Going Concern

Review Comments

Review Comments | 12.21.09

Caleb Newquist
December 22, 2009

• Christmas Gifts for that Special Tax Person – A possible gift for that Tim Geithner groupie in your life. [TaxProf Blog]
• GM Recruits Microsoft’s Liddell as New Finance Chief – Apparently GM’s finance department had some Deliverance thing going on. [Bloomberg]
• Top 50 Blogs for Accountants – There are some familiar names on this list, including GC. Thanks! [The Biz-Learner]
• Rajaratnam, Chiesi Plead Not Guilty – Doing what’s best for investors is not a crime. [WSJ]
• Crazy Eddie inductee talks about walls of false integrity – Sam Antar = Hall of Famer [Con Artist Hall of Infamy]

A Note to the SEC

Caleb Newquist
December 22, 2009

Web CPA, October 30, 2009:

Kroeker reiterated earlier statements that he and SEC Chair Mary Schapiro had made, indicating the SEC was turning its attention this fall to the proposed IFRS roadmap. When asked about the date, Kroeker said, “There will be follow-up on the roadmap this fall.” Asked to define the word “fall,” he noted that the season ends on Dec. 21.

Fall ended at 12:47 pm EST today. Anyone seen this map?

In Better Late Than Never News…

Caleb Newquist
December 22, 2009

Hey gang, we’ll just take a moment of your time to point out the bang-up job that’s being done at the The Business Journal of the greater Triad Area. They’re not in the class of the CNNs of the world but we figure some recognition is appropriate.
They ran a story dated Friday the 18th entitled, “Ernst & Young merging sites, making Triad virtual office” which is kinda, sorta similar to a post we did on December 10th.
Maybe we’re hung up on little stuff like choice of words and timing but we’ll be damned if we see “first reported by Going Concern” anywhere.

…roughly 60 client-serving professionals based in the Greensboro office at 202 Centreport Drive will remain with the firm, with most staying in the Triad to work remotely. They will report to and receive support services from the Raleigh office…
The statement did not specify the impact of the move on Triad support and administrative staff, including whether there are any transfers or layoffs occurring.

If the TBJ is curious, we know the impact on the support staff. You can email us here if you’re still wondering.
We also don’t see any mention of the Manchester closing either but that’s in a whole other state, so it’s probably not relevant.

Fraud

And Here We Thought All Accountant Bloggers Were Doing It for the Forces of Good

Caleb Newquist
December 22, 2009

The gamut of accounting bloggers that we’re acquainted with are good people despite their individual proclivities. Things like paranoid fantasies that involve every level of government bureaucracy (we’re looking straight at you, JDA) and perverse obsessions with stilettos that even freak us out (ahem, Francine) don’t make anyone a bad person, just well, weird.
That being said, it was only a matter of time before an accountant/blogger actually turned out to be criminal*.

Russ Fox at Taxable Talk:

About a year ago I discover a tax blog called Apirl15.com. I doubt we’ll be seeing any more of this blog; according to an affidavit from an IRS Special Agent, the proprietor of the blog has admitted to embezzling $8.5 million.
William Murray, a CPA from Sacramento, allegedly told his clients to pay their taxes through a “trust account” system. This “service” would help the clients and make things easier for them. Mr. Murray also allegedly had clients send money that he would allegedly “loan” to other clients.

William “No, not Bill” Murray used the client money for the run-of-the-mill stuff: cars, houses, entertainment (i.e. hookers, llelo), plus it’s alleged that he’s a degenerate gambler. A model citizen really.
Despite this blow to the accounting blogosphere image, you can sleep well knowing that if we ever ask for your money it will be used for the purposes of providing you with the finest accounting ~~rag~~ news publication possible. There are reputations at stake.
April 15th No More [Taxable Talk via Tax Update Blog]
*You were a criminal before you started blogging, Sam.

CFOs

Your Suspicions About the Controller Not Liking You Are Well Founded

Caleb Newquist
December 22, 2009

Editor’s Note: A controller friend of GC — who is clearly in the Holiday spirit — presents their top methods of annoying the hell out of their co-workers. We have kept their identity secret* for their own protection. No one likes tragedy around the holidays.
Top ten ways a Controller can piss off co-workers:
1. Start charging for stamps.
2. Stop reimbursing your #1 sales guy’s T&E and when he calls to ask you where his check is tell him to “get fucked” and hang up.
3. Get up during a company meeting and announce that the new per diem has been reduced to $20 a day and that all employees must stay at La Quinta when traveling for business.

4. March into the CFO’s office and tell him your quitting and the books are fucked. Give him/her about 30 minutes to digest and then send them an email to say “just joshin’ ya, boss”.
5. Siphon off ALL the company’s money to an offshore bank account then parachute out the window into your Ferrari waiting below.
6. Write an all company email on December 25th announcing massive layoffs and your recent promotion to CFO.
7. Cancel the holiday party for “budgeting purposes”.
8. Announce that you need to sublease most of the company’s office space and that all employees will be doubling up in offices.
9. Let your corporate checking account go into the negative so that all your year-end bonus checks bounce.
10. Tell your staff that in order to close the books in three days you’re doubling the staff but and they’re going to have to work in shifts.
By,
Anonymous Controller
*For a price, certain information (read: name, address, usual routine) could be provided.

Uncategorized

Layoff Watch ’09: Catching up with Crowe Horwath

Caleb Newquist
December 21, 2009

Earlier this month we told you about layoffs that went down at Crowe Horwath in late November.
We’ve now received additional details that indicate that Crowe has had several rounds of layoffs this past year that started with non-client serving personnel late in 2008 and culminating with the November round.
Our source told us that the second round occurred in spring of this year and at that time, firm leadership communicated that no further layoffs would be necessary. Apparently things didn’t goes as plan as a third round occurred in July that consisted of professionals in the risk consulting practice and many in the Financial Institutions practice that were not chargeable were asked to take sabbaticals. This report of “sabbaticals” is consistent with our report earlier from a source that indicated that “there was a lot of forced time off during the summer.”

It sounds as though Crowe has consistently notified their employees about the layoffs, although our sources have indicated that details (i.e. number of professionals) are always scarce for “morale purposes.” One could assume that since anything after the spring round was not supposed to happen, morale was probably all but wiped out anyway.
The second and third rounds were rumored to be in the nabe of 150 each and our source told us that the third round included many “Executives, Senior Managers, and Managers over 40.” and that “Agreeing to not sue Crowe for age discrimination was part of the Severance Package.” So if you’re 40+ at Crowe it sounds like your best years are behind you or maybe you’re just too damn expensive?
Middle-aged dismissal rumors notwithstanding, Crowe has seen its own exodus, which seems to be the natural progression of things when layoffs reach bodily function regularity.
Crowe Horwath has not responded to our repeated requests for comment.
If you’ve been involved in any of these layoffs at Crowe, or have additional details discuss below, or email us and we’ll continue to keep you updated.

Career Center

Job of the Day: How About a New Job as a Last Minute Gift Idea?

Caleb Newquist
December 21, 2009

With less than four shopping days left until Navidad, what better gift for yourself or someone you love (or someone that you’d prefer to see leave your company) than a new job?
Get the details for a MBS/ABS Valuation Review Specialist position in New York after the jump.

Company: Comprehensive Recruiting
Title: MBS/ABS Valuation Review Specialist
Location: New York City
Minimum experience: 3 – 5 years
Description: Global Bank in NYC is looking to add candidates to their Valuation Risk Group who have MBS/ABS product experience.
Responsibilities: Analyzing and valuing the Bank’s diverse MBS/ABS portfolio; Manage the independent valuation through the monthly Mark Review process to insure measurement at fair value; Insure that the all trades on the Balance Sheet are properly classified according to FAS 157, Fair Value Measurement.
Required Skills: Bachelor’s Degree in accounting, finance, economics, mathematics or related discipline, with advanced degree(MBA or Masters degree in related discipline) or certification (CFA/CPA) preferred; Experience with MBS/ABS products. The ideal candidates will also have previous risk experience; Familiarity with accounting guidelines and pronouncements, including FAS 157 (Fair Value Measurement); Ability to identify and recommend changes to existing processes in order to improve and streamline those processes.
See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Ernst & Young Restructuring Plans Affect North Central, Pacific Regions

Caleb Newquist
December 21, 2009

We received several reports over the weekend and today about regional restructuring at Ernst & Young that will go into effect on January 1.
The majority of the North Central region will combine with the Mid-Atlantic region to form the new “East-Central” region, while the Toledo and Detroit offices will join the Midwest region. One source has told GC that this move is “an effort to reduce infrastructure and we should not be distracted from our client serving duties.”
We have also confirmed that the Pacific Northwest and Pacific Southwest regions will combine into a single “West” region. Again, sources indicating this move is an attempt to reduce overhead costs, saying “Lots a current senior leadership will be moved around,” as a result of this consolidation.
Both regions have seen significant layoffs just in the past month, and reports as recently as December 9th for the North Central. Some may go so far to say that the layoffs were a precursor to these plans but that’s speculative sport on our part.
We reached out to an E&Y Spokesperson who said that the firm prefers not to comment on internal matters.
E&Y’s restructuring follows a major restructuring at KPMG that we reported on earlier this year which saw several leadership changes and rumors of the firm consolidating down to two regions in the U.S.
One of our sources indicated that more news is expected this week so if you have any further details on these changes, get in touch with us, and discuss your thoughts in the comments.

The JDA

UK Financial Reporting Watchdog: ‘We don’t need no Big 5’

Adrienne Gonzalez
December 21, 2009

Editor’s Note: Want more JDA? You can see all of her posts for GC here, her blog here and stalk her on Twitter.
Once upon a time, there were 8. And then 7. And then 6. And then 5. And now 4. I’ve thrown out the idea of a large audit failure sending one of the Big 4 tumbling but the idea has been met with resistance; and naturally so, they’ve survived this long, right?

Accountancy Age:

Stephen Haddrill, the new Financial Reporting Council chief executive, in his first interview since taking the post, said there was little chance a global challenge to the Big Four – PricewaterhouseCoopers, Ernst & Young, Deloitte and KPMG – would emerge in the near future.
“I don’t think it is achievable in the near term and the priority for us has to be that we are prepared for the worst and that is where I will put my focus,” he said.

To read the rest of Haddrill’s interview with Accountacy Age, one might be inclined to point out that the guy is only a little bit pessimistic and for good reason. The Big 4 cannot exist indefinitely as they have, deflecting fines each time they bumble a big audit. It isn’t a problem exclusive to the UK and in fact, the Big 4 might not realize it but they are fighting the battle to save American capitalism. To that end, sacrifices may be required in the name of “competition”, whether or not the Big 4 are ready to embrace the idea.
They call them the Final Four because it is widely believed that the large accounting firms cannot lose another player but what’s to stop regulators — either Internationally or here at home — from busting down the joint and shutting one down? Anyone forgotten Satyam?
The firms — clever Trevors that they are — already know regulators are on their asses and behave accordingly. Crossing their Ts and dotting their Is, it was incredibly easy for PwC to say “Satyam wasn’t our problem” here in the states just as they’d have done if it had gone down in the UK, Dubai, China… it doesn’t matter, that’s what the lawyers get paid for.
Anyone get the feeling we’ve got a problem on our hands or is that just me? “Preparing for the worst” eh? Sounds like a plan.

Preliminary Analytics

Preliminary Analytics | 12.21.09

Caleb Newquist
December 21, 2009

• Health-care bill clears crucial vote in Senate, 60 to 40 – “The vote was the first of three procedural hurdles that Democrats must cross before a final vote on passage of the measure, now scheduled for Christmas Eve.” [Washington Post]
• Bye-bye Bo-Tax. Hello, Tan Tax – Angelo Mozilo will not stand for this. [Don’t Mess With Taxes]
• Top Ten Ways to Ensure a Smooth Audit – Communication seems to be a theme. There’s a concept. [Mission Accountable]
• An Inside Look at JPMorgan Outplacement [FINS]
• Dubai World poised to press for loan extensions – No word if DW plans on actually paying the loans back. [Reuters]
• IRS Files $8.15 million in Tax Liens Against Sinbad – Despite filing tax returns, Sinbad didn’t pay the tax owed from 1998 to 2006. [TaxProf Blog]
• 2009: The Year of the Failed Banks – Seven more this past Friday, bringing the total to 140. [The D&O Diary]

Review Comments

Review Comments | 12.18.09

Caleb Newquist
December 19, 2009

• BKD CEO elected to second term at helm – BKD had a much easier time than BofA. [Springfield Business Journal]
• Last Laugh for Late Tax Lawyer – Only death applies here. [Web CPA]
• Teed-Off Facebook Dumps Patrick Byrne Accounts, Issues Stern Warning – Took long enough. [Gary Weiss]
• Voting now open for worst footnote of 2009! – A company purchasing antique maps for $12 mil? A $1.95 signing bonus? A worthless yacht? [Footnoted]
• Accenture and Tiger Woods and Outsourcing – Accenture isn’t looking for the new face of the company. [CFOZone]
• And for the Christmas music lovers:

Six Shopping Days Left

Caleb Newquist
December 19, 2009

For the tax advisor in your life. Or the scatologist. OR just an ironic way of telling your tax advisor how you feel about their work.
[via TaxProf Blog]

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