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Layoff Watch ’26: KPMG Cuts 4% From Consulting

We've got another RIF at KPMG, a consulting cull that went down yesterday (that's Wednesday the 29th for those of you reading this a week from now). Let's start with…

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The Department of War Broke Up with KPMG, KPMG Gives Up Federal Audits Altogether

The other day -- and by the other day we mean like more than a week ago -- we received a text on the tipline that read "KPMG US to…

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KPMG Shoves 10% of Its Audit Partners Out the Door

We're sure you've seen this FT headline floating around today: KPMG to axe 10% of US audit partners. And if you, like most denizens of the internet these days, read…

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PwC Tells Remote Tax Staff to Get Their Butts Into the Office

So much for PwC letting all their people work remotely forever. Remember when that got headlines five years ago? See: PwC Just Announced That You Never Have To Go Back…

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KPMG Plans to Hand Routine Testing Off to AI

Did you happen to see this WSJ article from the other day? In "In This Critical Part of Audits, the Accountant’s Role Is Shrinking Fast," we're given a look into…

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News

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Private Equity Took a Big Bite Out of Grant Thornton UK Profits

While partners at Grant Thornton Australia prepare for a windfall of $5 million each after their deal with New Mountain Capital-backed Grant Thornton US goes through, things are going down…

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Monday Morning Accounting News Brief: Big Payout for Grant Thornton; Is the SEC Elbowing Out the PCAOB? | 5.11.26

Good morning, capital markets servants. Got a little news for you. Gonna be a short one, Friday Footnotes got all the good stories. In this news briefGrant Thornton Pay DayDoes…

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Friday Footnotes: KPMG Staff Not Happy With How Layoffs Were Handled; SEC Says PCAOB Should Toss Independence Rules | 5.8.26

Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you're here, subscribe to our newsletter to…

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In a Final Rule, Dept of Education Is Unswayed By the AICPA’s Strongly Worded Letters About the Meaning of Words

In the final ruling of a game of semantics that really chapped the AICPA's ass, accounting has not earned a place on the Department of Education list of "professional" degrees.…

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Plante Moran Goes South of the Border to Acquire a Firm in Mexico

Shoutout to the person who sent us a link to this, might have slipped past the ol' radar otherwise: Plante Moran bought itself a 500-person Mexican firm called JA Del…

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Technology

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KPMG Plans to Hand Routine Testing Off to AI

Did you happen to see this WSJ article from the other day? In "In This Critical Part of Audits, the Accountant’s Role Is Shrinking Fast," we're given a look into…

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AI Will Be EY Auditors’ New BFF, According to EY

While staff in tax at EY US will soon be spending more time with their flesh-based colleagues due to a return-to-office mandate that requires them in the office for an…

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ICYMI: According to This AI CEO You Won’t Have to Go to Work in a Year

Commence to fantasizing about what you'll do with all that glorious free time when you lose your job to AI in 12-18 months because that's the confident prediction made by…

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Another Early AI Accounting Startup Just Bit the Dust

TIL that early AI accounting platform Botkeeper has died. I found out via this CFO Brew article which pointed to a post on Botkeeper's own site. Turns out r/accounting was…

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KPMG Brings Cheating Into the AI Age By Using AI to Cheat on AI Exams

The image is upside down because Australia. This story sounds like a joke but we assure you it is not. KPMG Australia has expanded KPMG's storied cheating repertoire by being…

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Practice Management

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Top Remote Tax and Accounting Candidates of the Week | October 16, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | October 2, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | September 25, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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tax hiring season

Top Remote Tax and Accounting Candidates of the Week | September 18, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | September 4, 2025

Struggling to Find Remote Accounting Talent? We’ve Got You Covered. If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're not…

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Quick Reads

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Here Are Tax and Audit Salaries at Top 25, Top 300, and Regional Firms

Recruiting firm Brewer Morris has released its 2025 US CPA salary guide and should you want to read the whole thing you can request it from them here. Perhaps you,…

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Friendly Reminder Not to Work Yourself to Death For This Profession

Saw this on the bird app yesterday and thought its message would be worth passing along what with 20 days remaining until April 15 and nerves as strained as ever…

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Accounting Firm Abruptly Nopes Out of Tax Season Early (UPDATE)

Ed. note: An earlier version of this article's headline stated the sheriff is investigating. The Alexander County Sheriff's Office informed us they are not investigating, only fielding calls from the…

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This Deloitte Office Has Eliminated Trash Cans at Desks to Make Staff Get Up Off Their Asses

Boston Business Journal wrote an article about Deloitte's new office in Boston and for some reason they chose to lead with this: You won’t find trash cans at the desks…

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The IRS Decided to Troll Tax Pros For 10/15

We realize the decision to run maintenance on IRS systems likely isn't made by anyone who understands deadlines but surely someone who does could inform the IT department of these…

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Top Remote Accounting Freelancers: February 3, 2024

Looking to staff up for a season or hire a freelancer for a project? Accountingfly is ready to partner with you! Gain full access to a pool of highly skilled…

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10 Essential Project Management Principles for Accounting Firms

Every accounting firm struggles with project management, with smaller practices that are rapidly expanding taking the brunt of the damage. As your firm adds new clients, takes on more work,…

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6 Ways Email is Secretly Destroying Your Accounting Firm

Email: The word itself sounds innocent, doesn't it? Kind of like "snail mail," but faster, sleeker, and without the slimy trail. But don't be fooled—email is secretly a sinister beast,…

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Don’t Grow Your Accounting Firm Out of Business! Break Up With These Unscalable Practices Now

Business growth is always a high priority for accounting firms, especially small-to-midsize practices. Take care, though, because growth can be a double-edged sword. If your firm expands too quickly or…

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Curious CPA Exam Candidate Wants the Scoop on Simulations

I’m digging deep in the mailbag for this one, only because you kids have been awfully quiet lately (a sure sign that we’re in a blackout month). If you have a CPA exam question, comment or complaint for us, please let it launch. Come on, you’re going to be sitting around for the next 2 – 3 weeks waiting for your scores, might as well.

Adrienne,

I was wondering if you could go over what the simulations entails in FAR. I understand that the multiple choice contains 30 questions, and that there are 3 testlets. However, does the break down for the 7 simulations include more than one part.

For example, I know you will have a problem say leases, maybe a research question…but is that 1 simulation or is that 2 of 7?

Thanks,

Recent Grad…miserable studying…

Let’s defer to the good ole AICPA on this one, you can never go wrong getting info straight from the source. From How the CPA Exam Is Scored:

In addition to multiple-choice questions, the AUD, FAR, and REG sections also contain task-based simulations. Task-based simulations are case studies that allow candidates to demonstrate their knowledge and skills by generating responses to questions rather than simply selecting the correct answer. Task-based simulations typically require candidates to use spreadsheets and/or research authoritative literature provided in the Exam.

Well that’s not very helpful, is it?

In FAR, you’ll encounter 7 task-based simulations, of which 6 will be graded. You don’t know which TBS is pre-test so you have to go into it as if they are all graded.

Assume that each of your simulations will be on a different topic and will only require you to complete one tab. You may see more than one research question so be sure to get in some practice in that area (and access your free 6-month subscription to the authoritative literature if you haven’t already – note that you must have a valid NTS to sign up for this).

In previous versions of the exam, one simulation consisted of several tabs. You’d have to get through two of them in 45 minutes a piece and hope you filled in enough tabs to pass. In the latest incarnation of the exam, however, you will receive more varied topics. This works in your benefit as you have a better chance of getting TBS problems on areas you feel comfortable in, whereas in the old exam you had to hope and pray you didn’t get a simulation on a topic you didn’t study well or suck hard in, as you were just about guaranteed to bomb it.

Then again, in the old exam you could blow the sims and still have a chance to pass. Nowadays, however, you don’t have that luxury as simulation problems carry a heavier weight point-wise.

That said, you’ll want to do the tutorial on the AICPA’s website. While review course materials can come close to simulating the actual exam environment, the CPA exam remains the intellectual property of the AICPA, therefore no review course can copy simulation problems exactly. But since the AICPA provides that tutorial, it has the exact look and feel of the questions you will see on the exam.

McGladrey Announces Contest Where the Grand Prize Is Caddying for a Golfer That Isn’t Natalie Gulbis

The cakehole fillers at McGladrey announced a contest last week where the winner will caddy for Davis Love III at the McGladrey Classic Pro-am. All you have to do is submit “a creative photo and short essay explaining why you should be Davis’ caddie.”

Of course you’ll have to know DL3 inside-out and upside down, just like the folks at Mickey G’s [Someone who] understands my needs, my game, and my love and passion for the game of golf.” Right. Needs like making sure that there is a fresh pair of pants available for photos should Dave win the tournament, keeping John Daly’s hillbilly ass out of earshot and verifying that the McGladrey people put “Davis Love III” on the checks.

At Least Lenny Dykstra’s Accountant Managed to Avoid Drug Charges

The grand theft auto allegations stuck though.

Dykstra, 48, was charged with 25 misdemeanor and felony counts of grand theft auto, attempted grand theft auto, identity theft and other crimes, said Jane Robison, a spokeswoman for the Los Angeles County district attorney’s office. He faces up to 12 years in state prison if convicted.

His accountant and a friend were charged in connection with the alleged auto theft but not with drug crimes, Robison said.

Prosecutors contend that the three men tried to lease high-end cars from dealers this year by providing phony information and claiming credit through a phony business called Home Free Systems.

Two dealerships rejected the lease applications but a third allowed the men to drive off with three cars, according to a statement from the district attorney’s office.

Lenny Dykstra charged with drug possession, GTA [AP]

Report: IRS Is Doing More with Less, Still Needs More

[caption id="attachment_23858" align="alignright" width="260" caption="We need to be here."][/caption]

In a report released today, the inspector general said attrition and a heightened workload have combined to leave the IRS understaffed.

The new hires in the agency’s small business and self-employed division resulted in a net gain of just 580 revenue officers by the end of fiscal 2010, according to the report. The IRS watchdog predicted a net gain of 127 revenue officers by the end of fiscal 2012. The study could affect the debate over funding for the agency. It comes two days before IRS Commissioner Douglas Shulman is scheduled to testify before a congressional panel on the agency’s budget. The inspector general warned that, unless the IRS is fully staffed, compliant taxpayers are at a disadvantage. “If the IRS does not have a sufficient number of qualified” revenue officers, the report said, “it could create an unfair burden on the majority of taxpayers who fully pay their taxes on time.” [Bloomberg]

KPMG’s ‘Next Level’ Is Here and You’re Probably Going to Be Very Disappointed and/or Confused

For those of you that have been anxiously awaiting the details on KPMG’s “Next Level” like the Royal nuptials, we have the details straight from John Veihmeyer and Henry Keizer (via a couple of tipsters). Before we get to the message from The Gipper and Hank, you should be warned that if your excitement was piqued by the “Next Level” movie-trailer video, you might – MIGHT! – not be that enthused with the actual “Next Level.”

With that said, let’s turn it over to the boys:

Welcome to the Next Level: Our High-Performance Culture
A Message from John Veihmeyer and Henry Keizer

It’s no secret that we operate in an increasingly cve environment, one in which our clients—both internal and external—are demanding more from us every day. More than ever, they need the skills and services we can bring, as long as we continue to raise the bar on our own performance and add more value and insight than ever before. To meet these demands and take full advantage of the opportunities ahead of us, we must be committed to fostering a High-Performance Culture, one in which we have the best people, with the skills and determination to deliver above and beyond.

If you managed to make it through that paragraph, you’re probably queasy already. The bad news is, it gets worse.

By now you’ve likely heard about our focus on high-performance culture. But chances are you still have some questions about exactly what it is, as well as what it means for you and for the firm as a whole. That’s why we’ve created The Next Level, a Web-based orientation for all partners and employees.

This mandatory 1 CPE credit self-study program will help you to:

• Articulate the key elements of our High-Performance Culture (HPC) initiative, including why it is critical to our firm’s success and your individual success
• Describe what the firm is doing to drive HPC, as well as what’s expected of you
• Identify and model the key attributes of high performers to elevate your own performance
• Effectively use our streamlined performance development process
• Give and receive feedback more effectively
• Most important, you’ll learn how high-performance culture will help you to share in our collective firm success, build skills for tomorrow, and have pride in being part of something extraordinary.
• The deadline for completion of The Next Level is July 7. (Note: All partners and employees are required to participate in this self-study program.)

Thanks in advance for your participation! And keep in mind that this is only the jumping-off point… you’ll be hearing a lot more about our HPC efforts in the weeks and months ahead.

Okay Klynveldians, I don’t know about you all but I’m still not sure if I understand what the “Next Level” is. What is clear is there is nothing in this email about loyalty bonuses, allegations of gender discrimination or the opportunity to wear jeans (given that you’ve got a five-dollar bill in your pocket).

BUT! There is something about a “high-performance culture,” which gets its own acronym so that might be the “Next Level.” Then there’s stuff about a web-based orienation, feedback, streamlined something or other and MANDATORY PARTICIPATION FOR EVERYONE (this means you, 30+ years partner who can barely turn on your laptop). Granted, I’ve been out of the HoK for quite some time so maybe I’m misinterpreting John and Hank’s prose but this “Next Level” seems like the same “level” only with a few more hoops to jump through and definitely more emails from J&H that may or may not explain how this will “foster a high performance culture.”

If you’re more hip to this, please enlighten everyone. But if you’re confused, annoyed or mortified with disappointment you can share those feelings too.

So You Think Your CPA Can Dance?

One thing I’ve always loved about the Maryland Association of CPAs is that they aren’t afraid to shake things up, do what everyone else isn’t doing and, uh, break out into a dance routine in the middle of a dinner reception.

Remember the “big surprise” they were planning for the 2011 CPA Summit? Here it is, enjoy:

Comp Watch ’11: KPMG Kicking Around the Idea of Loyalty Bonuses for Senior Associates

We’re still waiting to hear what the Next Level is but this should tide you over in the meantime.

I’m a second-year audit senior associate at KPMG in the New York Office. This past Wednesday there was a round-table discussion with about a dozen seniors to discuss compensation. I’ve been looking on Going Concern to see what has turned up, and since I’ve yet to see anything i figured I would send along what was discussed…

The meeting was run be a couple of our heads of compensation, and they were certain to tell us that in no way has this been approved by leadership, but as long as feedback from the round-table sessions is positive, they think it has a good chance of happening. They asked us about how the above and beyond award [Ed. note: aka utilization bonuses] was received, to which everyone responded negatively, and they unveiled their plan for future bonus compensation to reward loyalty for the firm. They said that this plan would be in addition to any raises and variable comp that the firm already has, so this would act as a reward for loyalty to the firm. I will highlight the details below.

-This plan is applicable for senior associates
– In December everyone makes an election that they classified as immediate, one-year, and two-year. The immediate pays $1,000, the 1-year pays $4,000, and the 2-year pays $8,000. This election would be made each December by senior associates. One example they gave of a first-year senior associate entering this bonus program was as follows:

December 2011: two-year election – pays $8,000 in May 2014
December 2012: two-year election – pays $8,000 in May 2015
December 2013: one-year election – pays $4,000 in May 2016

They were selling us on the fact that you would be paid out $20,000 in the span of twelve months, which of course sounds pretty great. One thing to keep in mind is that the terminology “immediate”, “one-year”, and “two-year” isn’t completely accurate. In reality it is more like one, two, or three busy seasons. Some of the particulars are that once you make an election you’re stuck with it, so if you take the immediate payout and happen to stay another few years, you are less loyal than someone who knew ahead of time. Also, if you leave the firm before you reach your payment date you obviously get nothing.

The plan was generally well received in the meeting, but didn’t get good reviews at all when I told some of my co-workers about it. I am curious to see how others feel about it. We all seemed to agree that it didn’t seem worth it to take the $1,000 payout because after taxes you’d barely notice it, and that it would take real guts to take the $8,000 payout, because as a first-year senior associate the length of your deferral is longer than your employment at the firm to date, so you never really know if you’ll still be there to collect.

Say what you will about the KPMG, they are trying to get creative with the bonus structure. Whether or not it takes with Klynveldians is another matter entirely but you can get started by commenting with your reactions below.

Accounting News Roundup: CFOs on Auditor Rotation; A Tax Lesson for Cat Ladies; Madoff’s Undies | 06.06.11

CFOs Wary of Auditor Rotation [CFO Journal]
[T]here is currently very little auditor turnover among large companies. As of last year, companies in the Standard & Poor’s 500 index have on average been with their auditor for 24.5 years, according to data from Audit Analytics. Of that group, only 77 companies have been with their auditor for seven years or less, while seven companies have used the same auditor for over a century.

PCAOB Shifts into High Gear under Jim Doty [Accounting Onion]
[T]he fact remains that PCAOB inspectors have uncovered far too many problems, in far too many audits, to conclude that something short of broad-based change is called for.

Puma take leap towards green accounting [Accountancy Age]
Puma took the brave step of producing the first environmental profit and loss account from a global organisation. It not only put a price on its carbon usage, but also represented the cost of future damage incurred from its emissions and water usage.

BDO in the News! [The Summa]
Professor Albrecht takes a little trip down memory lane in accounting firm failures.

Cat lady’s feline foster care tax deduction slashed from $12,000 to $250 [DMWT]
A house full of feral cats demands some sort of tax planning.

“Sideshow Bob” Marshall Gets His Panties In a Bunch Over Richmond Fed’s Gayness [JDA]
Who knew a rainbow flag could cause so much trouble?

Updating a Résumé for 2011 [WSJ]
In case you’re looking.

Madoff’s underwear fetch $200 at Fla. auction [Reuters]
It was fourteen pairs of boxers.

Learn to Like Your Job [WSJ]
Toxic workplace relationships, failing company fortunes and limited advancement opportunities are just a few compelling reasons to quit a job. But career experts say many workplace problems that employees may think are irreconcilable can be improved or even resolved with some action and a change of attitude.

Goldman Sachs CFO Admits That the Company Is Sensitive to Trash Talk, Doesn’t Go Looking for Trouble

Reuters reports that David Viniar told an investor conference in California that God’s Shop “take[s] all of the criticisms quite seriously” and “We never at least intentionally take reputational risk.”

Personally, I’m not sure why Vin is trippin’, since it’s pretty clear that most people don’t think Goldman is going the way of the dodo Andersen. [Reuters]