• Study Suggests Accounting for Contingencies Needs Help – Environmental liabilities aren’t reflecting the actual cash paid. [Compliance Week]
• Bankruptcy Rise Slows With Thaw In Lending – “Now corporate failures have slowed, as companies once on the verge of default have found a new life. These companies are now refinancing their balance sheets with new debt, pushing out maturities on existing loans or using distressed-debt exchanges to avoid a bankruptcy filing.” [WSJ]
• GM to begin repaying government loans – “[GM] reported a positive operating cash flow of $3.3bn, but cautioned that this would not be repeated in the fourth quarter and that its cash reserves would be ‘materially lower’ at the end of the year.” [FT]
• Xtremely restless: Recession intensifies Gen X’s ‘middle child’ syndrome, urge to job hop – Let’s just blame everything on the recession, shall we? [CT]
• Should paid sick days be the law? – Or maybe going to work sick should be against the law. [NYDN]
- Monday Morning Accounting News Brief: How About That Entry Level Job Market!; The Failed Client That Could Cost PwC $8 Billion | 5.18.26
- Friday Footnotes: PCAOB Plans to Take It Easy; Just Ignore Those CP53E Notices, Probably | 5.15.26
- EY Gets Busted and Yeets Cybersecurity Report Littered With AI Hallucinations
CNN Says that Big 4 Business Is Blowing Up
That’s not necessarily verbatim but they’re definitely buying what the Big 4 bigwigs are selling.
If you saw the asinine CNN piece that came out on Thursday entitled “Accounting grows in shrinking economy“, you know what we mean.
The title itself should cause you to throw up in your mouth. Certainly the author of this gem, Kevin Voigt, isn’t talking about growth in revenues but he still manages to make a case for accounting industry stre trong>just that:
[T]he firms have emerged from the worst with balance sheets that would be enviable to most companies: Ernst & Young and Deloitte finished the 2009 fiscal year with flat growth, while PWC revenues were down 7 percent.
Getting nauseous yet?
Then there’s this:
[T]he Big Four firms continued to add to headcount through the recession. For example, PWC will end the year with 163,000 employees worldwide, an increase of “3 or 4 percent” from last year, Nally said. “There is a core element of what we do that continues regardless of the economy — public companies need audits, tax services need to be provided,” he said.
First, we notice that Dennis Nally conveniently left out that the ‘core element’ of services being provided is being done so with far fewer people. He makes it sound like that if you’re working in the audit or tax practices, your job is safe. We all know that’s not true.
Further, we’ll point out that E&Y did not add to their global headcount. That’s according to E&Y’s own press release for their revenue results.
It’s also interesting to note that the words “layoff” or “reduction in force” are nowhere to be found in the article. Voight manages to sneak it in with some subtlety:
Ernst & Young has kept hiring young college graduates, in part, because it wants to ensure an unbroken pipeline of talent after the crisis, Turley said.
“In a typical year, you would see 15 to 20 percent of our workforce hired away, not by our competitors, but by companies that need financial or tax or other financial talent … that process was curtailed this year because most in the marketplace weren’t hiring,” Turley said.
As a result, Ernst & Young and other Big Four firms have had selective culling of staff in some markets for performance-related issues. “We work in a high performance environment, and for those whom that environment doesn’t fit we’ve encouraged them to leave,” said Quigley of Deloitte.
“Culling of staff”? Interesting choice of words. Then Jim Quigley lies says that Deloittians were “encouraged” to leave the firm. That’s rich. Any former Deloitte people out there that would describe their experience differently?
The article also hints that — because Jim Turley said that typically, ’15 to 20 percent of our workforce hired away’ — the Big 4 had no choice to but to engage in the “selective culling of staff…for performance-related issues.”
To top it all off, Tim Flynn wasn’t even interviewed for this piece. In fact, KPMG is only mentioned ONCE in the whole article but Voight refers to the “Big 4” throughout. From the sounds of it, TF wasn’t in Singapore for the APEC and thus, probably not available (probably caddying). Just as well, if we were T. Flynn, we wouldn’t want our name included in this travesty anyway.
So gives us your thoughts on the latest Big 4 campaigning in the MSM. They make everything sound like it’s business as usual but as the discussion in our Exodus post indicates, the people on the front lines probably have a different opinion.
Accounting grows in shrinking economy [CNN]
Also see: CNN Lies: Accounting Industry Stronger Than Ever, Explosive Even [JDA]
GC Weekend: Update on Ernst & Young Layoffs
We received more details late yesterday on the E&Y layoffs. The latest cities reporting layoffs are now Minneapolis and Milwaukee.
We also learned that there were approximately ten layoffs in the tax practice last month in the Chicago office. These were all at the associate and senior associate level.
Check back to the original thread for the latest and continue to keep us updated.
Review Comments | 11.13.09
• Fix the Tax Code Friday: Targeted Enforcement – Top three targets: 1) offshore accounts; 2) pass-through entities; 3) high wage earners [Tax Girl]
• Securities Regulators to Talk Financial Literacy With Students – And the regulators might learn something. [SEC.gov]
• 2 Programmers Are Charged With Aiding Madoff – Bor-ing. Family members next time please. [DealBook]
• BYU Sweeps 2009 Deloitte Tax Case Study Competition – See? Caffeine isn’t necessary. [TaxProf Blog]
• Hard Times and Bad Behavior – Are you shoplifiting? [Financial Armageddon]
‘Swashbuckling Industrialist’ Tom Petters Is Going to be Responsible for Putting Senior Citizens on the Street
For those of you that were maybe developing a soft spot for Tom Petters because, among other things, his own lawyer doesn’t think too much of him, the latest testimony in TP’s trial should help squash your sympathy.
Janet Leck, a 79 year old widow, was convinced by Frank Vennes, Jr. — an evangelist who “steered unwitting investors to [Petters]” — to invest her money with Tom Petters. At one point Vennes, apparently having reconnected with the Almighty, told Leck that he was ending his business relationship with TP because of ‘things he was seeing in Mr. Petters’ personal life’ and was returning her money.
Now, one could assume that Vennes was getting the creeps from Petters because either: 1) he realized that Petters was a complete man-child that couldn’t finish a copy of Go Dog Go! or 2) typical hooker/llelo chicanery.
Two years after dumping Petters for his sinful ways, Vennes decided redemption was in order (or, most likely, he just missed the hookers) because he went back to TP and got the Lecks to invest with him again:
She re-mortgaged her home and drew out $190,000 in equity to invest with Petters, she said. Leck said she relied on the $3,400 monthly payments from that loan for living expenses until September 2008, when authorities raided Petters’ home and business looking for evidence that he was running an alleged $3.5 billion Ponzi scheme.
Now, unless she can restructure her mortgage, Leck said, “I’m looking at foreclosure. …I will move from my home of 30 years.”
In other overwhelmingly convincing testimony, investment banker Michael Liss described Petters, “as a ‘swashbuckling industrialist’ who had an arsenal of ‘ridiculous’ excuses for not paying his debts on time.”
Ridiculous excuses like, “Do you treat your other swashbuckling industrialist clients this way?” or “I’m busy ripping off senior citizens. Do you mind?” OR “My ass is going to end up in dumpster any second, sorta busy.”
Petters trial: Retired widow fears losing her home [Minneapolis Star-Tribune]
Bennie Bankes Poll Results
We have a landslide on our hands. Not only are most people we talk to disturbed by the suited swine, the winning caption was a clear choice.
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With over 55% of the vote. Now, just for the sake of argument, anyone could wear the costumes to the recruiting events, people, not just partners. Embrace the truthiness.
Thanks for voting!
Job of the Week: Cash Money
Someone has to manage the ins, the outs, the what have you’s related to the cash position of every company. It’s kinda an important job. Maybe your next job. Get the details for a Treasury Analyst position, after the jump.
Title: Treasury Analyst
Location: Chicago
Experience: 3 – 5 years
Responsibilities: Manage daily data collection process; Primary input of receipt and payment data in treasury system; Assist in timely payment of international and domestic wires; Report foreign currencies balances daily to help maintain proper liquidity; Support review of carry broker statements for margin excess/deficit funding needs; Maintain log of non-receipt of wires; Assist with investigation & documentation of all wire differences; Maintain overdraft listing for processing by Cash Manager; Review previous day’s balances and investigate missing items.
Skills: Treasury experience 1-5 years; Fast and accurate data entry skills; Cash management, payment systems experience; International and domestic payments procedures and requirements; Customer Accounting, Banking, Exchange, General Ledger Systems; Generally accepted accounting principles and financial reporting requirements.
Check out the entire description over at the GC Career Center and check out the main page for all your pavement pounding needs.
Ernst & Young Layoffs Update, Friday Edition
We’ve updated the E&Y layoff thread to include the latest reports. Check the latest and send details to our tips line if your office is missing or have details to add.
Good luck to everyone that got laid off this week.
>75: Who Is Going to Pay for My CPA Exam Materials?
Editor’s note: Welcome to latest 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.
It’s a question I get all the time at work. “I’m starting with such-and-such firm, do they pay for your CPA review course?”
So! A commentator asks >75 the same question:
I did a bit of research, and it turns out that PwC is the most generous – paying for Becker + Flashcards, while E&Y will not pay for the Flashcards, and KPMG apparently requiring [sic] its staff to attend live classes offered by Becker, and have signed attendance sheet to get the reimbursement.
First of all, smarty, what makes you think pre-packaged flash cards are your secret to CPA exam success? If anything, it has been my professional experience that candidates who make their own flashcards do better than those who rely on a review course to make them on their behalf. I had a student who admitted his handwriting was so bad even he couldn’t read it but just the act of creating a set of note cards for FAR helped him reinforce the key topics. So just because you get a bunch of shit for free doesn’t mean you’re any better off than the guy who had to charge his review course or skip a couple happy hours to pay for it.
As you probably know, the firms do not discuss their agreements. I know what they are but I’m not telling either. That being said, in this economy, I’m not sure if you think you’re going to get a free CPA Review ride. Um, you did comment on a layoff post after all.
I deal with quite a few public accounting HR staff as a result of my job and let me give you a hint: there’s no such thing as a free ride on the other end. They are reluctant to hire if they think they will be used for a free review course and a CPA to sign off on hours like some cheap whore.
The firms are tightening their belts and they are most certainly being more conservative about hiring bodies to fill chairs and kicking down $1,500 – $3,000 for review courses. You might be sick of it too if you paid for staff member after staff member only to be abandoned the minute that staff hits 2 years. Those days are over.
My advice? Ask around but don’t count on it and don’t you dare let on that you care in an interview; HR managers that I know will instantly – albeit silently – slide your pathetic little resume to the bottom of the pile in favor of someone who has already started on the CPA exam process without their hand out.
As someone on the original post from which this question came said:
all of you, seriously, this is the most important thing right now to you?? suck it up and take the exam. it is not your god given right to get reimbursed for everything. and besides, you morons missed the biggest things about the exam and passing it – the bonuses firms pay to pass it. the reimbursement is the smallest piece of it. the bonus is the bigger issue. but you are so busy talking nonsense about flashcards you miss the big picture. you should have been part of the lay offs
Amen! (Someone please tell me that guy passed??)
Layoff Watch ’09: Grant Thornton
There’s a lot of chatter about layoffs at Grant Thornton this week but we’re scant on details. So far, we’ve heard there were cuts in New York, Dallas and possibly the Southeast region.
And just for the hell of it, we called up GT to see if they could tell us anything. Unfortunately we just got voicemail but we’ll update you if they get back to us (they might, don’t be so pessimistic).
If you have more details, get in touch and ask around to your peoples that work in the House of Nusbaum to find out what’s going down.
Caption Contest Friday: Is Your Career in the Crapper?
A reader working at a client site showed us where she and the rest of her audit team will be sitting for the next three weeks:
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A little background/TMI: Naturally our first question was, “Is anything audible?” to which she replied, “We definitely know who has a weak stream around here.”
Same rules – Submit possible captions for all the photos in the comments. We’ll choose our favorites — with preference given to those with an accounting/auditing bent — and then let you vote for the best one. Impress us.
GC November Survey: Last Call
This will be our final request for you to participate in our completely harmless, yet immensely helpful, one question survey.
Thanks to everyone that has already taken the survey. If you haven’t taken the survey, are you aware that for ten seconds of your time, you can win a $50 AMEX gift card? Do the math, it’s worth it.
We suggested that we should hand out gift cards to everyone but we don’t call the shots around here.
Have a great Friday and thanks for participating!
