When accounting goes unaccounted for
We've got another RIF at KPMG, a consulting cull that went down yesterday (that's Wednesday the 29th for those of you reading this a week from now). Let's start with…
The other day -- and by the other day we mean like more than a week ago -- we received a text on the tipline that read "KPMG US to…
We're sure you've seen this FT headline floating around today: KPMG to axe 10% of US audit partners. And if you, like most denizens of the internet these days, read…
So much for PwC letting all their people work remotely forever. Remember when that got headlines five years ago? See: PwC Just Announced That You Never Have To Go Back…
Did you happen to see this WSJ article from the other day? In "In This Critical Part of Audits, the Accountant’s Role Is Shrinking Fast," we're given a look into…
Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you're here, subscribe to our newsletter to…
We've got another RIF at KPMG, a consulting cull that went down yesterday (that's Wednesday the 29th for those of you reading this a week from now). Let's start with…
The other day -- and by the other day we mean like more than a week ago -- we received a text on the tipline that read "KPMG US to…
Hey. Looking like this is gonna be a short news brief, it was a quiet weekend. In accounting, anyway. In this news briefEveryone Loves an Informative 990The Official IRS Shit…
Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you're here, subscribe to our newsletter to…
Did you happen to see this WSJ article from the other day? In "In This Critical Part of Audits, the Accountant’s Role Is Shrinking Fast," we're given a look into…
While staff in tax at EY US will soon be spending more time with their flesh-based colleagues due to a return-to-office mandate that requires them in the office for an…
Commence to fantasizing about what you'll do with all that glorious free time when you lose your job to AI in 12-18 months because that's the confident prediction made by…
TIL that early AI accounting platform Botkeeper has died. I found out via this CFO Brew article which pointed to a post on Botkeeper's own site. Turns out r/accounting was…
The image is upside down because Australia. This story sounds like a joke but we assure you it is not. KPMG Australia has expanded KPMG's storied cheating repertoire by being…
Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…
Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…
Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…
Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…
Struggling to Find Remote Accounting Talent? We’ve Got You Covered. If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're not…
'Resign or be fired' ultimatum costs accounting firm $7,000
New from me: Congress’s accidental decision to turn off tax deadlines during the pandemic could yield refunds for tens of millions of taxpayers.
Recruiting firm Brewer Morris has released its 2025 US CPA salary guide and should you want to read the whole thing you can request it from them here. Perhaps you,…
Saw this on the bird app yesterday and thought its message would be worth passing along what with 20 days remaining until April 15 and nerves as strained as ever…
Ed. note: An earlier version of this article's headline stated the sheriff is investigating. The Alexander County Sheriff's Office informed us they are not investigating, only fielding calls from the…
Boston Business Journal wrote an article about Deloitte's new office in Boston and for some reason they chose to lead with this: You won’t find trash cans at the desks…
We realize the decision to run maintenance on IRS systems likely isn't made by anyone who understands deadlines but surely someone who does could inform the IT department of these…
Looking to staff up for a season or hire a freelancer for a project? Accountingfly is ready to partner with you! Gain full access to a pool of highly skilled…
Every accounting firm struggles with project management, with smaller practices that are rapidly expanding taking the brunt of the damage. As your firm adds new clients, takes on more work,…
Email: The word itself sounds innocent, doesn't it? Kind of like "snail mail," but faster, sleeker, and without the slimy trail. But don't be fooled—email is secretly a sinister beast,…
Business growth is always a high priority for accounting firms, especially small-to-midsize practices. Take care, though, because growth can be a double-edged sword. If your firm expands too quickly or…
“It is most accurate to say that prior to the game, most people thought that KU would win the game. Many, though, thought [that] UNI’s chance of winning was at least reasonably possible. If KU supporters didn’t think enough of UNI to … acknowledge its chance[s], it just shows they weren’t thinking.”
~ Professor David Albrecht, on why Northern Iowa’s “upset,” at least from an accounting perspective, wasn’t really an upset.
So preview of Enron the musical opens in just over two weeks but most of you probably aren’t aware because busy season has been sucking the life out of you. Since we always feel your pain here at GC, it somehow slipped past us that the role of Ken Lay was announced last month and the role has gone to Gregory Itzin who played spineless President Charles Logan in one of the seasons of 24 that we can’t remember.
Anyhoo, since most of you living in New York avoid Times Square (except 5 TS peeps) like the Plague and the rest of you probably need a break, check out a few photos from the Broadhurst sent to us by readers:
So capital market servants, filed your tax returns yet? No? Too busy, you say? Fine. We’ve all got our excuses. Personally, we’re holding out until Doug Shulman and/or Tim Geithner start returning our calls about their compliance efforts for 2009. Since we’ve been encouraged to not hold our breath on this, we’ve already filed our extension.
But where are most of the kings of putting off the 1040 until the last minute? The greatest concentration of “I’ll do it this weekend” types? The engineers of procrastination station?
Well if you guessed Houston not only are you correct but you’ve got more useless knowledge in your brain than Ken Jennings.
TurboTax’s rankings are based on the largest number of people that file between April 14 – 17. Here are your biggest putter-offers for 2009 (with previous year ranking in parents):
1. Houston – (#2)
2. Chicago – (#4)
3. New York – (#3)
4. Austin, Texas – (#11)
5. San Francisco – (#1)
6. Seattle – (#7)
7. San Diego – (#5)
8. Los Angeles – (#8)
9. Dallas – (#9)
10. Las Vegas – (#10)
This marks the fourth time that H-town has topped this list but we’ll be damned if we can figure out why. Does the humidity and obesity cause a hibernated state that we’re not aware of or is just good old fashioned, “we’re Texans and we hate taxes”? California too. What the hell is their problem?
In order to get to the bottom of this, we asked a friend (and strangely enough, a tax guru) who is a current Los Angeles resident and former resident of Houston to explain and she put in this way:
“Well.. Californians are selfish and think they can do whatever they want to get theirs…and pretty much Texans are the same, but they do it with a smile and an accent.”
Makes total sense now.
Free Tax Filing, Efile Taxes, Income Tax Returns – TurboTax.com
Houston, We Have a Problem [Tax Break]
You’re welcome!
Visit msnbc.com for breaking news, world news, and news about the economy
Everybody got it?
“It’s not hard. Not even hard for me.”
“I used to do my own taxes but now everybody thinks it’s too dangerous.”
“The American People pay me a really good salary. I don’t deserve a tax break.”
Then there’s the Joseph Robinette Biden, Jr. kitchen table talk; you know the drill.
[via TaxProf]
Accounting Today put out their annual Top 100 Firms list late last week and while it focuses on the practices in United States it give us a little bit of room to speculate about who the real contenders are for the Global Six whathaveyou.
The ranking is based on net revenues from U.S. operations but it includes a lot data on each firm including # of offices, partners, total employees, and fee split.
Deloitte runs away with this list in three of the major categories – revenues, number of partners and total employees. The Casa de Salzberg had U.S. revenue of over $10.7 billion which was greater than #2 E&Y by over $3 billion.
Here are the top 10 firms along with their revenues, number of offices, number of partners and total employees
1. Deloitte – $10.7 billion; 102; 2,968; 42,367
2. Ernst & Young – $7.6 billion; 80; 2,500; 25,600
3. PricewaterhouseCoopers – $7.4 billion; 76; 2,235; 31,681
4. KPMG – $5 billion; 88; 1,847; 22,960
5. RSM McGladrey/McGladrey & Pullen – $1.5 billion; 93; 751; 7,755
6. Grant Thornton – $1.1 billion; 37; 535; 5,414
7. BDO – $620 million; 37; 273; 2,712
8. CBIZ/Mayer Hoffman McCann – $601 million; 180; 465; 4,580
9. Crowe Horwath – $508 million; 25; 240; 2,428
10. BKD – $393 million; 31; 258; 1,891
Some other interesting information from the list includes:
• Declining Revenues – Revenues for all firms dropped with the exception of CBIZ/Mayer Hoffman McCann, Crowe Horwath and BKD. KPMG had the largest drop of nearly 11%.
• Big 4 Dominate – The non-Big 4 firms’ combined revenue (approx. $4.7 billion) is still less than KPMG (smallest of the Big 4).
• Personnel Changes – E&Y had a percentage increase in partners of 8.7% while total employees dropped nearly 6%. CBIZ/MHM saw a 32% increase in partners while total employees decreased over 12%. Only PwC and Crowe Horwath saw net increases in the number of partners and total employees.
• Audit Heavy Firms – According to the list, PwC (52%), BDO (60%), Crowe Horwath (65%), and BKD (52%) all receive at least 50% of their revenues from audit fees.
So the whole Global Six thing, as much as we like to making a BFD out of it, is a non-issue. All the firms have global connections whether it’s through their own cooperative or through an international network so to cut it off at six seems a little clique-y. We’ll flip through the AT100 for any more interesting factoids but in the meantime feel to embellish any of the information presented here.
Top 100 Firms 2010 digital edition [Free registration for Digital Edition]
Computer Sciences Corporation is searching for a tax professional to join their corporate tax department for the purposes of managing their tax compliance and planning functions.
This job requires supervisory and management experience. Big 4 experience is a plus.
Check out more details for this position, located in Falls Church, VA, after the jump.
Company: Computer Sciences Corporation
Title: Senior Manager – Federal Tax
Location: Falls Church, VA
Description: This position directs and controls the activities of one or more functional areas, divisions, product groups or service areas.
Responsibilities: Manages tax planning and compliance function, including the preparation of Federal corporate and partnership returns; Manages the tax budgeting and forecasting process, including the preparation of estimated payments; Assist with IRS audit defense (fact gathering, tax law analysis and positioning); Research and draft tax position papers for FIN 48 and Sarbox documentation requirements; Coordinate with Legal and Business Development on due diligence for mergers and acquisitions; Develop and maintain critical relationships between Tax, Controllers, Treasury, Legal, and Business Units to ensure Tax has a well-informed view of the business operations; Coordinate closely with Tax Accounting and Reporting team to ensure timely and accurate preparation of quarterly and annual tax provision and related disclosures; Coordinate closely with International Tax function to ensure timely and proper pickup of international results in consolidated returns; Coordinate and assist State Tax function with their planning and compliance objectives; Mentor and coach Managers and Senior tax accountants in department.
Basic Qualifications: Master’s degree in accounting, finance or related field preferred; Twelve or more years of tax accounting or finance experience; Nine or more years of supervisory or management experience included; CPA preferred; Big Four experience a plus; Experience working with tax laws and procedures; Experience working with tax forms and processing; Experience working with accounting principles and accounting software and databases; Experience working with auditing and generally accepted accounting principles; Familiarity with SAP, Hyperion and CorpTax a plus.
See the entire description over at the GC Career Center and visit the main page for all your job search needs.
Let it be known that if you are peddling porn and engaged in online pimping, you do not want the SEC on your back.
WebCPA reports that Stephen Corso of Las Vegas and Brian Rabinovitz of Oak Park, CA got the SEC smack down in a Nevada federal court for filing materially false and misleading financial statements from 1999 – 2002 (that’s quite a backlog) and that audit staff – under the boys’ supervision – omitted important info and violated the sanctity of auditor independence during audits of Exotics.com
While the enforcement doesn’t go into specifics, we’re happy to. Exotics.com bills itself as the world’s premiere source for – wait for it – beautiful female adult entertainers. Not to be outdone, Exotics also boasts a veritable cornucopia of escort options including “BDSM & fetish providers, exotic dancers, strippers, sensual and erotic massage specialists, TSTV and other adult entertainment.” It’s that “other that really scares me. Self-billed as the Quicker Pecker Upper (kid you not), the site headline right around the time the SEC brought the heat was “Better than Wives, Girlfriends, and Porn” – and apparently above performing audits according to GAAS?
So, who wants to wildly speculate as to how audit staff violated auditor independence?
Here’s the 2005 release from our friends at the SEC:
[T]he accountants fraudulently participated in audits of Exotics-Nevada’s year-end financial statements and in a review of its quarterly financial statements and failed to conduct those engagements in accordance with GAAS, as required. The Commission also alleges in its complaint that, among other things, the accountants prepared or created many of Exotics-Nevada’s books and records and then audited the financial statements they created. According to the complaint, they also caused their firms to issue false audit reports which, together with the underlying financial statements, were incorporated in Exotics-Nevada’s public filings with the Commission.
Now listen, little auditors, you don’t shit where you live and you don’t audit your own statements. Audit sampling? I could see how it would be hard to resist in this particular instance.
CPAs Disciplined for Porn Site Accounting Fraud [Web CPA]
SEC Complaint
Today in non-Lehman Brothers Ernst & Young news, the firm has been sued by a liquidator in Luxembourg just a few weeks after a Lux court ruled that individual investors couldn’t bring suits against UBS and E&Y. The suit seeks over $400 million in damages against the two firms. The Iriving Picard de Lux is Alain Rukavina, who filed the suit today.
BBW reports that “Rukavina is one of two liquidators who in December sued UBS and Ernst & Young over Access International Advisors LLC’s LuxAlpha Sicav-American Selection Fund, which once had $1.4 billion in net assets.”
A UBS spokesperson stated that this development was not unexpected and we’re sure that E&Y isn’t yawning at this news, chalking it up to fairly typical Monday.
So in case you’ve been in a coma for the last week or so, you’re probably aware that JT and Co. haven’t had such a great March. Anyone got ideas for how they turn all these frowns upside downs? Do Canadian Tuxedos become standard dress code M – F? Does Jimbo send everyone a complimentary pair of Timberlands? An E&Y Hitler video to lighten the mood? Suggestions are welcome.
UBS, Ernst & Young Sued by Madoff-Fund Liquidators [Bloomberg BusinessWeek]
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It’s been nearly three weeks since we last picked up the Koss/Sue Sachdeva beat, when we told you about Michael Koss resigning as the audit committee chair of Strattec Security Corp. At that time, Strattec had also elected to give Grant Thornton the boot as its auditor.
Over the weekend, the Milwaukee Journal Sentinel posted a lengthy-ish piece on the “relaxed oversight and lax controls” as the opportunity for the chronic shop ’til you dropper Sue Sachdeva to make off with $31 million. These particular issues (i.e. incestuous management and virtually no internal controls) are a matter of record although it’s interesting to note the new details that come to light.
The article mentions how Michael Koss managed to “serve” in five executive roles at the company: vice chairman, chief executive officer, chief operating officer, president and chief financial officer. PLUS, the aforementioned audit committee chairmanship at Strattec.
Now, we’re not entirely sure what the responsibilities would be for each of the positions at Koss but at a regular company, one of these jobs would result in some or possibly all of the following: insomnia, workaholism, a drug problem, an ugly divorce. Throw in the responsibilities of an audit committee chairmanship and one would assume that Michael Koss walked across Lake Michigan to get to work.
Oh, and just so you’re aware, the Journal Sentinel brings up that MK was an anthropology major. You may have some opinions about that.
The JS also spoke to one of the women that was fired along with Suze, Tracy Malone, who “still speaks highly of the company, although it fired her and objected to her claim for unemployment compensation.” Koss fired Malone because they allege that she “she knew of the misappropriation of funds but failed to report it to superiors.” Ms Malone’s attorney has stated these allegations are false.
So hang on a minute. Your lawyer says you were fired under “false allegations”, the company rejects your claim for unemployment comp, and you still speak highly of said company? Yeesh, have some self-respect lady.
Theft at Koss blamed on relaxed attitude, lax oversight [Milwaukee Journal Sentinel]
• Dodd Seeks U.S. Inquiry Into Lehman’s Accounting [DealBook]
Late on Friday, Senator Chris Dodd (D-CT) sent a letter to Attorney General Eric Holder requesting that the Department of Justice investigate Lehman Brothers’ “accounting manipulation” that contributed to its bankruptcy. According to his letter, Dodd also wants the DOJ to investigate “other companies that may have engaged in similar accounting manipulation with a view to prosecution of employees or agents who contributed to any violations of the law.”
With the exception of Lehman, Dodd did not name any companies specifically. He wrote, “We must work tirelessly to reduce the incidence of financial fraud in order to restore trust and confidence in the financial markets. A task force investigation and taking appropriate Federal actions in these matters will contribute to these goals.”
• An Ernst & Young Response: Dear Audit Committee Member… [Re: The Auditors]
Ernst & Young is on the offensive, telling everyone who will listen their position on the results of the Bankruptcy Examiner’s report. The ubiquitous Enron and Andersen comparisons in the MSM — while cliché and misleading — have motivated E&Y to reach to audit committee members that ulitmately decide whether E&Y will be providing services to their companies. Francine McKenna posted the letter noting, “I guess they know where their bread is buttered: With the guys who hire and fire them in the Fortune 500.”
The firm addresses everything from the actual accounting, “The media reports that these were ‘sham transactions’ designed to off-load Lehman’s ‘bad assets’ are inaccurate,” to whistleblower Matthew Lee’s letter, “When we learned of the letter, our lead partner promptly called the Audit Committee Chair; we also insisted that Lehman’s management inform the Securities & Exchange Commission and the Federal Reserve Bank of the letter.”
Naturally, the firm plans to defend themselves vigorously stating, “EY is confident we will prevail should any of the potential claims identified against us be pursued.”
• Obama Hails Vote on Health Care as Answering ‘the Call of History’ [NYT]
Last night, the Senate bill was approved by the House, 219-212, and it could be headed back to the Senate for final approval as early as this week. In a shocker, Democrat and GOP views on the bill don’t seem to be converging as one Dem legislator described it as “the Civil Rights Act of the 21st century,” while a GOP member described the bill as, “a fiscal Frankenstein.”
“I believe the manner in which the Firm is reporting these assets is potentially misleading to the public and various governmental agencies.”
~ Matthew Lee, former Lehman Brothers Senior VP in charge of consolidated and unconsolidated balance sheets, in a letter to certain LEH executives. He was fired.
GC reader Geoff Devereaux pointed us to something that we were honestly surprised to see, a “glowing review” for the psychedelic-inspired online accounting application, Brightbook.
Accounting Web UK interviewed the two designers, James Henderson and “his colleague Warwick.” If Warwick isn’t a acid-dropping Dead Head name, we don’t know what is.
Anyhoo, the AWUK asks the question that you would expect from an accounting pub, “how will Brightbooks make its money?” To which, Hedernson responds, “this isn’t about the money man, it’s about sharing the love of accounting software for free.”
More or less, that’s what he said. Free software that does what small business owners need it to do. What WE still want to know is WTF is up with the T-Rex in the party hat? What is he celebrating? Or is it something that the partygoers are seeing?? Speaking of the rager, why isn’t the egghead guy partying with the hula-hoop girl or topless chick (or the dudes, whatever his preference)? Has he not dropped yet? All important questions.
Brightbook: Free web accounting software [AccountingWEB UK]
Earlier:
Brightbook Knows That Dead Heads Need Accounting Applications Too
