While Deloitte rings in the new year with generosity, E&Y has apparently taken a different approach.
One of our sources in the Ernstiverse has told us that busy season is being extended by two weeks this year. The first “official” week is this week (moved up one week from its usual spot) and there will be an additional week on the back end (first week in April as we understand it). This means mandatory 55 hours weeks are in full effect, so find some work people.
Oh! And it’s also our understanding that this week, “roundtables” are going on in the audit practice. We don’t know what those are exactly but it sounds sorta serious and it’s definitely not billable, so enjoy making up the time. If you’ve had the pleasure of attending one of these sit-downs, let us know how it went and keep us updated with other details.
Job of the Day: Help Fannie Mae Straighten Out Their Financial Statements
Fannie is working on getting things back on track and they need good people that can handle some financial reporting duties. Everything from 404 to implementing new GAAP, to SEC reporting. Plus, you’d kinda be serving your country.
Check out the details for a Financial Reporting Analyst position in Washington, D.C. after the jump.
Company: Fannie Mae
Title: Financial Reporting Analyst
Location: Washington, D.C.
Minimum experience: 4 years
Description: Reporting to a Manager of Financial Reporting, this position is part of a team responsible for preparing analysis of monthly, quarterly and annual corporate financial results and preparation and review of certain monthly and regulatory reporting.
Responsibilities: Preparation and review of analysis of monthly, quarterly and annual financial results for management, our regulators and external auditors; Coordination with business units and other areas within Controllers/Finance to ensure results are reasonable and variances are researched and explained; Supporting and managing timely and accurate reporting of financial results in various deliverables; Participating in special projects, including automation efforts and other improvements to the reporting process/efforts, to streamline processes to increase efficiency and effectiveness of group’s reporting and financial analysis; Implementation of new GAAP standards, as necessary; Participating in SOX 404 efforts, including documentation of process and facilitating testing of controls, as necessary; Assisting with Finance compliance efforts, as necessary; Assisting SEC reporting team, as needed, with preparation and review of external filings with the SEC (10K, 10Q) or implementation of new SEC standards.
Requirements and Skills: Bachelor Degree, or equivalent; CPA Preferred; 4-6 years of experience in accounting-related position with progressively challenging experience; Experience with and understanding of financial statements and current U.S. generally accepted accounting principles (GAAP), including experience in analyzing financial statements and corporate results
See the entire description over at the GC Career Center and visit the main page for all your job search needs.
Deloitte Starts Off the New Year with Some Generosity
Good news Green Dotters with iPhones. After having to shell out $13 a month, we’re now happy to report that because so many of you were coveting them Deloitte will now offer the iPhone under at the standard rate under its mobile device program.
Our records indicate that you have an Apple iPhone connected to the Deloitte network–and we have good news for you!
We have continued our negotiations with AT&T and Apple. Based on Deloitte’s volume of iPhone orders, we are now able to offer the iPhone at the standard rate covered by the Deloitte mobile device program.
The good news–you will no longer be charged the monthly $13.00 surcharge for the iPhone.
Sincerely,
The PDA Team
So now everyone at Deloitte will have an iPhone? That should help with AT&T’s service issues. If you’re less enthused about this development, or you’re just hella-jealous because your firm doesn’t offer cool gadgets, discuss.
The FDIC’s New “Risk-Based” Fee Policy. Or, Alternatively, “F&%k You, Pay Me; Banker Edition”
Editor’s Note: Want more JDA? You can see all of her posts for GC here, her blog here and stalk her on Twitter.
Listen, we know the FDIC is broke, there’s no use pretending they aren’t. But apparently we’re going to keep doing it so let’s stop for a moment and analyze the FDIC’s latest crackpot scheme to keep bad banks afloat and their balance in the black, shall we?
The summation up to now — for those of you with short attention spans — is that the FDIC is looking to tax banks’ asses based on the risks they take. On the surface that doesn’t sound like a bad idea until you consider the fact that the FDIC, by its very nature as a “safety net”, encourages the exact behavior they’re looking to “penalize”. Keeping in mind also that the Obama administration is coming down on banks from the other end with some tax scheme, it makes you wonder why the hell we bailed them out in the first place.
Blame the academics and these brainiacs in Washington who believe there’s nothing wrong with the fundamental framework of American banking, least of all that any of it could possibly be attributed to the attitude that Uncle Sam will always come to banks’ rescue. Here’s hoping the bankers paid attention in Econ 101 when they went over that whole “no such thing as a free lunch” part.
UPI:
FDIC Chairman Sheila Bair said there was “a broad consensus of academic studies,” that concluded “poorly designed compensation structures can misalign incentives and induce risk taking.”
Bair said called a study of “compensation structure, rather than levels of compensation,” a fair approach.
Maybe I just don’t have the auditor mind needed to wrap around a concept like this but WTF is that supposed to mean?! The FDIC epitomizes moral hazard so how in the hell is it that the FDIC is the one coming in to tap banks to cover said risks? I’m not rationalizing banks’ behavior (I remind dear reader here that the top 5 banks in America hold $275 trillion in notional derivative exposure) but, uh, just because Sheila needs to cover the next round of failed banks doesn’t make it appropriate to start regulating now.
Has she ever heard of too little too late? How about too much too late?
As I have already pointed out, we all know who is going to ultimately pay for this and it sure as hell isn’t the banks. Bend over, the next round is about to hit and it’ll hurt less if you’re prepared.
SHOCKER: New Study Says Work Interferes with Life
We realize this is hard to believe — especially during this time of year — but yes, it’s true!
According to the University of Toronto’s new survey of 1,800 American workers, 50% of those surveyed take work home on a regular basis. Not a surprising result since the authors asked questions that easily solidified the “Americans live to work” mantra:
• How often does your job interfere with your home or family life?
• How often does your job interfere with your social or leisure activities?
• How often do you think about things going on at work when you are not working?
Scott Schiemen, one of the authors of the study, informs us of the grim but dead on conclusions:
Schieman says, “Nearly half of the population reports that these situations occur ‘sometimes’ or ‘frequently,’ which is particularly concerning given that the negative health impacts of an imbalance between work life and private life are well-documented.”
The study’s core findings indicate some things that may sound familiar to you:
• People with college or postgraduate degrees tend to report their work interferes with their personal life more than those with a high school degree;
• Professionals tend to report their work interferes with their home life more than people in all other occupational categories;
• Several job-related demands predict more work seeping into the home life: interpersonal conflict at work, job insecurity, noxious environments, and high-pressure situations; however, having control over the pace of one’s own work diminishes the negative effects of high-pressure situations;
• Several job-related resources also predict more work interference with home life: job authority, job skill level, decision-making latitude, and personal earnings;
• As predicted, working long hours (50-plus per week) is associated with more work interference at home — surprisingly, however, that relationship is stronger among people who have some or full control over the timing of their work;
Again, shout if this sounds familiar. The sorry thing is that 50+ hours a week is considered “long hours.” Most of you can do 50 standing on your head. Plus, those of you that are eating hours are doing yourself an even greater disservice. But that’s a whole other discussion.
Maybe we should just own up to it? We love working! To hell with family, friends, hobbies, etc. We’ve got work to do!
When Work Interferes With Life [Science Daily]
More Work/Life Balance:
Moss Adams Values ‘A Balanced Life’ over ‘Accountability’
Is the Era of Work/Life Balance Over?
Jack Welch is Not Buying the Whole Work-Life Balance Thing
You Don’t Like the Way I Prepared Your Return? Take Two Tylenol and Call Me in the Morning.
Editor’s note: Joe Kristan is a tax shareholder for Roth & Company, a Des Moines, Iowa CPA firm, where he works with closely-held businesses and their owners. Prior to helping start Roth & Company, he worked for two of what are now the Final Four CPA firms. He writes the Tax Update Blog and is available for seminars, first communions, Bar Mitzvahs, etc. You can see his previous posts for GC here.
While the IRS is cracking down on tax preparers and proposing new rules to herd them into submission compliance, problem preparers aren’t a new problem.
Back in 1982, when the 1986 Code was just a gleam in Dan Rostenkowski’s eye, the nation’s headaches went untreated when people started dying from cyanide-tainted Tylenol. We still live with the hard-to-open containers for almost everything as a legacy of the murder spree. The killer has never been nabbed, but the tax world has supplied one suspect. The Chicago Tribune reports:
James William Lewis, a longtime suspect in the 1982 Tylenol murders, made a rare public appearance on public access television near Boston on Sunday night, hoping to promote his new self-published novel, “Poison! The Doctor’s Dilemma.”
Instead, Lewis was met with a barrage of questions from the show’s host and callers about whether he had a role in the unsolved cyanide poisonings that left seven Chicago-area residents dead, and if his novel had anything to do with the killings.
Why the suspicion?
Lewis said during the 48-minute interview that he regretted having written Tylenol’s manufacturer after the deaths, demanding $1 million to “stop the killing,” for which he was convicted of extortion.
A mistake anybody could make, especially after things have gone bad in your tax practice:
After his extortion conviction in 1983, Lewis served more than 12 years in prison. In the 1970s, Lewis was accused in Kansas City, Mo., of killing and dismembering a client of his tax-preparation business. Charges were dropped after a judge threw out most of the evidence.
That just shows how the new preparer regulations are long overdue. We can be confident that IRS Commissioner Shulman’s new preparer registration and CPE requirements — especially the two annual “ethics” hours — will keep anything like that from ever happening to a preparer today.
Rumor Mill: More Ernst & Young Offices to Become “Virtual”?
Last month we told you about the E&Y Greensboro office shutting its doors to become a “virtual office”. All the client-serving professionals (around 60) are now reporting and being serviced out of the Raleigh office.
This followed the closure of the Manchester office that we reported on in October and that became official in November. In this particular case, there was no merging of sites and client service professionals (non-partners) were let go.
The latest speculation is that there are several small offices that are at risk of going virtual as opposed to out-right closing post busy season, using the Greensboro office as the model. Offices that are being serviced by nearby larger offices are of greatest risk as well as small offices that have a dwindling client base.
Although the virtual office seems to be the most warm and fuzzy of the two options, there would certainly be layoffs of support staff and service professionals that weren’t interested in working from an office that was a considerable distance from where they lived.
Whether or not this strategy will be utilized by other Big 4 firms is not clear but this story will continue to develop as busy season progresses. If you hear rumors about your office get in touch with us. We’ll keep you updated as we learn more.
Preliminary Analytics | 01.13.10
• SEC to Name Investigative Chiefs – Robert Khuzami will name the five new members of the dream team are expected to be named at a press conference today. [WSJ]
• California Creditors See IOUs With Schwarzenegger Missing Obama – Those ‘skinny legs’ and ‘scrawny little arms’ comments are really working so well for Arnie. [Bloomberg]
• Panel Seeks ‘Accountability’ In Financial Crisis – Once Phil Angelides (and others) get to the bottom of this, “There’s a need for accountability and responsibility” said Angelides, the blame will be official. That will be comforting for everyone. [NPR]
• Questions for the Big Bankers – From some experts the NYT picked. The word “bonus” or “bonuses” appears ten times. [NYT]
• Google Threat Jolts Chinese Internet Industry – Google has had it up to here (hand to forehead at least) with the censorship and is threatening to pull the plug altogether. [WSJ]
Review Comments | 01.12.10
• The SEC Whacks Ernst & Young Over Bally Total Fitness — Now for the Spoils of Victory – “it can be predicted – and the accounting profession should expect – that going forward, the SEC will aggressively aim its macho enforcement testosterone at the big firms’ individual personnel.” [Re: Balance/Jim Peterson]
• Choose Wisely! – Joe Kristan’s suggestions are better than the IRS’ [Tax Update Blog]
• Open Memo to Medifast Chief Executive and CFO Michael S. McDevitt – Sam is sticking up for his friend Barry Minkow. [White Collar Fraud/Sam Antar]
• Obama seems to have ignored Geithner’s advice on bank taxes – Yep. He’s fired. [CFOZone]
• Galleon’s Rajaratnam slams wiretaps, stays free – Cherry picked wire taps will not stand, says Raj’s attorney. [Reuters]
Five Year Outlook: Will You Be an Accountant?
Stupid question you say? Okay but a recent survey done by E-conomic says a nearly half of our friends across the pond want to be doing something else in five years because the tax and financial reporting regulation will continue to be a nightmare.
The difference between wanting to do something else and actually doing something else is well, sorta big.
Accountancy Age:
Anders Bjornsbo, E-conomic’s operational director, said: “It’s alarming that half the accountants we spoke to said they were thinking of leaving the profession. While that’s unlikely to happen, it is perhaps illustrative of the dissatisfaction and disillusionment felt by accountants today.”
Dissatisfaction and disillusionment is something that has been discussed here in spades on our exodus post. But people getting out of the numbers game altogether? Bah. That just doesn’t strike us as a trend we’ll see soon. The survey indicates that most of you will seek advisory gigs as more compliance work moves offshore, “[T]hree quarters seeing themselves moving away from their traditional role to a more profitable consultant and business adviser position.”
That sounds about right. Despite the widespread misery, there are too many jobs out there that pay well. And let’s face it, you guys like money. You’re not going to leave it all behind to join the clergy or become philosophers.
Discuss your outlook and if you’re leaving the traditional accountant life behind for the advisory world or if you’re a lifer as tax/audit/financial reporting. And if you’re leaving all the glamor for the Peace Corps, let us know about that too.
Signed, Your Friendly Human Resources Professional
Editor’s note: Welcome to the debut post from Daniel Braddock, your friendly Human Resources Professional. He could very well be considered a hypothetical love child of Suze Orman and Toby Flenderson. Following his varsity jacket wearing college days, he entered the consumer markets as an auditor for a Big 4 firm in New York City. He spent three brisk years as an auditor before taking the reins of stirring the HR kool-aid. He currently resides in Manhattan. Daily routines include coffee breakfasts and scotch dinners. You can follow him on Twitter @DWBraddock.
Greetings,
Please let me take a moment to introduce myself.
My name is Daniel W. Braddock, and I was a resourceful human. I was not chargeable. I was not overworked. I stroll in at 9:00am, take a long lunch, and skip out before 6:00pm. You consider me a waste; overhead expense; non-vital to the process. You have me to thank for Summer Friday’s, the crackdown on mentor-ship lunches, and for that blasted Bear Hunt. My degree can be in liberal arts, accounting, or psychology. I was from the world of H.R., or Human Resources Rubbish, as you refer to me.
You generally loathe my kind.
My name is Daniel W. Braddock, and I was on your side once. Stressed, over-utilized and under-charged. I know work/life balance initiatives are as good as the fluffy magazine rankings they earn. I saw first-hand how leadership continously drops the ball on estimates, budgets, and correspondences. I was invited to lush recruiting events, asked to slap on the charm and pretend the ship wasn’t sinking. I’ve been in the trenches, didn’t like what I saw, and left.
My name is Daniel W. Braddock, and I am adaptive. I spent years in the audit practice of a Big Four firm before transitioning my career to the the H.R. side of the house. I have traveled through the looking glass and back. Contributing to GC will shed new light on many topics, including:
• Outsourcing, both foreign and domestic
• Hiring forecasts
• The world of recruiting
• Hiring cycles and leadership’s faults
• Work/life balance initiatives and the real “initiative” behind them
• Firm rankings in the media
• The next step – life after the Big 4
I’m looking forward to our future discussions, beginning with a new topic on Thursday. As always, please send suggestions and ideas for topics to tips@goingconcern.com.
Regards,
Daniel W. Braddock
H.R.
Koss VP Got Busted Just When She Was Getting Really Good at Stealing Money
Sue Sachdeva had this stealing money thing down so cold that she continually outdid herself, stealing greater sums of money every year until she was caught last month (thanks AMEX!).
If you need more evidence that everyone near this company (we’re looking straight at you Koss Family and Grant Thornton) was completely clueless, this should satisfy you.
Here’s the run down for the last six fiscal years ending June 30:
• 2005 – $2,195,477
• 2006 – $2,227,669
• 2007 – $3,160,310
• 2008 – $5,040,968
• 2009 – $8,485,937
• Q1 and Q2 of 2010 – $10,243,310
Jesus, she was really getting good those last six months. Girl couldn’t spend it fast enough.
We’d really like to hear from GTers from the Milwaukee/Chicago offices to let us know how TPTB are handling everything. Maybe it’s NBD to them but we just want to know. We thought this story would stop getting ridiculous but so far it continues to impress.
Koss: Unauthorized transactions increased over years [The Business Journal of Milwaukee]
