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Yahoo! Exaggerates Accounting Degree’s Hotness

Adrienne Gonzalez
September 16, 2011

Check out Yahoo! on in-demand degrees, some of you might recognize #3:

Degree #3 – Bachelor’s in Accounting

The curriculum in this hot degree could prepare grads to pursue number-crunching accountant career opportunities. Courses generally cover basic accounting concepts, preparing financial statements, and research of real-life cases, according to the College Board.

Hot Factor: The numbers don’t lie. The Department of Labor projects 22 percent growth in accounting careers between 2008 and 2018. Career opportunities can include everything from working for companies or individual clients, according to the Department, which notes that the averageccountants was $68,960 in May 2010.

Click to Find the Right Accounting Program

If you follow the link to “the right accounting program,” it will take you to an email form so you can be mailed great educational matches for you, apparently.

It appears Yahoo! ran almost the same accounting advertisement before, calling accounting the #2 career built to last, with an average salary earning potential of $67,430.

The BLS says this of accounting’s unusual makeup in its report (keep in mind it was published in May of 2009):

Although accounting, tax preparation, bookkeeping, and payroll services employed a relatively small percentage of all bookkeeping clerks, this was the second largest occupation in the accounting services industry, representing about 11.4 percent of industry employment. (See table 6.) Accountants and auditors was by far the largest occupation in the industry, with 286,110 jobs making up about one-third of industry employment. Tax preparers was the third largest occupation in accounting services, with employment of 61,160. Most of the other large occupations in this industry were office and administrative support occupations.

In that same report, the median salary for bookkeeping, accounting, and auditing clerks was $33,800. Maybe I am reading the statistics wrong but knowing a career has “an average salary earning potential of $67,430” is not the same as hearing that the national average for that career is $33,800. Yes, where you live matters. Yes, your lifetime earning potential is influenced by lots of factors that make you notably non-average, like how hard you try, what skills you pick up along the way, how good you are at playing the game…

Anyway, here’s a snip from the report to see how it all pans out:

I still don’t see how those numbers work out to this being a reason those who are desperate to work should pile into this career option.

Yes, if you are a money-hungry, elite accounting program prick (I’m not berating you, in fact I’m in love with a lot of you, your ruthlessness is hot), you will probably come out of the gate making those $33,800 losers fetch your coffee but average is just that, average.

I find it sort of reckless on the part of Yahoo! to post numbers like this without the context of actual prospects in accounting and the caliber of individual needed to thrive in the sort of environment accounting provides. I say “caliber” with the most seriousness I can muster, I assure you.

Accounting News Roundup: No Criticism for Fair Value in Latest Crisis; Amnesty Program Kicking Ass, Taking Names (and Money); Chuck Woolery, Deficit Hawk | 09.16.11

Caleb Newquist
September 16, 2011

European Bank Blowups Hidden With Shell Games [Bloomberg]
Today many of Europe’s largest financial institutions are seemingly on the brink again, driven by fears of pent-up losses stemming from the sovereign-debt debacle. Only you don’t hear much criticism of fair-value reporting anymore. That’s probably because the accounting mandarins gutted many of their fair-value rules in response to the financial system’s near-meltdown three years ago. This hasn’t made banks safer. It has given politicians and bankers one less culprit to blame, though.

Amnesty Program Yields Millions More in Back Taxes [NYT]
More than 12,000 American taxpayers have voluntarily revealed their secret offshore bank accounts to the Internal Revenue Service as part of the government’s latest tax amnesty program, agency officials said on Thursday. The move will allow the United States Treasury to collect at least half a billion dollars in unpaid taxes. The voluntary disclosure program, which was in effect from February until last week, is part of an initiative to deter tax evasion via offshore bank accounts. Since the I.R.S. began its previous amnesty program in 2009, more than 30,000 taxpayers have reported their secret overseas accounts, and the federal government has collected $2.7 billion in taxes and penalties.

BofA Keeps Countrywide Bankruptcy as Option [Bloomberg]
Bank of America Corp. (BAC), the lender burdened by its Countrywide Financial Corp. takeover, would consider putting the unit into bankruptcy if litigation losses threaten to cripple the parent, said four people with knowledge of the firm’s strategy. The option of seeking court protection exists because the Charlotte, North Carolina-based bank maintained a separate legal identity for the subprime lender after the 2008 acquisition, said the people, who declined to be identified because the plans are private. A filing isn’t imminent and executives recognize the danger that it could backfire by casting doubt on the financial strength of the largest U.S. bank, the people said.

UBS $2 bln loss to trigger investment bank retreat [Reuters]
Swiss bank UBS came under increasing pressure to shrink or sideline its investment bank business — source of a $2 billion rogue trading loss — as ratings agencies warned lax risk management could prompt downgrades. The bank is expected to announce a major restructuring involving the loss of thousands more jobs at an investor day in New York on November 17, the Tages-Anzeiger newspaper said on Friday, as it seeks to reassure private clients.

It’s National Tax Preparer Recruiting Week at Jackson Hewitt [AWEB]
Anyone looking for a new gig?

Chuck Woolery Responds to Warren Buffett [TaxProf]

CPA Exam

Here’s Your CPA Exam Scores Open Thread for the July/August Testing Window

Caleb Newquist
September 16, 2011

BEC scores have been released so it won’t be long until you’re doing a happy dance or sobbing in a bathroom stall.

Either way, it’s your God-given right to react with euphoria or complete rage. Since most places of employment aren’t too keen on streaking through the cube farms or kicking over chairs, we invite you to let loose in the comments. We’ll update this post as the scores are released.

UPDATE: If you took the exam at an international location, NASBA just tweeted out a friendly reminder that you’ll have to wait a bit longer.

UPDATE 2: Yesterday afternoon while I was out playing, NASBA announced they got a boatload of AUD scores. Hopefully this doesn’t ruin your weekend.

UPDATE 3: More BEC scores were released yesterday. At 5 pm on a Friday, no less.

John Boehner Asking Supercomittee for a Small Favor

Caleb Newquist
September 16, 2011

House Speaker John Boehner (R-Ohio) will call on the deficit-reduction supercommittee to lay the foundation for an overhaul of the tax code in a speech to the Economic Club of Washington on Thursday. In an address timed as a response to President Obama’s jobs plan, Boehner plans to restate his opposition to tax increases either to pay for job-creation measures or to reduce the deficit, according to a preview circulated by his office. Yet the Speaker is expected to voice support for closing loopholes as part of broader tax reform, which could include eliminating tax breaks for oil companies and other industries. [OTM/The Hill]

Are the Big 4 Starting to Demand Higher GPAs From New Recruits?

Daniel Braddock
September 16, 2011

Ed. note: Got a question for the career advice brain trust? Email us at advice@goingconcern.com.

Hi GC,

I am a longtime reader of this website and it has never failed me so here I go once more – some Big Four positions just got posted to our school’s résumé submission website here at University of Illinois at Urbana Champaign. PwC internship and full time positions have a minimum required GPA of 3.4 while EY is 3.2 and KPMG is 3.0. Deloitte’s have not been posted. I know our school isn’t the greatest in accounting [Ed. note: huh?]and the public accounting profession pales in comparison to investment banking and management consulting but a 3.4 MINIMUM GPA to apply??

Last year’s minimum GPA was 3.0 to apply which was understandable but this new recruiting team from PwC increased the GPA by 0.4. Do they feel like someone is throwing out GPA points like Bernanke is throwing out dollars? Would it be kosher to change my 3.37 GPA to 3.4/4.0 on my resume to qualify for on campus interviews?

Best,
Drinking Beer in Champaign

Dear DBinC,

I’m always glad to throw a loyal reader some freebie advice. Thanks for checkin’ in with us.

First of all, forget that last year’s GPA requirement was 0.4 points lower; last year is irrelevant. Put your game face on and rise to the challenge.

Yes, absolutely round your 3.37 up to a 3.4. That’s fair game. In fact, this is a non-issue.

Also, take two minutes of your time to figure out what your major-specific GPA is. Should that be higher than the 3.4 cumulative GPA, add it to your résumé as well. There’s no reason that Intro to Woodcarving should hurt your chances of interning with one of the Big 4.

Why are the GPA requirements rising? To weed out résumés, obviously. Why look through 500 when you can whittle things down to 400 by cutting out the bottom? If you fall into this range, beg, borrow, and NETWORK your way to an interview. Circumstances are individual – if you have a story or reason as to why you’re on the cusp, track down the recruiter (not a audit/tax professional) at the career fair and state your case. Hard work can be rewarded in cases like this.

Big 4

You Certainly Can’t Complain About a Lack of Accounting Firms Purporting Mom Friendliness

Caleb Newquist
September 15, 2011

Do you work? Are you a mom? Do you wanna be one? No? Then continue shotgunning 5-hour bombs.

For those of you thinking about juggling tikes and 10-keys, Working Mother hay it’s exactly 100) companies that they think you’re looking for. Hey! and there are even some accounting firms in there, so if you think your current employer will keep you crunching numbersup until your water breaks, you may consider some of these firms.

BDO – “To encourage its employees to use flexible schedules, this accounting and consulting firm has formalized the request process, made sure nearly everyone has laptops that enable remote work and instituted flex training for all.”

Deloitte – “As they pursue their career goals, moms telecommute, ramp up or reduce their workloads, take paid sabbaticals and even go on five-year breaks, all the while maintaining connections to office mentors and freelance work.”

Ernst & Young – “If you’re surrounded by talented people, it makes sense to seek their advice on work life matters, which is what the female employees of this professional services firm often do.”

Grant Thornton – “[Women] earned 32% of all promotions to partner in 2010 (their biggest victory ever) and now fill nearly triple the number of slots they did seven years ago. In the hopes that they will occupy 20% of the partnership by 2015.”

KPMG – “While women earned half of all promotions to manager, senior manager and executive last year, the growth of virtual meetings means they don’t have to stay in the office to be considered top performers.”

McGladrey – “Most every working mom has a vision for her own future—maybe she’d like to get a better degree, rocket up the career ladder, have more kids or just get a little free time. Goals like these are often achieved by women at the accounting, tax and business consulting firm.”

Moss Adams – “Moms-to-be can earn up to $250 through the Beginning Right Maternity Program, which evaluates their health needs, supplies a nurse to counsel them through high-risk pregnancies, and helps them get ready for delivery. When primary caregivers give birth, they may take ten fully paid weeks off; those who adopt earn four fully paid weeks of leave, plus $6,000 in aid.”

PwC – “Working a reduced schedule won’t hurt your career at this audit, tax and advisory services firm: Moms who put in just 20 hours per week still earn full benefits and remain under consideration for top jobs.”

All of the Big 4 snuck into the WM100 top ten which shocks absolutely no one except for maybe Donna Kassman. If BDO, GT, MA, and Mickey G’s get their act together maybe accounting firms will get their very own special Mom list. God, that sounds awful actually.

2011 Working Mother 100 Best Companies [Working Mother]

Look for the IRS on an Upcoming Episode of ‘Hoarders’

Caleb Newquist
September 15, 2011

As of September 2010, the tax agency had 80,606 items in storage, of which 28% — or 22,486 items — had been there for at least a year and a half without being used or moved, according to [a TIGTA] report. Those items took up 34,194 square feet of warehouse space costing about $862,000 in rent annually. [WSJ]

Big 4 Tax Associates Prepared for Sept. 15th Eve All-Nighter with “5-hour Bombs”

Caleb Newquist
September 15, 2011

It’s come to this.

Our immediate concern was that the imbiber would be suffering from a disturbing reaction but he informed us that he has “just about” quit shaking. Good to know, good to know. If you have your own deadline cocktail that may or may not have caused an unexpected visit to the emergency room, we’d invite you to share it with the group at this time. Happy September 15th!

Accounting News Roundup: E&Y’s Ireland Problem; Hollywood Accounting Magic; Groupon Says “Game On” | 09.15.11

Caleb Newquist
September 15, 2011

UBS Hit by $2 Billion in Unauthorized Trades [WSJ]
UBS AG was rocked early Thursday by its disclosure that a rogue trader racked up about $2 billion in losses, an announcement that came hours after British police arrested a man on suspicion of fraud. A person familiar with the matter said the man arrested is Kweku Adoboli, a London-based trader on UBS’s exchange-traded-fund desk in London. British police confirmed that they arrested a 31-year-old man in London on “suspicion of fraud by abuse of position” at 3:30 a.m. Thursday, but declined to name him.

E&Y faces probe on Anglo Irish Bankhref=”http://www.ft.com/intl/cms/s/0/e28c7832-ded4-11e0-a228-00144feabdc0.html#axzz1Y1fs9Tqq” target=”_blank”>FT]
Ernst & Young faces a fresh threat to its reputation after an Irish accounting regulator said it would hold a disciplinary hearing to examine E&Y’s auditing of Anglo Irish Bank, a lender that had to be rescued by the Irish government in 2009. Already contesting a US lawsuit over its vetting of Lehman Brothers’ accounts, E&Y’s handling of the Anglo Irish audit has been challenged in three key areas by a special investigator hired by the Chartered Accountants Regulatory Board. The Irish arm of E&Y on Wednesday said it would defend itself vigorously, saying it “fundamentally disagrees” with the decision to initiate a formal disciplinary process.

SEC officials ‘lawyering up’ [WaPo]
Under intense scrutiny from congressional critics and a probing inspector general, current and former Securities and Exchange Commission officials have been lawyering up, sometimes at their own expense. The practice reflects the highly charged atmosphere at the SEC and one of the costs of government service when investigations can put careers, reputations and more on the line. It goes all the way to the top.

The Last Posting [CEO Insights]
BDO’s Jeremy Newman signs off.

50 Fantastic Accounting Blogs [OAD]
Apparently there are 49 others.

How Hollywood Accounting Can Make a $450 Million Movie ‘Unprofitable’ [Atlantic]
Return of the Jedi, no less.

FAF Group Plans Changes in Accounting Standard-Setting [AT]
A trustee working group at the Financial Accounting Foundation plans to release its proposals in the next few weeks for changing the structure and process of the Financial Accounting Standards Board’s oversight of standards for private companies and nonprofits. Teresa Polley, president and CEO of the Financial Accounting Foundation, which oversees FASB and the Governmental Accounting Standards Board, indicated the proposals for structural changes at FASB should be out by the end of September or early October.

Groupon Back on Track for Its I.P.O. [DealBook]
Groupon is planning to put its initial public offering back on track even as markets remain rocky. After postponing presentations to potential investors early this month, the online coupon giant is now aiming to go public in late October or early November, according to people briefed on the matter. That would mean that Groupon could embark on its investor roadshow by the middle of next month, these people said.

The Serious Questions

Blind Item: Which Accounting Firm Has a Manager Who Recently Scolded a Team of Barnyard Animals?

Caleb Newquist

September 14, 2011

From the mailbag: “The author is a newly appointed manager and a certified d-bag. His email is serious.”

Hi Guys –

It has come to our attention that there are several people making animal noises around the office. I feel it shouldn’t need to be pointed out that this is not appropriate in the office and can be very uncomfortable/awkward for others. Aside from co-workers, we also have prospects, clients, recruits, etc. walking through the halls on a daily basis. Hearing animal sounds made toward each other does not give a good impression of [a firm who, we are told, is “über-sensitive”] and our abilities to those people. It also does not go unnoticed by partners/senior managers/managers.

Please be mindful of those that could be in your audience. Please see me if you have any concerns or questions.

Thanks,

Okay, team. Lots to discuss here aside from guessing the zoo where these beasts work.

1. I alluded to a noise from a cow, pig, chicken, or maybe even a llama but obviously there is room for other possibilities. Macaws? Beluga whales? Howler monkeys?

2. Are these noises mating calls, expressions of joy, or melancholic song?

3. If our barnyard animals guess is accurate, the firm should ask themselves: why would you hire Goat Boys in the first place?

4. If this some kind of involuntary function, how does one handle this appropriately without running aground of diversity issues?

5. Other thoughts, and obviously guesses to the firm, are welcome at this time.

News

Silvercorp Metals Chairman Would Like These Gutless, Anonymous Letter-Writing Short-sellers to Man Up and Show Their Faces

Caleb Newquist

September 14, 2011

A couple of weeks ago, Silvercorp Metals responded to an anonymous letter that alleged that the company was engaged in some dodgy accounting practices. Understandably, the company was irked by this little stunt, responding that it was complete BS and due to some short-sellers trying to take advantage of the rash of sketchy accounting scandals involving companies that have a connection to China.

Now, a second anonymous letter has appeared and the company is again going on a PR offensive to calm everyone down because, really you guys, nothing is fucked here and that these reptiles need to come out and start cooperating with investigators if they’re really concerned about things outside their wallets. And so everyone gets the message loud and clear, this was not delivered by some everyday flak but by the Chairman of the company, Dr. Rui Feng:

“I ask shareholders to exercise common sense in assessing whether these allegations of “fraud” against the Company have any merit whatsoever in the face of very significant revenues, tax payments and dividends, and particularly when the accusations are made anonymously by parties whose only interest is in depressing the Company’s share price. I invite the authors of the anonymous allegations to come out of the shadows and participate with the regulators in their investigations, if their concerns truly extend beyond the profitability of their short positions.”

Furthermore, the company’s independent committee has engaged a KPMG Forensic team to help get to the bottom of this. And they certainly know the traits of fraudsters when they see them. Everyone just chill out.

[via Silvercorp Metals]

PCAOB

PCAOB, Possibly Fed Up with China’s Stonewalling, Goes After Some Low-Hanging Fruit

Caleb Newquist

September 14, 2011

The Public Company Accounting Oversight Board today announced a cooperative agreement with the Financial Supervisory Authority of Norway for the oversight of audit work performed by public accounting firms that practice in the two regulators’ respective jurisdictions. “With this agreement, Norway’s FSA and the PCAOB are joining forces to improve audit quality and protect investors,” said PCAOB Chairman James R. Doty. “I am pleased that the PCAOB is continuing to make progress in overcoming the obstacles that have in the past prevented PCAOB inspections in Europe.” [PCAOB]

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