Going Concern

Career Center

Do CPAs Really Love Their Jobs?

Caleb Newquist
March 11, 2010

A friend of GC pointed us to the image below from Focus.com (link to entire thing below) that shows the latest “Best Jobs in America”. This particular version ranks CPAs as having the 6th best job in all the land.

The methodology broke down like this:

• Top 260 – Jobs that have been projected to grow 10% in the decade and require a Bachelor’s degree; Median pay below $65k for experienced workers was excluded as were jobs that had less than 10,000 positions nationwide.

• Top 100 – Eliminated jobs that did poorly (based on growth in online wanted ads) during the recession and grouped jobs with similar responsibilities.

• Top 50 – 35,000-ish workers were surveyed to “rat their jobs on quality of life factors such as flexibility, stress, and personal satisfaction.” They were then ranked by “current employment, long-term growth, pay, and security; projected openings; and quality of life factors.”

• Top 10 – “Interviewed industry experts and people in each profession.” Rankings were made based on those interviews.

Our source has some questions for the group, “Why are CPAs always ranked so high? Job security? Pay if you stay in long enough?”

Important questions. It simply could be that the people that put these “Best Jobs Lists” interview the Exuberant Accountant every time. You can’t get that many consistent liars in these surveys can you? Or, maybe, just maybe, lots of CPAs really, honest-to-God — gasp — love their jobs. It’s not that we don’t believe that it’s possible but it’s difficult when you hear constant belly-aching.

So if you’re loving your life as a super hero CPA and you’ve got reasons you feel like sharing with the group, please do so. Or if you’re confused like us and have some wild-ass guesses that will be fine too.

Best Jobs in America [Focus]
Earlier:
Three Signs That It Might Be Time to Get Out of Public Accounting

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GoingConcern
March 10, 2010

A quick word of thanks to this week’s advertisers on Going Concern:

• John Varvatos

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Thanks!

For-profit Higher Ed. Moving on Non-profits Could Reap Taxpayer Funds

Adrienne Gonzalez
March 10, 2010

Prostitution in the industry is nothing new, you have to take what you can get even if that means devouring struggling non-profits or whoring yourself out for otherwise wholly un-big-business-like busywork (I’m staring directly at you, Big 4).

Daniel Golden of Bloomberg reported yesterday that “ITT Educational Services Inc. paid $20.8 million for debt-ridden Daniel Webster College in June. In return, the company obtained an academic credential that may generate a taxpayer-funded bonanza worth as much as $1 billion.”

With education little more than a vague directive to “teach” at this point (except for the chosen few professors who put their hearts into it, of course), schools are being encouraged to “convert a school to a charter school or a similar education management organization, a for-profit or nonprofit organization that provides ‘whole school operation’ services” (via firedoglake) in California districts where schools have fallen way short of federal education “guidelines”. Hint: that’s when you know it is bad. Firedoglake implies that recent protests and riots by California state university students facing severe class cuts and hikes in tuition are directly related to the push to privatize education.

In the case of small but favored not-for-profit educational institutions, they don’t have much of a choice but to end up recycled into the ITTs and the DeVrys if they can’t make it. For-profit education is the way to go, ask DeVry. They didn’t make $369 million last year for nothing.

Said Karen Pletz in the Kansas City Star, “the not-for-profit mission, whether it be in education, health care, or other human services, is really about values and is intrinsically focused in bettering lives and community.” Not to carelessly go name-calling but what can a for-profit, publicly-traded institution possibly know about that mandate or education for that matter? Its first loyalty is to the shareholders, not the students.

Perhaps not coincidentally, in December of 2009 WSJ pointed to a Department of Education report revealing a 21% default rate in the first three years for those coming from for-profit institutions like ITT over there gobbling up broke Daniel Webster College. For-profit education institutions are accused of aggressive loan procedures to get students through their programs; meanwhile non-profit private education remains picky about who they’ll take and for good reason. It’s a sweeping generalization to say default rates somehow correlate with the quality of instruction but one can assume loans are easier to pay off when the debtor is not just gainfully employed but paid well.

Company’s purchase of N.H. college could earn it $1 billion [Bloomberg via Boston Globe]

Fraud

Sacramento Accountant Pleads Guilty; Anyone Looking Need a Fleet of Limos?

Caleb Newquist
March 10, 2010

William “Don’t Call me Carl the Groundskeeper” Murray pleaded guilty in Sacramento late yesterday to thieving more than $13 million from his clients for nearly a decade. Murray used the funds mostly on himself including “a fleet of limousines, 10 hand-woven Persian rugs, expensive celebrity art, luxury cars, a wine locker at Morton’s, The Steakhouse, sports memorabilia and jewelry.”

Okay, so we’re not terribly impressed with Carl’s loot. Rugs that tie the room together? Fine. Celebrity art? Fine. Sport memorabilia is fine if that’s your thing (Chris Webber jock straps?).

But no homes? Boats? Tahoe is 90 minutes away for crissakes. And why on Earth would you buy a fleet of limos? In Sacremento? Does the Governator ride around in stretch Hummers? Is part of California’s perpetual budget nightmare due to members of the legislature splurging on luxury transportation to go to Starbucks?

And a wine locker at Morton’s? Seriously bad choices, Carl. Apparently accountants are good at stealing money (temporarily of course) but only so-so when it comes to spending it.

Sacramento accountant pleads guilty in $13M fraud case [Sacremento Business Journal]

Accounting News Roundup: CFOs, Staff Are Getting Worn Down by Guidance; Miami Forensic Accountant to Plead Guilty; Big 4 In Pari Delicto Defense Strategy | 03.10.10

Caleb Newquist
March 10, 2010

• A Growing Contagion: Accounting Fatigue Syndrome [CFO Blog]
Anyone getting worn out from all the guidance that is coming from the alphabet soup of regulators? You’re not alone and there appears to be an epidemic, something that CFO Blog has deemed “Accounting Fatigue Syndrome.” The long/short of it is that things are only going to get more complex as FASB and IASB continue to converge their rules and guidance continues to come out of both rule making bodies.

“Like many finance executives, Terry Lillis, CFO of Principal Financial Group, is tired. The constant stream of guidance from regulators and accounting standard-setters — plus the expected inflow of more to come over the next few years — has created “huge accounting fatigue” among his finance staff”

What’s the solution to AFS? How about just getting out of the biz altogether? “While the panelists gave no hope to CFOs who wish the standard-setters would either slow down or cut back on their agenda, they did offer one tip for ending accounting fatigue. ‘If I were a CFO, the first thing I would do is look at my early-retirement provisions,’ quipped J. Edward Grossman, a Crowe Horwath partner.”

• High-profile Miami accountant Lew Freeman to plead guilty to fraud [Miami Herald]
A couple of weeks ago we told you about “go-to” forensic accountant turned swindler Lewis Freeman and his legal trouble.

Today he is expected to plead guilty in Miami to embezzling $2.6 million from his clients. Prosecutors have alleged that Freeman, “wrote 162 unauthorized checks to himself totaling about $6 million from the accounts of five failed businesses once under his company’s control, but put back about half of the money.” Freeman has been cooperating with investigators since his arrest but still may face 10 – 20 years in prison.

• In Pari Delicto: Are Auditors Equally At Fault In The Big Fraud Cases? [Re: the Auditors]
Francine tackles PwC and KPMG’s defense strategy involving in pari delicto to avoid their roles in fraud cases.

The way I see it, the in pari delicto doctrine is being used like a pair of needle nosed pliers by audit firm defense lawyers to diffuse a bomb – huge liability for some of the biggest frauds in history. The in pari delicto doctrine attempts to pull the auditors’ tails from the fire by excusing any of their guilty acts due to the approval of those acts by potentially equally guilty executives.

Quote of the Day: Help Doug Shulman Help You | 03.09.10

Caleb Newquist
March 10, 2010

“A lot of people think of the IRS and have a little bit of fear of the IRS and we want to make sure they know that our doors are open, our people are empowered to make decisions and our goal is to resolve your problem.”

~ Doug Shulman, IRS Commish, who doesn’t prepare his own taxes but wants to help you with yours.

Technically, Flying a Plane into an IRS Building Is Not Terrorism

Caleb Newquist
March 10, 2010

That’s according to Janet Napolitano. Who knew that the Homeland Security Secretary was such an adept hair-splitter?

From the Washington Post 44 Blog: “To our belief, he was a lone wolf. He used a terrorist tactic, but an individual who uses a terrorist tactic doesn’t necessarily mean they are part of an organized group attempting an attack on the United States,” Napolitano said.

We decided to get to the bottom of this. Here’s the definition of “terrorism”:

The systematic use of terror especially as a means of coercion

Okay then. The applicable definition of “terror”:

Violent or destructive acts (as bombing) committed by groups in order to intimidate a population or government into granting their demands.

So “groups” is the key word here. Fine but does that include Facebook groups because, “His name is Joseph Stack” has 357 members. And did she run this past Treasury? Geithner and Shulman might have a different opinion.

In semi-related news, the SEC has announced that they will determine a “single high quality global definition of terrorism” within five years, at which time, any attacks on SEC facilities will be appropriately classified.

Napolitano rules out terrorism in IRS plane crash [WaPo]

News

Accounting Porn Does Not Involve a Guy Coming By to Fix the Cable

Caleb Newquist
March 10, 2010

AG profiled Professor David Albrecht last week, which was an honor and a privilege for everyone involved. The Professor’s contributions to the accounting blogosphere are invaluable. Staying consistent with his priceless musings, his latest post asks an important question: “What Is Accounting Pornography?”

Now since we’re sure the professor wants us to think hard about this question, we’ll kindly oblige him.

Done.

As you might expect, this question has nothing to do with your particular taste in ladyboyx.com or whatever else the SEC staff might have turned you on to. No, this is more of the strange reading and/or viewing material that you might just enjoy a little too much (e.g. Lat’s proclivity for the Harvard Law faculty directory).

Okay, here are a few answers that come to mind:

• Any internal report that you stumble across that details upcoming layoffs.

• For Sam Antar and the rest of you sleuthy types, the notes to Overstock.com’s financial statements.

• For the weirdos, it could be watching Big 4 CEOs’ banal talking points with a snowy backdrop. Or the thought of Jim Turley in his Timberlands.

• For the sickos, nightmare CPA exam stories that end in a grade of 74.

If there’s something else that gets you off (Ben Bernanke testimony doesn’t count, AG) feel free to share. Just try to keep it relatively clean. In the meantime, we’ll be flipping through the Enron script.

What Is Accounting Pornography? [The Summa]

Three Signs That It Might Be Time to Get Out of Public Accounting

Daniel Braddock
March 10, 2010

Busy season is rounding the corner and, if you look carefully, you might be able to see the light at the end of the tunnel. Squint. No I swear, it’s there.

My posts this week will shift from social media to the potential job market. As a public accountant, you should always be cognizant of the fact that you have the ability to continuously develop your strengths and mold your career path. Want to pursue of a career in hedge funds? Network within your firm to be staffed on the right engagements. Need to add tax experience to your resume? Seek out a rotation.

Here are three signs that you should get you thinking about exploring your options.

1. You’ve got your CPA – This might go without saying, but many people enter the public accounting industry with the “two years and done” mentality. Pass the CPA, earn some experience stripes, and get the *$@% out. There’s nothing wrong with this, but don’t expect to $100K jobs to be jumping into your lap. The average salary bump for younger staff from public to the private sector can range from 5-10%, usually topping out around 15%. If this isn’t enough of a bump to seriously consider a private job, don’t lose sight of the quality of life improvement a new job can bring. No, not the smoke and mirrors your firm is promising you. The real deal.

2. Someone you know is interviewing – Believe it or not, the job market is actually improving. The hiring freezes on many financial firms is now limited largely to supporting roles (i.e. HR folks like myself). Hedge and private equity funds are picking up their hiring as the markets begin to thaw. Recruiters are not wasting their time with interviewing individuals for the sole purpose of interviewing. So take note next time your senior staff member has three doctor appointments in a week; perhaps you should be “coming down with a nasty bug,” too.

3. Recruiters call – and you listen – Speaking about recruiters, be prepared for an onslaught of calls. Their timing is no coincidence. The private sector has been shuffling around over the last few months (remember when your client contact suddenly went MIA?), and as the cycle goes, the newly opened private jobs will inevitably be filled by auditors and tax accountants from public. Listen to the cold, scripted calls; be open to a pay increase and better work hours; reclaim your weekends. It can’t hurt to listen to the (substantiated) claims that you’re undervalued in today’s market.

Newsflash: you are grossly undervalued.

Grant Thornton Was Not Impressed with the SEC’s Waffling on IFRS

Caleb Newquist
March 10, 2010

We really weren’t expecting much of a reaction from accounting firms on the SEC’s conclusion that there’s no rush on the IFRS issue. The Commission statement that it supports “a single set of high quality accounting standards” was good enough for PricewaterhouseCoopers, who issued a press release the day of the announcement.

The press release sounds eerily similar to the SEC’s statement with a quote from Bob Moritz thrown in for good measure:

“PricewaterhouseCoopers continues to support the goal of moving toward a single set of high quality global accounting standards,” said PricewaterhouseCoopers LLP U.S. Chairman and Senior Partner Bob Moritz. “We believe that IFRS is in the best interest of stakeholders, including investors both here and globally. We are, therefore, encouraged by these statements from the SEC.”

So PwC is encouraged by the recent development. This isn’t shocking. P. Dubs will be on board because they don’t strike us a bunch that will rock the boat. Presumably, any a hint of discontent from the Firm could potenitally jeopardize their ubiquitous magazine list presence.

On the other hand, we were surprised to see this Tweet from Emily Chasan of Reuters that pointed us to the Grant Thornton press release that came out today.

GT was NOT IMPRESSED with the SEC’s latest commitment to non-commitment, “like many in this country and elsewhere, we were hoping that the SEC would announce a mandatory date for switching to IFRS by U.S. public companies. Instead, the Commission reaffirmed that it expected to decide in 2011, provided resolution of certain issues.”

Now in case you’re questioning GT’s sincerity in this matter, they make their case for why this feet dragging is unacceptable:

Whether the U.S. races or crawls toward IFRS could mean the difference between staying in front or falling behind. The rest of the world is moving forward, boldly. Major economies like Japan, China and India have already chosen IFRS. It is unrealistic — and risky — to think that we can stand outside looking in forever. If we don’t want our influence and opportunities stripped away, we must make sure that we keep a seat at the table.

This is probably as insubordinate as you can expect an accounting firm to get over an issue that is “largely academic” but it is refreshing to see a little public honesty out of GT.

Grant Thornton LLP statement regarding SEC and IFRS Roadmap [Press Release]
PricewaterhouseCoopers States Support for SEC Move Toward Single Set of High Quality Accounting Standards [Press Release]

Career Center

Job of the Day: Global Wealth Manager Needs a Head of Financial Control

GoingConcern
March 9, 2010

Ashton Lane Group has a global wealth manager client in need of a Head of Financial Control who can implement and maintain existing and new control frameworks.

Candidates should have a minimum of seven years experience and a CPA license. Knowledge of SAP is a plus.

Get more details on the position, located in New York, after the jump.

Recruiter: Ashton Lane Group

Title: VP Head of Financial Control

Location: New York

Minimum Experience: 7 years

Description: Build and lead the financial control team within a global wealth manager.

Responsibilities: Lead a team of up to five entity controllers; Responsible for the monthly general ledger control and account reconciliation processes, ensuring that a robust control framework is embedded and maintained; Represent team at monthly Letter of Representation meetings and escalate any material issues; Review existing end to end revenue processes and implement new controls as the business expands; Support the launch of a new Trust entity and set up the control framework and associated regulatory and statutory reporting;

Qualifications: 7+ years financial control experience within financial services; Understanding of Capital Management principles; Experience of finance process design and implementation; Knowledge and experience of SAP an advantage; Bachelors’ degree or equivalent. CPA/CA preferred.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

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