Going Concern

Deloitte

Deloitte: Thanks to the Internet, Americans Are More or Less Obsessed with TV All the Time

Caleb Newquist
February 2, 2011

One big concern: once Charlie Sheen continues his epic run (does anyone believe that rehab is going to take?) will the masses be able to survive without Two and a Half Men? Personally, I’ll manage but what about all those American Families that depend on this show to complete that void in their lives every week?

In a media environment saturated with new and evolving online entertainment platforms, TV continues to be king. Released today, Deloitte’s fifth edition “State of the Media Democracy” survey reveals that 71 percent of Americans still rate watching TV on any device among their favorite media activities.

The survey results indicate that live viewing on a home TV system continues to be the most common method among individuals for watching their favorite programming, and supporting the notion that traditional television advertising continues to be a viable model. In addition, 86 percent of Americans stated that TV advertising still has the most impact on their buying decisions.

Deloitte’s State of the Media Democracy survey assesses media consumption preferences of nearly 2,000 consumers, ages 14 to 75 years old in the United States, revealing significant trends including the power of TV when supplemented by the Internet, a dramatic rise in smartphone adoption, the steady popularity of print magazines, and the emergence of cloud computing as a potential consumer entertainment storage and access solution.

And guess what? Not only are people watching more TV, they’re talking about it more. But not face-to-face: Americans can’t be bothered with leaving the confines of their homes or take their eyes off their computers long enough to manage human interaction and thanks to social media, they don’t have to!

Deloitte’s survey indicates that the Internet, mobile and social media channels are enhancing the overall television viewer experience, driving people to watch first-run programs and live events during their initial broadcast. The survey also reveals that nearly three-quarters of American consumers are multitasking while watching TV. According to the research, 42 percent are online, 29 percent are talking on cellphones or mobile devices, and 26 percent are sending instant messages or text messages.

Perhaps even more importantly, 61 percent of U.S. consumers now maintain a social networking site, where constant streams of updates and discussion forums have made delaying awareness of live TV outcomes a near impossibility.

“Consumers are not only watching television, they are talking about it, and those conversations are frequently taking place in real-time online and via IM/texting,” said Phil Asmundson, vice chairman and technology, media and telecommunications industry leader, Deloitte LLP. “By embracing the Internet as a platform that encourages audiences to participate in discussions about their favorite programs, television is maintaining its hold on the American public. People want to be part of the real-time conversation and they are embracing both platforms in a complementary fashion.

Because discussing the train wreck that is Sammi and Ronnie in real time is crucial to the human experience. Carry on.

Fraud

How Long Should an Accountant Wait to Start an Embezzlement Scheme After Landing a New Job?

Caleb Newquist
February 1, 2011

For Michelle Lynn Shelton, who is accused of taking $760k of her employer’s money, the answer is “NOT LONG!”

Detectives launched their investigation in December after another accountant, who was filling in while Shelton was away from work, discovered the apparent transfer of a large amount of money between two personal bank accounts, police said. Police said the company conducted an audit and contacted police. Shelton started working for the company in June 2007 and the evidence suggested she began diverting funds two months later, police said.

CPA Exam

What Should You Do the Night Before You Take the CPA Exam?

Adrienne Gonzalez
February 1, 2011

Looks like we’re back in the swing of CPA exam testing as you guys have been loading me up with great questions (thanks, it means Caleb doesn’t have to fire me this week) so let’s get right to it. Today’s question comes via Twitter and if you have one, email me or toss an @ my way and I’ll get to it.

@adrigonzo What is your rec for the night before an exam section. Study till you drop that last night or get some rest? #cpaexam

This is an excellent question because for many of you who are taking the CPA exam fresh out of school, you might be used to slacking off for weeks or months on end and making one last final push at the end of the semester to get through finals. While that may have worked in college (and can also work in life if you play your cards right), it’s important to keep in mind that the CPA exam doesn’t work the same way.

Your brain learns in layers and with the exam, it’s best to digest smaller pieces of information over a longer period of time than it is to try and cram it all in there in a few days. That’s why accelerated or otherwise last-minute CPA review programs aren’t a good idea; your brain needs the layers to dig into come exam day.

Think of it like making oatmeal cookies: you start with the basics; butter, sugar, eggs, flour and oatmeal. In an exam context (we’re using FAR because it’s easiest in this example), this would be the framework of financial accounting and any heavily tested areas like bonds, pensions and inventory. Once that’s mixed up, you add in your flair: raisins, chocolate chips, chopped nuts, whatever you like. Side note: I made white chocolate chip, craisin and pecan oatmeal cookies the other night and they were absolutely fantastic. Anyway, your flair would be the lighter-tested or unfamiliar areas like some of what’s covered in advanced accounting, inflation accounting, dollar-value LIFO, etc. You use a cup and a half of flour but only half a cup of chocolate chips and regardless of how much the recipe calls for, if you sit down and eat the entire bowl of dough in one night you’re going to get sick. Got it?

I always recommend bringing your note cards or textbook to Prometric with you so you can do a last-minute review in the car and it’s absolutely appropriate to do some studying the night before but don’t overdo it. Get to bed at a reasonable hour but try not to upset your routine too much – if you’re an night owl, there’s no reason to go to bed at 8pm unless you have scheduled your exam for first thing in the morning (what were you thinking?!). As we all know, accountants don’t deal well with change so the more you can make taking the exam feel like “normal”, the better you’ll feel on exam day.

Be sure to nourish your hard-working brain with the right foods, avoid alcohol (trust us, you can get absolutely obliterated when you actually pass, first one’s on us) and, if you smoke, try to stop (nicotine withdrawal can impair cognitive performance and you aren’t going to be able to take a break at the exam to go grab a smoke) or at least create an exam-day plan to get your fix (you might want to avoid gum at Prometric).

And remember: you may never actually feel “ready” to take the exam. Focus on preparing and remind yourself that you’ve done everything you can (hopefully…) to get to ready, even if you never actually feel that way.

News

Report: IRS Is Better at Junking Computers From Previous Decades

Caleb Newquist
February 1, 2011

It appears that the IRS prompted this report from the Treasury Inspector General of Tax Administration after a previous report stated that improvements were needed in the replacing the Service’s dinosaur technology.

Employees have to be pleased that can now obtain better equipment to do their jobs, although three years to determine how to point out an Apple II or an IBM running DOS does seem like a long time.

The Internal Revenue Service (IRS) has significantly improved its ability to identify and replace aging computers, according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).

The IRS purchases new computers to replace aging equipment through its Sustaining Infrastructure Program. A November 2007 TIGTA report recommended several improvements to the IRS’s processes for replacing computer hardware that has reached or surpassed its useful life. TIGTA conducted the review at the IRS’s request.

TIGTA’s new report found that the IRS has implemented a process for identifying, reviewing, prioritizing, and making decisions on funding the replacement of aged computer hardware and is developing the capability to associate information technology problems with the aged hardware that caused the problem. The improved capability could result in as much as $12.3 million in cost savings and $16.4 million in revenue collection increases, according to the report.

“Taxpayers and IRS employees rely heavily on the information technology infrastructure to ensure satisfaction of tax liabilities, quick resolution of issues, and the security of confidential taxpayer information,” said J. Russell George, the Treasury Inspector General for Tax Administration. “The IRS is to be commended for these improvements,” he added.

Accounting News Roundup: State Tax Collections Are…Up?; BDO on the Hook for $91M in Florida Suit; GT Announces Regional Leader, OMPs | 02.01.11

Caleb Newquist
February 1, 2011

Taxes Boost State Coffers [WSJ]
State tax revenue grew at the fastest rate in nearly five years during the fourth quarter, as the steadily improving economy and higher taxes in some states propelled strong growth in income- and sales-tax collections. But most states still face budget cuts this year, as collections remain below pre-recession peaks and states are no longer able to fall back on stimulus funds from the federal government to fill budget gaps. State tax collections increased 6.9% in 41 states that have reported their revenue, according to a report to be released Tuesday by the Nelson A. Rockefeller Int at the State University of New York.

$91M awarded in Batchelor case [Miami Herald]
A Circuit Court jury in Miami decided on Monday that the accounting firm BDO Seidman should pay the late philanthropist/aviation pioneer George Batchelor’s estate and foundation $91 million for “fraudulently” concealing false information about a company in which Batchelor had invested. The award consists of $55 million in punitive and $36 million in compensatory damages. Steven Thomas of the Venice, Calif., firm Thomas, Alexander & Forrester, is lead Batchelor attorney. He said he thought that the punitive damage award was so hefty because “BDO, right up to the end, denied it had a public duty — and public is literally their middle name: CPA.”

NFL Commissioner and Union Chief Meet to Discuss Expiring Player Contract [Bloomberg]
The National Football League and its players’ union will meet the day before the Super Bowl, aiming to “intensify negotiations” on a new labor contract. The Feb. 5 bargaining session in the Dallas area is the first in a series of meetings scheduled for the next several weeks, the NFL and the NFL Players Association said yesterday in a joint statement. Also yesterday, the NFLPA said that CBS Corp. refused to air a commercial opposing a lockout by NFL owners. The ad was supposed to run on CBS College Sports Network’s coverage of a Feb. 5 college football all-star game that’s sponsored by the NFLPA.

Deloitte’s Troubles Bubble To Surface [RTA]
Francine McKenna gives Deloitte’s troubles a look.

FCIC Gives Accounting Standards a Free Pass (Along with Practically Everybody Else) [Accounting Onion]
The FCIC had a hard time assigning blame to anyone or anything.

Wayne Kaplan named Grant Thornton LLP Philadelphia Office Managing Partner; Rick Gebert to lead Southeast region [GT]
And Michael Bennett is the new OMP in Houston.

Corporate Tax Reform: Where’s the Beef? [TaxVox]
With only two years until the election, any kind of meaningful tax reform seems, dare we say, hopeless.

Jackson Hewitt Doesn’t Appreciate the Implication That They Suck at Preparing Tax Returns

Caleb Newquist
February 1, 2011

Call it the discount 1040 wars (or something):

Jackson Hewitt Tax Service Inc sued H&R Block Inc to stop a new advertising campaign that it said misleads customers about tax refund loans and disparages Jackson Hewitt’s competence.

How disparaging? How about “two-thirds of the tax returns are wrong” disparaging:

According to the complaint, H&R Block falsely claimed that its “Second Look Review” program, which reviews past tax returns prepared by rivals, found that two-thirds of prior returns prepared by Jackson Hewitt contained mistakes.

“H&R Block’s 2 out of 3 claim necessarily implies the false claim that two out of three Jackson Hewitt customers who are entitled to refunds have been short-changed due to Jackson Hewitt errors or incompetence,” the complaint said.

Jackson Hewitt sues H&R Block over ads [MSNBC]

CFOs

A ‘Controversial CFO’ Allegedly Called in Sick for Three Months to Get Married

Caleb Newquist
February 1, 2011

Is “bridezilla” appropriate here?

The controversial chief financial officer (CFO) of Nkomazi municipality in Mpumalanga, Sheila Mabaso, allegedly submitted a sick note laying her off for three months – only to hold her wedding during that period. Mabaso might be charged with dishonesty after the Mpumalanga municipality discovered that the sick note booking her off for September, October and November was “actually meant for her to prepare for the wedding”. Though Sowetan could not establish who Mabaso got married to, it can reveal that she got married to a pastor from the North West and that the wedding took place in Nelspruit on September 25 last year. Mabaso apparently flew to Malaysia for the honeymoon but allegedly told the municipality she was going to see a specialist doctor.

We’ve never known a CFO to be “controversial” to the point that it goes into print so we Googled “controversial CFO” and it came up with less than 100 items (although Erin Callan did sneak in there). Although, if you read further, one would discover that Ms Mabaso is nothing if not a little sassy:

[She] told Ziwaphi, a local fortnightly newspaper, that getting married while sick was none of anybody’s business. “It’s true that I was sick for three months and I have a doctor’s note to prove it. If I got married in that period, it’s none of their business. Who said a person can’t get married when they are sick?” Mabaso was quoted as saying.

Wanted: Hot Female Accountants to Provide ‘Lap Dances and Tax Returns’

Caleb Newquist
February 1, 2011

FYI if you’re looking for a little extra cash this busy season.

Sorry, auditors – don’t even try it.

$$ Hot Female Accountants Wanted $$ (Midtown) [CL]

Big 4

Which Big 4 Firm’s New Hires Aren’t Receiving Performance Ratings?

Caleb Newquist
February 1, 2011

There are clues:

We hope you are settling into your new role and that things are going well!

The purpose of this email is to make you aware of some important information regarding the year end performance management process that applies to all new campus hires and all newly hired associates/administrative assistants for this year.

The firm recognizes that as a recent new hire, your primary focus is to transition into your role and responsibilities and build your network. It is important that you have the appropriate amount of time to learn about the firm and integrate fully before you are formally evaluated on your performance. Therefore, for this performance year, which ends June 30, 2011, you will not be assigned a performance rating.

Even though you will not receive a rating, you will participate fully in all other aspects of the performance process, such as getting feedback from individuals you work with and meeting with your counselor to discuss your feedback, progress, development and goals for the 2012 fiscal year. We are confident that even without a performance rating for this year, you can fully understand how you are doing by asking the right questions and having meaningful conversations with those you work with.

In the meantime, please make sure you are getting periodic feedback and staying in touch with your counselor. As the year end process approaches you can access helpful tools that will help you prepare for a variety of coaching conversations

Further, you can learn more about the Performance Management and Development process by clicking here.

If you would like to discuss this further please contact your counselor or your People Consultant. Thank you for your participation in this important process.

Take a stab in the comments and feel free to speculate as to the motivation and repercussions behind “all (wo)men are rated equal.”

Women Partners at PwC: It’s Not About Numbers

Adrienne Gonzalez
January 31, 2011

PwC UK Chairman Ian Powell would like to see more women around the office (obviously he hasn’t been to the San Francisco digs lately) but is taking this new stance slow. As in really slow.

As is, 14% of PwC’s partners are women. 14%! Trailblazers that they are, Powell has decided a target of something like 20% will be reasonable to start. Obviously something is driving the ladies away, however, as P-Dubs takes on over 400 new women a year of the 1000 new grads they hire. What’s wrong, girls, not the dream career you daydreamed it would be in college? “We take on over a thousand graduates a year and the number of women is in the high forties in terms of percentage,” Powell said.

Powell is not suggesting positive discrimination, in which women are treated like the fragile little things they are and given all sorts of breaks like months off to pop out kids, flexible work schedules to allow for time with their progeny and equal pay despite these many concessions.

While the UK considers quotas to force the profession to hire on (or is that keep) more women, Powell insists it is not just a numbers game. Funny, we thought 20% was a number? “There is a lot of debate about quotas but we don’t think that is the way forward. This is not just a numbers game.”

This begs the obvious question: if we’re pushing for “diversity” and making a huge deal out of this, aren’t we ignoring more important qualities such as skill, quality of work and talent by focusing on things like sex and race just to appear to be diverse? If a man, woman, and black transsexual all have the exact same educational background and skill, I’m totally OK with a company going for the most diverse option but we all know there is no such thing as equality. Interviewees come from all backgrounds and bring a variety of talents to the table – that is what firms need to be looking for, not high heels and African ancestors. Equality means being given equal opportunity to thrive and grow, not special favors just because one happens to lack a Y chromosome.

PricewaterhouseCoopers targets women [Telegraph]

Career Center

What’s a Mom Over 40 to Do When She’s Ignored by the Big 4?

Caleb Newquist
January 31, 2011

Welcome to the is-anyone-sick-of-snow edition of Accounting Career Emergencies. In today’s edition, a Mom of two is getting her career started after going back to school and has found the Big 4 to be less than interested in what she has to offer. She’s looking for some feedback and advice but we’re guessing it has nothing to do with this Tiger thingee.

Got the busy season blues? Need help making your next career move? Concerned that your boss is channeling Lucifer? Emailto:advice@goingconcern.com”>advice@goingconcern.com and we’ll say a prayer for you.

Idaho Congressman Latest to Waste Everyone’s Time by Introducing a Bill That Would Terminate the Tax Code

Caleb Newquist
January 31, 2011

Mike Simpson has represented Idaho’s 2nd Congressional District since 1999 and in that time he has cosponsored legislation that would abolish our beloved Internal Revenue Code. And even one time, in 2000, the House of Representatives managed to pass a bill that did exactly that by a vote of 229-187. It’s safe to say that, if similar legislation had been passed by the Senate and then followed up by the signature of the President, you would have heard about it. Since we haven’t heard any such news or seen any reports of this monumental legislative achievement, we can only assume that it has always been, and thus, always will be a failure and complete waste of everyone’s valuable time.

No matter! Congressman Simpson will press on for this all-important goal and making another run at ending the tyranny once and for all:

Idaho Congressman Mike Simpson is an original cosponsor of H.R. 462, the Tax Code Termination Act. This legislation would abolish the Internal Revenue Code and call on Congress to fundamentally reform the federal tax system.

“Over the last few years there have been several proposals to curtail the Internal Revenue Service’s (IRS) intrusion into the American homes. These include proposals to implement a flat tax or a national sales tax,” said Simpson. “I believe the most effective course of action is to sunset the current complex and unfair federal tax code and replace it with a simple and fair alternative.”

[via State Column]

Careers

Big 4

News

Technology

Practice Management

Site Search

Twitter Feed

Get the Accounting News Roundup

Quick Reads

Sponsored Content

Get the Accounting News Roundup

Remote Bookkeeping, Accounting, Tax and Audit Positions

AO: Senior Accountant, Advisor

Remote Tax Advisor, CPA Firm

Remote Bookkeeping, Accounting, Tax and Audit Positions

AO: Senior Accountant, Advisor

Remote Tax Advisor, CPA Firm