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November 28, 2022

Monday Morning Accounting News Brief: Firm Sponsors Art Contest; ‘EY Will Sell Advisory Again’; Big Spenders | 11.21.22

a dog in a Thanksgiving turkey hat

“While inflation continues to impact consumers at every turn, they are unwilling to let it dampen the holiday spirit,” said Nick Handrinos, vice chair, Deloitte Consulting LLP, and U.S. retail, wholesale and distribution and consumer products leader. From Jan Bouwens, Professor of Accounting, Amsterdam Business School, University of Amsterdam, The Netherlands to Financial Times: “EY splitting its consulting activities from auditing is the consequence of the EY business model. Audit teams are typically comprised of auditors and consultants. Auditors, on the other hand, join their colleagues in the advisory division to deliver a comprehensive service to their clients seeking advice. While agreements on joining teams are much more easily concluded within a firm than between firms, EY’s global chief executive, Carmine Di Sibio, seems to suggest that the economies incurred by smooth contracting are insufficient to keep advisory and auditing in one firm. EY sold advisory to Capgemini 20 years ago and there is no reason to believe it will do otherwise now. EY advisory will grow and 20 years from now EY will sell advisory again. It’s the business model.” Accounting rulemakers were only just now figuring out what to do with crypto, the FTX collapse has added new complexity — and urgency — to this undertaking. A Northeast Ohio accounting and business advisory firm sponsored a Thanksgiving Art Contest for students in four Northern Ohio elementary schools; students in grades two to four receive awards and prizes for the best drawing and the firm donates $500 to each school’s art program (👍). As the Pentagon racked up its fifth comprehensive audit failure, its chief financial officer on Tuesday said Ukraine’s fight against Russia offers a “teachable moment” for the U.S. military to accurately tally its weapons and property. A 79-year-old accountant has been charged with misappropriating funds from an unnamed New Orleans band: According to charging documents, Alice C. “Shannon” Chabaud is alleged to have illegally accessed Band A’s bank accounts after she was terminated as the band’s accountant in 2015. From the time of her firing in September 2015 until May 2020, she misappropriated $207,607.95 from Band A without band members’ knowledge or permission.

A r/Big4 user asks a serious question:

Oof.

Someone messaged the tipbox over the weekend and told us to go to the Prager Metis site:

Look at their “Digital Assets” industry through the filter, take a look at their first picture and have a good laugh. You’ll know it when you see it.

Prager Metis website

 

Ah yes, how could I miss that.

At the beginning of this year, my former colleague and current sell-out Caleb Newquist spit out some half-baked predictions for the accounting profession in 2022. Let’s revisit these and see if I can get him to commit to pulling some 2023 predictions out of his ass magic hat.

#TaxTwitter is looking for a new home now that it seems Twitter is imploding. Any suggestions? @ us (the irony).

It’s Thanksgiving week which means we’ve got a light posting schedule, I’m going to try to tackle a few things that are scribbled on the many Post-it notes littering my desk. I have this one that says “accountants = bees” that I’m sure will be a banger if I can just remember what the hell I meant when I wrote that down.

YouTube recommended this ancient video to me and I realized how funny it is that a guy who has held the same position since 1995 is talking about how becoming a CPA opened up a world of choices for him.

That’s all I’ve got for now. Give us a shout if you see anything interesting happening this week. And sign up for the newsletter while you’re here, my handlers say I might get Christmas off if I can get some sign-ups. Have a great week, everyone!

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