Deloitte threw their “State of The Media Democracy” survey together for the fourth year in a row, and man are we glad they did. This latest opus informs us that TV is 34% of Americans’ favorite form of media and that it ranks in the top three for 70% of Americans. Viewing hours increased to almost 18 hours a week, up two hours from the same study last year.
The same survey also states that 60% of the U.S. Households have a gaming console including 70% of GenX households. So for many of you, after a long day of opining and complying, you like to go home and pwn some noobs.
Forget — for a minute — about what this reveals about Americans in general. What’s really important is that Deloitte is going out of their way to perform a survey annually that will remind all of us how lazy we are.
This is almost as helpful as as the reports based on World of Warcraft analysis. Keep up the good work, D.
Deloitte “State of The Media Democracy” Survey: Recession Intensifies America’s Love for TV [Deloitte.com]
Study: Interest in TV viewing on the rise [The Hollywood Reporter]
>75: Seriously. Enough with the “Am I Outdated?”
Editor’s note: Welcome to a special Wednesday edition of >75, our weekly post on questions that you have related to the CPA Exam. Send your questions to tips@goingconcern.com and we’ll do our best to answer as many of them as possible. You can see all of the JDA’s posts for GC here and all our posts related to the CPA Exam here.
Enough with this question, I’m going to start emailing students this article directly.
First of all, if you don’t send me questions, I can’t answer them. No question is too stupid, trust me, I’ve been in CPA Review for almost 3 years. They don’t tell you kids shit about the exam in college, better to ask than listen to some guy you work with (he’s wrong 87% of the time – or so I have calculated from professional experience via our students). So send them in. I’ll try to be nice and at least sort of useful.
That being said, I keep getting the question at work about materials. 2010 materials. Updates to 2009 materials. Being the most up-to-date in the cubicle farm. I got it, your brain is programmed to think December 31st equals a whole new year. How many of you are getting married this 31st, btw? Happy Anniversary to my boss – the CPA – and his wife on that fine day that you CPAs love so much. Deductions, bitch.
As previously disclosed, the AICPA Board of Examiners doesn’t want you to know they’re cheap. Those difficulty-weighted questions cost a whole shit ton of money to pop in that exam (speaking of which, any IFRS experts out there willing to contribute their time to screwing with CPA exam candidates? Prestige! Honor! No money though.) and the BoE likes questions that have a little more, erm, staying power. Those guys’ “creativity” keeps me in a job so I can’t really elaborate, you get the point.
That means you’ve got a 6 month window to work with from the time pronouncements are announced and when they actually start appearing on the exam. They might appear earlier as pre-test (not counted toward your score and about 15% of exam content) but unless specifically noted – as in SFAS 141(r) – pronouncements trickle into the exam slowly and on a delay.
When new exam content does appear (as it does twice a year, inevitably), it tends to be introduced slowly. Think about it – the only test run those questions got was pre-test, and you were not expected to know that information anyway. How can they gather intelligence from candidates’ collective knowledge of things they don’t know? Seems bizarre to me but whatever, can’t question the wisdom of the AICPA.
Except in the case of the Feed the Pig campaign.
Preliminary Analytics | 12.16.09
• U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment – “While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.” Thanks Treasury! [WP]
• The Estate Tax Debate: Watch the Rate, Not the Exclusion – “In some perverse way, it’s fun to watch lawmakers dive into a mess largely of their own making. But as you do, don’t be distracted by the argument over the size of estates that should be excluded from tax, or whether the rules are extended for one year or two. The real argument is over the rate. That’s where the bucks are.” [Tax Vox]
• Lump of Coal: How to Deal With a Bad Bonus – Besides crying in the corner obviously. [FINS]
• Rajaratnam, Chiesi Charged in Insider Case – Raj is looking at 17 counts and a possible 145 years. All over a measly $20 million? Someone in North Carolina is unimpressed. [WSJ]
• SEC Mulls Surprise Audits For Investment Advisers – “Under the May proposal, the surprise audit would apply to about 9,600 of the 11,000 registered investment advisers including those who have physical custody and those deemed to have custody or the ability to deduct fees from their client’s assets.” [Reuters via NYT]
• EU Formally Ends Microsoft Antitrust Case – “The European Commission, the EU’s executive arm, agreed to abandon its case against Microsoft over whether the software giant is illegally abusing its dominance in the Internet browser markets without a fine, in return for a legally binding commitment from Microsoft to start marketing rivals’ browsers alongside its own Internet Explorer.” Doesn’t everyone hate Explorer now anyway? [WSJ]
Review Comments | 12.15.09
• Why, Oh Why, Must Stimulus Come but Once a Year? – Namely, your tax withholding refund. Which you’re loaning to the government tax free for the rest of the year. [Tax Update Blog]
• Over 275,000 Federal Workers Are Tax Deadbeats – That seems about right. [TaxProf Blog]
• re: The Auditors Named One of 75 Best Business Blogs of 2009: Business Pundit – Congrats Francine! [RTA]
• The continuing Mary Kay Cosmetics con – “The reason why sites telling the “other side of the story” about May Kay is because the company’s success depends so heavily on half-truths, long-running myths, and outright deception.” [Fraud Files Blog]
• The Updated 990 – The Seminar Topic that won’t go Away (Thankfully!) [Nonprofit GPS]
• ‘Dreamliner’ Pilot: Composite Jet Is New, But ‘We Think We’re OK’ – Place your orders now. [NPR]
Is David Paterson Trying to Pander to CPAs?
Good news haters of all thing red tape! There is a pesky little fee in New York that goes into effect on December 31 that will require all tax preparers to pay $100 and register with the state tax department.
In case you haven’t heard, Paterson and the rest of the crew up in Albany have a bit of budget shortfall on their hands and need every dime they can get. Well! Your trusty New York State Society of CPAs has lobbied their asses off and gotten you out of this particular case of government meddling:
A bill signed into law by New York State Governor David Paterson provides an exemption from the state’s new tax preparer registration requirements for CPAs, including those who hail from outside the state.
…
The New York State Society of CPAs had advocated for an exemption for all CPAs from the registration requirements and had earlier succeeded in getting CPAs who were licensed in the state from being subject to the requirements.
Those state society fees do get you something! Call them up and thank them. And thank the Guv, while you’re at it.
New York Exempts CPAs from Preparer Registration [Web CPA]
KPMG Prolongs the Agony by Releasing Just UK Revenue Results
Those of you that are dancing on one leg for KPMG’s global revenue results are going to have suffer with the anxiety for awhile longer. We know, we know. We’d love for the whole reporting season to limp into history but we have yet to hear Tim Flynn put his positive spin on this year’s revenue results.
Oh sure, we’re getting teased today by the UK firm and its European parent but this just prolongs the agony:
The UK firm saw revenues fall by 1.6%, to £1.63bn for the 30 September year end.
Profits fell 1.3% to £382m from £387m.
KPMG Europe’s revenues were €3.5bn, a 0.4% decrease on the previous year.
Its joint chairmen said the results were a “creditable performance”.
“We might have hoped for better economic conditions in our second year as a merged firm but rather than put our expansion plans on hold we have continued to pursue a whole range of strategic initiatives that will shape our performance over future years,” said John Griffith-Jones and Rolf Nonnenmacher.
Despite the disappointment Even with this creditable performance, Europe wasn’t without its problems, seeing the tax revenues drop 12%. No worries though, they promise to pull their weight 2010:
After suffering a 12% fall in tax revenues, Griffith-Jones said the service line was set to hold firm with the rest of the business next year.
“We resized the practice, and are fine where we are, [it’s performance] should be much more in line with the rest of the firm – it’s taken the pain.”
That’s the spirit! Lemons into lemonade. Now make with the band-aid ripoff method on these global results. Nobody’s expecting the world. Dump the press release, get a pep talk from TF and get back out there Kylnveldians. Here’s to 2010!
KPMG UK chief lines up modest 2010 growth [Accountancy Age]
Fraud Risk, Staffing Reductions, and OJ Logic at CFO.com
Editor’s Note: Robert Stewart is a former Big 4 auditor and ex-Marine who has since served in several executive management roles in both Internal Audit and Corporate Finance. He is also the founder and chief contributor to the online accounting and audit community, The Accounting Nation. Outside of work, he is a husband, father, brother, writer, uate aspiring triathlete.
You can always count on CFO.com for logic flaws and surface reporting. It’s like drinking that concentrated orange juice in a can when you add three parts too much water and then put ice cubes in it because it’s warm, which makes it even more watery which… Where was I going with this?
Oh yeah. In one of their latest articles, entitled “As Internal Audit Staffs Shrink, Will Fraud Rise?“, the author portends — based on a Deloitte survey and subsequent interview — that the decrease in internal audit personnel somehow increases the risk of organizational exposure to fraud. What? Ever hear the phrase “Correlation is not Causation”? Symptom or cause.
Here’s my $0.02: such staffing reductions may increase the risk that fraud will go undetected (though only nominally given that IA only uncovers about 12% percent of frauds according to the ACFE’s Report to the Nation), but the risk to the organization more than likely remains constant, right? Am I missing something here?
After all, Internal Audit is a downstream event unless you make the argument that the organizational perception of being “watched” has diminished with the reductions in internal audit/compliance staffing, thus emboldening would-be fraudsters (i.e. strengthening the “opportunity” leg of Cressey’s Fraud Triangle). But this article doesn’t make that argument.
The article further states that:
Despite the reduction in compliance personnel, 50% of respondents to the Deloitte survey, who included CFOs, CEOs, board members, and middle managers in finance and risk management, said their compliance and ethics programs are strong. Another 36% said they are adequate. Many public companies and some private companies invested significantly in their compliance programs after the passage of Sarbox in 2002, notes Francis, and they may now feel confident that those programs are effective even with a reduced staff. But that confidence may not always be justified.
Confidence? I would hardly call the above percentages “confidence” on the part of the respondents. If I told you that 50% of the airline pilots felt that their pre-flight checklist procedures were strong, how would you feel about flying? No F*#$ing way I’m getting on that plane.
The words wrapped around the survey results and subsequent interview quotes don’t at all support the conclusion that this article is trying to draw. Perhaps it’s because the survey was designed and administered by a firm (Deloitte) that has a vested interest in drumming up some business through fear tactics? After all, you’re never going to hear a burglar alarm company extolling the improvements in public safety.
And you’re never going to hear a company that sells risk-related services conducting and publicly releasing results that don’t support their strategic objectives. Or perhaps it’s just bad writing at CFO.com in order to satisfy a quota? The World may never know (I think the World will be fine with this). Either way, I’ve wasted double the amount of time that I should have on this topic (i.e. read it and wrote about it). And so with that…I bid you adieu.
Job of the Day: We won’t rest…
…until you’re all gainfully employed. Except maybe the last week of the year. Nobody does a damn thing that week.
Check out the details for a financial analyst position at BBVA in New York, after the jump.
Company: BBVA
Title: Financial Analyst
Location: New York City
Responsibilities: Analyze daily/monthly fluctuations in P&L (by entity, business lines, and product), prepare explanations of significant changes, and investigate any open items; Prepare monthly management reporting package, including reporting of adjustments, suspense items and reconciling items; Identify any errors (system or manual) in the daily P&L and work closely with the Operations department and Front Office to ensure they are corrected in a timely manner; Assist in preparation of budget and expense allocation; Review monthly report of suspense items and obtain explanation and target dates for clearance of aged items;Prepare various analyses by products (Loans, Fees, Fixed Income, FX, IRS, etc.); Assist in preparing support for various audit requests; Other ad-hoc projects, as needed
Qualifications: Bachelors or Masters in Accounting or Finance, CPA preferred; Three to Five years of experience in the Financial industry (Banking preferred), with an emphasis in management reporting or accounting; Possess knowledge of U.S. GAAP and/or IFRS, standard accounting concepts practices and procedures and ability to understand and solve complex accounting issues; Fluency in Spanish preferred
See the entire job description over at the CG Career Center and visit the main page for all your job search needs.
Pictures of the Day: A Compelling Argument for a Computerized Exam
London’s ExCeL Centre was packed to the rafters today with almost 4,000 would-be accountants sitting their ACCA (the Association of Chartered Certified Accountants) exams in Corporate Reporting, Financial Reporting and Preparing Taxation Computations. The exams are part of ACCA’s global exam series, with an estimated 73,806 students taking these exams around the world today.
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Will a Boycott of Overstock.com Thwart Patrick Byrne’s Auditor Hunt?
Guys and gals, we here at GC are concerned about something. Something other than who the next face of Accenture will be (honestly we’re excited about Chuck’s commanding lead).
No, we’re concerned that your humble servant and Farmville enthusiast Patrick Byrne is going to be unable to find an auditor for Overstock.com. The company has until January 18th to pull something together so the NASDAQ doesn’t delist them and if things continue the way they are, it’s going to be hello Pink Sheets.
Maybe things wouldn’t look so grim if PB hadn’t blown off CNN. Or if he hadn’t pissed off every single financial journalist and blogger by getting too friendy.
But now that Barry Ritholtz has called for a boycott, any hope for finding the next auditor to put the stamp of approval on OSTK’s financial statements is fading.
Wait! Gary Weiss has his doubts: “As for that boycott: great idea, except that with Byrne manipulating the financials, how would you know if it is having any impact?”
Whew! There’s still a glimmer.
Boycott Overstock.com [The Big Picture]
KPMG Has to Be Pretty Happy with the Golfer They Chose to Sponsor
As we mentioned yesterday, Accenture is on the hunt for a new poster boy. While we speculated that poaching Phil from the House of Klynveld as a possibility for Accenture it’s more likely that the spotlight will be falling on Mickelson and his KPMG cap (black or white, depending on the mood).
Although Phil won’t be dancing on Tiger’s grave, Tim Flynn may have been quietly making the rounds at 345 Park high fiving anyone and everyone at work on the Monday after Tiger’s crash.
If you’ve got any thoughts on how TF celebrated (sweater vests for everyone!) discuss in the comments.
Preliminary Analytics | 12.15.09
• Obama and Buffett May Be Distant Cousins – So there’s that. [NYT]
• Continuing The Conversation: If Auditors Weren’t There, Why Not? – “If no one but me asks, since no one cares, then what are we doing here?” [Re: The Auditors]
• Christmas Gift Ideas for Accountants & Auditors – A “genuine and truly useful list” that will help you avoid the ‘Accountants do it with Double Entry’ t-shirt. [The Accounting Nation]
• Wells Fargo’s TARP Plan Brings End to Bailout Era – Oh, so it’s an “era” now? [DealBook]
• Four Cups of Coffee or Tea Daily Lowers Diabetes Risk – Just keep the breath freshener handy. Thanks. [Bloomberg]
• Christmas Gifts for that Special Tax Person – For the accountant who also enjoys the occasional WWE event. [TaxProf Blog]
