Peter Collins being banned in 2022 for sharing sensitive government tax plans with other partners and potential clients.
The scale of the scandal was revealed in May last year when the Senate committee released a cache of emails revealing the brazen attempt to use confidential government tax plans to cultivate fresh business from notorious corporate tax avoiders like Google and Facebook. This was triggered by queries from Senator Deborah O’Neill.
Fresh concerns were raised last month when government agencies, including the Australian Tax Office (ATO), replied to questions on notice from Senator Barbara Pocock.
It confirmed there was a barrage of actions targeting the Tax Practitioners Board (TPB) and its chief executive, Michael O’Neill, which discovered the damning evidence that was made public via the Senate committee.
Here’s something from the tip box:
Hearing about delayed start dates at BDO 🤨
— Going Concern (@going_concern) June 7, 2024
Last year around this time: Rise Up! BDO USA Is Gonna Double Its Offshore Workforce, Mostly in India
If you have more info, please text or email (tipsters are always anonymous).
Another auditor just gives up on a municipal-adjacent client. This one is Central Basin Water District which serves the southern part of Los Angeles County. They’ve been having some…issues.
An accounting firm hired to audit Central Basin Municipal Water District’s fiscal records threw in the towel last week, claiming it could not finish the job because missing records and “ongoing mismanagement” had undermined the review’s integrity.
In a June 3 resignation letter, Managing Partner Sanwar Harshwal stated auditors “encountered significant internal control deficiencies that demand immediate attention.”
“We have dedicated our efforts to rectify these deficiencies, but their persistence raises significant concerns regarding the reliability and accuracy of the financial information provided to us,” Managing Partner Sanwar Harshwal wrote. “Additionally, the challenges associated with incomplete and insufficient information have obstructed our ability to conduct a thorough and comprehensive audit.”
See also this April 2023 Los Angeles Times piece: ‘Take a seat, bro’; Embattled water agency muzzled critic at public meeting, ACLU says
Meanwhile, in Columbus, Missouri:
The city of Columbus’ delayed audit report for Fiscal Year 2021 is on its way, and the FY2022 report is expected by September.
During the city council’s Tuesday meeting, Accountant Wanda Holley with Watkins, Ward and Stafford – an outside accounting firm that is preparing the city’s audits – told the council the FY2021 report should be ready by the council’s June 18 meeting.
Meanwhile, Chief Financial Officer Jim Brigham said the firm is finishing collecting documents from the city for FY2022 by the end of the month. Brigham said the 2022 report should be available by the end of this fiscal year.
Brigham said the delays in the annual audits were caused by a few things, including previous embezzlement and weak bookkeeping.
In 2020, former city CFO Milton Rawle was arrested on charges of embezzling $288,000 from the city between 2016 to 2018. The missing funds were revealed by the FY2018 audit report.
I’m going to repeat something I’ve been saying for like a year and a half now: there is a big shitstorm brewing in municipalities of all sizes and we are not prepared. A lot of them blame Covid (or the client: EY Gave a Hilarious Excuse For Walking Away From This Awful Municipal Audit Client) but when you put aside the usual government inefficiency, poor bookkeeping, and embezzling, what you have is solid evidence that the accountant shortage is eating away cities from the inside.
It’s going to get much worse.
Deloitte is getting hyped about the Olympics and the International Olympic Committee wrote about it.
What do you think Deloitte can bring to the Olympic Movement?
John Skowron Deloitte’s Vice-Chair for the Olympic and Paralympic Games: “When I think of the IOC’s mission of building a better world through sport, I think about all that that entails. It’s a force for good. It’s a force for inclusion. It’s a force for gender equality in sports. Those characteristics align well to our firm and Deloitte. Being able to bring our capabilities to the Olympic Movement to help support that mission is very exciting to us.”
A video:
EY has appointed a new global Independent Non-Executive and he’s a PCAOB alum.
Today EY announced the appointment of a new EY Global Independent Non-Executive (INE), Duane M. DesParte, who will join the EY Global Governance Council (GGC), effective 1 June 2024.
Duane is a former Board Member of the Public Company Accounting Oversight Board (PCAOB), to which he was appointed by the Securities and Exchange Commission in December 2017, and on which he served through the conclusion of his second term in October 2023. He served as Acting Chair of the PCAOB from June 2021 to January 2022. While at the PCAOB, Duane served as an Officer of the International Forum of Independent Audit Regulators (IFIAR) for four years, including a term as Chair that ended in April 2023.
The GGC advises the EY Global Executive on policies, strategies, and the public interest aspects of its decision-making. The participation of INEs on the GGC plays an essential role in providing diverse perspectives in order to enhance the EY contribution to the stability of capital markets through audit and other services.
KPMG Canada offers ‘The CEO’s guide to AI strategy‘:
CEOs should keep in mind that generative AI isn’t just about personal productivity—such as drafting emails and creating presentations—though that’s where it gets the most attention. Productivity with AI is also about identifying efficiencies for core businesses operations, like machinery, equipment, systems, and resources. In other words, it’s not just about the productivity of people, but the productivity of an organization’s other assets across the entire value chain.
For example, an insurance company might build generative AI into claims processing to reduce fraud, while a manufacturer might use generative AI-enhanced predictive maintenance to boost the life span of equipment and reduce unplanned downtime. At KPMG, we’re building generative AI into our audit methodology to further de-risk audits—such as performing automated matching of cash to revenue using data from client accounting systems—which enhances our overall productivity.
Federal News Network talks about what House GOP is up to:
House Republicans are proposing defunding the IRS’ Direct File platform, which allows households to file their federal tax returns online and for free.
But the House Appropriations Committee released a fiscal 2025 spending bill this week that would cut IRS funding by nearly 18% and zero out funding for Direct File.
The FY 2025 fiscal services and general government appropriations bill would give the IRS a $10.11 billion budget — a $2.2 billion cut from current spending levels. The cuts would be felt mostly by IRS enforcement, which would see a $2 billion cut in funding.
Earlier: The IRS Says F*** You to TurboTax and Makes Direct File a Forever Thing
Looks like that’s all I’ve got for now. As always, I implore you to get in touch if you spot something newsworthy, have inside scoop, or just want to gripe. I don’t mind. Email me directly or hit the tipline at 202-505-8885.
Have a great week, you.
