When accounting goes unaccounted for
In the spirit of Internet lists, we humbly present public accounting positions, ranked from best to worst. You are welcome to bicker about this ranking in the comments.
1. Intern
2. Associate
3. Partner
4. Senior Manager
5. Manager
6. Stubbing your toe
7. Senior Associate
Crowe Horwath either has some shrewd auditors working there or they need to work on their people skills because First Place Financial Corp. just kicked their asses to the curb over irreconcilable differences.
The whole thing came down to the “material weakness” versus “significant deficiency” debate you auditors love so much.
More, after the jump
On September 1, 2009, Crowe notified the Company that it was its opinion that the Company had not maintained effective internal control over financial reporting as of June 30, 2009. This was in contrast to Management’s opinion that it had maintained effective internal control over financial reporting as of June 30, 2009. After subsequent discussions, the disagreement remained. The essence of the disagreement concerns a single internal control weakness which resulted in an error in valuing loans held for sale as of June 30, 2009. Crowe determined that this internal control weakness was a material weakness while the Company determined that this internal control weakness was a significant deficiency.
The shitty control in question missed an error that overstated loans held for sale by $2.17 million and understated the net loss for fiscal 2009 by $1.41 million. Crowe said that this was cause for the material weakness and First said nonsense poopy-pants, it’s not material, so it’s a significant deficiency.
Well, it was obviously mule vs. mule because First Place’s audit committee ultimately decided that firing Crowe on Tuesday was the best course of action.
Maybe First Place are the assholes. WTFK, really? Whatever the problems, KPMG gets the pleasure now. If you’ve got any further information on this one, want discuss MW/SD (vomit) or just feel like speculating, discuss in the comments.
First Place Details Disagreement with Auditor [Business Journal Daily]
Ben Bernanke has a new job, and hopefully won't screw everything up for all of […]
It’s only three days until Halloween and most of you are probably procrastinating on costume ideas. Fortunately we’ve come up with an idea that will incorporate your profession/firm and maybe your love of golf.
Inspiring examples, after the jump
You can go black:
Or white:
Small problem: The only place that we’ve been able to find a KPMG golf hat is on eBay and the auction doesn’t end for four days. Good news is that’s going for grand total of $0.01. So if you don’t already own one of these beauties, it’ll have to wait until next year.