Good morning, capital markets servants. Got a little news for you. Gonna be a short one, Friday Footnotes got all the good stories.
In this news brief
Grant Thornton Pay Day
Grant Thornton Australia partners are due a fat payout when the deal with Grant Thornton US goes through, reports Financial Review:
Grant Thornton Australia’s almost 200 partners will vote on a $1 billion buyout by its parent entity, which is likely to deliver an average of $5 million to each of them.
The deal’s value was disclosed by the firm on Monday and was higher than the previously speculated $800 million. It follows board approval to sell the audit and advisory firm to Grant Thornton Advisors; the latter parent entity is majority-owned by the New York-headquartered private equity group New Mountain Capital.
GT Australia reported revenue of $392 million last year.
Does It Really Matter As Long As Someone’s Doing It?
Is the SEC trying to elbow out the PCAOB? That’s the question set up in this Bloomberg Tax piece:
The SEC’s plan to dedicate more staff to investigate audit lapses has triggered fresh uncertainty over the role of the industry’s embattled watchdog.
Through a series of job postings and a few public statements, the US Securities and Exchange Commission has promised to create a specialized unit to put extra power behind its auditor oversight, targeting what one official described as “fundamental” failures.
Investor advocates said they fear the move could hollow out the enforcement capabilities of the Public Company Accounting Oversight Board, which Congress stood up to ensure investors could rely on corporate financial reporting after the collapse of Enron Corp. and WorldCom Inc. in the early 2000s.
The Second Time an Accountant Has Been on TMZ in a Month
Nick Cannon’s accountant was allegedly wild ‘n out and stole a bunch of money:
Nick Cannon’s ex-money manager managed his money, alright — treating Nick’s bank account like his personal piggy bank, and then disappearing with $2 million … according to the feds.
Sources with direct knowledge tell TMZ … Frank Musoke — a former account manager at a high-end Beverly Hills management and tax firm — is accused of spending several years siphoning cash from the “Wild ‘n Out” creator.
The DoJ put out a press release with some more info: Former Account Manager at Beverly Hills Business Management Firm Charged with Embezzling More Than $2 Million from Celebrity Client
From December 2019 to June 2023, Musoke gained unauthorized access to debit cards and the associated personal identification numbers (PINs) connected to Individual A’s business bank account. Without Individual A’s knowledge or consent, Musoke – in breach of his fiduciary duty – fraudulently used Individual A’s debit cards to withdraw approximately $1,733,688 at a bank’s ATMs, spend $165,270 on Amazon purchases, incur $191,543 in personal travel expenses, and spend more than $160,000 on other personal expenses.
And they’re extra mad because he didn’t report these alleged ill-gotten gains as income:
From May 2021 to May 2023, Musoke filed false federal income tax returns in which he failed to report a total of approximately $1,766,367 in income he embezzled through the unauthorized use of debit cards.
They think he’s fled to Uganda.
Andersen Makes a Move in Africa
Speaking of Africa, Andersen has a little foothold there now. We’ve been saying for years to keep your eyes on Africa, that’s where the big firms are headed next. Always nice when our crackpot hunches get a little confirmation:
American business advisory company Andersen Global has launched in Namibia following a merger with Windhoek Taxation and Advisory to form Andersen Namibia.
The launch took place on Friday evening.
One of the world’s largest independent tax and advisory organisations with more than 16,000 professionals across 170 countries worldwide, Andersen Global operates in 450 locations with an 87% global presence and an 89% Africa coverage.
Deloitte Benefit Cuts Still Earning Headlines
New York Times covers Deloitte’s recent benefit cuts:
At least two large companies, Deloitte and Zoom, recently said they were cutting back the level of family leave they offered. At Deloitte, the cuts apply to people in certain administrative roles, and it is also reducing vacation time and eliminating financial support for adoption, surrogacy and I.V.F. for those employees.
The move could particularly affect female workers, analysts said, because paid family leave has been shown to help them stay employed.
Because Deloitte’s cuts are for support staff, as opposed to accountants and consultants, they also target jobs that generally pay less and that are predominantly done by women, noted Joan Williams, founding director of the Equality Action Center at U.C. Law San Francisco.
Although cutbacks to family leave don’t seem to be widespread, it’s part of a larger trend of scaling back from what one human resources publication called the golden age of benefits, at least at certain employers. Cuts have included nice-to-have perks, like laundry or snacks, and policies that helped caregivers juggle family demands and work, like remote work.
Wrapping up here. If you have a tip or story, you are always welcome to reach out via email or text. Tipsters are anonymous blah blah. Have a great week!
