September 26, 2021

Footnotes

Friday Footnotes: PwC Has an Evergrande Problem; Too Hard to Be a CPA; Big 4 Rot | 9.24.21

China Evergrande Auditor Gave Clean Bill of Health Despite Debt [Wall Street Journal] Last year as China Evergrande Group’s stock and bond prices seesawed, it offered deep discounts to keep sales growing during the pandemic and the government effectively said it had borrowed too much. Yet the property developer’s auditor [PwC] gave it a clean […]

Friday Footnotes: PwC Pays the Poors Less; Deloitte’s New Minis; BDO Brings on Audit Staff | 9.17.21

Malaysia says auditor KPMG to pay $80 million in 1MDB settlement [Reuters] Malaysia said on Thursday audit firm KPMG has agreed to pay a 333 million ringgit ($80.11 million) settlement to resolve all claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012. PwC reports disability and […]

Friday Footnotes: KPMG Woos Broke People; PhD Pay Day; Guy Sues Deloitte | 9.10.21

KPMG’s UK arm among first to set targets for working class staff [Reuters] “We’re setting a socio-economic background representation target for the first time, alongside our other diversity targets,” KPMG said in a statement. AICPA Foundation Grants 25 Minority Doctoral Fellowships [CPA Practice Advisor] The funding comes from the AICPA Fellowship for Minority Doctoral Students […]

Friday Footnotes: KPMG Lied; EY Works For Free; Macaroni and Cheating | 9.3.21

KPMG faces complaint of providing ‘false’ information on Carillion audit [Reuters] KPMG allegedly provided “false and misleading” information about its audits of collapsed builder Carillion and data erasure company Regenersis for regulatory checks, Britain’s accounting watchdog said on Wednesday. EY teams up with NYC to offer pro bono advice to Black businesses [Consulting.us] Through the […]

Friday Footnotes: Firms Sweating Staff Losses; Who Got Fined This Time?; Accountant’s XXX Problem | 8.27.21

Staffing and COVID-19 relief programs are firms’ top concerns in 2021 [Journal of Accountancy] Finding qualified staff is an enduring concern that continues to challenge CPA firms this year, according to the 2021 AICPA Private Companies Practice Section (PCPS) CPA Firm Top Issues Survey. Hiring staff emerged as the No. 1 issue affecting firms that […]

Friday Footnotes: That’s Weak; Disclosing Turnover?; One Heckuva Farewell | 8.20.21

Revenue, lease accounting still challenge private companies [Journal of Accountancy] Revenue recognition and lease accounting remain a challenge for private companies after a one-year, pandemic-related delay in effective dates provided financial statement preparers some relief. For tax & accounting firms, the time to learn blockchain is now [Reuters] One question these professions should be asking […]

Friday Footnotes: Bad Guy Fights For His License; EY’s New Buddy; IRS Improvements? | 8.13.21

Accountant who stole $1.7M from corporate client, Little League group, should get his CPA license back, Pa. court says [Penn Live] A Commonwealth Court panel on Wednesday overturned a state licensing board’s refusal to allow an accountant who stole more than $1.7 million to resume his profession. Instead, the panel ordered the state Board of […]

Friday Footnotes: Don’t Trust Your Auditors; KPMG Partners Score; A PwC TikTok Star | 8.6.21

Your Auditor Is Not Your Friend [Bloomberg Opinion] Accounting is an unusual professional-services business because a lot of what accounting firms do — tax and structuring advice, consulting, etc. — is very much in this vein of wise trusted advice, but one core function of accounting firms — public-company auditing — is … only partly […]

Friday Footnotes: Breaking Broken Audits; Casual CFOs?; Back to Office Pressure Builds | 7.30.21

The future of auditing: why plans to sharpen up the industry could actually make it worse [The Conversation] To rebuild trust, the UK government is proposing 150 reforms in a weighty consultation that closed recently. Building on three recent independent reviews into the profession, the FRC is to be replaced by a new body called […]

Friday Footnotes: EY’s Deep and Cozy Trouble; KPMG Avoids Audit Trial; GT’s New Digs | 7.23.21

EY Accused of Actively Concealing NMC Health Audit Fraud From Investors [Bloomberg] Ernst & Young faces accusations it “actively concealed” a six-year fraud from investors in a fresh lawsuit over its auditing work for the troubled NMC Health. The hospital operator’s founder, Bavaguthu Raghuram Shetty, said the accounting giant enjoyed a “deep and cozy” relationship […]

Friday Footnotes: A Very KPMG Collapse; PwC Asks the Wrong People; Deloitte Denied | 7.16.21

Civilisation will collapse completely by 2040 – MIT model, confirmed by KPMG [Cape Talk] The most dystopian headline you’ll read all week (hopefully). SEC Whistleblower Issued Award of More Than $1 Million for Assistance in Investigation [National Law Review] According to the SEC award order, the anonymous SEC whistleblower alerted Commission staff to securities law […]

Friday Footnotes: New CPA Exam Rolls Along; (More) Big 4 Lawsuits; Meanwhile, on the Dark Web | 7.9.21

Content for redesigned CPA Exam takes shape [Journal of Accountancy] The AICPA released Wednesday a survey seeking feedback on the preliminary content proposed for the redesigned CPA Exam, which would be assessed in three sections that will comprise the Core of the Exam, plus material that would assess candidates’ knowledge in one of three Disciplines […]

Friday Footnotes: Robots When?; KPMG Digs Dads; Deloitte Still Cashing In on Corona | 7.2.21

Business implications of AI within tax & accounting [Reuters] According to the 2020 World Economic Forum Outlook Report, the time spent on current work tasks by humans and machines will be roughly equal by 2025. Given that, what will workflow, operations, and our tax teams look like in four years? KPMG takes bold step towards […]

Friday Footnotes: Deloitte Hates Old People; Australia Anyone?; Interview Intel | 6.25.21

Signs you or a colleague could use mental health support [Journal of Accountancy] Some of you may need to give this podcast a listen. KPMG Study: Majority Of Female Executives Taking On Expanded Leadership Roles At Work While Responsibilities At Home Increase During The Pandemic [PR Newswire] “Advancing the Future of Women in Business: A […]

Friday Footnotes: Too Hot For Immateriality; Deloitte Ditches the Office; Diversity? I Hardly Know Her! | 6.18.21

AICPA, CAQ support SEC’s exploration of climate change disclosures [Journal of Accountancy] The AICPA and the Center for Audit Quality (CAQ) voiced support for the SEC’s exploration of disclosures related to climate change and environmental, social, and governance (ESG) issues in comment letters sent to the commission on Friday. KPMG delays hybrid working plans after […]

Friday Footnotes: A Deloitteful Failure; PwC Hunts For Missing Emails; CPAs Tell Clients GTFO | 6.11.21

Deloitte Sued for Allegedly Failing to Find ‘Irregularities’ in Audits of Singapore Oil Trader [Insurance Journal] A failed oil trader in Singapore that owes creditors more than $3.5 billion is suing Deloitte & Touche LLP, alleging the auditing firm failed to detect “serious irregularities” in its financial statements for more than a decade. KPMG shouts […]

Friday Footnotes: PwC Thinks You Miss Your Office Friends; KPMG Clients Kept Tax Dodging; Deloitte and Diversity | 6.4.21

Wealthy KPMG clients continued to dodge taxes for years after CRA detected offshore ‘sham’ [CBC] The KPMG scheme involved setting up shell companies for Canadian multimillionaires and billionaires in the Isle of Man, a British crown dependency in the Irish Sea. A client would purport to give away their wealth to one of the shell […]

Friday Footnotes: The Future of Remote Work; Talent Crunch Gets Crunchier; SEC Sucks | 5.28.21

KPMG launches relaxed work policies to combat remote work fatigue [Accounting Today] “Since the start of the pandemic, the firm has employed a continuous listening approach, using regular experience surveys and other feedback channels to stay connected with people and better understand the challenges they’re facing and support they need,” Darren Burton, vice chair of […]

Friday Footnotes: You Deserve a Raise; Data Literacy; IRS Wants Your Body | 5.21.21

How to ask for a raise when the pandemic nears its end [Journal of Accountancy] With a growing portion of the population in the United States and some other countries vaccinated and at least some aspects of life set to return to normal, you may feel it’s time to raise the question of compensation with […]

Friday Footnotes: Big 4 Consulting Cartels; Ex-PwCer Takes an L; KPMG Has the Hots For Orlando | 5.14.21

Deloitte, KPMG, PwC Units Fined in Spain Consulting ‘Cartels’ [Bloomberg Tax] Deloitte, KPMG, and PwC are among 22 consulting firms to be fined a total of almost 6 million euros ($7.3 million) for forming cartels that manipulated Spanish public contracts for at least 10 years, the country’s market watchdog has said. The firms worked in […]

Friday Footnotes: Feed Me Snacks; KPMG Gets Back to the Office; Deloitte Dorks Out on Crypto | 5.7.21

These are the snacks powering CPAs during tax season [Journal of Accountancy] Wait, it’s not black tar? Huh. KPMG UK staff to work in offices up to four days a fortnight from June [Reuters] “As part of the firm’s new hybrid way of working, from June onwards, the expectation will be that KPMG’s people spend […]

Friday Footnotes: CPAs Get Pied; EY Beats BBC; A ‘Critical Shortage of Auditors’ | 4.30.21

AICPA, NASBA and AAA to Announce New Model Accounting Curriculum at Free Online Event [AICPA] The free online event, to be held June 15-16, will provide attendees with a thorough overview of the Model Curriculum. The event is open to all who are interested, including members of the media. To attend, register online. Local CPA’s […]

Friday Footnotes: Is KPMG a Bunch of Bullies?; Deloitte’s Karen Problem; Firm-Mandated Jabs | 4.23.21

Deloitte reveals number of staff complaints [Financial Review] Consultancy giant Deloitte has become the first major professional services firm in the country to voluntarily disclose the number of workplace investigations conducted each year – roughly 15 a year over the past three years – with the pressure now on rival firms to disclose similar data. […]

Friday Footnotes: CFO Pay on the Rise; EY Seeks Neurodiversity; COVID-19 Skidoo | 4.16.21

Ernst & Young opens program in Boston to attract autistic workers and other “neuro-diverse” recruits [Boston Globe] These programs at EY are designed to hire talented candidates whose cognitive differences — dyslexia, autism, or ADHD, for example — might hamper them in traditional one-on-one job interviews that rely on good social skills. EY also provides […]

Friday Footnotes: PwC Pays You to Go Away; EY Turned In to Rona Police; PCAOB Plans | 4.9.21

How PwC US is thanking our people for a year of hard work [Tim Ryan via LinkedIn] Writes the PwC US Chair: “Our people are the heartbeat of our organization, and their well-being is the most important thing for us to look out for. Because it is so important to take breaks, unplug, and experience […]

Friday Footnotes: Troubled KPMGer Kicks Rocks; Stay Home, Auditors; Grant Thornton Plays Defense | 4.2.21

Partner who led KPMG’s audit of Carillion leaves Big Four firm [Financial Times] The partner who led KPMG’s audit of Carillion, the collapsed government contractor, has left the Big Four firm as the UK accounting regulator’s investigation into the scandal reaches an advanced stage. IRS provides details on April 15 postponement [Journal of Accountancy] On […]

Friday Footnotes: Amazon Prime Accounting?; KPMG Office Outbreak; PwC Staff Appreciation | 3.26.21

Wirecard ‘Criminals’ Had Us Duped, EY Auditor Tells Lawmakers [Bloomberg] An Ernst & Young LLP partner said his firm fell victim to “criminals” at Wirecard AG, rejecting allegations EY didn’t do enough to uncover wrongdoing at the now defunct payment processor. Deadline for certain single audits delayed because of pandemic [Journal of Accountancy] The due […]

Friday Footnotes: Costly Audit Mistakes; No Bonus For You!; Accounting Education Lags Behind | 03.19.21

Bonuses Are Targeted in U.K. Crackdown on Audit Scandals [Bloomberg] Top executives at companies hit by accounting scandals could lose their bonuses under U.K. proposals for beefed-up regulation after a wave of corporate collapses including Carillion Plc and travel firm Thomas Cook Group Plc. UK audit reform set to cost businesses more than £430m a […]

Friday Footnotes: Deloitte Deals With Lookers; PwC Gets Fired; Auditors and Climate Change | 3.12.21

UK watchdog investigating Deloitte audits of Lookers [Reuters] Britain’s accounting watchdog said on Friday it had opened an investigation into audits conducted by Deloitte of car dealership operator Lookers. The investigation will look at financial statements for the years ended Dec. 31 2017 and 2018, the Financial Reporting Council said in a statement. Babcock parts […]

Friday Footnotes: Deloitte Pays Up; KPMG Sells An Arm; FASB Doesn’t Bow to Big 4 | 3.5.21

Deloitte to pay Malaysia $80 million to settle claims linked to 1MDB [Reuters] Audit firm Deloitte PLT will pay Malaysia’s government $80 million to resolve all claims related to its auditing of accounts of scandal-linked state fund 1MDB and its unit SRC International from 2011 to 2014, the finance ministry said on Wednesday. ‘There Is […]

Friday Footnotes: Did Rona Change the Industry For the Better?; Best Big 4 For Women; WFH Is Out | 2.26.21

No progress without a pandemic? [Accounting Today] Dan Hood asks the important question in AT. Federal accounting can be a more dynamic career than it sounds, industry group says [Federal News Network] LOL: “If you think federal accounting is dull and unchanging, think again. People who do federal accounting and finance say it’s a constantly […]

Friday Footnotes: Busy Season Vacay; PwC Fined; Bill Michael Was Right? | 2.19.21

Black CPA Centennial celebrates first Black CPA [Journal of Accountancy] The first CPA law was passed in New York 1896. It would be another 25 years before a Black person joined the profession. The primary blockers that made licensure essentially impossible for many aspiring Black CPAs included education, experience, and exclusion. Art of Accounting: Work-life […]

Friday Footnotes: China v. Deloitte; Fraud Jumps Over a Lazy Brown Watchdog; Stay Home, PwC | 2.12.21

China orders Deloitte to investigate whistleblower allegations [FT] China’s Ministry of Finance said in a statement that it “attached great importance” to the whistleblower report and that it had called a meeting with Deloitte’s management. Virtual accounting: How to succeed remotely [Journal of Accountancy] The coronavirus has changed the business landscape significantly. Many accounting firm […]

Friday Footnotes: Deloitte Gets Tattled On; KPMG Kuts; We Want Jobs! | 2.5.21

Deloitte in hot water in China after an employee makes a PPT exposing alleged accounting violations [Global Times] According to the PPT, which has been circulating on China’s twitter-like Weibo, when Deloitte was auditing the financial data of its client RYB Education in 2017, a member of the auditing project told the whistleblower “not to […]

Friday Footnotes: PwC Touts Audit Quality; Big 4 Doing Less Lobbying; EY Australia Goes CEO Shopping | 1.29.21

PwC reports improvement in audit quality [Accounting Today] From last week, but big if true: During the recently completed PCAOB inspection, PwC anticipates that only one of the 52 engagements that were subject to inspection will be included in Part 1.A of the report, the section where audit deficiencies are highlighted. The report also discusses […]

Friday Footnotes: Deloitte’s Lucrative Hookup; Big 4 ‘Hiring Spree’; Smoke Up, CPAs | 1.22.21

Partner capital account reporting gets transition penalty relief [Journal of Accountancy] The IRS provided transition penalty relief Tuesday to partnerships in complying with new rules for reporting partners’ capital account balances. 7 Reasons Accounting Firms Should Embrace Cannabis Clients in a Post-COVID World [CPA Practice Advisor] Cannabis use is up, especially with more people at […]

Friday Footnotes: Deloitte’s Drunken Antics; KPMG Killing Grandma?; Social Ch-ch-change | 1.15.21

A Glass or Two of Red Helps Square the Numbers [Bloomberg Opinion] Good long read on Deloitte and Autonomy: “The Deloitte partner leading the Autonomy work sent his client an email from his wife’s account saying that “after a glass or two of red wine” and a plate of her “medieval pasta” he’d drafted an […]

Friday Footnotes: Ex-CPA Sues Dolphins; Coffey Time at the AICPA; BDO Hooks Up with MBAF | 1.8.21

Can the Dolphins win this one? Former VP sues the team in federal court. [South Florida Sun Sentinel] A former accountant who says he served as vice president of the Miami Dolphins sued the football team in federal court Thursday, claiming the organization incorrectly classified him as a contract worker—not an employee—and owes him unpaid […]

Friday Footnotes: Accountant Bros Behaving Badly; Deloitte Partners’ Haul; CLA Has a New CEO | 12.25.20

Atlanta accountants plead guilty to $1.2B in fraudulent charitable deductions [Atlanta Journal-Constitution] Brothers Stein Agee and Corey Agee, partners at the Sandy Springs firm AgeeFisherBarrett, both pleaded guilty to one count of conspiracy to defraud the United States, an offense that carries up to five years in prison. A sentencing date has not been announced. […]

Friday Footnotes: Strapped PwC Partners; Queen’s KPMG Talks to the Queen; CLA Goes Shopping | 12.18.20

PwC’s UK partners to take 10% pay cut as profits fall [Financial Times] PwC’s UK partners are to take a 10 per cent cut in their pay following a move by the accountancy firm to protect jobs and bonuses for other staff during the coronavirus pandemic. The Big Four firm said on Thursday that revenue […]

Friday Footnotes: Someone Think of the Partners!; Audit Suffering; Deloitte’s Hot New Office(s) | 12.11.20

BDO will not repay £4.5m furlough money despite paying partners £137m [The Guardian] BDO, one of the UK’s leading accountancy firms, is refusing to pay back £4.5m in furlough money it received from taxpayers despite paying its 264 partners an average of £518,000 each. In total the company paid its partners £137m. Tips for auditing […]

Friday Footnotes: EY Hits Back; Some CFO Drama; A New PCAOB Agenda? | 12.4.20

EY hits back at German audit watchdog over alleged misconduct [Financial Times] EY has lashed out at Germany’s audit watchdog for prematurely reporting suspected criminal misconduct by its partners to prosecutors in an escalating battle over the Big Four firm’s audit work at defunct payments company Wirecard. New Jersey Society of CPAs Announces 10 CPA […]

Friday Footnotes: We Call That ‘Cockblocking’; A Broke Accountant; PwC Sued Over Sick Leave | 11.27.20

CPA Exam gets refresh after practice analysis [Journal of Accountancy] Emphasis on understanding business processes and data analytics is being expanded while other topics are being phased out as the CPA Exam undergoes a refresh designed to maintain its relevance to the evolving work that newly licensed CPAs perform. New CPA Exam Blueprints released Friday […]

Friday Footnotes: Deloitte Cleans Up on Rona Work; More Trouble For KPMG; Coke in Tax Court | 11.20.20

Deloitte’s COVID ‘bonanza’: this is how much the British public has paid so far [openDemocracy] The Department of Health handed £38.8 million to accountancy firm Deloitte in July this year, for unspecified “services” relating to Test and Trace, new figures reveal. This is the first time we’ve known how much Deloitte is being paid for […]

Friday Footnotes: KPMG Commits; PCAOB Plans; WFH Tax? | 11.13.20

Things to consider for companies preparing for 2020 year-end audits [Compliance Week] The end of 2020 is on the horizon, and auditors at calendar-year companies are already planning and beginning their audits. The usual annual challenges of implementation of new accounting standards and related internal controls persist, but this year-end is unlike any other, as […]

Friday Footnotes: Another Day, Another Lawsuit; Naughty CFO Let Loose; Grant Thornton Fined By PCAOB | 11.06.20

Tax Change Needed to Level the Playing Field for Small Businesses, Minorities and Women in Cannabis Marketplace [NJCPA] Deducting business expenses is a routine and integral part of operating a business and is critical for a company to be profitable. However, cannabis businesses do not have access to this tax benefit even though it is […]

Friday Footnotes: Two Firms Get Bashed; KPMG Considers Selling Off; Equality LOL | 10.30.20

Ed. note: Happy Halloween, y’all. Remember October 31st is the early application deadline to register for .cpa domains. Stay safe inside or out whatever you decide to do this weekend. BOO! Former New York City accountant convicted of aiding al Qaeda to be released from prison early [Jurist] A Manhattan federal judge on Tuesday ordered […]

Friday Footnotes: Tomorrow’s Accountant; Some Horny Deer; Risky! | 10.23.20

Ed. note: Happy 10/23 to my fellow Fallout fans out there. Only 57 years to go! The Accounting Professional of Tomorrow [The CPA Journal] A long (but good) read that tries to answer the following questions: Is the accounting professional of tomorrow an endangered species? Supply and demand seems to be a key issue; why […]

Friday Footnotes: Is EY Cursed?; Big 4 Revenue Grab; AICPA Hands Out CPA Exam Cash | 10.16.20

String of Firms That Imploded Have Something in Common: Ernst & Young Audited Them [Wall Street Journal] This year, $2 billion is missing at a German fintech company, $300 million of sales has been found to be fabricated at a Chinese coffee chain and $5 billion in undisclosed debt has been uncovered at two related […]

Friday Footnotes: Australia as Punishment; SEC Takes on GE; Some Generic Awards | 10.9.20

KPMG bank auditor avoids prison for ‘regulatory corruption’ [Reuters] A Manhattan federal judge sentenced former KPMG audit partner David Britt to home confinement on Friday over his role in a scheme to get access to a regulator’s audit inspection plans, saying his deportation to Australia after living for decades in the United States was itself […]

Friday Footnotes: Marcum Gets Slapped; FASB Foot-Dragging; PwC Makes a Promise | 10.2.20

FASB Further Delays Accounting Rule on Insurance Contracts [Wall Street Journal] The rule maker, which sets accounting standards for companies and nonprofits in the U.S., in June proposed a delay of another year for the new rule amid the economic harm caused by the coronavirus pandemic. The rule was first delayed by a year last […]

Friday Footnotes: No More Loaning Staff?; It’s a Trap; SEC and Social Change | 09.25.20

AICPA and CPA.com See Strong Initial Response to New .CPA Internet Domain [Business Wire] Thousands of CPA firms, including many of the nation’s largest, have moved quickly to reserve their existing branded domains under the new restricted Internet domain, .cpa, according to CPA.com. Well over half of the 100 biggest U.S. firms – as well […]

Friday Footnotes: EY CEO Has Ragerts; PwC Saves the Planet; KPMG Gives Up | 9.18.20

Ed. note: we are continuing to experience some intermittent website issues, so please be patient while these are addressed on our end. Even the server has a touch of the ‘rona mental breakdown going around, it happens.  EY chairman admits ‘regret’ over Wirecard failures in letter to clients [Financial Times] The global chairman of EY […]

Friday Footnotes: CFE a Success; Non-Profit Break; KPMG Back Pay? | 9.11.20

2020 CPA CFE successful despite hotel room exam setting [Canadian Accountant] CPA candidates were not allowed to sleep in the rooms but could book the rooms in the same hotel. While they were anxious about this new format and possible technological problems, the three-day exam appears to be a success. “It was amazing, I got […]

Friday Footnotes: EY Gets Fired, Maybe Sued; Partners Will Work For … Work; A Ronatunity | 9.4.20

Commerz, Deutsche Money Management Arm Fire Auditor In Case They Decide To Sue It [Dealbreaker] Commerzbank is on the lookout for a new auditor. Deutsche Bank’s asset management business, having already chosen one, has changed its mind. The loser in both cases is Ernst & Young, which has found itself with a bit of egg […]

Friday Footnotes: Drugs, Man; Millennials Ruined … Accountants?; PwC’s Diversity Report Isn’t Very Diverse | 8.28.20

More Workers Testing Positive for Drugs [CPA Practice Advisor] Relevant, maybe: The rate of workforce drug positivity hit a sixteen-year high in 2019, according to a new analysis released today by Quest Diagnostics, the world’s leading provider of diagnostic information services. Positivity rates in the combined U.S. workforce increased in urine drug tests, climbing to […]

Friday Footnotes: IRS Priorities; Deloitte’s ‘Crazy’ Plan; PwC Pushes Back | 8.21.20

AICPA Makes Recommendations on IRS Guidance Priority List [CPA Practice Advisor] AICPA’s high priority recommendations relate to guidance on regulations found in the Tax Cuts and Jobs Act (TCJA); the Coronavirus Aid, Relief and Economic Security (CARES) Act; and the Setting Every Community Up for Retirement Enhancement (SECURE) Act. These recommendations address many significant tax […]

Friday Footnotes: Covid CPEhhhhh; How Much You Make; PwCer and Priest? | 8.14.20

CPA Group Pushes for Clarity on Trump’s Payroll Tax Deferral [Bloomberg Tax] Treasury and the IRS should issue guidance on President Donald Trump’s order delaying collection of some payroll taxes to clear up confusion among accountants and businesses, the American Institute of CPAs said. The group said one of its biggest remaining questions is whether […]

Friday Footnotes: MLB Poaches KPMG; PwC Gets Back to Work; No to Deloitte | 8.7.20

Major League Baseball taps KPMG diversity exec to lead HR [The Business Journals] Major League Baseball has named Michele Meyer-Shipp to oversee all of MLB’s human resources activities, including talent processes and programs, workplace culture and diversity and inclusion. Meyer-Shipp joins MLB from KPMG LLP, where she served as chief diversity and inclusion officer. While at […]

Friday Footnotes: KPMG’s Illinois Loot; Deloitte’s State Contracts; EY Poaches PwC Tech Partners | 7.31.20

As new pot licenses delayed indefinitely, global accounting firm pockets $7M from state to rank applicants [Chicago Sun-Times] KPMG was awarded nearly $7 million in no-bid contracts [in Illinois] to grade applications for new recreational pot licenses. State officials didn’t open the contracts up to competitive bidding to speed up the process. But as it […]

Friday Footnotes: Pens Down, PwC; What Women Need; BDO Copies Big 4’s Homework | 7.24.20

After Google, PwC India declares a company-wide holiday for its employees this Friday – offers time off for a ‘well-deserved’ break [Business Insider India] After Google, PwC India has introduced a ‘Pens down Day’ on Friday, turning into a Three-Day Weekend for its employees. With the ‘Pens down Day’, PwC has asked its employees to […]

Friday Footnotes: A Spate of Scandals; Client Acceptance; Fed Lending | 7.17.20

AICPA Digital Assets Practice Aid Examines Client Acceptance and Continuance [CPA Practice Advisor The American Institute of CPAs (AICPA) has updated its Practice Aid Accounting for and Auditing of Digital Assets, to include nonauthoritative guidance on how to audit digital assets. This new material will complement accounting guidance issued last year. It is based on […]

Friday Footnotes: Still Working on Diversity; What’s the Watchdog Up To; Record Fine for Deloitte? | 7.10.20

Strategies for CPAs to encourage positive changes in diversity [Journal of Accountancy] The racial injustice taking place throughout the United States has hit home hard for members of the AICPA National Commission on Diversity and Inclusion, who spend much of their time developing strategies and resources for improving the diversity of the accounting profession. Commission […]

Friday Footnotes: LOL, EY; ‘That’ KPMG Girl; SEC Enforcement Slowdown | 6.26.20

EY failed to ask for Wirecard bank statements for 3 years [Financial Times] EY failed for more than three years to request crucial account information from a Singapore bank where Wirecard claimed it had up to €1bn in cash — a routine audit procedure that could have uncovered the vast fraud at the German payments […]

Friday Footnotes: Robots Are Coming; The Gayest Big 4 Firm; How to Fire People | 6.19.20

EY faces an existential threat [Reaction] Let’s play guess which firm: “Auditing is little more than an entry ticket to the boardroom. Inevitably, there are many conflicts of interest, as one firm is brought in to investigate the failures of another, but one of the four seems particularly accident prone.” How to deliver the news […]

Friday Footnotes: Oh Not Again, KPMG; Deloitte Goes Viral With TP; PwC Is ‘Watching’ Staff | 6.12.20

KPMG Gets Reprimand From U.K. Regulator Over Reserves Audits [Bloomberg] The U.K.’s accounting watchdog reprimanded KPMG after the firm admitted shortcomings in three years of work for a client, which had to restate its distributable reserves twice. The Financial Reporting Council said the accounting firm admitted problems in its reserves audits of Foresight 4 VCT […]

Friday Footnotes: Big 4 Firms Talk Inequality; EY Attacks!; .CPA For Sale | 6.5.20

Executive at top U.S. accounting firm details plan to combat racism, says workers ‘want action’ [CNBC] Tim Ryan, the chair of PwC U.S., on Thursday released the company’s plans to combat racism, telling CNBC that employees are insisting real progress gets made. “People are angry. They’re upset. They’re exhausted, and they want action,” Ryan said […]

Friday Footnotes: Deloitte’s Gift to ID Thieves; FU China; EBITACV-19? | 5.29.20

NASBA proposes changes in CPA requirements [Accounting Today] The National Association of State Boards of Accountancy has proposed a set of revisions to the Uniform Accountancy Act Model Rules for CPAs, including the addition of more course content on data analytics and digital acumen, and the ability to take courses outside a school of business. […]

Friday Footnotes: KPMGers Happily Take Slashed Pay; New CPA Model Still a Go; No Rona Accounting | 5.22.20

AICPA Council supports advancement of new CPA licensure model [Journal of Accountancy] An effort to transform the CPA licensure model took a step forward Wednesday when the AICPA governing Council voted to support its advancement during its virtual spring meeting. Council voted to support the CPA Evolution initiative, which is being undertaken by the AICPA […]

Friday Footnotes: KPMG’s Open Plan; Accountants’ Latest Worry; Vacation Time? | 5.15.20

KPMG LLP Introduces Dynamic, Risk-Based, Policy And Technical Framework To Help Organizations Safely Reopen Their Workplaces [PR Newswire] “Reopening organizations and bringing employees back on-site presents technical challenges complicated by the fluidity of the situation, public policy responses, and different challenges faced by businesses, their suppliers and their individual employees,” said Atif Zaim, Customer and […]

Friday Footnotes: EY Orders Mandatory Leave; PwC’s New Cootie App; July 15? | 5.8.20

EY orders consultants to take time off as work slows [Financial Times] EY has ordered consultants whose work has dried up during the pandemic to take the last week of May as annual leave as it attempts to ease a “holiday backlog”. The Big Four accounting firm sent an internal email on Thursday saying consultants […]

Friday Footnotes: About Blockchain; GDPR; Tracking Randoms? | 5.1.20

What Should Your CPA (Really) Know About Blockchain? [Forbes] Taxation, financial reporting and disclosure, and helping to instill confidence, via audits, in valuations of cryptoassets, are at least partially dependent on accountants being able to handle the workload associated with blockchain. Simultaneously there has been debate about what blockchain, and what blockchain as it connects […]

Friday Footnotes: Indirect Rona Impacts; KPMG LOL; Hey, How Ya Holding Up? | 4.24.20

The indirect impacts of COVID-19 on CPA firms [Journal of Accountancy] In this megapost from the JofA, CPAs in all areas of practice across the profession are offered some “what-ifs” related to COVID-19 they may not have considered. Recommended reading for firm leaders. IRS proposes rules for unrelated business income for tax-exempt groups [Accounting Today] […]

Friday Footnotes: EY Takes the L; MNP Hacked; Deloitte’s Super Bot | 4.17.20

EY Must Pay $10.8 Million to Auditor Who Blew Whistle on Refiner [Bloomberg] Ernst & Young must pay $10.8 million to an auditor who blew the whistle on wrongdoing at a Dubai gold refiner in another black eye for the U.K. accounting industry. Former EY partner Amjad Rihan had told the court that the accounting firm […]

tax-reform-cpa-skeptical-cat-crop

Friday Footnotes: CPAs To the Rona Rescue; ¡Escandalo!; Someone Think of the Students | 4.10.20

COVID-19 Turns CPAs into Emergency Workers [CPA Trendlines] Donny Shimamoto writes: “The impact of COVID-19 on many of our lives will be told for years or decades to come. Through social media, I saw a lot of accountants (because I’m friends with so many of them) express concern for their clients and communities as well. […]

accounting-news-cat-trust

Friday Footnotes: Deloitte Tattled On; PwC Loves Forced Arbitration; Grant Thornton’s Big Choice | 4.3.20

Ernst & Young Says It First Found Accounting Issues at Luckin [Wall Street Journal] EY said it uncovered the problems at China’s Luckin Coffee Inc., which hammered the stock price of the upstart challenger to Starbucks Corp. in the country and cast doubt over a large part of its sales last year. Luckin’s Nasdaq-listed shares […]

Friday Footnotes: EY Takes a Break; KPMG’s Cootie Problem; A New King In Town | 3.27.20

EY Israel puts staff on unpaid leave [Globes] With the spread of the [coronavirus] and the new orders in the matter issued by the Prime Minister’s Office and the Ministry of Health, management has decided on a number of additional steps, including a substantial cut in compensation for all of the firm’s partners and putting […]

Friday Footnotes: KPMG, PwC Have a Rep Problem; CPAs Start Trippin; Eff You, Pay Me | 3.20.20

CPA business executives worried about coronavirus [Accounting Today] CPAs who are also business executives are concerned about the potential global fallout from the coronavirus outbreak, although their outlook on the U.S. economy has risen in recent months, according to a new survey by the American Institute of CPAs. CPAs gather at State Capitol [Edmond Sun] […]

Friday Footnotes: This CPA Just Won the Lotto, Literally; Corona and Recruiting; Ballin’ | 3.13.20

Coronavirus forces EY to go virtual with some student hiring [Financial News] EY, one of the UK’s Big Four accountancy firms, has gone virtual with parts of its student recruitment process in response to the spread of coronavirus. The group, which hired 918 graduates and apprentices in 2019, has switched its in-person EY Experience Days […]

Friday Footnotes: Dementia Hitting Clients; CPA Exam Fee Break?; A Big 4 Shake-Up | 3.6.20

Nearly Half Of CPA Advisors See Dementia In Some Clients [Financial Advisor] Nearly half of CPA financial planners report seeing a client with dementia for the first time ever in the past year, but only 17% of planners say they have created plans for dealing with client incapacitation, a new report says. The AICPA’s Personal […]

Friday Footnotes: CPAs Take on Climate Change; Tom Hood Goes Off; Operational Separation | 2.28.20

How Regulators and PwC Fooled Reporters—Again [Pro Market] Francine McKenna is on the war path, as usual. CPAs would be happy to help state government plot a strategy to finance education [Baltimore Sun] In which Maryland Association of CPAs CEO Tom Hood throws down in a letter to the editor: “Our opposition is not reactive […]

Friday Footnotes: PwC Runs to Supreme Court; Accounting Firm Hacked; CFO Accused of Fraud Shares His Story | 2.21.20

U.S. House Subcommittee Scrutinizes Accounting Rule Maker [Wall Street Journal] The new chairman of the House Committee on Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets is targeting U.S. accounting rules in a move to increase oversight of a U.S. accounting rule maker, despite a potential battle to enact legislation or alter its […]

Friday Footnotes: PwC Loses; Gamers Rise Up Against the IRS; Another Naughty CPA | 2.14.20

Ed. note: Happy Valentine’s Day, kids! If no one loves you, remember I always will. Sort of. ~AG Botham Jean’s Colleagues Pledge To Combat Workplace Racial Violence [BET] “As chief executives and business leaders, we may not have the power to stop tragedies like what happened to Bo from happening again,” wrote PwC Chairman Tim […]

Friday Footnotes: Torturing Detainees With Accounting; Deloitte Loves Foreigners; Another CPA Partnership | 2.7.20

Deloitte Top Participant in H-1B Foreign Worker Program—By Far [Bloomberg Law] Deloitte’s use of skilled foreign workers under the H-1B program, which is largely associated with technology companies, is far greater than any other applicant, according to a Bloomberg Law analysis of fiscal year 2019 Department of Labor data. A total of 57,259 H-1B visa […]

Friday Footnotes: Where the CPAs?; Audit Relevance; Here Come the ‘Hackers’ | 1.31.2020

As Tax Season Begins, Hackers Target Tax Pros and CPAs [CPA Practice Advisor] It’s not from the “mob” or street criminals. These criminals are likely sitting behind a desk, glued to computer monitors, chugging energy drinks and developing the most effective ways to steal today’s version of gold. As you know, this bounty is data […]

Friday Footnotes: PwC and Luanda Leaks; EY Seeks Belonging; Pentagon’s Sloppy Accounting | 1.24.20

PwC under growing scrutiny as scandal engulfs Isabel dos Santos [The Guardian] PwC, the global accounting firm battling to distance itself from a financial scandal engulfing Africa’s richest woman, Isabel dos Santos, was auditing the books of Angola’s state oil company during a period that is now under criminal investigation. Critics say PwC’s work for […]

Friday Footnotes: The Joys of Accounting; Big Data; Empowered! | 1.17.20

‘Friendly Competitors’ Merge To Form New Boutique CPA Firm [The Newtown Bee] Two local companies whose principles all trained at several of the nation’s most prestigious accounting firms — and who always described themselves as “friendly competitors” — recently merged to form a new and expanded boutique enterprise that local individuals, businesses, and nonprofits can […]

A puppy for no reason

Friday Footnotes: Big 4’s Tech Push; An Audit Fix?; Best Cities For Accountants | 1.3.20

The Best Cities in America For Accountants [Blackline Magazine] Oof this intro graf tho: “Accounting jobs are typically classified as a safe option for those looking to enter an industry that will maintain a steady stream of demand and plenty of opportunities to grow. Right around tax season, everyone is looking for an accountant, and […]

Friday Footnotes: Which Big School Tops CPA Exam Lists?; PCAOB Goals; Big 4s Say FINE | 12.27.19

Ed. note: Welcome to the final Friday Footnotes of the decade! We hope you enjoy these weekly wrap-ups of news around the profession we found noteworthy. As always, if you have a suggestion for a story you think we should share with the class, give us a shout. Happy New Year! -AG BYU is tops […]

Friday Footnotes: Are Accounting Students Prepared?; New CPE Rules; Blockchain Blah Blah Blah | 12.20.19

Regarding CPA Exam Performance and the Accounting Curriculum [The CPA Journal] A letter to the editor from a professor at Iona College reads: “In the end, I think too much emphasis is placed on pass rates and average scores, rather than the simple question of whether the students pass the exam in a reasonable period. […]

Friday Footnotes: The CPA Is A-Changin’; Audits Still Suck; CPA.com’s New Partner | 12.13.19

Proposed CPA licensure model emphasizes core plus disciplines [Journal of Accountancy] A newly proposed CPA licensure model developed by the National Association of State Boards of Accountancy (NASBA) and the AICPA is designed to help newly licensed CPAs learn the skills and competencies they will need in the workplace of the future. The draft licensure […]

Friday Footnotes: PwC DC; Microsoft’s KPMG Deal; Do You Even Bitcoin Bro? | 12.6.19

Shh! Companies Are Fixing Accounting Errors Quietly [WSJ] Filed under: things y’all probably already know. BDO USA, LLP NAMES KELLY JOHNSON AS BOARD CHAIR; FOUR PARTNERS ELECTED TO BOARD OF DIRECTORS [BDO] WHY ARE YOU YELLING. PwC will consolidate as many as 1,700 jobs to DC [WTOP] Big professional services and consulting firm PricewaterhouseCoopers has […]

Friday Footnotes: FASB Changing It Up; IRS Now Hiring; KPMG Fights Its Bad Rep | 11.29.19

Ed. note: welcome to a special Black Friday edition of Friday Footnotes. Special because ain’t shit going on so this will be short. We’ll be back to your regularly-scheduled programming come Monday. From me, Bramwell, the silent TPTB and everyone else at the Going Concern team, Happy Thanksgiving! -AG FASB proposes changes aimed at improving […]

Friday Footnotes: Accountants Exposed; EY’s ‘Sham’ Study; A Word About Robots | 11.22.19

Security lapse exposes personal data of 6,500 Singapore accountants [ZDNet] A folder containing personal data of 6,541 accountants in Singapore was “inadvertently” sent to multiple parties, in a security lapse that was uncovered only months after, when it implemented an email protection tool as part of a government-wide deployment. The incident exposed personal details such […]

Friday Footnotes: Subprime Accounting Magic; A Street Fighting Number-Cruncher; FASB Gets Busy | 11.15.19

Calibre CPA Group, Notice of Data Privacy Event [PR Newswire] Clients of Bethesda-based Calibre CPA Group, consider yourselves warned that the haxz0rs may have your personal information. In Hong Kong, an accountant by day becomes street fighter by night [Washington Post] “We have started to realize we need to arm ourselves. We are in a […]

Friday Footnotes: Deloitte Tightens Its Belt; KPMG Kuts; Square Gets Square With the SEC | 11.8.19

Maryland Association of CPAs CEO and Going Concern favorite Tom Hood has been chosen as one of Maryland’s most admired CEOs [Daily Record] Go Tom! Deloitte Private to be cut amid low profit, low growth [Financial Review] Big four consulting firm Deloitte is set to dissolve one of its six business units, Deloitte Private, an […]

Friday Footnotes: Don’t Go Nuts at PwC; Bullied KPMGers’ Fresh Start; Best Firms For the Youths | 11.1.19

KPMG duo who quit amid bullying fallout make senior hires at new firm [Financial News] Two ex-KPMG partners, who set up their own consultancy after leaving the Big Four accounting firm over its handling of complaints of bullying, have lured two former executives from their old employer to the new venture. Maggie Brereton and Ina […]

accounting news us chamber embarrassed cat

Friday Footnotes: Firm Moves; PwC’s Future-Ready Workforce; KPMG Gets Sneaky | 10.25.19

PwC and EY accused of complicity in Thomas Cook collapse [FT] MPs have accused two of the UK’s Big Four accounting groups of being “complicit” in the failure of Thomas Cook, slamming one, the travel group’s former auditor PwC, over an alleged conflict of interest in its pay advice to executives. Cases against EY and […]

Friday Footnotes: Accounting For Robots; KPMG Partners Get Bitten; EY Law Gets Cred | 10.18.19

Art of Accounting: Lessening compression oppression [Accounting Today] A big problem for almost every accounting practice is the tax season workload compression. It is what it is, but it doesn’t have to be. Here are some suggestions on how to pull work out of tax season and push it into November and December to better […]

Friday Footnotes: Yo Dawg I Heard You Like Fraud; PwC’s ‘Hipsturbia’; Busy Season Redux | 10.11.19

Warning Signs about the Future Supply of Accounting Graduates [The CPA Journal] At the ground level, something has gone wrong with student perceptions about the value of an accounting education. It may take a few years for this changed dynamic to show up in economy-wide reports, but that a new dynamic is underway is obvious […]