Going Concern

Did We Also Mention Our Flexible Work Schedule Arrangements?

Caleb Newquist
January 11, 2011

“We stand by the audit opinions issued by Ernst & Young relating to the financial statements of Lehman Brothers.”

~ Sarah Jurado, a spokeswoman for Ernst & Young in the UK, who sounds like she’s got the talking points down, quoted in Bloomberg.

Deloitte

Your First Melodramatic Farewell Email of 2011 Comes Courtesy of Deloitte

Caleb Newquist
January 11, 2011

While some of you are understandably ~~broken up~~ CRUSHED that Natalie Gulbis is off the market, there are some who are emotionally exhausted from their experience in the Big 4 and aren’t looking forward to another busy season. That got one Green Dot to thinking:

Hey Caleb,

The following email is making its way around the company, it’s a good bye email from a staff out of the NE region. At first I thought it was funny, but after reading it again, I found it quite troubling. As today marks the start of another busy season, I thought you might want to share this with your readers and stress the importance of mental health. The re end of the day, this is just a job. I think that staff, particularly staff straight out of school, have trouble understanding that. The email ends on a high note and it sounds like he is going to get the peace he really needs, but I hate to think about the hundreds of other people in this industry (this is not a uniquely Deloitte issue) who find themselves in similar situations.

Keep up the good work!

Sincerely,
Concerned at Deloitte

Before we get to the farewell email, we aren’t making light of anyone’s personal situation and certainly not the importance of mental health but for crissakes people, your job is not life or death. If your job is weighing on you to the point of misery, talk to someone you trust. And if you need to take a mental health day, or take a leave of absence or just LEAVE, then do so. There’s no point in pushing yourself beyond your limits. We’ve seen it first-hand and it’s not pretty. Just because some people enjoy (and thrive) under the torture of 60-70 hour work weeks that doesn’t mean that you have to. And if you happen to observe a co-worker slowly losing it, take it upon yourself to ask how that person is doing.

ANYWAY, here it is:

Subject: One day I was sitting wondering to myself, why do people do things to intentionally cause themselves pain?

Hi everybody,

I’m sure some of you have forgotten who I am, and I’ve forgotten who some of you are too, not most but some. I’m sitting here in my old desk in the 2wfc on the 9th floor where I worked during the 2009 audit busy season. I’m writing to inform you that I have decided to part ways with the old uncle D.

I’m not sad and I hope you aren’t either, because this isn’t an end it’s just a new beginning. During my time at Deloitte I meet so many amazing people that I can’t even count them all, so many people have touched my life deeply. I wish I could spend more time with each one of you, and I can. I’m only an email away. During my time here I had a lot of fun, there was a lot of pain, more pain and sadness then I can even hope to describe in a single email. But more and more I’m choosing to only remember the good times, which is making me a better person, a happier person.

Which brings me back to the question I asked myself. Why do people do things to intentionally cause themselves pain? After coming back to the office and reflecting back on my time here I can start to understand. Sitting here in my cold dark cubical on the 9th floor, located in the furthest most isolated corner of the floor, overhead there is no office light as the other cubicles around which all have a single UV light positioned in the ceiling over head, so it’s the darkest cubical around.

Now coming back to all this I can finally see why, why I sacrificed my happiness to sit and stare at a computer monitor for 12 to 14 hours a day. You might be saying, it was because you had too, this was your job. But in our society, in modern America no one can make me or anyone else do anything. I could have just as easily not came in, I could have decided to just leave the firm. But day after day I kept coming. Why? Now looking back I see that it was two things. The first but not most important was my loyalty to the people I worked with, the second was my own fear.

The answer to my fear lies in a song I used to listen to several times every day during the 2009 audit busy season. The song “Drones” by Rise Against is a description of the modern office worker, the song helped me to feel that someone out there understood how I felt, that I wasn’t alone. It speaks office workers who keep coming back to work, to work their lives away. They come back to work every day in order to serve a faceless queen (aka: Money, C.R.E.A.M.). A god which can never love them back or help them attain love because it’s at the end of the day it’s only an object. Yet the people keep working to make that paper.

Well enough of my rant about money. I wanted to thank everyone, even the system which is Deloitte. I want to thank you all for everything you taught me, and all the fun and crazy experiences I had will never be forgotten.

To all the people whom I complained too, didn’t listen too, and got angry with. I am sorry, I want you to know I appreciate all of you dealing with my nonsense and being patient with me, and teaching me. I understand how difficult I can be to work with, and sometimes even be around. I’m sorry if I made your lives harder.

Please keep in touch.

One love,

-[redacted]

P.S. Yes I am crazy, and no I don’t need help

P.S.S. My email is [redacted] Please feel free to write me any time.

Big 4

The New York Times Takes the Big 4’s Work-Life Balance Bait

Caleb Newquist
January 11, 2011

Late(r) on Friday, the New York Times published an article championing the accounting firms for their commitment to providing a flexible work arrangements for its employees. The article, as you would expect from the Times, provides numerous examples of how the policies of the Big 4 and other major accounting firms make life extra-peachy for their employees.

The article leads off with none other than a firm who has been in desperate need for good press:

As the peak season for the nation’s accounting firms begins, David Leeds’s team at Ernst & Young is once again bracing for two months of 60-hour weeks auditajor bank in Atlanta.

In years past, those grueling weeks often fueled nasty marital spats about missed dinners and children’s tantrums over forgotten basketball games.

Not any more. At Ernst & Young, as at the nation’s other major accounting firms, workplace flexibility has been built into the culture — even during crunch time. [our emphasis]

Every Monday morning, the 15 people on Mr. Leeds’s team meet and lay out the personal commitments that might interfere with work — basketball games, teacher conferences, Pilates classes, weddings. They arrange to cover for each other, helping make the busy season tolerable for everyone. Despite the auditing team’s six-day weeks, one Auburn University graduate, for example, is taking next Monday and Tuesday off to see the school’s football team play in the national championship bowl in Arizona. And Mr. Leeds plans to escape to New Orleans for three days to see his daughter run a marathon.

“We face very tight deadlines from our clients, but at the same time we try to make sure that team members have the flexibility they need,” said Mr. Leeds, a partner at the firm.

Parent-teacher conferences! Pilates! The Bowl Championship Series! From the sounds of it, you’d think being the an E&Y partner on a banking client was like whistling dixie (in Atlanta anyway). We’ll give this Atlanta team the benefit of the doubt (unless someone wants to email us with a different story) but the Times gives you the impression that the gambit of the industry is sympathetic to your family time and college gridiron road trip ambitions. Even during busy season. More untrue, this could not be.

We could go on with anecdotes about a senior manager’s spouse being in the hospital or the lack of flexibility given to a single dad OR not allowing someone to scoot out an hour early to see their girlfriend because she’s in from out of town but that really isn’t necessary. Examples such as those are simply provide you with a the spectrum of firms being at their absolute worst. What about the lion share of employees at these firms? Chances are, if you walked over to 5 Times Square and pulled aside the first person you saw with a E&Y backpack, they’d tell you that they are preparing to be sleep deprived for the next three months and if you told them they would get a dozen days off in that time frame, they’d be thrilled. Furthermore, if you were ask them if their partner had weekly meetings to ensure that everyone’s extracurricular activities were being respected, they’d look at you like you had three heads.

We won’t dismiss the firms’ efforts entirely because as we said, the Times cited several examples of employees who have taken advantage of the flexible schedules but the article is full of the rhetoric candidates and employees hear regularly when it comes to work-life balance. The best example being one of the last quotes from E&Y partner Brooke Sikes, who is out of Dallas:

“The firm very much rewards you for your performance,” she said. “It’s not about punching a clock. It’s not about face time.”

Not really much needs to be said. Reactions to this statement and any other thoughts on the current work-life efforts by your firm are welcome at this time.

Flex Time Flourishes in Accounting Industry [NYT]

Career Center

Should a Tax Rockstar Transfer to a New Consulting Gig Prior to Busy Season?

Caleb Newquist
January 10, 2011

Welcome to another MOANday edition of Accounting Career Emergencies. In today’s edition, a tax vet is looking to move into consulting with their current firm but in a new office. The current office wants this “star performer” to stick around for busy season but ultimately the decision lies with our hero, who is concerned about burning bridges if they jump before busy season starts. What’s a tax rockstar to do?

Recently had your heart broken? Are you a miserable auditor with no one to turn to? Or an overachiever who needs help convincing their colleagues that you’re not just some know-it-all? Email us at advice@goingconcern.com and we’ll be your shoulder to cry on (and then slap some sense into you).

Back to the David Lee Roth of taxes:

Hi. I am currently with the tax department and thinking about doing a switch to consulting with my same firm, but a different office. The new position will offer better opportunities and as a bonus, better pay. I have already told my department leaders about this switch.

I think this will be a good switch for me, but am afraid there might be some burned bridges on the way since busy season is about to start and I am one of their star performers. They insist that I stay until busy season is over to make the switch because of the extra work load they will have. The final decision will be up to me, but I don’t want to burn any bridges.

Dear DLR,

First off, let us just congratulate you on the new consulting gig. It’s easier said then done to leave a successful run in one area to try something relatively different (without more DETAILS it’s difficult to know how different your new gig is).

Fortunately for you, your humble editor has some experience with a similar situation. Back in the mid-Aughts, I was granted a transfer from Denver to New York. My transfer was approved in the fall, however the leadership in Denver put forth the condition that I spend one more busy season in the MHC. Looking back on it, I’m glad it worked out that way because I was able to spend one more year working on a client I enjoyed and it better prepared me for my engagements in New York.

In your case, you are switching practices so perhaps you could care less about grinding out another busy season with your tax comrades. Similarly, if you’re the rockstar you claim to be, it probably isn’t too motivating to know that you’re going to bust your ass for 3-ish months but then not have your performance considered for your year-end review.

But you’re obviously torn between your giddiness of a new career opportunity and the possibility of rubbing some people the wrong way if you decide to leave them behind. Honestly, I’m a big believer in doing what you want to do, especially when given the option. So, you shouldn’t be surprised when I say move on to the consulting gig now. I understand that you don’t want to cause any friction but if they are “insisting” that you stay for busy season why did they allow you to make the decision? If they need you so bad, they would “require” you to stay. That’s what Denver did to me but again, their need was probably far greater than New York’s.

But here’s a NEWSFLASH: The team will make it through busy season with or without you. If your colleagues have integrity and support your ambitions, this is a non-issue. Chances are, some of them are completely comfortable no matter what decision you make. Others won’t be. Don’t worry about pleasing everyone because you’ll ultimately fail in that endeavor. If you want to join the consulting team now, then do it. Your tax colleagues will survive and if some of them hold it against you, then you’re better off getting the hell away from them. Good luck.

PCAOB

The UK Invites the PCAOB Over for Tea (and Some Audit Probing)

Adrienne Gonzalez
January 10, 2011

Convergence may not be that far off after all, here it is 2011 and now we finally have U.S. and U.K. audit harassment agencies working together to share information and polish up that whole bit about protecting investor confidence in capital markets. It may or may not have something to do with the collapse of Lehman Brothers (personally I think the paranoid mistrust in foreign accounting systems – or perhaps just ours – goes back a tad more than that) but soon enough the PCAOB will have an in (after at least one failed attempt) and get a chance to ~~harass~~ inspect foreign firms. We anticipate that this announcement will bring it with it a fantastic new acronym so we can all keep track of who is who.

The Public Company Accounting Oversight Board today entered into a cooperative agreement with the Professional Oversight Board in the United Kingdom to facilitate cooperation in the oversight of auditors and public accounting firms that practice in the two regulators’ respective jurisdictions.

This agreement provides a basis for the resumption of PCAOB inspections of registered accounting firms that are located in the United Kingdom and that audit, or participate in audits, of companies whose securities trade in U.S. markets. The PCAOB previously conducted inspections in the United Kingdom with the POB from 2005 to 2008, but has been blocked from doing so since that time.

Acting PCAOB Chairman Daniel L. Goelzer welcomed the arrangement, which will lay the foundation for the PCAOB and POB to work together to promote public trust in the audit process and investor confidence in capital markets.

The PCAOB can thank the Dodd-Frank WSCRA which amended SOX to permit the PCAOB to share information with foreign audit agencies under certain conditions.

In light of this event, we’re wondering what happens when the two work together sharing “information.” Does it get a brand new acronym that celebrates this new dawn in inter-obnoxious-regulatory-gossiping (IORG) or does it become a hybrid acronym like the Public Professional Company Oversight^2 Board Board or PPCO^2BB? Surely we can do better.

Party at the PCAOB DC office this evening to celebrate, bring your own acronym suggestions and IFRS pocket guide.

News

(UPDATE) Accounting Firm Merger Monday: Dixon Hughes, Goodman & Co. Combine to Form Dixon Hughes Goodman

Caleb Newquist
January 10, 2011

~ Update includes Goodman & Co. quote in fourth paragraph.

Late last week we heard some rumbling about a merger between High Point, NC-based DIxon Hughes and Virginia Beach, VA-based Goodman & Co. and lo and behold, this morning the press teams from both firms have dropped us the press release announcing the merger and a link to this page that includes details on the merger, a letter to clients, a list of office locations and FAQs.

The combination, effective March 1, will make Dixon Hughes Goodman the 13th largest firm (by revenue) in the U.S. with a combined revenues of over $280 million. This places them one spot ahead of Baker Tilly Virchow Krause and behind directly behind Plante & Moran (this is going by Accounting Today‘s count). The combined firm of Dixon Hughes Goodman will have 30 offices (with HQ in Charlotte), in 11 states with 1,700 professionals. The firm’s leadership will consist of Thomas H. Wilson, Managing Partner of Goodman & Company, as the Deputy Chairman and Chief Operating Officer, Charles Edgar Sams, Jr., Chairman of Dixon Hughes, will continue to serve as Chairman and Kenneth M. Hughes, Chief Executive Officer of Dixon Hughes, will also remain in that position.

Both firms ranked very high in Vault’s Accounting 50, with Dixon Hughes coming in at #5 and Goodman & Co. landing at #15. Goodman ranked very high in some notable categories including #2 in compensation, #3 in business outlook and #1 in green initiatives.

The press release states that Goodman & Co. “retain all of its existing Virginia, Maryland and Washington, D.C. offices,” which we interpret as “no reductions in headcount” ~~but we’re waiting to confirm~~ and we’ve confirmed this with Goodman’s Gary Thomson who said, “we anticipate an increase in the near term as we take new industry specialties to our new markets.”

On a far more exciting note, Goodman & Co., by virtue of this merger, has broken into the Elvis-impersonation market, of which Dixon enjoys a sterling reputation.

Congrats to both firms on the merger and we wish them many happy years together. Obviously, the honeymoon will have to wait – busy season and all. We’ll keep you updated on any further developments.

Accounting News Roundup: PCAOB Gets UK Clearance; Accounting Will Remain a Hot Career; Tax Reform Won’t Happen Overnight | 01.10.11

Caleb Newquist
January 10, 2011

Political Heavy Hitters Take on College Bowls [NYT]
Playoff PAC gets the Times treatment, “They are not just producing attack adng after the bowls’ finances. In complaints to the Internal Revenue Service, they have raised questions involving three of the four bowls that make up the five-game Bowl Championship Series about interest-free loans, high salaries, lobbying payments and lavish perks for some bowl executives. They have also made accusations about illegal campaign contributions.”

Lehman’s Repo-105 Auditors in U.K. Lose Shield From U.S. Accounting Probe [Bloomberg]
U.S. inspectors blocked from examining whether British auditors of Lehman Brothers Holdings Inc. improperly cleared questionable accounting will get access to the books under an agreement set to be announced today. Authorities in the U.S. and U.K. have settled a jurisdictional dispute that since 2008 has prevented the U.S. Public Company Accounting Oversight Board from reviewing British auditors of U.S. companies, according to a person familiar with the agreement and documents obtained by Bloomberg News.

Verizon Finally Lands the iPhone [WSJ]
The largest U.S. wireless carrier will make the long-awaited announcement at an event Tuesday in New York City, people familiar with the matter said. The phone will make its way to Verizon Wireless stores around the end of January, a person familiar with the matter said. The move will for the first time let U.S. consumers choose the network that carries their iPhone and perhaps give them additional pricing options that could affect their monthly bills.

PTINs a Pain for Some CPAs [JofA]
All paid tax return preparers, including CPAs, now must use a PTIN when signing all tax returns, forms or claims for refund (except for certain specified returns and forms—see Notice 2011-6), and must have obtained or renewed an existing PTIN to prepare returns after Dec. 31, 2010. In addition, persons who exercise discretion or independent judgment to prepare all or substantially all of a tax return, form or claim for refund (again, apart from certain specified ones) must likewise obtain or renew a PTIN, whether or not they sign the return, form or claim for refund. The PTIN requirement is part of the IRS’ broader effort to establish minimum standards for all paid tax preparers that will eventually include, for preparers who are not CPAs, attorneys or enrolled agents, testing and continuing education.

Gulbis confirms Johnson relationship [Fox Sports]
Sorry, guys.

Clifton Gunderson buys N.M. accounting firm [MJS]
Seventh merger for CG since May 2010.

China may launch first-ever property tax in Q1 [Reuters]
China is set to further clamp down on the country’s buoyant housing market by imposing a long-debated property tax for the first time in the southwestern city of Chongqing, domestic media reported on Monday. Chongqing has “in principle” won approval from the Ministry of Finance and may introduce the property tax as early as this quarter, the China Securities Journal cited the city’s government as saying.

Accountant accused of stealing from Libertyville Boys Club [LCNS]
Nots-so-pro-bono.

Hot job for the next decade? Try ‘accountant’ [CPA Success]
Great. More MSM articles about accounting being a hot career. Bright side: more GC readers!

My Top 10 Priorities for Improving Internal Auditing [IIA/Marks on Governance]
Aka: internal audit resolutions.

Public Offering Said to Be Unlikely for Zynga This Year [DealBook]
The company that brought you Farmville will remain focused on have people spend their investing dollars on their games rather than their stock. For now.

Playboy Agrees to Hefner’s Offer to Go Private at $6.15 a Share [Bloomberg]
Playboy Enterprises Inc., the owner of the namesake adult magazine and online properties, said it agreed to be taken private by founder Hugh M. Hefner for $6.15 per share. Hefner’s offer to buy the Class A stock and Class B shares he doesn’t own represents an 18 percent premium over the Class B closing price of $5.20 a share on Jan. 7, the company said in a statement today. Hefner said in July he would pay $5.50 a share in cash for the stock he doesn’t already own.

Kyl: Tax reform could take time [On the Money/The Hill]
Newsflash.

You’d Be Wrong If You Thought Americans for Tax Reform Were a Bunch of Humorless Killjoys

Caleb Newquist
January 8, 2011

For all we know, ATR was behind the video from earlier today and then we found this from last night:

Great Night for Illinois Taxpayers!

Illinois Democrats were dead-set on raising the state’s personal income tax by a whopping 83 percent. But in a stunning and miraculous turn of events, they decided to go easy on their already mightily-struggling constituents. In a deal reportedly reached tonight, Gov. Pat Quinn and legislative leadership decided to with a mere 75 percent income tax increase, coupled with a modest 102 percent cigarette tax hike that will gently nudge countless jobs across state lines and steal a disproportionate amount of impoverished Illinoisans’ income with a wink and a smile.

We like what the author, Josh Culling, did there but the only problem is that he felt it necessary to brief readers with the following, “The above, of course, is laced with sarcasm and disappointment.” OH THANKS! We really thought we were on a “Rahm for Mayor” site for a minute there.

Career Center

Another Fed Up Auditor Needs Help Making a Move

Caleb Newquist
January 8, 2011

Welcome to the Friday edition of Accounting Career Emergencies (aka: why doesn’t anyone want to poach me?). In today’s edition, an E&Y audit staff has HAD IT with her trade. Problem is, she’s concerned that she might be doomed for “long hours and boring work.” Plus, she’s already has passed the CPA exam and needs to meet the hours requirement. Is her career doomed to boredom and lack of certification?

Need career advice? Recently been tempted by a sexy corporate suitor but don’t want to disappoint the boss? Thinking about turning to extreme measures to get revenge on a co-worker? Email us at advice@goingconcern.com and we’ll run down a cauldron.

Back to fed-up-auditor du jour:

I am currently working at EY in auditing at the staff 2 level. I am miserable in audit and have been trying to stick out my time here until at least senior status, but I’ve come to realize that I just cannot take 9 more months of this work. As such, I am currently exploring my options as to what else is available out there for me.

I have already passed the CPA exams and the only thing holding me back from obtaining my CPA is the CPA hours requirement. Can you recommend a transition job that will get me AWAY from audit but still allow me to put the work hours towards my CPA? I understand that financial advisory is one option and I am considering looking into such positions at Deloitte (because of their large FAS practice). However, the problem is that I’m not sure how different the nature of the work will be in financial advisory. Will I be met with long hours and boring work, similar to audit?

Can you PLEASE help a sista out?

Thanks!
– Concerned About My Own Going Concern

Dear Concerned Sista,

Will you “be met with long hours and boring work?” If by, “boring work” you mean “Microsoft Excel” and by “long hours” you mean, “more than 9 to 5” our response is “possibly” and “HELL YES.” We will not address the question about “long hours.” That is a matter of record all over this site. As far as the work, if it’s the nature of auditing you find dull, you’ll be glad to know that advisory services has many interesting practice areas but think about it, you have an accounting degree (presumably), for crissakes. There will be numbers and spreadsheets involved (if that’s what you find boring). What, exactly, were you expecting? Flip cup tournaments broken up by 2 hour lunches?

The good news is, the season is ripe for people looking to move to another Big 4 firm. However, you might be a little short on experience to jump over to Deloitte FAS. These practice areas are very specific and with only a couple years under your belt, it will be a tough sell. Obviously, this shouldn’t dissuade you but you’re officially on notice that it’s an uphill battle.

As far as your CPA is concerned, many states allow work experience in areas outside public accounting so unless your state has very specific requirements for licensure, you’ll be fine. This means you should take a hard luck about what you do like about accounting and make a decision from there. Keeping in mind that this could mean getting out of the Big 4 altogether. Good luck.

Tax
Video

Here’s a Video Explaining Why “Liberals” Want Higher Taxes

Caleb Newquist
January 8, 2011

In case you haven’t already come up with your own theory.

[via TaxProf]

Big 4

KPMG Manager Irritated with ‘Other 3’ Calling the Kettle Black RE: Recruiting Methods

Caleb Newquist
January 7, 2011

This week we’ve shared a couple of examples with you that demonstrate how KPMG is attempting to land some talent from its rival Big 4 firms. The strategy ranges from the Google-ish to the good old fashioned cold ~~call~~ email. After yesterday’s post mentioning the latter method, a Radio Station manager felt compelled to point something out:

I am a KPMG manager and I don’t want everyone thinking that it is only KPMG that is on an easter egg hunt to try land experiived the following linked in messages over the holidays:

PwC M&A Advisory Manager opportunity in Mclean, VA

Zahara Kanji Sourcing Manager at PricewaterhouseCoopers

Hi [KPMG manager],

I hope this note finds you well. By way of introduction, I am the recruiting manager for PricewaterhouseCoopers’ Transaction Services Advisory practice. We are strategically growing at various levels across the country. I am interested in your professional background, which seems to align well with our Transaction Services Financial Due Diligence practice. Please reply to this email if you would like to learn more about our business. I look forward to hearing from you soon.

Best
Zahara

and

Position with Ernst & Young LLP Audit Practice

Renee Scott (Creese) National Diversity Recruiting Manager

[KPMG manager],

My name Renee Scott, Assistant Director of Recruitment with Ernst and Young’s Assurance practice. We are expanding our searches for experienced Seniors and Managers with assurance background and CPA designation.

Sasha Le with HR Consulting Partners, my sourcing assistant, through networking, has identified you as someone we would definitely consider speaking further about these great career opportunities. I’ve opted to make my initial contact with you via LinkedIn, a professional networking venue, so if you are or know of someone who is interested, please contact me at 410-263-3702 or via email at renee.scott@ey.com OR you can contact Sasha Le via email at sashale@earthlink.net or via (626) 839-7174. We look forward to hearing from you soon.

Regards,
Renee Scott
Ernst & Young LLP

A couple takeaways now that we’ve sufficiently beaten the competitive recruiting drum: 1) This time of year, there’s a big push to bring on new people because, well, there’s a perpetual shortage of people in some practice areas; 2) if you’re unsatisfied with your current firm, qwitcherbitchin and call one of these recruiters. They’d love to talk to you.

As for our tipster’s motivation:

I just begin to get irritated when staff from the other 3 point fingers at KPMG for being the bad guy. They seem to forget that an audit is an audit and unless PWC has discovered a new shmebit [sic?] to account for that the rest of the Big 4 don’t know about then I am pretty sure they audit the balance sheet and income statement the same way the rest of us do.

Now, then. Some clever commenter on the last post wondered “Whis [SIC] is this big news? Recruiters have been doing this in public accounting for many years.” We admit, this isn’t Andrew Cuomo slapping E&Y and E&Y slapping back but we seriously doubt it’s known just how competitive it is. Plus, the firm’s downplay the whole thing. Look no further than the interview KPMG’s Vice Chair of HR gave to FINS last spring:

[Kyle Stock]: I often read about poaching amongst the Big Four. Has that activity increased or decreased recently?
[Bruce Pfau]: Like any business, there are going to be fluctuations and vicissitudes in the industry in general and there’s a certain amount of movement between the firms. There’s no warfare going on between the firms or any vendettas or anything like that. In general, we find at least when people leave us, by and large, they’re not leaving to go to a competitor. And I think the same is true of our competitors. It’s usually because they see opportunities in either a corporate situation or another consulting environment of some kind.

So, Mr Pfau says it’s NBD but the reality is that the talent at the firms is very similar and when the shortage of people in a particular practice area becomes severe, the leaders in those groups put pressure on the recruiters to find good people to fill the holes. It’s reflective of the culture inside the firms and is part of the underbelly of what is going on behind the scenes. And in case you’re new to the site, that’s what we do here.

PCAOB
SEC

(UPDATE 2) Who Will Be the New PCAOB Board Members?

Caleb Newquist
January 7, 2011

~ Update 2 includes statement from PCAOB and clips from the SEC press release.

The SEC is set to make announcement circa ~~any minute~~ this afternoon and rumor has it that there might be last minute changes that amount to “horse trading among commissioners.” Intrigue at the SEC that has nothing to do with porn! Who knew?!?

Francine McKenna also seems excited about it:

Your wild-ass guesses are welcome at this time. We’ll keep you updated once we hear the names.

UPDATE: Silly us. Tammy Whitehouse over at Compliance Week had the potentials yesterday and we somehow overlooked it:

The SEC is expected to name John Huber, former director of the SEC’s Division of Corporation Finance, Lewis Ferguson, former general counsel to the PCAOB, and Jay Hanson, national director of accounting for audit firm McGladrey & Pullen, to three seats that have been open at the PCAOB for more than a year. It’s not clear whether one of those three will be appointed chairman, or whether that title will be granted to Daniel Goelzer, the acting chairman who has held down the fort since Mark Olson resigned in July 2009.

Granted, there are lots of rumors swirling about this “horse trading” so we wouldn’t be surprised if one of these guys (i.e. Huber, Ferguson or Hanson) got dropped for [fill in the blank].

UPDATE 2: And now, ~~perpetually~~ acting PCAOB chair Dan Goelzer:

“I am very pleased that the SEC has appointed three outstanding individuals to the Board. I look forward to working with Jim Doty, Lew Ferguson, and Jay Hanson in continuing to carry out the Board’s mission to protect investors and promote public confidence in audited financial reporting.

“At the same time, I want to thank the retiring Board members, Bill Gradison and Charley Niemeier, for their immeasurable contributions as founding members of the Board and for their years of dedicated service. Investors owe them a debt of gratitude.”

So the trade was Huber for James Doty (who is taking the Chairmanship), the former SEC General Counsel. INTERESTING (at least in some circles). Fro the SEC press release:

Mr. Doty is currently a Partner at Baker Botts LLP in Washington, D.C. He has represented clients on a wide range of securities law matters. He also counsels boards of directors and audit committees on problems arising under the Sarbanes-Oxley Act and related issues. Mr. Doty served as the SEC’s General Counsel from 1990 to 1992. He received an LL.B. from Yale Law School, an M.A. from Harvard University, an A.B. from Oxford University, and a B.A. from Rice University.

Yale, Harvard, Oxford and Rice? Elijah Watt Sells winners, eat your hearts out.

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Remote Accounting & Tax Director

Remote Tax Manager

Remote Tax Advisor, CPA Firm

Remote Accounting & Tax Director

Remote Tax Manager

Remote Tax Advisor, CPA Firm