Going Concern

One Possible Revenge Option for the Women of PwC Ireland

Caleb Newquist
November 11, 2010

As you might expect, there’s been a fair amount of outrage about the PwC Ireland Hottie List 2010. Revenge ideas are already being floated and we were pointed to the following comment over at Gawker (although we can’t seem to find it now):

If PricewaterhouseCoopers fails to act promptly and decisively on this, the women of the company have a couple of other ways to achieve justice.

My favorite is taking a full page ad in the business section of the leading newspapers… featuring corporate photos, titles, and marital status of the 17 men. The copy would say: “Instead of working on YOUR accounts, these men spend their time imagining their coworkers as sexual objects.”

The copy would be 100% true and provable, so it ought to get published. The wives, girlfriends, neighbors, and churchgoers can take it from there. Any of these men will find it harder to go on an out-of-town trip or stay late in the office without getting mangled in the wringer. And PWC will face questions about its billable hours.

If PWC still fails to act, the next ad can feature the same men, but the copy will say, “There were 13 people on their Top-10 List. Do you really want them auditing YOUR books?”

The 13/10 idea is quite brilliant and we suspect other firms (with the exception of KPMG) to capitalize on it immediately.

It’s been said “the best revenge is living well,” but since these ladies work at PwC, there’s virtually no chance of that. It’s also not clear at this time what firm the action is taking against the perps. Accordingly, some ideas from the peanut gallery are in order for revenge/punishment. Ideas might include:

1) Forced sobriety on the dudes in question.

2) Giving them the horrendous responsibility to respond to all the questions regarding the colors and shapes used in PwC’s new logo.

3) Send them to China with no language training.

That’s just to get your brains working. Leave suggestions below.

Video

What Investment Bank Clients Are Really Saying: “KPMG are stupid”

Caleb Newquist
November 11, 2010

Auditors – if you have ever suspected that your IB client contacts aren’t convinced of your intelligence, then your intuition is serving you well.

This also helps put the whole AIG/GS/PwC situation into a hilarious context.

[source]

PwC Takes Precautions After Email Scandal

Caleb Newquist
November 11, 2010

We kid, we kid. Obviously this was up prior to this year’s “Rank the Hotties 2010” email got loose as the old logo still lives on in Minneapolis.

Which begs the question, did the Twin Cities not get the memo on the launch? We don’t know if there is an internal disciplinary action for this sort of non-compliance but it does demonstrate a shocking lack of attention to detail.

Accounting News Roundup: Fiscal Commission Report Reactions; Pivot Table Won’t Add Up, You Say?; The IRS Needs Volunteers, Connecticut! | 11.11.10

Caleb Newquist
November 11, 2010

Veterans Day – November 11 [DVA]
Remember those who served.

Deficit Panel Pushes Cuts [WSJ]
A White House c sweeping proposal to cut the federal budget deficit by hundreds of billions a year by targeting sacrosanct areas of U.S. tax and spending policy, such as Social Security benefits, middle-class tax breaks and defense spending.

The preliminary plan in its current form would end or cap a wide range of breaks relied on by the middle class—including the deduction for home-mortgage interest. It would tax capital gains and dividends at the higher rates now levied on wage income. To compensate, one version of the plan would dramatically lower and simplify individual rates, to 9%, 15% and 24%.

Deficit Panel Co-Chair Plan Is Tough, Creative, and Credible, But What Next? [TaxVox]
The Fiscal Commission gets a thumbs-up from The Tax Policy Center, “The co-chairs of President Obama’s much-maligned bipartisan fiscal commission have proposed a remarkable plan for both reducing the federal deficit and reforming the tax code. It is remarkable because it’s tough, specific, credible, and even creative. On the spending side, it carefully spreads the pain throughout government. And on the tax side, it makes a strong case for reform and presents no less than three ways to get there.”

Incorrigible: Fannie Mae and Freddie Mac Must Go [Forbes]
Francine McKenna’s latest at Forbes takes on the GSEs.

2010 Tax Filing Season Statistics [TaxProf Blog]
70% of 141.5 million tax returns were e-filed; average refund of $3,189.

Scaled back mortgage-interest deduction raises concerns [On the Money/The Hill]
Michael Berman, chairman of the Mortgage Bankers Association voiced concern over the plan to limit mortgage deduction to exclude second residences, home equity loans and mortgages over $500,000.

“Given the fragile state of the nation’s housing market, now is not the time to be scaling back incentives for homeownership,” he said today in a statement. “The mortgage interest deduction is one of the pillars of our national housing policy, and limiting its use will have negative repercussions for consumers and home values up and down the housing chain.”

Spreadsheets: Why Pivot Tables Won’t Sum [CFO]
Your dilemma – solved!

The Daily Docket: Ambac, IRS Strike Deal [Bankruptcy Beat/WSJ]
“Ambac Financial Group Inc. struck a deal with the Internal Revenue Service Tuesday that requires the IRS to notify the bond insurer before taking any actions involving hundreds of millions of dollars in tax refunds.”

A Strategic Plan for Internal Audit [Marks on Governance/IIA]
News you can use.

IRS looking for help [Bristol Press]
Calling all Connecticut residents who are feeling charitable – VITA/TCE volunteers are needed.

Quote of the Day

Dick Durbin Isn’t Buying This Fiscal Commission Report

Caleb Newquist
November 11, 2010

“I told them that there are things in there that inspire me, and there are things in there that I hate like the devil hates holy water. I’m not going to vote for this thing.”

~ The Illinois Senator doesn’t like the sales pitch from Erskine Bowles and Alan Simpson.

News

CFOs: We’ll Adopt IFRS Just as Soon as You Finish Your Little Convergence Exercise

Caleb Newquist
November 11, 2010

Actually it’s about half of CFOs with that attitude, according to Grant Thornton’s latest survey. They’re ballparking it around 5-7 years while nearly a quarter of the responders think we need to get on this ASAP.

Stephen Chipman, is keeping the faith even though, people aren’t as enthusiastic as he:

“While there is movement toward greater acceptance of International Financial Reporting Standards based on our previous surveys, it is clear that there is still much work to be done in educating the U.S. financial community on the benefits of IFRS,” said Grant Thornton LLP CEO Stephen Chipman.

“We have been, and continue to be, staunch supporters of the ongoing movement toward one set of high-quality, globally accepted accounting standards. As dynamic businesses continue to expand their international footprint, it is increasingly sub-optimal to be using different reporting standards, which sometimes increase costs while decreasing comparability. Just as international business has benefited over the last 30-odd years from the increased shared use of English, so too will global companies reap the benefits of one financial reporting language.”

KPMG

An ‘Appropriate Email Use’ Refresher May Be Needed for All Big 4 Firms in Ireland

Caleb Newquist
November 11, 2010

Earlier today we brought up some less-than gentlemanly behavior going on at PwC Ireland. However, that wasn’t the first story of misuse of email coming from the Emerald Isle. You may recall a few bros at KPMG asking for some assistance winning a trip to Whistler, which was received with mixed reviews in the States.

Anyway! Now comes the story – courtesy of our sister from another mister, Dealbreaker – about another KPMG associate maybe not using the best judgment, sharing his plans for putting the moves on a special lady friend with his mate over firm email.

From: Ian [redacted]
Sent: 22 October 2010 10:24
To: John [redacted]
Subject: RE: Wed

Good night on wed man. Good old craic. Any luck with the ladies

Kind Regards,

Ian [redacted]

Financial Services Audit

2 Harbourmaster Place

IFSC

Dublin

____________________________________________________________________________
From: John [redacted]
Sent: 22 October 2010 10:28
To: Ian [redacted]
Subject: RE: Wed

Was a very good night. Got very messy in the end. No luck with the ladies. Had my eyes on this one girl, [redacted]. Some piece of work. But bottled it in the end

_________________________________________________________________________________

From: Ian [redacted]
Sent: 22 October 2010 10:45
To: John [redacted]
Subject: RE: Wed

I know the one your talking about alright. Shes friends with one of my mates in my year. Seems like a nice girl. Gonna chance it next time

_____________________________________________________________________________

From: John [redacted]
Sent: 22 October 2010 11:24
To: Ian [redacted]
Subject: RE: Wed

Definiately going to stick the head in next time. Falling behind on this whole k score thing. Need to get on board. Shes top notch in fairness

What u reckon?

______________________________________________________________________________

From: Ian [redacted]
Sent: 22 October 2010 11:40
To: John [redacted]
Subject: RE: Wed

Ya, sure go for it if you like her

_____________________________________________________________________________

From: John [redacted]
Sent: 22 October 2010 11:48
To: Ian [redacted]
Subject: RE: Wed

Alright next thurs, im gonna stick the head in. Just wait for the right moment. (When shes drunk) and she cant say no. Got this unreal technique for scoring aswel, called the whisper. I pretend im whispering in her ear and when shes not looking I just kiss her. The element of surprise throws then off and BOOM.

______________________________________________________________________________________________

From: Ian [redacted]
Sent: 22 October 2010 12:04
To: [the girl]
Subject: Wed

Hey [girl],

Thought id give u the heads up about this chap John here. Think he has some serious plans for you

__________________________________________________________________________

From: [everyone who was forwarded this]
To: [everyone they know]
Subject: read from the bottom up!!!

Deloitte

Higher-ups at Deloitte Aren’t Sure Why Employees Are Still in ‘Shock Mode’ From the Last Few Years

Caleb Newquist
November 11, 2010

All the good times at the Deloitte – Jim Quigley on the teevee, surprise raises, leaving PwC in the dust – hasn’t gotten green-dot morale to acceptable levels.

Accordingly, some of the senior partners in the advisory practice have taken it upon themselves to remind everyone how things are turning around.

From a green-dot familiar with the situation:

There has been an up-tick in senior partner communication recently – mostly in the form of mass e-mail communications, published “Your Questions Answered” videos and in-person “Straight-Talk” sessions – seeming aimed at reassuring the masses that Deloitte’s on its way to the promised land. The message is pretty clear that we’ve survived the recession, are hiring like crazy, are bringing in new business at a solid clip and that we’re spanking our competition (i.e., need to look into the rear-view mirror to find PwC and gang).

This, of course, is in contrast to what we in the trenches feel; that our compensation isn’t mirroring our level of output, that we can’t staff engagements because we don’t have enough resources and that all of our friends are leaving for our competitors. This disparity is acknowledged by the partnership; and at least at one straight talk session, we were told that they can’t figure out why we don’t see the light. It was then proposed that we’re still in “shock mode” because of the last few years; but this observer thinks it’s more that we’re working so hard to produce results for the partners that we can’t see the light because the only free time we have is the few hours of twilight that exists each day – and that’s for sleeping (or other creative stress reducing activities ).

Btw, not sure what you’re hearing; but in my group-region alone, I know of 8 people who have left in the last month (the group-region is about 120 people).

Okay then – so it boils down to either being in “shock mode” or your terrible attitude. Share your position on the matter and what camp you fall into below.

Career Center

Mid-tier Manager’s Phone Blowing Up with Calls From Big 4; Is It Time to Jump Ship?

Caleb Newquist
November 10, 2010

Welcome to the winesday edition of Accounting Career Couch. In today’s conundrum, a mid-tier manager is getting aggresively courted by three of the Big 4 firms and what’s to know the True Accounting Firm Story about them before dropping his current firm like a bag of dirt.

Trying to figure out your next career move? Getting anxious about busy season and need some new survival tips? Did you recently receive an email that you really want to share with other but it may or may not be appropriate? WAIT! Email us at advice@goingconcern.com and we’ll steer you in the right direction.

Back to our greener grass hunter du jour:

Caleb,

The recent improvements in the fortunes of the Big 4 have yielded some opportunities for certain of us in the mid-tier firms. In the past two weeks I have been contacted by Deloitte, KPMG and E&Y regarding open positions they are trying to fill.

I am an experienced manager at a mid-tier firm that has not quite recovered from the recession. The firm is struggling to bring in new clients and has had almost no success in this area. The Big 4 have aggressively cut fees and have a generally better reputation to rely upon. While I like the opportunities as they are advertised, what kind of situation am I stepping into at these firms? Should any of these firms be avoided? I could stay until promotion to senior manager, but the firms is currently very top heavy. I see limited benefit to staying as my share of the work increases and my pay has not kept pace. Any thoughts?

It’s pretty difficult to pick one firm over the other without details about your city (memo to advice-seekers: GIVE US LOTS OF DETAILS ABOUT YOUR PROBLEM) but we’ll take a stab here.

Choosing one firm over another is purely a matter of your own preference. If you’re a fan of yellow, this is an easy decision. Prefer blue? Your decision is a little harder, unless you’re a Phil Mickelson fan, in which case there’s no debate here.

But seriously – if you specialize in a specific industry, you’ll probably meet a partner that you’ll work for when you interview with the firm. Hell, if it’s a small enough office you might meet all the partners in your group. That should give you a pretty good feel for what you’re getting into. Like we wrote last to Jersey Girl, a partner’s behavior during the interviewing process can be a good sign of who to choose.

If you’re antsy about your current firm, then you’re probably not alone. Regarding your concern about your current firm being “top heavy” the parking lot at senior manager is pretty full anywhere you go, so can’t really help you there.

Bottom line – go on some interviews and feel the firms out. Throwing darts won’t get you anywhere. Get a feel for the people you’ll be working with and your decision should be easy.

KPMG

Is Citi Getting Bad Advice from KPMG?

Caleb Newquist
November 10, 2010

John Carney wonders aloud if Citigroup’s low reserves (approximately $1b reserve for $500b in exposure) for its repurchase risk is thanks to the guidance provided by KPMG. Citi has said that they are, “comfortable with this level of reserves because historically realized repurchase risk has been quite small.” Carney explains, “In short, they haven’t had to pay out much on these claims in the past, so they figure they won’t pay out much in the future.”

Be that as it may, JC and his colleague, Ash Bennington are pret-tay sure Citi has it wrong (they lay out their case in full) and speculates that KPMG is, at the very least, an enabler here.

Carney points out that Francine McKenna has been following KPMG’s not so stellar guidance on this particular issue for years. Starting with New Century in 2007, Wells Fargo last year and Countrywide who was purchased by Bank of America.

Carney then writes that Bank of America is “widely assumed to have the largest repurchase risk, largely thanks to the acquisition of Countrywide.”

So that’s a helluva trail to be sure and Carney wraps up:

So is the advice of KPMG part of the reason for Citi’s complacency when it comes to repurchase risk? Given the history of companies audited by KPMG missing repurchase risk, perhaps Citi should rethink that complacency.

Of course Carney forgets that Dick Bové would take exception with everything he’s saying, since this firm is perfectly acceptable. Even if he doesn’t know who they are.

We’d like to get anyone familiar with the matter (read: Citi audit team members) on the record, so get in touch and we’ll put it out there. Or you can chime in below.

PwC Ireland Email Ranking Hotness of Female Associates Goes Viral

Caleb Newquist
November 10, 2010

You may or may not have heard already about a little email making the rounds in Ireland that originated inside PwC. A few dudes figured they would rate the female incoming associates and of course the thing went viral. PwC’s leadership in Ireland got wind of it and since this sort of thing is typically frowned upon, they are now investigating the matter.

It’s rumored that this ranking is a “tradition” inside the firm but if it sounds familiar, it should. Last year we reported on a similar contest that originated inside Del��nders were reversed and there were creative categories like, “Most likely to sleep his way to partner.” This particular ranking is about as imaginative as you would expect from a bunch of dudes at PwC.

Because we’re the ambitious type, we thought we’d try to run down the email and photos and by the grace of the gossip Gods, our persistence paid off. After the jump, the email with the less-than-classy comments – including one guy asking his email to be removed if it the message was going to be forwarded – and the accompanying slideshow (sans names of course).

FW: This would be my shortlist for the top 10
O’Carroll, Richard (IE – Dublin)
to:
Ryan, Evan@Dublin, Mac Giolla Bhride, Jack (IE – Dublin), McInerney, Ruaidhri (IE – Dublin), Mark Gantly
27/10/2010 11:37
Show Details

History: This message has been forwarded.

Delete my email signature etc if forward.

From: david.mcdonough@ie.pwc.com [mailto:david.mcdonough@ie.pwc.com]
Sent: 27 October 2010 11:27
To: Nolan, Alan (IE – Dublin); Burbridge, Gerard (IE – Dublin); James.Phelan@cbre.com; David.MacUileagoid@mercer.com; John.Murphy@hsoc.ie; Lord, Patrick (IE – Dublin)
Subject: Fw: This would be my shortlist for the top 10

FYI. New clunge.

_____________________________________________________
David Mc Donough | Senior Associate | Asset Management |
pwc | One Spencer Dock | North Wall Quay | Dublin 1 | Ireland |
Direct (: + 353 1 792 5633 | Fax 7: + 353 1 792 6200 | E-mail *: david.mcdonough@ie.pwc.com

—– Forwarded by David McDonough/IE/ABAS/PwC on 27/10/2010 11:26 —–

Stephen Tully/IE/ABAS/PwC
27/10/2010 10:19

Dublin
IE

To Colin Burke/IE/ABAS/PwC@EMEA-IE, Gavin Dunne/IE/ABAS/PwC@EMEA-IE, Gerard Somers/IE/ABAS/PwC@EMEA-IE, John Leonard/IE/ABAS/PwC@EMEA-IE, Leon Nangle/IE/ABAS/PwC@EMEA-IE, Maurice O’Brien/IE/ABAS/PwC@EMEA-IE, Neil Collins/IE/ABAS/PwC@EMEA-IE, Patrick Meagher/IE/ABAS/PwC@EMEA-IE, Pierce Kenny/IE/ABAS/PwC@EMEA-IE, Robert E Byrne/IE/ABAS/PwC@EMEA-IE, Rory Bluett/IE/ABAS/PwC@EMEA-IE, Paul G Cummins/IE/ABAS/PwC@EMEA-IE, Gavin Friel/IE/ABAS/PwC@EMEA-IE, Mark Rochfort/IE/ABAS/PwC@EMEA-IE, David McDonough/IE/ABAS/PwC@EMEA-IE, Stephen Doherty/IE/ABAS/PwC@EMEA-IE
cc
Subject Fw: This would be my shortlist for the top 10

Lads a couple added and also departments

____________________________________
Stephen Tully | Senior Associate | Asset Management Group
stephen.tully@ie.pwc.com
PricewaterhouseCoopers | Assurance
One Spencer Dock | Dublin 1 | Ireland |(: 353 -1-792-5793 | 7: 353-1-792-6200

—– Forwarded by Stephen Tully/IE/ABAS/PwC on 27/10/2010 10:18 —–

Paul G Cummins/IE/ABAS/PwC
26/10/2010 17:17

792 6087

To Stephen Tully/IE/ABAS/PwC@EMEA-IE
cc Colin Burke/IE/ABAS/PwC@EMEA-IE, Gavin Dunne/IE/ABAS/PwC@EMEA-IE, Gerard Somers/IE/ABAS/PwC@EMEA-IE, John Leonard/IE/ABAS/PwC@EMEA-IE, Leon Nangle/IE/ABAS/PwC@EMEA-IE, Maurice O’Brien/IE/ABAS/PwC@EMEA-IE, Neil Collins/IE/ABAS/PwC@EMEA-IE, Patrick Meagher/IE/ABAS/PwC@EMEA-IE, Pierce Kenny/IE/ABAS/PwC@EMEA-IE, Robert E Byrne/IE/ABAS/PwC@EMEA-IE, Rory Bluett/IE/ABAS/PwC@EMEA-IE, Paul G Cummins/IE/ABAS/PwC@EMEA-IE, Gavin Friel/IE/ABAS/PwC@EMEA-IE, Mark Rochfort/IE/ABAS/PwC@EMEA-IE
Subject Re: This would be my shortlist for the top 10Link

Great work…..have reservations about the last one getting in……

_____________________________________________________
Paul Cummins | Senior Associate | Asset Management |
pwc | One Spencer Dock | North Wall Quay | Dublin 1 | Ireland |
Direct (: + 353 1 792 6087 | Fax 7: + 353 1 792 6200 | E-mail *: paul.g.cummins@ie.pwc.com

Stephen Tully/IE/ABAS/PwC
26/10/2010 16:59

Dublin
IE

To Colin Burke/IE/ABAS/PwC@EMEA-IE, Gavin Dunne/IE/ABAS/PwC@EMEA-IE, Gerard Somers/IE/ABAS/PwC@EMEA-IE, John Leonard/IE/ABAS/PwC@EMEA-IE, Leon Nangle/IE/ABAS/PwC@EMEA-IE, Maurice O’Brien/IE/ABAS/PwC@EMEA-IE, Neil Collins/IE/ABAS/PwC@EMEA-IE, Patrick Meagher/IE/ABAS/PwC@EMEA-IE, Pierce Kenny/IE/ABAS/PwC@EMEA-IE, Robert E Byrne/IE/ABAS/PwC@EMEA-IE, Rory Bluett/IE/ABAS/PwC@EMEA-IE, Paul G Cummins/IE/ABAS/PwC@EMEA-IE, Gavin Friel/IE/ABAS/PwC@EMEA-IE, Mark Rochfort/IE/ABAS/PwC@EMEA-IE
cc
Subject This would be my shortlist for the top 10

Memo to the AICPA: You Don’t Have To Be In High School To Come Up With Juvenile Acronyms

Adrienne Gonzalez
November 10, 2010

Some of you seemed less than enthused when we shared an AccountingWEB piece on the AICPA’s new “Clearly Pretty Awesome” campaign two weeks ago so I’m here to get a good hoo-RAH out of you in the hopes that you, our brilliant, bitter and oftentimes inappropriate Going Concern readers, might have 2 or 3 cents to add.

Here’s the deal, the AICPA is giving away cash and prizes (to be used strictly for educational purposes, that is) for whomever (between ages 15 – 19) can come up with the best made-up job title using those all important three letters: C P A. Since the efforts of both the Obama administration and Ben Bernanke seem to be useless in creating jobs, perhaps high schoolers can boast a better success rate in creating new jobs. Sorry, Certified Public Asshole is already taken and frankly, kind of played out. But that doesn’t mean you can’t have similar ideas for made-up jobs, though whether or not anyone actually becomes a Chief Private Asshat remains to be seen.

The obvious inspiration behind the campaign is to plant the seed of public accounting in young little future beancounters’ brains when they are still pliable and easily influenced. After all, it’s easier to get them now, as opposed to later on down the road when they’re bitter and pissed off, overworked and saddled with a family and a career. While we admire the AICPA’s efforts in painting the profession in as cool a light as possible given the circumstances, we don’t quite see the point in rewarding whomever makes up “city park accordionist”.

Instead, here’s what I propose: take your high school student to work day for CPAs. Cops do it, why can’t we? Invite high school students to go on a ride-along to the client and hell, while they’re there why not have them partake in such exciting awesomeness as inventory counts? It will look great on their résumés when the job market looks up in 3 – 7 years!

Or better, encourage students to become forensic accountants by taking them to a real prison to follow a day in the life of Jeff Skilling complete with orange uniform and over-aggressive cellmate. That kills two birds with one stone as the impressionable youngsters could also get a great lesson in sexual harassment from a tattooed dude named Spike and save themselves an employee training or two down the road. Perfect!

So, go on then, what do you think CPA could stand for?

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 Sr Accountant

Remote Accounting & Tax Director

Senior Accountant / Client Account Manager (CAS & Tax)

Remote Sr Accountant

Remote Accounting & Tax Director

Senior Accountant / Client Account Manager (CAS & Tax)