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Layoff Watch ’26: EY Trims Some Newbies in Audit

Seeing multiple posts about audit Staff 1s getting let go from EY this week, it's unclear how many are affected and if other service lines should brace for impact as…

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Deloitte Made the Creepy Digital Librarian From The Time Machine But For Golf

Have you seen the 2002 movie The Time Machine? If you haven't then the reference in the headline isn't going to make a lick of sense. Lucky for you YouTube…

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KPMG Redefines Excellence in the Age of AI By Using AI to Pump Out Dubious Citations in This Now-Removed Report

GPTZero, the folks who brought you this glorious takedown of an EY Canada report stuffed with completely made up sources, are back at it again and this time they've caught…

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FRC To Determine Whether Missing a £30 Million Overstatement Was, In Fact, Bad Auditing

The Financial Reporting Council announced today that they're officially investigating PwC UK's 2024 audit of WH Smith which means fines and hand-slaps are likely forthcoming once that gets wrapped up.…

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Compensation Watch ’26: Deloitte Salary Numbers Are Out and Some People Are Salty

Compensation threads were once a yearly tradition here at Going Concern many, many, many years ago but at some point Reddit took over the task so we've swung over there…

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News

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Monday Morning Accounting News Brief: PwC Gave Us a Reason to Mention GTA 6; The Bad KPMG Anecdotes Are Adding Up | 6.22.26

Hey, here we are again at Monday. Guess we should get to it. In this news briefA Less Thrilling Transfer Pricing StoryThe Ghost of Tax Preparer Fraud PastWho Doesn't Want…

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Friday Footnotes: Deloitte UK Asks Nearly 200 Auditors to Please F Off; AI Chatbots Favored Over Actual Accountants | 6.19.26

Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you're here, subscribe to our newsletter to…

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EY building exterior with scissors overlay

Layoff Watch ’26: EY Trims Some Newbies in Audit

Seeing multiple posts about audit Staff 1s getting let go from EY this week, it's unclear how many are affected and if other service lines should brace for impact as…

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IRS office with a rat

The IRS Moves Atlanta Employees to an Office That Makes the Rat-Infested Office Look Pretty Good

If you've been keeping up with the news cycle (or if you caught last Monday's Monday Morning News Brief), you've heard about the situation down in Atlanta involving IRS workers…

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Monday Morning Accounting News Brief: Oh Rats! The IRS Is Infested; PwC Partners Will Divorce If It Spares Their Cash | 6.15.26

Good morning, capital markets servants. Everyone have a good weekend? Good. Got some news for you. In this news briefThe IRS Phone Bank Pays HOW Much!?Getting Divorced Over an Audit…

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Technology

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Deloitte Made the Creepy Digital Librarian From The Time Machine But For Golf

Have you seen the 2002 movie The Time Machine? If you haven't then the reference in the headline isn't going to make a lick of sense. Lucky for you YouTube…

Read More
error on a phone screen

KPMG Redefines Excellence in the Age of AI By Using AI to Pump Out Dubious Citations in This Now-Removed Report

GPTZero, the folks who brought you this glorious takedown of an EY Canada report stuffed with completely made up sources, are back at it again and this time they've caught…

Read More
woman and cat with laptop

KPMGers Are Maliciously Complying With The Firm’s AI Usage Requirements By Generating Fluff

On May 4, Business Insider published an article about KPMG's new AI dashboard. They've been publishing several articles in recent weeks about KPMG's AI initiatives actually, like the tax simulation…

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Starbucks Kills Off Its Automated Counting AI Tool After Just 9 Months Because It Sucked at Counting Beans

While people outside of the accounting profession continue to smugly insist that accountants will be out of work in 12 months 18 months two years five years any day now…

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EY Gets Busted and Yeets Report Littered With AI Hallucinations

Yesterday we received a news release from a communications firm working for a group called GPTZero. Now you should know that we receive probably a hundred or more news releases…

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Practice Management

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Top Remote Tax and Accounting Candidates of the Week | October 16, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | October 2, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | September 25, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | September 18, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

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Top Remote Tax and Accounting Candidates of the Week | September 4, 2025

Struggling to Find Remote Accounting Talent? We’ve Got You Covered. If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're not…

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Quick Reads

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Here Are Tax and Audit Salaries at Top 25, Top 300, and Regional Firms

Recruiting firm Brewer Morris has released its 2025 US CPA salary guide and should you want to read the whole thing you can request it from them here. Perhaps you,…

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Friendly Reminder Not to Work Yourself to Death For This Profession

Saw this on the bird app yesterday and thought its message would be worth passing along what with 20 days remaining until April 15 and nerves as strained as ever…

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Accounting Firm Abruptly Nopes Out of Tax Season Early (UPDATE)

Ed. note: An earlier version of this article's headline stated the sheriff is investigating. The Alexander County Sheriff's Office informed us they are not investigating, only fielding calls from the…

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This Deloitte Office Has Eliminated Trash Cans at Desks to Make Staff Get Up Off Their Asses

Boston Business Journal wrote an article about Deloitte's new office in Boston and for some reason they chose to lead with this: You won’t find trash cans at the desks…

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The IRS Decided to Troll Tax Pros For 10/15

We realize the decision to run maintenance on IRS systems likely isn't made by anyone who understands deadlines but surely someone who does could inform the IT department of these…

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Top Remote Accounting Freelancers: February 3, 2024

Looking to staff up for a season or hire a freelancer for a project? Accountingfly is ready to partner with you! Gain full access to a pool of highly skilled…

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10 Essential Project Management Principles for Accounting Firms

Every accounting firm struggles with project management, with smaller practices that are rapidly expanding taking the brunt of the damage. As your firm adds new clients, takes on more work,…

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6 Ways Email is Secretly Destroying Your Accounting Firm

Email: The word itself sounds innocent, doesn't it? Kind of like "snail mail," but faster, sleeker, and without the slimy trail. But don't be fooled—email is secretly a sinister beast,…

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Don’t Grow Your Accounting Firm Out of Business! Break Up With These Unscalable Practices Now

Business growth is always a high priority for accounting firms, especially small-to-midsize practices. Take care, though, because growth can be a double-edged sword. If your firm expands too quickly or…

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$500k Will Not Satisfy One CPA’s Quest for Vindication

TOLD YOU.jpgA CPA in Redmond, Washington is receiving $500,000 from the state’s board of accountancy after battling with them for nearly five years over a disciplinary action that probably should have been NBD.

D. Edson Clark had claimed that the state Board of Accountancy was improperly pursuing unwarranted charges against him in retaliation for complaints he had made about the handling of another case. He requested tens of thousands of pages of public records and launched seven lawsuits against board employees over the past two years.


Clark was very determined to clear his good name. So much so that the Board of Accountancy claimed, “it has been disrupted by Clark’s requests, and that his demands for public records are burning up its budget and limiting its ability to function.” Apparently, the Board was so overwhelmed that it threatened Clark with an anti-harassment complaint because the volume of emails he was sending was disruptive.
This brings up some questions: A) How many emails does it take to disrupt an office? B) Did they try hiring a temp? C) Was Clark spending his entire day copying and pasting the same email over and over or was he drafting individually scathing rants? D) At what point does a person cross the line of crazy-ass obsession?
Despite the metric asston of emails received by the Board, a judge in one of Clark’s lawsuits was not impressed with the Board’s handling of the situation:

In an oral hearing in June, Judge Thomas McPhee, a judge in Thurston County Superior Court, said that the board had “developed a pattern of incompetence in answering these discovery requests that is just difficult to believe for a state agency.”

We’re all familiar with governments’ inability to do much of anything but for a judge to put the situation in this context might be a new low for bureaucratic inefficiency.
Don’t worry though, the saga isn’t over as Mr. Clark has indicated that he plans further litigation in order to FULLY EXONERATE himself. Nevermind that the $500,000 is over a third of the Board’s budget. This is obviously personal. We admire the gusto.
Redmond CPA to get $500K settlement from state board [Puget Sound Business Journal]
Redmond accountant, Washington regulator at odds [Puget Sound Business Journal]

Bonus Watch: Follow-up on Grant Thornton

Thumbnail image for Thumbnail image for Grant-thornton-logo.JPGAccording to a tip we received, less than “special” people at GT are receiving bonuses too:

Based upon my salary [the bonus is] about 2%….[I’m] assuming the criteria for a bonus wasn’t as stringent as Nusbaum made it out to be, or the pool was larger than we were led to believe. Based upon the call with Nus, I figured only 5.0 would get a bonus.

A pleasant surprise for some. This particular tip came out of the Southeast region. Apparently these conversations are occurring circa now so continue to keep us updated for your city or region.

(UPDATE) Madoff Investors Sue KPMG, JP Morgan, Bank of New York Mellon

By our last count KPMG had been named in ten lawsuits related to Madoff feeder funds. What’s one more?

KPMG, JP Morgan, Bank of New York Mellon, Oppenheimer Acquisition Corp. and Mass Mutual Life Insurance, along with the Tremont founders were all named in an amended lawsuit that was filed yesterday.

Cotchettt, Pitre, & McCarthy, the attorneys for the Plaintiffs, are not mincing words on KPMG’s part in the whole mess. From the firm’s website:

The sheer size and scope of the fraud make it impossible for Madoff to have acted alone. The complaint alleges JP Morgan and the Bank of New York as well as powerhouse accounting firm KPMG LLP and their international counterparts, KPMG UK and KPMG International were primary players responsible for the fraud.

The amended complaint further alleges that the phantom trades “should have been discovered by KPMG UK, the auditor for Madoff’s London based operation, Madoff Securities International Ltd. Instead, KMPG UK never raised any red flags that investors’ money was used by Madoff as his personal piggy bank.”

KPMG declined to comment for the Reuters article but we’ll assume that they don’t take kindly to the complaint.
Madoff investors sue KPMG and major banks [Reuters]

MADOFF_WEXLER_FIRST_AMENDED_COMPLAINT.pdf

UPDATE: The UK Firm issued the following, per Accountancy Age:

KPMG considers the allegations in the complaint to be wholly without merit and will defend them vigorously. The complaint cites KPMG in its capacity as statutory auditor of Madoff Securities International Limited (MSIL), a London based company directly owned by the Madoff family. KPMG acted in this capacity for several years and issued unqualified audit opinions on MSIL’s financial statements. We are not aware of any suggestion that the financial statements of MSIL contain errors.

Preliminary Analytics | 10.21.09

Thumbnail image for mr.met.jpgMets Win One: Owners Made Money on Madoff – “A partnership connected to the baseball team — which had widely been rumored to have lost money investing with Bernard Madoff — actually gained a net $48 million from its dealings with the convicted swindler, according to a bankruptcy-court filing.” [WSJ]
Madoff adjusts to life in prison – Bottom bunk. He would’ve called the top but when you’re in your 70s, sometimes you just let things go. [BBC]
CIT debt offer by obscure fund raises questions – Including: How desperate is CIT? [Reuters]
A Sarah Palin Tax Problem? – Auctioning off a dinner with Governor Maverick makes for some IRS hoop jumping. [TPM]

Review Comments | 10.20.09

ubs_6.jpgUBS Accidentally Leaks Names to Post Office – One day UBS will do something right. [Web CPA]
Patricia Cornwell’s Latest Mystery – Suing her accountants and business advisors for allegedly losing $40 mil. [TDB]
Wall Street on edge as SEC top cop gets aggressive – Khuzami seems to be doing fine and even has a sidekick. [Reuters]
PwC’s Lehmans fees top £154m [Accountancy Age]
Denham Receives AICPA Medal of Honor – Highest award given by CPAs to a non-CPA. [TaxProf Blog]
Some Internal Audit Staffs Cut in Recession — But Not All – Good news: 2009 is the peak of layoffs! Bad news: They will still continue in 2010. [Compliance Week]

Overland Storage Probably Fired PwC Out of Spite

you are fired.jpgIt appears that Overland Storage’s audit committee was pissed off enough about a second consecutive going concern audit opinion that they just up and fired PwC last week.
San Diego-based Overland filed the 8-K, notifying the Commission of the dismissal, on October 16th which also named Moss Adams as the new auditors. At the request of Overland, PwC sent a two sentence letter to the SEC stating that they “agree with the statements concerning our Firm in such Form 8-K.”
The Register states that Overland was all bent out of shape because PwC didn’t explain why they issued the going concern opinions:

While even accountants are entitled to a view about the state of the struggling business, Overland was upset because PwC didn’t actually identify any specific factor in the accounts that led them to that conclusion.
Presumably PwC was expressing a view based on such business events as Overland avoiding running out of cash by factoring arrangements, repeated staff headcount reductions, Nasdaq delisting, declining revenues and losses. Overland’s thinking is that, if so, it shouldn’t have.

The most recent 10-K has all the gory details and as The Register pointed out, Overland didn’t think all those negative things really matter, so obviously, firing the auditors was the next logical step. Moss Adams will get the esteemed pleasure of holding Overland’s hand to the bitter, tragic end.

KPMG Halloween Party: Don’t Expect Treats in the Form of Bonuses

With the cancellation of Christmaskah by most of the Big 4, one would think that a small Halloween fiesta would at least be possible (you know, for the kids).
Good news! At least one KPMG office is contemplating the idea, with the local staff’s help (italics are from the original email):

For $5 you may wear jeans. All donations will be used for the Family Halloween Party. If you would like to participate, please see [redacted] at the reception desk on the 27th floor.

Please note that if you are at a client site that does not subscribe to jeans day, you still need to dress to the client’s dress code.

Please remember you are still in a professional environment and wear professional clothing with your jeans. Additionally, please wear jeans that are in good condition to obtain a clean, professional appearance.

Got it? You want bite-sized 3 Musketeers, Snickers, and the like, you can pay for it. And btw, if you come in with frayed hems, your ass will be sent home.

Rumor Mill: Ernst & Young Bermuda Needs a Few More Hours Out of You

According to a tip we received, beginning this week E&Y is requiring its professionals in Bermuda to charge 50 hours a week through mid-December. This is up from from the normal 40, according to our source.
Our source also indicated that the mandatory 50 hours is considerably more than what the other firms require, citing Deloitte who “has minimum 37.5 hours year round.”
For our friends working offshore, give us the scoop on your hours approaching year end. We also expect a few of you have worked in Bermuda and even more of you have worked with professionals in the Bermuda or other offshore offices, discuss your thoughts in the comments.

IASB: You Want a New Fair Value Rule? You Got It. Just Don’t Ask Us About Convergence

tweedie.jpgThere’s no doubt that you’ve been awaiting the IASB’s new fair value rule with feverish anticipation. Well, your wait is nearly over because when Sir David Tweedie says he’s going to do something, by God, he means it:

In an address to a meeting of European Finance Ministers, which have in the past been critical of the IASB’s response to the financial crisis, Tweedie has sought to ease concerns by announcing that he is on track to deliver a new fair value standard by the end of this year.
“I gave a commitment to deliver on this timetable. We will publish the new standard in November,” he said.

This is all very exciting for Tweedie and the IASB since it feels pretty damn good anytime you stick it to your critics but…
Small problem: The new rule still won’t require loans to be marked to fair value which is the exact opposite plan of Bob Herz and the FASB, “FASB’s proposal will see all assets measured at fair value. The IASB’s mixed measurement model would see banks’ loan books valued on an amortised cost basis.”
Obviously the two rulemakers, fresh off the tongue lashings they received from their respective governments for their part in the worldwide economic meltdown, decided that they had no choice but to put out the fair value fire pronto. Meanwhile, convergence of accounting standards (what the IASB is really serious about and could be the next Big 4 gravy train) remains a pipe dream.
Fair value standard will be released next month: Tweedie [Accountancy Age]

The PwC Experience, Romania Edition, Involves Fifteen Unpaid Days Off for Everyone

mandatory.jpgWhores PwC employees in Romania are being sent on mandatory vacay starting this month through June 2010. The leave will be for fifteen days and will be unpaid, according to Ziarul Financiar, a daily financial newspaper published in Bucharest.
We were hoping that the firm would require everyone to take the same fifteen days off in order to participate in a firm wide charity event but instead PwC Romania has asked to employees to take turns being quasi-unemployed for half a month and will simply do more with less.
This is not a measure that we have heard about occurring Stateside but there have been delayed start dates and sabbaticals which some may say are close enough. However, the innate ability for Big 4 types in the U.S. to show up to work when they aren’t supposed to would certainly foil any potential cost savings. Until, of course, someone reminds them, “Aren’t you supposed to be on vacation?” to which the glutton for punishment replies, “Oh, I’m not charging the time.”