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September 22, 2023

The agony of defeat

We Hear The Second Batch of CPA Exam Scores For Q4 Are Here

NASBA hasn't announced it yet but according to Another 71, CPA exam scores — which were due to be released tomorrow — are slowly but surely @NASBA CPA Exam Scores (FAR/AUD/REG/BEC) are now all trickling out #cpaexam — Jeff @ (@another71) November 21, 2013 As always, feel free to share your victories or […]

The Second Batch of CPA Exam Scores Has Been Released for the October/November Testing Window

For those of you whose lives have been revolving around the chase of the most coveted credential for accountants, it's unfortunate that you had really nothing to share with family and friends over the holiday weekend in the way of interesting life events. NASBA waited until today to drop scores, so presumably you had very […]

The First CPA Exam Scores From the July/August Testing Window Have Been Released

The AICPA has met their first target release date as announced by NASBA earlier this morning: 6087 AUD, 3561 BEC, 5965 FAR and 5292 REG scores released by #AICPA to #NASBA from Jul/Aug 2012 testing window. Good luck! #cpaexam — NASBA (@NASBA) August 6, 2012 So these results could mean that your day/week/month/career has been […]

Here’s Your CPA Exam Score Open Thread for the April/May Testing Window

For those of you that studied for the CPA exam through busy season, today may be the day where you discover that all those extra long hours you put in – working for 10 hours, studying for 2 hours, working for 2 more hours, studying for 2 more hours – were all for naught.     […]

Here’s Your (Second) CPA Exam Scores Open Thread for the January/February Testing Window

Hot off the NASBA wire:  5,522 AUD, 3,468 BEC, 5,084 FAR and 5,637 REG scores were released by #AICPA to #NASBA from Jan/Feb 2012 testing window #cpaexam — NASBA (@NASBA) March 8, 2012 So whether you're doing a happy dance on the desk in your cubicle or trying to punching a bathroom stall door (acceptable […]

New Jersey Appeals Court Deals ‘Devastating Loss for KPMG’ Over Malpractice in Cast Art Merger

We briefly mentioned this case on Monday but since everyone seems to have checked out mid-week, we’re sure you won’t mind.

Way back in the dawn of the Clinton Administration, some financial reporting chicanery went down at Papel Giftware, Inc. so that Cast Art Industries of Corona, California would run into the company’s outstretched arms. More specifically, chicanery that consisted of ” ‘systemic, organized, improper accounting practices at Papel.’ ” Cast Art failed in 2003 which made everyone sad/mad.

KPMG was on watch as this all went down and a jury found the firm negligent in 2008 under the Accountant Liability Act.

The bitch of it is, the KPMG partner was thisclose to pulling out of the engagement, “[A] July 2000 letter by KPMG partner John Quinn that said Papel Chief Financial Officer Rick Wasserman gave an ‘unfair and misleading characterization of the accounting and auditing issues.’ Quinn said he was ‘very much inclined’ to recommend ending work with Papel after that year’s audit, according to the opinion.”

That ‘very much inclined’ didn’t result in “we withdraw from the engagement.”

However, since the KPMG is a professional services firm with the necessary means and a reputation to protect (according to some, anyway) they appealed the ruling and on August 26th a three-judge panel of the New Jersey Appellate Division still said, “yep, it’s accounting malpractice.”

This was a thrilling result for plaintiffs who are looking to squeeze more damages out of the firm:

“This is a huge win and no matter how KPMG wants to spin it, it’s a devastating loss for KPMG,” plaintiffs’ attorney Michael Avenatti said in an interview. “KPMG’s appeal of this case may go down as Exhibit A of ‘Be careful of what you wish for.’ Now, we have the ability to go collect potentially $10 million to $20 million more in additional damages.”

Right. The spin.

A KPMG spokesman, Daniel Ginsburg, said the firm is “considering our available options” after the ruling.

“We are pleased that the court affirmed dismissal of the plaintiff’s fraud claim against us, and also reversed the jury’s verdict by ordering a new trial on the issue of damages,” Ginsburg said in an e-mail. “We are disappointed, however, with the court’s ruling on legal issues regarding the plaintiff’s negligence claim.”

Actually, not much spin there. Just one of those kiss your sister/brother moments.

KPMG Committed Malpractice Tied to Cast Art Merger, Appeals Court Rules [Bloomberg]