• Switzerland’s Profit on UBS: $1.13 Billion – “On Thursday, Switzerland converted a note that gave it a 9.3% UBS stake and immediately sold the 332.2 million shares at 16.50 francs each, a 1.4% discount to the stock’s closing price Wednesday. The government said it earned an annualized return of 30% on the 10-month investment.” No doubt they went and bought… [WSJ]
• Madoff Yacht Up for Sale – Ninety footer named Leopard Bull. Sounds like Bern might have been describing his favorite undies combined with a self assigned nickname for a certain less than spectacular organ. [DealBook]
• Sale of Chicago Cubs to Ricketts family called ‘imminent’ – Yay, nay, or meh Cubs fans? [Chicago Tribune]
• #98 Sharon Allen – Forbes most powerful women list includes the Deloitte Chair. [Forbes]
Review Comments | 08.20.09
• ‘Cash for Clunkers’ to End Monday – “The move comes as the department tries to get an accurate accounting of how much money is left in the program, formally called the Car Allowance Rebate System.” Auditors needed? [WSJ]
• Benmosche Says He’ll Rebuild Units to Repay U.S. – That’s a bold statement. [Bloomberg]
• Harold Ramis Answers History’s Most Burning Question – “One Microsoft Excel owner recently speculated that Bill Murray’s character spent a total of eight years, eight months, and sixteen days reliving the same 24-hour period in Groundhog Day.” Okay, which one of you is wasting your billable hours on this? [Vulture]
• The problem with PowerPoint – Where do you start? [BBC]
• In a first, Starbucks lowers price of some drinks – Everybody breathe…Okay, got get one. [Reuters]
• Will Bank Regulators Diverge from GAAP? – Why the hell not? It’s not like anyone wants to converge with anyone else, anyway. [CFO]
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PwC Thinks it Can Dance
Probably not a new video for most of you but it’s the best PwC has to offer, as far as we can tell. If you’ve got other candidates, shoot them our way.
Video, after the jump
There you have it. Grant Thornton and BDO people need to lock it up. Point us in the right direction for a stupid video. We’ll put a poll together or something tomorrow to vote on the vids.
Your Daily Fix
Because some of you are obviously jonesing for it, we’ve got some updated details on this week’s Radio Station bloodbath:
• Dallas Somewhere between 30-40
• Silicon Valley Between 20-30
• Kansas City Five staff – Two associates, three SA’s and three in client service support
Still no final word on New York. Shall we just call it 50?
PwC is Thinking About Your Health
It’s no secret that accounting firms are desperate either to cut costs or to find new sources of revenue.
Today’s wonderfully shrewd example comes courtesy of PwC, who decided that your four or five soda a day habit was a perfect weakness to take advantage of. Apparently the firm increased the price of a can of soda from 30 cents to 60 cents to squeeze out an additional $30,000 in revenue.
Our source informed us that this was a such a brilliant idea that a partner felt compelled to mention it at a firm alumni council dinner. Classy.
It’s entirely possible that PwC is just concerned that too many of you are consuming far too much high fructose corn syrup but our speculation is totally unfounded.
If you’ve got more examples of your firm taxing you on junk food consumption or other redonkulous cost saving measures, discuss in the comments or shoot us the shrewd details to tips@goingconcern.com.
Ernst & Young Opted for Smooth Jazz
It appears that this from back in ’01 but for the love of God, who’s bright idea was this? We apologize for the small screen, we spent the better part of our morning trying to find the full size.
PwC Calls Out KPMG
Awhile back, we mentioned how KPMG didn’t seem so concerned about the appearance of independence. Well now it appears that P. Dubs might be getting a little self-righteous about the whole issue or they’re just bent out of shape that the Radio Station swiped the Rentokil audit by lowballing the proposal:
More, after the jump
KPMG’s arrangement was able to shave 30% from Rentokil’s audit, but it was the manner in which the firm brought about the cost saving that raised eyebrows. Audit guidelines warn against two threats when an external auditor takes on internal audit work. The first threat, known as the self-review threat, warns against the external auditor relying heavily on its own internal audit work. The second threat, known as the management threat, warns against the internal auditors assuming the role of management.
KPMG says it’s totally fine because that’s where the client’s interest was:
KPMG said it was fielding interest from potential clients. ‘Unequivocally we have found interest,’ says Oliver Tant, KPMG’s UK head of audit. ‘We will be discussing it with more people, undoubtedly as will other competitors.’
PwC, at present, seems to be taking the highroad, even though we’re pretty sure they think Rentokil are a bunch of cheapskates:
PwC, would not be drawn on its opinion on the Rentokil audit, citing its policy not to comment on clients, but did say: ‘It is vital that we maintain our independence from – and in no way are seen to act as part of – management infrastructure…Internal audit can often be regarded as acting as part of that infrastructure.’
Typical passive-aggressive accounting rhetoric but it still sounds like P. Dubs is calling bullsh*t on KPMG. Feel free to defend your firm’s position by whatever means necessary (we suggest low blows and name calling) or get on your soap box about independence.
Debate rages on over KPMG’s cut-price Rentokil audit deal [Accountancy Age]
Deloitte’s Magic Potion
In our continuing effort to lift everyone’s spirits this week, we’ll present a few a videos today for your viewing pleasure. We’re attempting to find something for every firm but if you know of something that you feel that is imperative to share with everyone, shoot us the link, tips@goingconcern.com. Feel free to get all Roger Ebert on these videos in the comments. Oh, and as we’ve mentioned before, just charge the time to an administrative code.
We’ll start with Deloitte:
Video, after the jump
E&Y Isn’t On Board with Anything Delightfully Tacky and Unrefined
Would someone kindly tell Ernst & Young to get with the program? This country is falling apart at the seams and there are certain time honored traditions that we’ve all agreed on as TBTF.
So when we find out that the Hooters Casino in Vegas may go bankrupt and that E&Y warned of this back in March, we thought that it was a mistake. Of all the businesses out there, wouldn’t Ernie have the sense to help these poor saps cook the books so they can stay in business?
More, after the jump
Where in the name of God will divorced men and former college football players go to eat mediocre misshapen “wings” that come from, we’re pretty sure, a bird that was created by someone that we envision to be a cross of Doc Brown and Dr. Moreau? Served by women in skimpy, tight-fitting uniforms? IN VEGAS?
See the problem here? E&Y, would you care to explain yourselves?
Hooters Casino may go bust [The Deal]

