The government, a PwC Australia client, has accused the firm of sharing confidential information about new anti-tax avoidance measures with its corporate customers to win more business in what it has called a major breach of trust.
“We’ve got Treasury looking at an investigation into what has occurred, and looking at whether criminal charges should be referred to the AFP,” Assistant Treasurer and Minister for Financial Services Stephen Jones told the Australian Broadcasting Corp.
Some lawmakers have called for a total ban on granting the auditor more government contracts.
The Irish Examiner understands the consultant team, believed to include 23 staff from PwC, has been paid more than €1m since October last year to work on a “transformation and improvement programme” for CUH and associated hospitals — Mallow, Bantry, St Finbarr’s Rehabilitation Unit, and CUH Wilton — known collectively as the CUH Group.
During those months and throughout this year, patients attending CUH faced some of the longest waits for a hospital bed in the country. The cost of the services so far this year has yet to be released.
In March, some six months after PwC began work, the Irish Nurses and Midwives Organisation warned overcrowding was “out of control” in Cork, with one day seeing 74 patients waiting for a bed.
Russia-linked ransomware syndicate ALPHV/BlackCat claims to have stolen sensitive data from Mazars Group. A post on the gang’s dark web blog says that crooks took over 700 GB of data, including agreements, financial records, and other sensitive information.
Mazars Group is an international professional services provider headquartered in Paris, France. However, the company maintains a global presence, boasting staff exceeding 47,000 professionals and yearly revenue of over $2 billion.
via Cybernews
Mazars did not respond to Cybernews’ request for comment.
EY has extended the tenure of its UK boss Hywel Ball, allowing him to work beyond the firm’s mandatory retirement age of 60 and launch a cull of its executive leadership just weeks after the collapse of a plan to split its global business in two.
Ball’s future had been cast into doubt after his backing of EY’s failed attempt to split its audit and consulting divisions globally. The UK board decided to extend his tenure before the plan, codenamed Project Everest, unravelled last month, people at the firm told the Financial Times.
No idea why this is news but you know what, let’s signal boost it anyway. ‘Grats, Alec.
Widmer Roel hires Alec Tolson as an Audit Associate
Alec Tolson has joined Widmer Roel, a local public accounting and business advisory firm, assisting the audit department. As an Audit Associate at Widmer Roel, Alec provides audit and assurance services to a wide range of clients, with a focus on government entities.
Alec previously worked for a regional accounting firm and has two years of experience.
Tolson is a graduate from Minnesota State University Moorhead where he earned a Bachelor’s in Accounting and a Masters in Accounting and Finance.
Several companies with their feet immersed in the crypto space have targeted the Big Four Audit firms PwC, KPMG, EY and Deloitte for being either unwilling or unequipped to take care of the books of their complex business. In a recent conference in London, Noah Perlman, Binance’s Chief Compliance Officer, said,
“They want nothing more than to work with Binance and other players in the industry. But when they go to their internal risk committees, some of them face obstacles in terms of can they work with us, do they want to work with us.”
However, a recent survey by Bloomberg conflicted the argument. Out of the companies that disclosed details about their current auditor, 46% of them revealed they are working with one of the Big Four companies. Specifically, Bloomberg pointed out,
“Their roster includes the likes of crypto exchanges Coinbase and Bitpanda, stablecoin operator Circle, crypto brokerage Galaxy Digital and blockchain payments firm Ripple — indicating that Big Four firms do have both the desire and the capacity to audit crypto businesses.”
“Clearly, we are at an inflection point in terms of technology evolution and AI in general,” said longtime Deloitte executive Gopal Srinivasan, who helps lead the company’s new Generative AI practice. “Generative AI is pulling forward the entire discipline of AI. Google and Deloitte have been working ahead of several things that are now coming out in public.”
“A lot of the benefit of generative AI is about augmenting human capability and advancing it. So that also requires humans to relearn the way they do things,” said Srinivasan. “These technologies allow you to drive more productivity, but it’s also going to require proactive workforce transformation.”
Deloitte US-India Offices on Sunday announced the opening of three new delivery offices in Pune, Chennai, and Kolkata to serve companies globally. This move is in response to the growing demand for skilled professionals across Deloitte’s advisory businesses.
In the coming year, over 10,000 skilled professionals specialising in various areas such as artificial intelligence, data analytics, cybersecurity, cloud, human capital, assurance, tax, valuations, and mergers & acquisitions will operate from these locations, the firm said in a statement.
The organisation plans to continue to invest in people with a focus on innovative approaches to support learning, digital skills development, and training opportunities, the statement added.
Deloitte recognises the exceptional talent available in India and the increasing opportunities in business services exports. The country’s skilled workforce is being sought after by global organisations for high-end work, highlighting the specialised and nuanced skill sets available.
That’s all I’ve got for now, bit quiet out there today other than the many, many headlines about PwC’s growing troubles on the other side of the equator. If you see anything worth writing about, gimme a shout. Later.
EC proposes mandatory rotation of auditors [Accountancy Age]
“The European Commission is proposing a radical restructure of the audit industry including a multinational regulator, mandatory rotation and caps on advisory fees.
Some proposals, audit to draw up living wills or a detailed “long form report” for regulators or hive off their audit arms, under the measures raised in a new green paper”
18,000 Tagging Errors in XBRL Filings So Far [CFO]
“Companies that have filed data-tagged quarterly and annual reports appear to be handling the task fairly well, even as the overall number of errors continues to pile up.
About 500 of the largest companies were required to use XBRL, or eXtensible Business Reporting Language, to tag data in their financial statements for periods ending on or after June 15, 2009. As of June 15 of this year, approximately 900 more companies had to do so, and the first group of filers additionally had to tag all amounts and tables in their financial-statement footnotes.”
IASB a tightrope walk for Hans Hoogervorst [FT]
“The appointment of Hans Hoogervorst, 54, as chairman of the International Accounting Standards Board raises two big questions
First, does it matter that he is not an accountant? Second, will his elevation lessen the likelihood that the US will adopt the IASB’s IFRS accounting rules in place of its own?
The lack of professional qualifications were not a concern for Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales.
‘I don’t think that it is an issue,’ he said on Tuesday, citing the simultaneous appointment of Ian Mackintosh – a veteran accounting standards-setter with enviable professional credentials – in a supporting role as IASB vice-chairman.”
Some IRS servers down during crucial filing week [AP]
Move along, nothing to see here.
Team Paladino’s Roger a ‘dodger’ [NYP]
“Roger Stone, a key adviser to Republican gubernatorial candidate Carl Paladino, owes Uncle Sam more than $400,000 in unpaid taxes, The Post has found.
The Internal Revenue Service filed a $405,035 lien for unpaid income taxes against the consultant — one of politics’ most notorious dirty tricksters — and his wife, Nydia, last fall in Dade County Circuit Court in Florida, records show.
The debt makes Stone the second high-profile Paladino adviser to run afoul of the taxman. Paladino’s campaign manager, Stone protégé Michael Caputo, recently admitted to a federal tax debt topping $52,000, although he says he’s paid back all but $9,302.”
Rand Paul supports replacing income tax with higher sales tax, eliminating IRS [LCJ]
“Republican U.S. Senate candidate Rand Paul said Tuesday the federal tax code is a ‘disaster,’ and he wants to replace the income tax with a 23 percent sales tax on goods and services.
Paul said he supports changing the federal tax code to get rid of the Internal Revenue Service and would vote to repeal the 16th Amendment that created the federal income tax.
‘The federal tax code is a disaster no one would come up with if we were starting from scratch,’ Paul said in a written statement distributed by an anti-tax group and verified by Paul’s campaign. ‘I support making taxes flatter and simpler. I would vote for the FairTax to get rid of the 16th Amendment, the IRS and a lot of the control the federal government exerts over us.’
Paul refused to answer questions on the issue during a campaign stop in Louisville Tuesday afternoon. At a previous stop in La Grange, he told reporters he’d also like to see the U.S. Department of Education eliminated.”
The Year of Magical Thinking [TaxVox]
“California is just always in a budget mess. Indeed, the state has faced operating shortfalls – or gaps between inflows and outflows – in every year since 2002.
But this year, it would seem that state lawmakers and outgoing Governor Arnold Schwarzenegger have really outdone themselves. They busted through last year’s tardiness record by enacting a budget 100 days into the new fiscal year. Like last year, they balanced the books – but with a combination of spit and polish and pixie dust. “
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