Going Concern

CPA Exam

Tax Lawyer Pursuing CPA Needs to Know: Take More Classes or Cram with a Review Course?

Adrienne Gonzalez
January 18, 2011

Whenever the news is slow and you kids are quiet (I won’t expect to hear from many of you until after April but just in case, here’s my email), there’s always CPAnet to troll and here’s a good one: tax and estate lawyer pursuing the CPA wants to know if he should take a bunch of classes to prepare for the CPA exam before jumping in.

I promise to let him down gently.

Here’s the question:

I am a tax and estate planning lawyer and have been taking accounting and tax classes at UCLA extension in preparation for the CPA exam.

Since tax season is hell, I would only have the second half of the year to take a revthe exam. That means June – November (& January) 2011, 2012, or beyond. I am unsure whether I should continue taking classes such as (auditing, internal auditing, nonprofit accounting, etc.) for the next year and a half until June 2012… or whether I should just sign up for a review session this June after I take Intermediate Accting 3 & (maybe) Managerial accounting this spring quarter AND study my butt off in the review course.

Without sounding too much like an ass, I’m a fairly smart guy (top 20% in top 20 law school, passed bar exam) and a very hard worker. I have a lot of information under my belt but it may not all be relevant.

So, do I absolutely need to take the 2 auditing classes offered at UCLAX or the nonprofit accounting class or can I cram the review course material? I have heard that advanced accounting is unnecessary and I learned consolidations in Business Enterprise Taxation. I don’t know econ, but I looked at some practice questions and I got most of them. Supply and demand doesn’t seem too complex.

Am I crazy to skip these classes and rely on the review course? My experience with the bar exam was that the courses in law school were more likely to confuse than to help.

First off, my professional experience has been that whenever someone says “I’m a fairly smart guy” or “I’m no idiot” or “at least I am not like the senior who probably ate paint chips as a kid,” that candidate almost always has difficulty getting through the CPA exam. Why? Because brains have nothing to do with it, stupid.

I often explain it to candidates like this: the CPA exam simply tests your left brain’s ability to process and spit out information exactly as it was put in. We don’t need creative right-brained accountants (especially now that Lehman is kaput) so the more right brain spin your brain tries to put on CPA exam information, the worse you’ll do on the exam. “Smarts” don’t factor in, it is merely a test of entry-level knowledge and we all know you don’t have to be smart to be an entry level accountant. Hell, you don’t have to be smart to be a partner either but we’ll let that one go.

That being said, it’s important to recognize that there are two distinct universes: the CPA exam universe and the real universe. In CPA exam world, all cash flows use the direct method, accountants are always ethical bordering on neurotic and there is always a very clear answer for any query. In the real world, we use indirect to save time, have trouble passing the open-book ethics exam after four tries and sometimes have to choose the “best answer” without knowing for sure that it’s right.

While more education is almost always a good idea (unless you’re already over-burdened with student loan debt to begin with), it may be easier for our future candidate above to simply jump into a good CPA exam review and call it a day. Some of the cheaper review programs will only build on the candidate’s knowledge base or help familiarize with the exam’s format and content but the pricier, higher-quality reviews also provide the information the candidate needs to pass, regardless of their experience level.

Remember: because the CPA exam tests entry-level knowledge, you aren’t expected to be a expert in anything. Not everyone takes advanced accounting and while some of those topics are tested, any decent review course can give you just enough to scrape by if you aren’t familiar with those areas. Don’t waste your time taking extra classes unless that is a personal goal of yours and, if so, either do it before or after but not during your CPA exam attempt.

KPMG

KPMG’s Latest “Green Initiative” Has One Employee Demanding Sherpas

Caleb Newquist
January 18, 2011

[caption id="attachment_24110" align="alignright" width="150" caption="Clearly a KPMG auditor; all the supplies are blue."]

[/caption]

As many of you are aware, schlepping around a laptop, supplies and God knows what else is standard operating procedure for many Big 4 employees. If you work in New York, this annoyance is compounded by the fact that you have to coordinate all this stuff in an awkward balancing act in order to walk (at least partially) to your desired location. Even if your engagement budget allows you to take a cab, the annoyance factor is high.

Unfortunately, this has now been made worse (never mind the slick sidewalks for two), according to a tipster who has a beef with the New York office of KPMG’s latest attempt to save the planet:

I don’t know why this set me off the way it did, but this really made me very angry so I thought I’d send it in to you to post for open internet mockery. Now in addition to carrying around a laptop, printers, the new second monitors, binders etc all over the city, KPMG expects me to strap a MUG to myself and heaven forfend I use a “Guest Mug” because then how will I compete in this swell “Original Mug Contest”?

I’m 115 pounds, I don’t have the body mass to deal with what is gradually turning into some sort of fully equipped mountain climbing expedition. KPMG needs to start handing out sherpas. Immediately after this email went out, about three different conversations involving stockpiling paper cups in various drawers started around me. What is 500K cups anyways, about half a tree? My free cup of crummy coffee in my paper cup that requires next to no effort to get is the high point of my day, so screw you KPMG Green Initiative.

Here’s the email describing the initiative (sorry for the disjointed look, we had to clip it twice) that caused our tipster to fly off the handle.

So not only does insufficient auditing space have their unforeseen repercussions, the quantity of stuff that auditors are asked to drag with them is reaching critical mass. No lives appear to be in danger yet but one has to wonder where the breaking point is. Your concerns and reactions are welcome at this time.

Accounting News Roundup: A&F Worker Outlook Improves; LarsonAllen Joins the M&A Game; Big 4 Work-Life Redux | 01.18.11

Caleb Newquist
January 18, 2011

Mergis Group A&F Worker Confidence Rises; Nearly Half of A&F Workers Looking to Make a Job Change [PR Newswire]
The Accounting and Finance Employee Confidence Index, a measure of overall confidence among U.S. accounting and finance workers, edged up 2.2 points to 56.1 in the fourth quarter of 2010, according to a recent survey commissioned by The Mergis Group®, the professional placement division of SFN Group, Inc. The survey, conducted by Harris Interactive®, indicates that an increased population of the workforce believes it is likely they will make a job change in the next 12 months.

Toward a 21st-Century Regulatory System [WSJ]
The President wants to get rid of regulations across the spectrum of government “that conflict, that are not worth the cost, or that are just plain dumb.”

Swiss bank UBS to change much-mocked dress code [AP]
Red undies may now be allowed!

Kennewick accounting firm Hansen NvO sells to LarsonAllen [TCH]
LarsonAllen gets into the M&A act.

For Work-Life Balance, Be an Accountant [The Juggle/WSJ]
The Journal picks up the Times’s story on work-life balance. Or lack thereof.

Rothstein Kass Issues New White Paper on Fair Value Accounting [PR Newswire]
International professional services firm Rothstein Kass today announced that the company has published a new reference manual pertaining to Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (ASC 820).

Accounting News Roundup: Grant Thornton Names New Chief Legal Officer; A Reminder for the PCAOB; Repo Loopholes Remain | 01.17.11

Caleb Newquist
January 17, 2011

~ We’ll be taking it easy today to observe Martin Luther King, Jr. Day. We’ll be back to a full slate tomorrow.

Senators seek end to prisoners’ bogus tax refunds [WSJ]
Sens. Charles Schumer of New York, Sherrod Brown of Ohio, Amy Klobuchar of Minnesota and Sen. Bill Nelson of Florida said the Federal Bureau of Prisons and the Internal Revenue Service have failed to cooperate and comply with a 2008 law aimed at stopping the practice in federal and state prisons nationwide. Prisoners use their own names or the names of friends and associates to submit false claims to receive and cash refund checks. “It is outrageous to think that convicted felons areayers from a jail cell,” Schumer told The Associated Press. He said the federal agencies’ “failure to share information has not only allowed this fraud to continue to occur, but has allowed it to more than double since 2004.”

Latest career move ‘was a no-lose choice’ [WaPo]
Deloitte alum and current LaSalle Hotel Properties Bruce Riggins participated in the Post’s “New at the Top” series.

The Robot in the Next Cubicle [BBW]
At just five feet tall and 86 pounds, the HRP-4 may be the office grunt of tomorrow. The humanoid robot, developed by Tokyo-based Kawada Industries and Japan’s National Institute of Advanced Industrial Sciences and Technology, is programmed to deliver mail, pour coffee, and recognize its co-workers’ faces. On Jan. 28, Kawada will begin selling it to research institutions and universities around the world for about $350,000. While that price may seem steep, consider that the HRP-4 doesn’t goof around on Facebook, spend hours tweaking its fantasy football roster, or require a lunch break. Noriyuki Kanehira, the robotic systems manager at Kawada, believes the HRP-4 could easily take on a “secretarial role…in the near future.” Sooner or later, he says, “humanoid robots can move [into] the office field.”

Ken Cunningham Named Grant Thornton LLP Chief Legal Officer [Business Wire]
Ken Cunningham has been named the new Grant Thornton LLP Chief Legal Officer effective February 1, 2011. Ken succeeds Peggy Zagel as Chief Legal Officer, who will be retiring from the firm July 31, 2011. “We are pleased to have an individual of Ken’s ability leading this critical function at the firm,” said Grant Thornton LLP CEO Stephen Chipman. “Ken is an outstanding legal thinker and an exceptional colleague, and we are confident that he will continue to be an enormous asset to Grant Thornton as the firm sets out on our bold five-year strategy for growth serving dynamic organizations around the globe.”

Deloitte: Choir to perform in festival [Big 4]
John Kerr, Talent partner at Deloitte was understandably thrilled. “Having a Deloitte Choir is a real asset,” he said. “It creates new networks within our firm, and builds relationships with our clients. Our choir members clearly love participating. Deloitte’s reputation rests on quality and excellence. I’d say winning the Office Choir of the Year is a great new way to signal just how far that emphasis on great performance goes at Deloitte.”

Dear PCAOB Board: Your Job Is To Serve And Protect Investors [RTA]
Francine McKenna refreshes your memory.

The FASB’s Proposed Repo Accounting: Loopholes Still Abound? [Accounting Onion]
The short answer is: Yes. Tom Selling has the long answer over at his blog.

Donald Trump & the Deadbeats [Tax Watchdog]
A sordid tax history for many of the the new Trump celebrity contestants.

Filing Your Tax Return is a Snap with New Turbo Tax App [Tax Docket]
Memo to Tim Geithner.

Deloitte

Deloitte Is Moving to 30 Rock

Caleb Newquist
January 15, 2011

We’re still waiting for Jim Quigley’s tweet to confirm but it appears, based on an internal email sent to Going Concern, that Deloitte will be consolidating its offices to 30 Rockefeller Center.

Here’s our tipster’s email:

[I]t appears that they will be going public with this in the next couple of days. D&T is consolidating its three New York offices into 12 floors of Rock Center. The sublease from Merrill Lynch at 2 WFC is up next year and apparently [Bank of America] wanted to raise rents on them. The consensus is that there is just too much space that isn’t getting used and that consolidating the offices would be a more efficient use of the space.

Regards,

“Anonymous Tipster”

And here’s the internal email:

The only attention we’ve really paid to the Deloitte commercial real estate story is that they were threatening to leave the City altogether last summer but DWB debunked that theory sufficiently. This not only marks a major move for Deloitte but it also is a major new tenant at 30 Rockefeller Center. But why is so much sprawling cube farm space available at 30 Rock? Is this a result of Comcast’s purchase of NBC Universal from General Electric or is Jack Donaghy holding a fire sale? We don’t know the real estate business well enough to give it an educated guess so if you’ve got other theories, leave them below. We left a message with Deloitte but Christ, it’s after 9 pm on Friday, so we’ll back to you Monday.

Audit
News

Nightmare Audit Rooms Have Their Consequences

GoingConcern
January 15, 2011

The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.

With no place to work in the office of the housing authority of a major city, the audit team was provided tables and chairs in the hallway of a renovated apartment building that connected the swinging front door with the elevators. In the middle of winter in a city located on a bay, the wind swept into the hallway driving temperatures to near freezing. Clothed in parkas, scarves, wool hats and gloves, the audit team struggled through the engagement.

Auditing rural hospitals, CPA firm personnel were ordinarily assigned to a patient room for workspace since there was no room for them in the hospital office. This year there were no patient rooms available so they were assigned to the morgue! Steel tables and high stools were their accommodations. Formaldehyde, dead bodies draped in sheets and the medical examiner’s buzz saw greeted them each day.

The auditors of a plumbing contractor were assigned a dark, damp room in the basement for workspace. The room was two flights of stairs and several hundred yards from the accounting office.

Two auditors were assigned workspace at a desk adjacent to and facing the controller. The controller smoked, they didn’t.

I could relate more true stories on and I suspect you could add your experiences to this list of inadequate fieldwork workspace. Here are some obvious questions:

1. Did any of these scenarios increase time charges on the engagements?
2. Who had responsibility to correct or prevent these circumstances?
3. When should corrective action be taken?
4. What actions should have been taken?

Question 1: Of course time charges were increased! The auditors of the housing authority said the audit required almost twice the amount of time it should have. The hospital auditors lost numerous hours going for fresh air and to the restroom to vomit! Going back and forth to the accounting office wasted enormous amounts of time, although the team did lose weight. Not only was the health of the non-smokers impaired, they wasted time leaving the room to discuss audit issues and securing all working papers and electronic equipment every time they left the room.

Question 2: The in-charge accountants on these engagements had responsibility to run the fieldwork but their “stick” wasn’t big enough to get the managements to change their workspace. It was the engagement leaders’ responsibility to speak with managements to correct the situations.

Question 3: If the workspace could not be improved internally, a nearby motel room, a recreation vehicle parked outside a client’s facility or an electronic air filer could be remedies. The cost of these alternatives is likely far less than the unbillable wasted time.

Question 4: This is a planning activity! Proper workspace should be arranged by the engagement leader before the fieldwork begins. Engagement profits can be increased considerably by using foresight and arranging for proper workspace!

You’d Be Wrong If You Thought the Ernst & Young Golden Globe Auditors Were Taking a Back Seat to Other Award Show Auditors

Caleb Newquist
January 14, 2011

Because, really, is team of Ernst & Young and Ricky Gervais versus PwC, James Franco and Anne Hathaway even a debate?

If you feel strongly about it we’ll hear you out but it’ll take some convincing.

The winners of the 68th annual Golden Globe® Awards will remain a secret until they are revealed January 16 to millions of viewers around the world, thanks to the efforts of Ernst & Young LLP, a leader in assurance, tax, transaction, advisory services and strategic growth markets. The Hollywood Foreign Press Association has relied on Ernst & Young for the past 38 years to conduct the ballot tabulation process of the Golden Globes® with security, integrity and reliability.

And just in case you’re concerned about Ernst & Young’s “security, integrity and reliability” because of you know who, the protocols have been laid out in detail:

• Winners are known only to three senior Ernst & Young executives in advance of the telecast;

• Ernst & Young is also responsible for qualifying voting members of the Hollywood Foreign Press Association, confirming that their credentials are current and meet the standards set forth by the Hollywood Foreign Press Association;

• Ernst & Young controls the entire voting process beginning with the nomination ballots, and maintains control of the ballots until the telecast is over;

• Results are triple-checked to eliminate any margin of error; and

• Winner envelopes are assembled by Ernst & Young and are maintained exclusively under Ernst & Young’s control until they are handed directly to each celebrity presenter moments before they appear on-stage.

KPMG

KPMG University?

Caleb Newquist
January 14, 2011

Well, sort of.

If you’re thinking something similar to Deloitte’s sprawling campus down in Texas, then you’d be mistaken. The British firm has decided to recruit “school leavers, not university graduates” and will sponsor them to get accounting degrees, reports the FT:

From next year, KPMG will take in 75 school leavers, and then meet the cost of a four-year accountancy degree from Durham university and an accountancy qualification. Trainees on the six-year scheme will start on up to £20,000 a year. In 2012-13, the maximum university tuition fee, now £3,290, will rise to £9,000. At the same time, subsidies are being withdrawn from the sector and rules loosened to allow new entrants into the market and innovation in course design. As a consequence, such schemes could become more attractive to universities.

You could reason that this is a good thing because of the money it will save the students but our concern lies with their university experience. Or, the lack thereof:

KPMG said it could eventually take “in excess of 400” of these trainees a year, more than half its intake. The scheme is therefore expected to replace much of its traditional graduate recruitment. KPMG trainees will not join a conventional degree course. They will, instead, attend special classes to allow them to spend most of their time working at one of the company’s offices.

So, maybe we’re misinterpreting the Queen’s English but that sure sounds like recruits spending their college days sporting business casual, undermining interns/new associates for gofer duties and nothing to do with binge drinking, drug experimentation, gaining the freshman 15 (50?) or sinking themselves into debt. Is nothing sacred?

KPMG to fund young recruits’ degrees [FT]

CPA Exam

The AICPA Talks to Going Concern About the New CPA Exam

Adrienne Gonzalez
January 14, 2011

Because I genuinely care about the well-being of you little CPA exam candidates out there, I recently put aside the inflammatory nonsense for a moment and took some time out of my busy schedule to chat with the AICPA about the new CPA exam that they were proud to say launched early this month without a hitch. We’re pretty excited about that too, mostly because it means we can finally stop talking about 2011 changes and get back to talking CPA exam strategy, which is largely unchanged as a result of CBT-e.

We here at Going Concern value reader input (even if we do value chastising said reader just as equally) and therefore reached out t//goingconcern.com/2011/01/what-would-you-ask-the-aicpa-about-the-new-cpa-exam/”>your input on the sorts of questions we should ask. You spoke and we listened so let’s cut right to the chase and give you some answers.

John Mattar, Ed.D., Director of Psychometrics and Research and Mike Decker, Director of Operations and Development, both of the AICPA Examinations Team, were kind and brave enough to speak with me and give me plenty of insight on the brain behind the new CPA exam.

First of all, we need to talk scoring as that’s the one thing you guys have complained about consistently since the exam went computerized in 2004 (except for written communication but that is an entirely different issue). We’re proud to tell you that we can finally say with certainty that the AICPA will not be changing the passing score from 75 moving forward. That’s right, put down your flaming pitchforks, all you 74s who were ready to flip should the score have been lowered to 70. “In terms of the score reported to candidates, right now the passing score on that reported scale is a 75 and it’s going to remain there because we want to have consistency over time,” John told us.

That means a 75 last year might not necessarily be the same as a 75 this year but a 75 is still passing and that’s what matters. As we all know, the AICPA uses a complicated and mysterious psychometric formula to determine weights for each question and bases a candidate’s score on this formula. It isn’t for you, little candidate, to worry about how they come up with their numbers nor should you feel as though the AICPA gets some sick thrill out of seeing you get a 74. Believe it or not, they’re neutral. They don’t care if you pass or fail, they only care about overseeing a professional examination that successfully tests the knowledge base of entry-level CPAs in the United States. That’s it.

Second, while the AICPA will be using a single score release formula for at least the first three testing windows of the year, candidates can anticipate a new and improved score release system that will hopefully be introduced by the end of the year. This means all candidates who test early in their window will be eligible to receive their scores in the first release and all other candidates can expect to receive their scores in more frequent batches through the end of that window’s blackout month. So forget the Wave 1/Wave 2 nonsense. “Due to a lot of the work we’re doing on the backend, we’re going to be able to release scores faster. We’re not actually going to be able to release the scores earlier until the 4th quarter because we need to do a greater analysis in the first three quarters,” Mike said. So while you guys see the new simulations and international content on the frontend, it’s important to remember that a lot of time and effort went into improving the backend of the CPA exam and faster scoring is one such improvement that we can expect to see by the end of the year. But these changes come at a price so be patient while the AICPA works through the first three windows of this year to finalize their new scoring process.

If you haven’t already, I recommend you check out How the CPA Exam is Scored for more details on this process. Expect an update to that document when new scoring takes effect later in the year.

As for CBT-e content, I initially congratulated the AICPA for finally streamlining some questionable areas of the exam (especially BEC) in the updated CSOs/SSOs but forgot that they don’t actually come up with content on their own. You can thank an extensive practice analysis and subsequent input from practicing CPAs for the CPA exam you know and love today, a process that takes into account input from the profession on what entry-level CPAs should know. That means the introduction of international financial reporting and auditing standards is entirely independent of the SEC’s do-we-or-do-we-not IFRS roadmap. This should be a comfort to some of you who are wondering just how much IFRS will appear on the exam in coming windows as it means the exam will most likely continue to test remedial international content and will mostly focus on major differences between IFRS and GAAP. Entry-level CPAs in the U.S. are not expected to be experts in IFRS, just as they are not expected to be experts in cost accounting, government accounting, non-profit accounting or any number of areas that have been consistently tested on the CPA exam for years now.

The best news is that though the e in CBT-e stands for evolution, those expecting to take the exam in 2012 or beyond shouldn’t expect such a large overhaul as we just saw any time soon. “We don’t plan to change the exam,” John said. “What we plan to do is keep the exam current with the profession to protect the public interest. If we do have significant changes in test content we would have to let candidates know in advance.”

That being said, the largest takeaway I got from my conversation with the AICPA was that they are simply interested in providing a consistent examination that continues to evolve to meet the needs of the profession. I swear to you that they really don’t get a sick thrill out of torturing you guys with changes, scoring delays and new content though it may appear that way sometimes, especially if you’re in the 74 x 3 club. It’s their job to make sure that the CPA exam represents the best interests of the profession, which means revising their strategy to keep up with the evolution of the industry.

We applaud the AICPA on a job well done and congratulate them for a successful CBT-e launch. So far, candidate feedback I have gotten on the new exam format has been mostly positive, which means that their hard work was totally worth it.

Accounting News Roundup: Talking Corporate Tax Reform; PwC’s Audit Committee Questions; Swipe That Refund | 01.14.11

Caleb Newquist
January 14, 2011

Groupon Talks IPO [WSJ]
Investment bankers have been making proposals to online deals site Groupon Inc. about a proposed initial public offering for the past week through an informal “bake-off,” people familiar with the matter said. Groupon, which turned down a $6 billion takeover offer from Google Inc. last year and said it would raise $950 million in funding, has been planning its public debut for later this year, these people said. An IPO is likely “sooner rather than later,” and most likely to be this fall, one of the people familiar with the matter said.

E&Y named most gay-friendly accountancy firmAccountancy Age]
E&Y ranked third on the UK national list of 100; Deloitte came in at 90. PwC and KPMG were MIA.

Talks on Corporate-Tax Revisions Set to Start [WSJ]
The drive to revamp corporate tax rules kicks off in earnest on Friday, when Treasury Secretary Timothy Geithner sits down with executives of more than a dozen major U.S. companies. One likely focus of the discussions will be finding ways to use an overhaul to encourage more investment in the U.S. “We have to create stronger incentives for investment in the United States, both by American and by foreign companies,” Mr. Geithner said in a speech this week.

For Same-Sex Couples, a Tax Victory That Doesn’t Feel Like One [NYT]
A decision in May by the Internal Revenue Service that was hailed as a step toward equality for same-sex couples has instead become a headache for tens of thousands of gay and lesbian families in California. Same-sex couples who are registered domestic partners — or who married during the brief legal window — are facing a new, more complicated tax status, one that has raised a litany of expensive concerns. Many of these families will now have to pay for professional help to file by April 15.

PwC provides top 10 questions for audit committees [AW]
PwC US’s Center for Board Governance has announced its annual list of questions and insights to help audit committees oversee their companies’ 2010 year-end financial reporting process. Topics covered include: accounting and disclosure matters, the impacts of the proposed SEC rule for a whistleblower bounty program, antitrust and anticorruption compliance, tax reform, and ongoing standard setting, and regulatory matters, among others.

IRS to Offer Tax Refunds on Visa Debit Cards [TaxProf Blog]
Spend away!

Former ’30 Rock’ accountant charged with embezzling from NBC [NYP]
Matthew Rudolph was awaiting arraignment in criminal court Thursday on 22 counts of grand larceny, falsifying business records and possession of a forged instrument. Queens district attorney Richard Brown says Rudolph forged two checks made out to himself and used his company credit card for personal use, stealing a total of about $14,000.

AT&T Takes $17 Billion Charge for Pension Change [Bloomberg]
The company will deduct $2.7 billion, or 28 cents a share, in non-cash expenses in the fourth quarter, Dallas-based AT&T said in a regulatory filing today. AT&T is changing how it recognizes gains and losses for funds that pay for pension and other post-retirement benefits. “Investors shouldn’t lose sight of the real economics just because of the accounting,” said Craig Moffett, an analyst at Sanford C. Bernstein & Co. who rates AT&T shares “neutral” and doesn’t own them. “The real economics are based on the size of the liability regardless of how it’s accounted for, and this is a massive liability.”

Ways and Means schedules first tax reform hearing [On the Money/The Hill]
January 20th. 9 am. Be there.

Grant Thornton

Moss Adams CEO Denies Grant Thornton Merger Rumor in Email to Partners

Caleb Newquist

January 14, 2011

In reaction to our post yesterday about the rumor of Grant Thornton and Moss Adams being united in wedded CPA firm bliss, Moss Adams Chairman and CEO sent an email to MA partners yesterday afternoon. The email, sent to us earlier today, let the partners know that no one is out of the loop, “[L]et me start by assuring you that you did not miss a partner call, a partner memo or any other such communication dealing with this.”

Mr Anderson also wrote that he has spoken to Grant Thornton, “Since we last had the all partner webinar, there have been no substantive discussions with GT – I say no substantive discussions because I have been at an AICPA major firms meeting where I not only had casual discussions with the GT leadership team, but I had similar discussions with the leadership of most of the 30-50 largest CPA firms in the country, exclusive of the Big 4.”

So you can interpret things like, “no substantive discussions with GT” and “casual discussion with the GT leadership team” how you like but Mr Anderson made himself a little clearer near the end of the email, “I can absolutely assure you that while we have had discussions with a large number of firms (of all sizes) over the past 12 months […] there are currently no negotiations under way with any firm regarding merger. But I can also tell you that I and other [Executive Committee] members will be talking to some west coast firms over the next several weeks.”

Moss Adams has not responded to our most recent request for comment. Grant Thornton sent back our carrier pigeon with it’s head cut off (very Chicago), which is the closest thing resembling a response that we’ve ever received from the firm. We’ll keep you updated.

Big 4

Career Center

Despite the “Horror Stories,” an Eight-year Tax Vet Wants to Know How to Jump to the Big 4

Caleb Newquist

January 14, 2011

Welcome to a special Thursday the Thirteenth edition of Accounting Career Emergencies. In today’s edition, a tax veteran who has spent their career working in smaller firms is looking to make a move to a Big 4 firm since they “can be even more flexible with schedules.” The problem is, our aspirant is having trouble getting any of the firms’ attention.

Want to know if you’re stuck in a dead-end job? Looking for some good press? Need help writing a farewell email? Email us at advice@goingconcern.com and we’ll help you keep your valediction out of these pages.

Returning to the Big 4 wannabe:

Dear Caleb,

I am a tax senior who has eight busy season and a CPA license under their belt. I have always worked for the smaller firms because of all of the horror stories I have heard regarding the Big 4. Lately, I have realized that I really don’t work that much less than they do and sometimes the Big 4 can be even more flexible with schedules because of the size of the workforce. (If you are one of several, there is not a lot of room to move stuff around.)

The problem is I have never been through the recruiting process with the Big 4 and don’t know where to begin to try and move into an experienced position. I have applied on the website but have not had any responses. Any thoughts?

Sincerely,
Lost in Transition

Dear LiT,

So the Times convinced you, eh? It’s a good paper (is that still the correct terminology?), we’ll admit but even the Gray Lady can find itself wandering into uncharted waters. ANYWAY, this problem you have – no communicado so far from the Four Horsemen; we can help.

Our first suggestion is to work with a professional recruiter that has placed others with the Big 4. A good one will be able to take one look at your résumé and flat out tell you if you’ve got what it takes to get in the door. Then it’s up to you nail the interview(s). Done and done.

The other thing you can do – if you prefer to avoid the recruiter – is to use LinkedIn to find who the experienced-hire Big 4 recruiters are in your market and contact them directly. You could get started by looking at some recent posts that have emails from recruiters that are floating around this here site but we realize that may be a longshot.

So off you go, Big 4 hopeful. We hope you hit the work-life balance jackpot.

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