August 15, 2022

Monday Morning Accounting News Brief: KPMG Doesn’t Care; Audit Partners on Inflation; Record Payouts | 7.11.22

a dog in bed with an alarm clock

KPMG’s global leadership has been accused by staff of failing to act on written complaints about the conduct of the chief executive of the accounting firm’s business in the United Arab Emirates, writes Financial Times. ICYMI: 950 PwC UK partners scored £1m payouts, a first for any Big 4 firm, and The Guardian made sure to point out that despite the record-breaking partner pay, firms have…some issues: The record payments have come despite PwC – like its rivals in the big four, Deloitte, EY and KPMG – receiving repeated censure over standards at its auditing business. The UK watchdog last month issued a £5m fine for failures in its audit of the construction firms Galliford Try and Kier. PwC is also facing investigations by the UK’s Financial Reporting Council into outsourcer Babcock, wound-down Wyelands Bank, collapsed investment firm London Capital and Finance, and Eddie Stobart Logistics. So problematic have been the perceived conflicts of interest between audit and consulting work that EY in May said it was drafting plans to spin off its auditing arm. On the EY split: “It will be able to present itself as more forward-thinking and innovative than its peers and will have the opportunity to shape the post-separation rules of engagement.” Three Canadian accounting firms inspected by the PCAOB had no deficiencies related to an incorrect opinion on the financial statements or internal control over financial reporting (ICFR). Seventy-seven percent of audit partners surveyed by the CAQ believe that because of inflation, their primary sector will raise prices beyond historical trends, including 95% of those focused on consumer products and retail.

Idk who needs to hear this today but…here you go.

@koramusic_ Credit: @masood_boomgaard #donothing #lifecoach #masoodboomgaard #guru ♬ masood_boomgaard – Kora Music

Here’s what we’re working on this week:

  • no one wants to work at your lame office park
  • CPA Evolution is 1 year, 5 months, and 21 days away, TPTB are soliciting comment on 2024 CPA Exam Blueprints
  • finishing up a Cosmo GC quiz: Is It Time to Break Up With Your Accounting Firm?
  • Credentials, who needs ’em
  • why now is a great time to be an accountant in middle America
  • GC’s birthday is coming up, looking back on 13 years of our bullshit

Plus a few things we haven’t gotten to yet: an underpaid Big 4 consultant turned influencer, how to cheat on the CPA exam, updating ancient email etiquette advice, and an open letter to the person who doesn’t hate their Big 4 job.

Oh and here’s some more undersea stress relief. Hope you all have a nice, laid-back, it’s-summer-so-who-gives-a-crap week.

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