Because, you know, some of you may have forgotten that they were an international firm. Nevermind the complete failure to coin “Global 6 Accounting Organization” as a way to sneak into the prestigous cool biggest firm club. GT is giving interviews with obscure accounting publications to make this happen.
Eddie Nusbaum, who will be the new Global CEO on January 1st, is going after Big 4 clients to continue building their international business, which kinda sorta works, we guess.
What’s most confusing about G to the T’s “strategy” is that no matter what happens, they’ll never compete with the big firms through organic growth.
Even if GT and BDO made sweet accounting firm love their total international revenues would still be dwarfed by what the fourth place Big 4 firm rakes in. Huge, Big 4-apocalyptic events that would involve government intervention are the only way GT is making it to the big time. So maybe the stars are lining up. WTFK…
Grant Thornton Plans International Growth [Web CPA]
The PCAOB Doesn’t Care for the Flagrant Disregard of Their Rules
Having never been part of a PCAOB investigation, we’re not able to attest to the uncomfortable violated feeling one must have when you have a government foot soldier crapping all over your work.
That being said, if you can at least make an argument for your shoddy work, you’ve got something to throw at them. The same cannot be said when you have no discernible argument whatsoever that will allow you to look yourself in the mirror and call yourself an auditor.
Enter Moore & Associates and its President, Michael J. Moore:
Poor auditing, after the jump
After M&A registered with the Board in October 2004, Moore began auditing
the financial statements of public companies for the first time in more than ten years.
Over the next three years, M&A accepted nearly 300 public audit engagements, with
Moore serving as the auditor with final responsibility on each of them. Respondents
added new clients at a nearly exponential rate while the audit staff was comprised of
inexperienced staff members overseen by one professional. M&A staffed the audits
with assistants who had no accounting or auditing education, experience or training.
These unqualified audit assistants planned and executed the audits with little or no
supervision from Moore.
So, you’re back in the audit game after a ten years on the bench and you really don’t have the resources to pay anyone that has any accounting background. Not being one to shy away from adversity, you go out and find whatever warm bodies you come across at the Greyhound station. Eventually you get the call that the PCAOB is on to your little game and you’ve got to think that the jig is up.
Nah. Keep rolling with it:
Respondents also failed to cooperate with the Board’s investigation…Respondents created false work papers that did not accurately reflect the work performed on the relevant audits and produced those false work papers to the Board’s Division of Enforcement and Investigations. Moore also falsely testified that these work papers produced by Respondents were true and accurate audit work papers completed during the audit, when he knew they were not.
Nothing like going down in flames. For his incredibly diligent dishonesty and disregard for the PCAOB’s rules, Moore has been banned to the CPA darkness.
Moore & Associates, Chartered, and Michael J. Moore, CPA (8/27/2009) [PCAOBUS.org]
Chicago Learns the Importance of Public Comment
We haven’t seen outrage like this since FASB bent over and rewrote mark to market!
Denver is now considering taking a cue from a Chicago plan that basically pimped out the city’s parking meters for a lump-sum lease payment instead of relying on a constant stream of unknown revenue in quarters. Genius… sort of.
More, after the jump
Councilman Doug Linkhart would like to solve the city’s $120 million budget shortfall with quarters. But instead of fixing the deficit one quarter at a time — about $9 million in revenue from parking meters per year — the councilman would like to sell the city’s parking meter revenue stream to a private firm for one lump sum — as much as $430 million — and then use some of the money to close the budget gap. “It’s got some potential,” Linkhart told the Denver Daily News on Friday. “It sounds like a good idea … by no means is it perfect, and by no means is it exactly what I would do … but the concept is certainly worth looking into.”
That’s all well and good and on the surface it appears as though this plan cannot possibly go wrong, right? I hope Denver is watching how this unravels before jumping prematurely on the parking meter pawn shop bandwagon.
Hmm:
Clint Krislov, a Chicago attorney for a group of taxpayers, said on Thursday that a Cook County Circuit Court judge on August 28 will hear their petition to allow the lawsuit challenging the deal to proceed. “The contract is illegal so we’re asking (the court) to block spending tax dollars on it,” Krislov said. “After the transaction closed, the city continued to expend public funds to maintain and repair CPM’s privately controlled meters based on complaints that a number of CPM’s parking meters were disabled, would not take coins, did not properly recognize the coins placed in the meters, and displayed inaccurate parking rates and times of enforcement,” the lawsuit stated.
Chicago taxpayers have a point. You cannot use city streets as a private pawn shop and then apply taxpayer money to pay interest on your pawned items. Perhaps someone can point to the FASB that says as much?
Rumor of the Day: Deloitte Snagging Chrysler Audit from KPMG?
Maybe figuring that bankruptcy means a fresh start with everything, we received a tip that Chrysler is dumping KPMG for Deloitte as their external auditors:
“it was announced to KPMG Detroit employees late yesterday…via voicemail or conference call”
Could be the reason the Green-dots in Detroit were rumored to be getting raises but WTFK.
Right now we’ve reached out to all three members of this love triangle and only Deloitte has gotten back to us and could not confirm or comment.
If you’re at Radio Station or the D in Detriot and have details on this, let us know. We keep all sources anonymous.
Who is the Mastermind Behind Accountants’ Lack of Prestige?
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 online accounting and audit community, The Accounting Nation. Outside of work, he is a husband, father, brother, writer, and woefully inadequate aspiring triathlete. To learn more about The Accounting Nation, go to http://www.accountingnation.com.
Harris Interactive recently published their annual list of the most prestigious occupations, as perceived by the obviously mal-informed public being led astray by the obviously biased and poorly designed Harris Interactive survey. Here’s the headline…
The rest, after the jump
Firefighters, Scientists and Doctors Seen as Most Prestigious Occupations
Real estate brokers, Accountants and Stockbrokers are at the bottom of the list

Don’t pull any punches Harris…God forbid. Just put it right out there. In my opinion, this is a very narrow survey that does a great injustice to the world of accounting as it seeks to strengthen its image and recruit the leaders of tomorrow. I think much of the problem arises from shades of gray attached to the moniker “accountant”. If I say that I am a police officer…you probably have a pretty good idea about the scope of my responsibilities.
But if I tell you that I’m an accountant…you might think you know what I do…but do you really? I could be a Controller at a Fortune 500 company, a Partner at E&Y, or an accounts payable clerk at Bob’s House of Meats (a fictitious entity…but I envision an 8-store family business with a giant Bob’s Big Boy-esque statue out front that sells the finest cuts of meat from across the land…just me? I digress). Clearly all three would have remarkably different responsibilities …but all three are technically “accountants”. See the issue there? It’s in the pitch. It plays into the public perception and stereotype rather than painting the true picture.
Doesn’t the accounting industry have any lobbyists out there that can work some mojo to influence the slant of these types of reports??? As if the accounting profession doesn’t have enough publicity problems what with the continuous onslaught of media-inflated accounting nightmares …now we have to deal with these types of shenanigans..and annually no less…like some bad recurring nightmare about alligators trying to eat you or some other manifestation of your self-perceived inadequacy.
Perhaps it’s a bigger conspiracy propagated by the business community at large in order to dissuade the bestest candidates from pursuing a career in accounting thereby lowering the profession’s overall collective IQ and subsequently clearing the way for them (the business community at large…pay attention) to have their way with financial statements and the investing/banking communities for all eternity? Why are you looking at me like that…it could happen…it could totally happen.
Rumor of the Morning: E&Y SoCal Layoffs
Received word late last night that layoffs went down out west yesterday. According to our source, the breakdown is as follows:
• Two in LA
• Two in Irvine- tax (one staff 1)
• One in San Diego – tax (staff 2)
• A few in Vegas- Audit only
We reached out to an E&Y spokesperson, who declined to comment.
Our source says it was performance based but that particular reason has been a matter of debate for some time. If you’ve got your own theories, discuss in the comments and send us any more details if you’ve got them.
Here’s hoping that Ern isn’t getting warmed up…
Preliminary Analytics | 08.28.09
• Big Ticket Seller Tried Deal With Scalpers – Ticketmaster has obviously never tried to get Phish tickets on the day of the show after dropping boomies. You can’t reason with that scum. [WSJ]
• Frank: No Consensus In Sight On Financial Reform – As opposed to thoughts on Maxine Waters’s lunacy, which we all happily agree on. [NPR]
• SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probes – And by critical, Schape means, “If you don’t give me the data, I will end you.” [Bloomberg]
• Treasury Document Called AIG Investment ‘Highly Speculative’ – No honesty in government? Bah. [Bloomberg]
• ‘Blood Oath’ Sealed Stanford Deal, Court Is Told – What the Times isn’t saying is that the whole thing went down in a treehouse and they kept emergency antiseptic and bandages nearby just in case things got out of control. [NYT]
Review Comments | 08.27.09
• Sir Allen Is Down – And his CFO/Number-maker-upper pleaded guilty. Not what you would call a good day. [DB]
• Swiss Negotiator for UBS Says IRS May Seek More Data – Not satisfied by a measly 5,000 someodd names, the IRS is going back for more. MORE. MORE. [Bloomberg]
• Boeing hopes to fly 787 by year-end – Ten says it doesn’t happen. Takers? [Chicago Tribune]
• US ‘problem’ bank list hits 15-year high – Plenty of time to break more historical marks. [FT]
• IFRS could well fail in the US [AccMan]
Joe Francis Plans to Argue That Anything Related to Topless Girls is Deductible
Some might call Joe Francis a genius. Others may call him a pig. Regardless, the IRS is calling him a scofflaw tax evader. His defense strategy will entail an elaborate slideshow that will explain that Francis is the “business of sex” and that most of what he’s doing are business expenses.
Sex is a confusing business so Francis’s defense will help the jury understand:
Get informed, after the jump
• Mr. Francis is in the business of sex
• Mr. Francis IS Girls Gone Wild
• Girls Gone Wild is Successful
See? It’s not complicated.
The defense strategy will also include pictures of celebrity guests (with some misspelled names) that were at Francis’s beachside house in Mexico where he incurred “business expenses”. Francis will also present a slide that shows himself to be akin to Hugh Hefner and thus, proving that anything to naked girls should be allowed as a deductible expense.
Open and shut as far as we’re concerned.
Jennifer Aniston For The Defense? [The Smoking Gun via TaxProf Blog]
More KPMGers Have Their Labor Day Plans Put in Jeopardy
This time it’s San Fran:
See the text after the jump
Dear Senior Managers, Managers, Senior Associates and Associates,
Thank you for your hard work and continued commitment to the firm. As you know, we continue to do everything reasonably possible to achieve our chargeable hour goal for the remaining fiscal year. While we have made progress toward achieving our collective goal, there remains a gap between where we are and what we need to achieve to give ourselves the best chance of meeting our forecast for the month of September.
In order to close this gap, we are increasing the scheduled chargeable time for each senior associate and associate in the month of September to 50 hours per week (average of 10 hours per day). Teams already scheduled at 10 hours per day or more will remain as scheduled. We ask that each engagement team does its best to find meaningful work to fill this additional chargeable time. If seniors and associates are unable to identify meaningful work for themselves or their team, they should contact their engagement partner or manager to discuss ideas for utilizing this time. This increase in chargeable time has been discussed with and is supported by the engagement partners on your accounts.
Any idea what qualifies as “meaningful work”? Discuss in the comments.


