Going Concern

CPA Exam

Here’s Your CPA Exam Scores Open Thread for the April/May Testing Window

Caleb Newquist
June 22, 2011

If you passed, congrats! If you failed…well, we still love you but you may be hopeless.

Sounds like people are getting anxious for REG scores now, so keep us updated for when NASBA drops the word.

UPDATE:
AUD scores have no been released.

Some IRS Employees Living by the Motto ‘Do as I Say, Not as I Do’

Caleb Newquist
June 21, 2011

There’s no shame in asking for help, IRS employees, if that’s what this is about. Don’t forget that the Commish isn’t too proud to ask for help.

In 2008, the year for which most recent data was available, IRS computer programs flagged compliance issues for more than 8,000 of its 109,469 employees and ultimately determined that almost 2.8% had not complied with the law. But those monitoring systems missed 133 additional employees who were potentially not compliant with tax law over a two-year period, according to the audit. The employees were flagged for potentially filing their tax returns late, paying their taxes late, not reporting all of their income and at least one example of a criminal investigation with an additional tax assessment.

Treasury Report: IRS Must Beef Up Oversight Of Its Own Employees [Dow Jones]

Confidential to Sir David Tweedie: Mary Schapiro Isn’t Hearing Encouraging Words on IFRS

Caleb Newquist
June 21, 2011

Speaking at The Wall Street Journal’s annual CFO Network meeting in Washington D.C., Schapiro readily admitted that there isn’t a big push from either multinationals or shareholders to move to international financial reporting standards.

In response to a question from Bank of America’s CFO, Chuck Noski, Schapiro said, “We have not heard from a lot of shareholders that we have to go (to IFRS). We’ve heard the contrary… ‘Why would we take this step toward international accounting standards?’” [CFOJ]

Audit
PCAOB

Here Are the PCAOB’s Ideas for Changes to the Auditor’s Report

Caleb Newquist
June 21, 2011

Now before you get all worked up about these, the Board is inviting everyone to throw out comments before September 30th, make other suggestions and participate in a roundtable during the third quarter in case you are inclined to heckle them for making your life more difficult. Anyway, here’s what they’ve got:

• An auditor’s discussion and analysis;
• Required and expanded use of emphasis paragraphs;
• Auditor assurance on other information outside the financial statements; and,
• Clarification of language in the standard auditor’s report.

These are just suggestions mind you, so if you’ve got something better in mind, feel free to share below.

Fact Sheet

Debunked Rumor of the Morning: PwC Is Rescinding Offers

Caleb Newquist
June 21, 2011

Adrienne, who is hidden away in an undisclosed location (read: Boston) was tipped off last night with the following and forwarded it on to me:

Rumor has it that PWC rescinded offers for September 2011 hires. I went to GC to read the inside scoop but didn’t see anything. Maybe this is a totally false rumor or a lead….

Answer: Totally false rumor.

Yes, believe it or not, we happily debunk rumors around here when possible. Of course this can only occur when people with the means to help us discredit the rumors are cooperative. We spoke to someone in the know at PwC who informed us that not only is this rumor false, P. Dubs is asking some of their new advisory hires to start in July because there is so much work. Now, it’s possible that there are a few isolated incidents where someone’s name shows up in the police blotter and an offer may get pulled but our source says there haven’t been any reports of those and definitely nothing “systemic.”

Of course if you’ve got evidence to the contrary, we’d welcome you to get in touch with us and good luck to those who choose to end their summers/lives two months early.

CPA Exam

Studying for the CPA Exam Goes Mobile

Adrienne Gonzalez
June 21, 2011

There’s a new mobile CPA exam study tool out there, and for once it isn’t direct from one of the major CPA review players. In fact, it’s designed by a former CPA exam candidate:

Studying for the CPA (Certified Public Accountancy) Exam just got a little easier as company CPAGoMobile recently released an app for the iPhone. The app allows users to build customizable practice tests drawing from a pool of over 1,000 multiple choice questions. Candidates have the options to target specific topics, choose question types, and analyze their progress reports to decide what to study next.

CPAGoMobile joins the ever widening landscape of educational apps geared towards professional licensure and examinations. Apps for the SAT, GMAT, Bar, and MCAT exams have given an injection of flexibility into candidates’ study routines by allowing them to study anytime and anywhere.

“When I was studying for the exam and working full time, commuting back and forth with a backpack full of textbooks was not fun. After finishing the exam, I looked at the stack of books and thought: there must be a better way,“ said Chris Armstrong, founder of CPAGoMobile. “Passing the CPA Exam is a difficult undertaking on its own, so any opportunity to make studying more manageable and efficient should be grabbed with both hands. Sure, there will always be a place for more traditional study methods, like books and notes, but I think these types of apps represent the next logical evolution on how we study and I’m excited to be a part of it.”

Download the new app for iPhone, iPod Touch or iPad via iTunes here. Questions will run you about 8 cents a piece (the app itself is free to try) if you average out the $19.99 cost for each section.

Please note that the app does not contain IFRS material yet, but the developers have promised they will integrate new material in their next update.

The app is not intended to replace a full, comprehensive review but meant to serve as a useful supplement to your regular study routine that is accessible anywhere you might find yourself.

Accounting News Roundup: Miserable Workers Not Quitting Their Jobs; COSO 2.0; Japanese Want More Time for IFRS Switch | 06.21.11

Caleb Newquist
June 21, 2011

Unhappy Workers Stay In Current Jobs, for Now [WSJ]
Only 1.4% of employees voluntarily left their jobs in April, the most recent month for which data are available, down from seasonally adjusted monthly rates of more than 2% before the recession started, according to the U.S. Department of Labor. Overall, voluntary turnover is still nearly at its lowest point since the Labor Department began to track it in 2000.

Merck Can’t Recoup $473 Million in U.S. Taxes, Court Rules [Bloomlough argued that funds it received as the result of two interest-rate swap transactions weren’t taxable as proceeds of loans from foreign subsidiaries and that the company was being treated unfairly by the IRS, which hadn’t demanded the same taxes from other companies that were in similar situations. U.S. District Judge Katharine Hayden ruled after a five- week non-jury trial in 2008 that Schering-Plough failed to prove it deserved a refund, and in April 2010 she denied the company’s request for a new trial. The U.S. Court of Appeals in Philadelphia upheld Hayden’s ruling today, saying the transactions were loans and that the IRS may treat taxpayers differently.

A Reboot for Internal Controls [CFO Journal]
A group of accountants and corporate executives met in New York on Monday to hash out some of the details of a proposed update to the nearly twenty-year-old internal control framework created by the Committee of Sponsoring Organizations (COSO). The reboot is expected to add in controls for information technology commonly used in business operations today, such as email and automated work processes, as well as address more theoretical issues, like how risk management and internal controls should work together. The update will also incorporate newer ideas about governance to better define the current role and responsibilities of audit and compensation committees.

Thomson Reuters Acquires CorpSmart From Deloitte [MW]
CorpSmart provides multinational corporations (MNCs) in South Africa with intelligent corporate tax compliance software. Using this web-based solution, MNCs are able to prepare monthly, quarterly and annual income tax computations as well as file South African IT14 tax returns.

Mandatory Auditor Rotation — Further Thoughts on PCAOB Chairman Doty’s Bad Idea [Re:Balance]
Jim Peterson continues to pick apart rotation.

Insurers fear volatility of IFRS ‘black hole’ [Accountancy Age]
Insurers have met to discuss fears surrounding the possible impact of phase II of International Financial Reporting Standards, saying the move “would introduce very significant but really meaningless volatility.”

Fraud at senior management level is highlighted in KPMG report [Guardian]
When it comes to “white collar” crime, finance directors, chief executives and other senior management are far more likely to be involved in fraud – such as the mis-statement of financial results, theft and expense abuse – than junior staff. The economic downturn has also made it a lot easier to commit fraud, according to research by KPMG, which warned that scams go undetected for longer.

Japanese manufacturers ‘need more time’ for IFRS switch [Accountancy Age]
The Japanese Financial Services Agency and Financial Accounting Standards Federation initially proposed a three-year switch over period, after which use of IFRS would become mandatory for listed companies. They argued holding off on IFRS adoption would make Japanese companies look guilty of failure to disclose adequate information at a time when many other countries were switching. However, last month 22 companies and organisations – including heavyweights Mitsubishi, Nippon and Toyota – wrote to the head of the FSA asking for more time, and describing the change over as “a significant burden.”

News

Layoff Watch ’11: ‘The Bloodbath Is Definitely Over’ for Accounting Profession

Caleb Newquist
June 21, 2011

Nationally, after three consecutive years of declines, CPA firms “finally” are projecting positive growth between 3% and 4%, said Allan D. Koltin, CEO of Koltin Consulting Group, a Chicago firm that specializes in the accounting profession. The industry had enjoyed enormous growth and enormous hiring between 2003 and 2007, Mr. Koltin said, but the recession year of 2008 ushered in a dark chapter.

Many firms instituted hiring freezes and made cuts. Most of the 100 largest firms let go of anywhere from 10% to as many as 20% of their accountants, he said. “It probably was the worst bloodbath of layoffs that the accounting profession has had in well over a couple decades,” Mr. Koltin said. “The bloodbath is definitely over. Firms all over the country, Cleveland and everywhere, for the first time are doing serious hiring after a serious drought.” [Crain’s]

News

Lawrence O’Donnell Is Practically Giddy Over Ethanol Tax Credit Repeal, Suggests That ATR’s Taxpayer Protection Pledge is Meaningless

Caleb Newquist
June 21, 2011

This aired last last week after the Senate voted to repeal tax credits for the ethanol industry and you tell that LO’D can barely contain his glee over the result.

Visit msnbc.com for breaking news, world news, and news about the economy

ATR is characterizing this as a three-way makeout session between Coburn, O’Donnell and Reich so they do appear be getting a tad defensive.

[via ATR]

Career Center

Aspiring KPMG Manager Needs Help Defecting to Another Big 4 Firm

Caleb Newquist
June 20, 2011

Welcome to another round of Accounting Career Emergencies (aka: “Decide My Life For Me: GC Edition”). Today we have a KPMG Senior Associate who badly wants to make manager except for the small matter of not being able to stand her client, manager, partner and basically everything else. Jumping over to another Big 4 firm is an option but how does one convince them that you’re worthy of the new stomping grounds.

Looking for an extra edge? Concerned that your performance isn’t up to snuff and need a contingency plan? Working in an environment that makes you uncomfortable? Email us at advice@goingconcern.com and we’ll try to explain how poles and porn fit into “team building.”

Back to our Benedict Arnold du jour:

Hello dear friends at GC,

I am beginning my fourth year with audit at KPMG and would like to make it to Manager, if for no other reason than the title’s weight on the résumé. If I were to stay with KPMG and made manager in the average time frame, I would be here for another two years. To be frank, I can’t stand my client, manager, or partner and want nothing more than to quit tomorrow; I’ve already spoken to my PML (direct supervisor, basically), but there really isn’t an option for me to get out of working on this client and or this team any time soon.

My job is ok when I’m working on other clients, but this engagement is so terrible that I’m not sure I’m willing to stick it out long enough to get to my other clients. Like so many others, my primary goal is to make it to Manager at a Big 4 (have no idea if I will stay after I do, but that’s the goal at this point). There are needs for audit seniors at the other Big 4 firms in the city, and I’m thinking about jumping ship to another one. If I do this, I figure I’ll at least get a fresh start and shake things up a bit, while still working towards my Big 4 Manager goal.

So here’s the question: how do I convince another Big 4 firm to hire me? Also, if I were to get hired by the like of DT, E&Y, or PWC, could I feasibly expect to make Manager within two years? I have my CPA out of the way, so that shouldn’t be a big factor…

Help me, Going Concern. You’re my only hope.

-Big4FlipFlops

Dear Big 4 Flip Flops,

Your problem is easy, ring up PwC. They picking off KPMG people like a WWII sniper. But seriously, I’m a little perplexed by your question. When you go into an interview with any potential employer, how do you convince them to hire you? You research the company. You smile big and are ready to talk about things other than work. You discuss your accomplishments at KPMG, you play up your strengths, admit that you’re working on your weaknesses but ultimately, that you’re bringing A-1 talent to this organization and they’d DAMN FOOLS to pass up the opportunity to hire you. There will probably be a curveball question or two in the interview and those may help/hurt your chances but it’ll be a pretty standard interview.

As for your promotion timeline, I think you can safely ask your potential new firm about that without fearing any repercussions. If you adjust to the new firm quickly (e.g. new methodologies, navigating political waters) and are a performer there’s no reason you shouldn’t be considered for a promotion in another two years. Good luck and may the Force be with you.

Did Anthony Weiner Pump Up His Itemized Deductions?

Caleb Newquist
June 20, 2011

The Post reports that Anthony Weiner’s “2010 tax return shows he took $40,521 in unspecified itemized deductions on an income of $156,117.”

It quotes “Manhattan CPA” Jonathan Medows as saying “It’s definitely a very large deduction,” and “[they] appeared to include more than the standard writeoffs for state and local taxes and Weiner’s mortgage.” If you were to guess to where the “unspecified itemized deductions” of $40k were located, they are probably included on line 28 of Schedule A for “Other Miscellaneous Deductions.” Of course what exactly the deductions are, is a mystery. But if you’ve got some ideas, we’d love to hear them. [NYP]

Grant Thornton

Chili Cook-offs, Thank You Notes Probably Keep Grant Thornton IT Team From Sabotaging the Whole Firm

Caleb Newquist
June 20, 2011

As we know, your information technology teams can be what holds things together at your firm in times of strife. If you’re good to these people, they’re good to you. And if you treat them poorly, well…good luck to you.

Grant Thornton has been recognized as one of Computerworld’s best places for IT professionals to work, the only accounting firm on the list. It’s a typical ranking with the general buzzword descriptions along with examples of why you should be hella-jealous that you don’t work there. For the IT gang at GT, not only do they get to show off their culinary talents at “annual chili cook-offs and dessert competitions” but when they go above and beyond the call of duty, there seems to be a Hallmark system in place.

To encourage employees to thank their co-workers and recognize a job well done, the IT department developed a way to voluntarily track the sending and receiving of thank-you notes. The names of both senders and recipients are submitted for drawings in which the winners receive a gift cards.

What’s not entirely clear is if these “thank-yous” are inspired by Stephen Chipman’s past communications or if was simply another way that the IT team was able to avoid human contact. Either way, it sounds like they enjoy a decent gig at the Purple Rose of Cairo and that will keep anything catastrophic from happening.

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