• Bernanke defends bail-out package – “Ben Bernanke, the boss of the US central bank, has defended the US bail-out plan citing his fears of a second Great Depression, during a public talk.” [BBC]
• Citi public exchange offer gets 99 percent shares – “Citigroup Inc said on Sunday some 99 percent of its stock was tendered in an exchange offer for publicly held securities, in a key step toward giving the U.S. government a 34 percent equity stake in the bank.” [Reuters]
• Kuwait financier facing U.S. fraud suit found dead – “A brash Kuwaiti financier facing a fraud suit by U.S. authorities was found dead Sunday in an apparent suicide that sent shockwaves through the Gulf Arab financial sector.” [Reuters]
• Chinese state steel workers beat private firm boss to death -“Thousands of angry Chinese steel workers clashed with police and beat to death an executive of the firm trying to take over their company, a Hong Kong-based human rights organisation has said.” [The Guardian]
- Friday Footnotes: Amateur and Non-Independent Forensic Accounting Not Appreciated By Local Parks Department; KPMG Getting Dogged | 6.26.26
- Top 20 Firm Eide Bailly Gets on the Private Equity Train
- Monday Morning Accounting News Brief: PwC Gave Us a Reason to Mention GTA 6; The Bad KPMG Anecdotes Are Adding Up | 6.22.26
Review Comments | 07.24.09
• Geithner urges end to ‘dumb regulation’ – “Tim Geithner, Treasury secretary, said there was “a lot of dumb regulation in our country” and urged lawmakers to act quickly in spite of resistance from the financial industry and other regulators to the administration’s plan.” [FT.com]
• California Senate Approves Budget Plan – “The California Senate early Friday approved a plan to close a $26 billion budget shortfall through steep spending cuts and a medley of one-time solutions and accounting moves.” Creative accounting, Cali? FTW! [WSJ]
• Buffett: I’m keeping my Goldman Sachs warrants – But thanks for asking. [Reuters]
• Madoff Trustee Battles Israeli Charity Over $4.7 Mln – “A charity for homeless and runaway Israeli children that lost money in Bernard Madoff’s fraud told a U.S. judge that the trustee liquidating the con man’s business wrongfully rejected its $4.72 million claim in the case.” [Bloomberg]
Yahoo and Microsoft Partnership Talk Continues to Annoy Us
In a follow-up to the most annoying potential corporate partnership in recent memory, Yahoo’s directors actually met with one another yesterday, after just yapping on the phone about it, to decide if they like Microsoft. Microsoft has been putting the moves on the search engine company for over a year now and some directors still aren’t sure they’re ready to put out.
Some directors are still grossed out and think that Microsoft will do naughty things like, “paying Yahoo for selling ads next to its search results”. GROSS. Other directors also don’t think that regulators would like the two companies getting together because it wouldn’t look very good.
No doubt we’ll be hearing more about these two flirting which will continue to make us nauseous.
Yahoo Board to Meet on Microsoft Search Deal [WSJ]
Try to Do Something Constructive this Weekend, Like Get the Whole IFRS Debate Settled
In what might be the biggest rager of the weekend, the International Federation of Accountants (IFAC) are meeting today and tomorrow in London to get down to brass tacks on the whole global meltdown thing.
Also on the agenda for the IFAC: Coming up with a plan to get one set of global accounting standards, and also figure out how to convince the likes of Maxine Waters to BTFO of accounting rules and stick to cooking up dead-end legislation on banning of credit default swaps.
Let us know how it goes.
Accountants’ Group Calls for Single Set of International Rules [Bloomberg]
You Don’t Have the Worst Job in the World
Because we know that many of you feel that way on a daily basis. But nope, sorry. Dealbreaker tells us about the prosecutors in the Stanford case piecing shredded documents back together. If your job sucks worse than that, tell us about it because…WHOA.
Making CFO/Partner: A Guide
CFO.com has an article on “What to Do on the Way to CFO“. This encouraged us to come up with our own suggestions but we thought we’d expand our list to include you public accountants as well, so here’s a short list of our key suggestions on “What to Do on the Way to Making CFO/Partner”:
• Develop a personality disorder – Whether it’s OCD, schizophrenia, or histrionic personality disorder, few bean counters make it to the highest levels without a screw coming loose.
• Master the art of small talk – As a CFO or Partner you will likely have to engage with several “little people” in your organization that you are unacquainted with. Small talk is essential to avoid awkwardness in these interactions. Weather, weekend plans, sports are standard topics that will help you avoid the dreaded silence.
Maybe the most important thing is after the jump
&bull Get really passionate about accounting and finance Remember those Grant Thornton commercials that used to run on CNBC? That’s exactly the kind of passion that we’re talking about. If you find it difficult to talk to your spouse, friends, children, and especially co-workers about anything other than financing options for acquisition, key shortcuts in Excel, or how the general public doesn’t seem to appreciate the proposed changes to fair value accounting, then you probably don’t have what it takes to be a partner or CFO.
We realize that this is not an all-inclusive list and welcome your input on what other traits and skills are imperative to achieving the lofty and glamarous heights of a partner or CFO.
IRS Doesn’t Care for Kirk Herbstreit Burning Down His Own House
ABC/ESPN college football commentator and former Ohio St. QB, Kirk Herbstreit and his wife donated their house to to the local fire department back in 2004 and the Herbstreits took a $330,000 deduction on their tax return.
In an extremely convenient coincidence, the IRS, for the first time, challenged the practice of donating individuals’ homes for such purposes the same year.
The Herbstreits were audited and paid back taxes and interest of $134,606 but are now suing the IRS to get that money back.
Apparently this is a matter of debate amongst tax wonks out there, some saying the donation is kosh and some saying it isn’t. You Michigan fans obviously hope Herbie gets stuck paying the extra scratch but the real question is whether Lee Corso is getting to the age where he’s burning down houses just because he’s totally gone senile.
Herbstreit ‘fire’ puts focus on IRS dispute [Columbus Dispatch via TaxProf Blog]
Have You Any Tchotchkes?
In the spirit of Lehman Brothers’ desperation, we’re looking to find out which firm out there has the best chance of financing its next big settlement by virtue of hocking its tchotchkes on eBay.
Because no one can say with absolute certainty which big firm will be the next be rendered extinct (although there are some wagers on it) and thus, none of you working for any firm can be sure when all that schwag you’re accumulating in your cube farm will be worth anything, we thought we would get your submissions so that we can determine which firm has as shot at using auctions in cyberspace as opposed to closing up shop. At first glance, E&Y has nothing on eBay but books, so we’re guessing you guys have the most to prove here.
Check out another schwagtastic example after the jump
Some of you have probably checked out for the day already anyway, so you might as well start putting that camera phone to use and email your submissions to tips@goingconcern.com. Big firms, small firms, we don’t care, we know there are some real finds out there. Just like this beauty:

The best submissions will be posted here and the respective firm’s ability to spend money on frivolous junk will be duly ridiculed.
Audit Opinions May Soon Require Partners’ Names Signed in Blood
The details are still being worked out but another idea being floated around is giving partners the option of signing some opinions in dog feces, when the opinion being signed is in fact, of equivalent value.
Press Release [PCAOB.org]
PwC’s New Investigation Will Invite Terrible Bovine Jokes
PwC has investigators all up in their grills again as another audit is going to be subject to an investigation. This time a sub-prime lender in the UK, Cattles.
Cattles is blaming the whole shitshow on a “breakdown in internal controls”, which has been the standard PR sound bite since before Enron.
The Accountancy and Actuarial Discipline Board (AADB), which regulates the profession, announced the inquiry on Thursday.The board, part of the Financial Reporting Council, said it would examine the conduct of PwC and its individual auditors concerning the preparation of financial statements of Cattles and Welcome Financial Services, its subsidiary, for the year ended December 31 2007 and for the six months ended June 30 2008.
According to one analyst referenced in FT Alphaville, Cattles was letting loans go 240 days delinquent before taking any impairment charges. Apparently PwC was okay with that practice.
And since the AADB is going to be looking at “individual auditor conduct”, what are they going to discover? Besides the partner and manager’s daily fat-cat lunches, obv. We invite your thoughts.
We’ve also got the feeling that this might be the type of engagement where you could include a high-def photo of the manager dry-humping the partner’s leg (wearing a leash and spiked collar, natch) as part of the audit workpapers and it would get signed off on anyway. But, like we said, it’s just a feeling.
UK watchdog opens probe into PwC audit of Cattles [Reuters]
Regulator probes PwC over Cattles audit [FT.com]
Scoping | 07.24.09
• Warren Buffett to Teach Kids About Finance in New Web Cartoon [Bloomberg]
• U.K. GDP Shrinks More Than Expected – “Hopes that the U.K. economy was on the road to recovery after a severe recession received a major blow Friday with official data showing output contracted far more than expected in the second quarter.” [WSJ]
• After Buffett Rebuff, CIT Eyes a Breakup – “Conglomerates Berkshire Hathaway Inc. and Leucadia National Corp. made a bid to buy parts of CIT Group Inc. but were rebuffed by CIT, according to people familiar with the matter, because the price was too low.” [WSJ]
• The Man Who Sank New Jersey [Forbes]
Review Comments | 07.23.09
• Council fired Scott Janke after learning of marriage to porn star Anabela Mota aka Jazella Moore – Last we checked, this was still America and bagging a porn star is in the Declaration of Independence or something [NYDN]
• Dozens Arrested in New Jersey Corruption Probe – “Federal agents swept into New Jersey towns across several counties Thursday morning, charging 44 people, including three mayors and religious leaders, in a federal investigation into public corruption and money laundering.” [WSJ]
• Wall Street Journal Coverage Of Crisis Finally Gets Serious – Cankles. Page one. Yes. [DealBreaker]
• Microsoft revenue misses, shares tumble – In other news, Bill Gates is still rich. [Reuters]
