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January 27, 2023

Footnotes

Footnotes is a weekly wrap-up of news from around the accounting profession hand-picked by Going Concern editors to keep partners, staff, and practitioners of all stripes informed. Sometimes there’s silly celebrity news, too. Celebrities not paying their taxes anyway. Published every Friday at 5 PM Eastern time.

cat in a fishbowl with money

Friday Footnotes: Higher Salaries Lead to Higher Fees; EY Auditors Quit; Senator Rags on Greedy Accounting Firms | 1.27.23

Big 4 EY auditors escape potential Wirecard sanctions after leaving profession [Financial Times] Germany’s audit watchdog closed investigations against four current and former EY auditors involved in inspecting collapsed payments firm Wirecard after they handed back their professional licences and left the profession earlier this month. Under German law, Apas can only probe and sanction […]

a Bengal cat in front of laptop

Friday Footnotes: EY Can’t Hire Tech; John Doe Sues the PCAOB; Auditors Can’t Find Torpedoes and Missiles | 1.20.03

Practice Management How firms use stay interviews to boost retention [Journal of Accountancy] Job interviews have long been an essential part of the hiring process. But now, some public accounting firms are turning the lens on themselves. They’re conducting “stay” or “retention” interviews with existing employees. The goal is to understand how they can be […]

Friday Footnotes: PwC in Trouble?; A Backwards Accountant; Audit Committee Musical Chairs | 1.13.23

Big 4 Isio Group inks deal to acquire Deloitte’s U.K. retirement advisory business [Pensions & Investments] Consultant Isio Group agreed to acquire Deloitte Total Reward and Benefits, the U.K. pensions advisory business of Deloitte, a spokesman confirmed Wednesday. Terms of the deal were not disclosed. The transaction, which is subject to regulatory approvals from the […]

hung over dog

Friday Footnotes: The Metaverse’s First CPA Firm Gets Sued; CPA Exam Blueprints; Mad Mergers | 1.6.23

Wooooo it’s the first Footnotes of 2023! Here’s what’s going on, there’s not a whole lot of it: Long Read FTX Customers Take Enron, WorldCom Path in Legal Fight for Cash [Bloomberg Law] FTX customers going outside bankruptcy court to recover losses from Sam Bankman-Fried’s failed crypto empire are using a legal path that has […]

dog and cat in Santa hats

Friday Footnotes: EY Cancels Christmas; A Very Sucky PwC Report; Should We Tax Robots? | 12.23.22

Welcome to the last Footnotes of 2022! We appreciate you stopping by as always and hope you get a chance to recharge over the holidays. We will be out of office next week but have scheduled some things to run while we’re gone for those individuals who are severely addicted to accounting shitposts and simply […]

Friday Footnotes: EY Money Troubles; Fast Food > Public Accounting; From Athlete to Associate; | 12.16.22

Big 4 EY Looks at Backup Plans on Split Amid Higher Costs, Slower Growth [Wall Street Journal] Ernst & Young’s leaders are looking at backup plans for the firm’s split to address rising funding costs and a potential slowdown in growth that could imperil the rich payouts promised to partners, according to people familiar with […]

dogs cuddled in a blanket together

Friday Footnotes: A (Fake) Day in the Life at Deloitte; DYNAMIC Merger For Grant Thornton; CPA Awareness | 12.9.22

News Trump Organization found guilty on all counts of criminal tax fraud [CNN] A Manhattan jury has found two Trump Organization companies guilty on multiple charges of criminal tax fraud and falsifying business records connected to a 15-year scheme to defraud tax authorities by failing to report and pay taxes on compensation for top executives. […]

dog snuggled in a blanket

Friday Footnotes: Why People Leave Public Accounting; Audit Workloads Up; Terrorist Clients (Literally) | 12.2.22

Slow news week this week. We managed to find some things worth mentioning anyway as we are experts in slow news weeks (698 weeks and counting!), enjoy. Talent Why People Leave Public Accounting [CPA Journal] Writes Edward Mendlowitz, CPA/PFS, ABV: There are many reasons why CPAs decide to leave public accounting firms. Based on my […]

a dog in fall leaves

Friday Footnotes: How EY Fights Poaching; Lack of Staff Is Closing Doors; Accounting to Biglaw? | 11.25.22

Big 4 FRC to fine Deloitte £440k over 2018 audit [Accountancy Today] The Financial Reporting Council’s Audit Quality team has issued a notice of a proposed sanction on Deloitte, proposing a regulatory penalty of £440k after it was determined that the Big Four firm failed to comply with the auditing framework in its audit of […]

kitten in autumn leaves

Friday Footnotes: Retired EY Partners Hate on the Split; It’s a Raid!; ‘An Alphabet Soup of Technology’ | 11.18.22

Big 4 EY split threatens to weaken both sides of firm, say retired partners [Financial Times] More than 150 retired EY partners have written to the accounting firm’s leadership objecting to the radical plan to split its consulting and audit businesses. In a three-page memo seen by the Financial Times, the retired US partners say […]

a bulldog and a military man

Friday Footnotes: Behemoth Big 4 Firms Get Behemothier; Audits Get Harder; Eliminate Clients! | 11.11.22

Ed. note: if you like accounting news, which you clearly do because you are reading this, we encourage you to sign up for our newsletter for even more accounting news. Oh and a hearty thank you for your service to the veterans out there. Hopefully some of you got the day off. Hiring ‘There’s definitely an […]

Cute cat with autumn squash and pumpkin

Friday Footnotes: PwC Does Some Things; Bad Client Dumps EY; ‘Going From Balloon Animals to Accountancy’ | 11.4.22

Footnotes is a weekly wrap-up of all the news in and around the accounting profession, published every Friday at 5 p.m. Eastern. To get more headlines delivered on the regular, subscribe to our newsletter. Big 4 PwC Retirees Get Early Approval for $267 Million Pension Deal [Bloomberg Tax] PricewaterhouseCoopers LLP’s $267 million settlement with retirees […]

A happy Halloween dog

Friday Footnotes: Rettig Is Out at IRS; KPMG and Deloitte Suck at Auditing; Desperate For Accountants | 10.28.22

Sorry Footnotes is late today, it won’t happen again. Our newsletter is always on time. Talent Iowa addresses accountant shortage, expands eligibility for state jobs [KCRG] Accountants and auditors with the Office of Auditor of State no longer need a four-year degree. “There’s currently a nationwide shortage of accountants and auditors, and Iowa’s no exception,” […]

a judgmental old cat

Friday Footnotes: KPMG Is Twice as Bad as Other Firms; Upskill or Die; Hella M&A | 10.21.22

Big 4 KPMG flunks US overseas audit inspections twice as often as rivals [Financial Times] US regulators were twice as likely to find flaws in audits conducted by the overseas affiliates of KPMG than those of any other Big Four accounting firm, an analysis of inspection data shows. The findings raise further questions over KPMG’s […]

a dog in a party hat

Friday Footnotes: Big 4 Nixes Legal Practices; EY Looks the Other Way; Auditors Get Lectured Again | 10.14.22

Big 4 The drunken Big Four partners who are paid $1m+[eFinancialCareers] Combined with other recent incidents, including the tragic case of Michael Brockie, a 28-year-old PWC audit manager who lost a large portion of his brain following a fall after a drunken work outing, and the death of Aishwarya Venkatachalam, a junior at EY in […]

a happy dog in a car

Friday Footnotes: Accounting’s Big Lie; BDO Poaching; EY Partners Get Whipped | 10.07.22

Must Read Accounting’s Big Lie — and How to Fix It [Project on Government Oversight] A colossal conflict of interest compromises the auditing of public companies and the financial security of everyone who depends on them. The Project On Government Oversight is planning a conference on what to do about it. The following is meant […]

a spooked little kitten

Friday Footnotes: Opinions!; EY’s Blockchain Aspirations; KPMG Junior Reprimanded | 9.30.22

Psst. While you’re here, have you thought about getting on our newsletter? No? Alright. Big 4 Average income of Deloitte’s partners in UK and Switzerland tops £1m [The Guardian] Partners at Deloitte in the UK and Switzerland will receive an average income of more than £1m each for the second year in a row, after […]

a rich dog

Friday Footnotes: Accounting Salaries on the Rise; PwC Sets a Record; Succession Suggestions? | 9.23.22

Psst! While we have you…get on our newsletter list if you want more headlines like these. And have a good weekend! That’s an order. Salaries Salaries in Finance & Accounting on the Rise as Executives Adapt to Fluctuating Market Pressures, Says New Report [Randstad] According to a new report from Randstad USA, finance and accounting […]

an orange cat with a leaf on its nose

Friday Footnotes: Screw the Office; Auditor Sues EY For Doing Her Job; IRS Levels Up | 9.16.22

Big 4 Deloitte plays both sides of the field in Mercedes-Benz case [Australian Financial Review] Mercedes-Benz dealers have discovered long-time auditor Deloitte was banking huge fees from them while secretly working with the German parent company to write reports that would “disguise” the damage a switch in the business model would do to dealers’ profit […]

a cool dog cruising in a car

Friday Footnotes: Where the Audit Jobs Are; Big BDO Hires; A New Gig For PwC Alum | 9.9.22

Supply and Demand New York First in Projected Growth of Auditor and Accountant Jobs: Weekly Stat [CFO] Projections on four position categories — accountants and auditors; credit analysts; financial managers; and financial and investment analysts, financial risk specialists, financial specialists, and all others — reveal that despite a global shift in workflow and flexibility, the […]

a dog in worker clothes holding an American flag in its mouth

Friday Footnotes: EY Split Drags Out; Advisory Firm Defrauds Clients; Student Loan Forgiveness and Taxes | 9.2.22

Ed. note: Although Going Concern observes Labor Day because our handlers are not monsters, we’ll be back Monday as usual. See you then and have a wonderful weekend (hopefully it’s a three-day one for at least some of you). Firm Watch EY’s talks on potential split to continue into Autumn [City A.M.] EY’s talks on […]

Friday Footnotes: KPMG Downsizes (Office Space); CPA CPA CPA; Some Good News on Diversity | 8.26.22

Ed. note: apologies to the individual who criticized last week’s Footnotes headline for being too clickbaity and scary, our bad. This week’s consciously informative headline is just for you, buddy. While you’re here, allow us to pester you to sign up for our newsletter to get accounting headlines twice a week. Happy weekend! Big 4 […]

Friday Footnotes: EY Partners’ Snazzy Secret Meeting; PwC Talks Layoffs; Merger Mania! | 8.19.22

Ed. note: trying out a little something new for this week’s Footnotes. We’re adding accounting firm mergers & acquisitions to the weekly news as they’re happening with such frequency and regular Footnotes readers will notice the news is now sorted by topic. Neat! Don’t forget to sign up for our newsletter for more headlines, or […]

Friday Footnotes: Crippling Staff Shortages in Consulting; Hold Auditors Accountable; AICPA is Mad | 8.12.22

Ed. note: fans of accounting headlines are encouraged to sign up for our newsletter to get headlines delivered to your inbox twice a week. Looking for a remote accounting job? We encourage you to sign up to get job alerts for remote accounting positions from our friends at Accountingfly. Now, the news. How to follow up […]

Friday Footnotes: A World Without Accountants; GAO Finds a Big Mistake; ‘Fazbie’ | 8.5.22

Ed. note: are you obsessed with accounting news? Yeah, us too. Sign up for our newsletter to get headlines in your inbox twice a week. Looking for a remote accounting job? We encourage you to sign up to get job alerts for remote accounting positions from our friends at Accountingfly. If the world had no accountants […]

Friday Footnotes: KPMG Accounts For Half of All Audit Fines; LGBT Accountants Dip; EY in Big Debt? | 7.29.22

Ed. note: fans of accounting news — all two of you — are encouraged to sign up for our newsletter to get headlines delivered to your inbox twice a week on Tuesday and Friday. Check out today’s newsletter here. Looking for a remote accounting job? We encourage you to sign up to get job alerts […]

a very ugly dog

Friday Footnotes: New Managers Share Wisdom; KPMG Praised??; PwC Creeps Leave | 7.22.22

Ed. note: Footnotes is published every Friday at 5 p.m. Sign up for our newsletter to get accounting headlines delivered to your inbox twice a week. Oh, and if you are looking for a remote accounting job, we encourage you to sign up to get job alerts for remote accounting positions from our friends at Accountingfly. […]

Friday Footnotes: Sleazy PwC Partner Leaves; No You Can’t Claim a Boob Job; PCAOB Scholars | 7.15.22

PwC partner accused of rating female staff leaves firm [Australian Financial Review] A PwC partner who allegedly held male-only events with colleagues where they rated the attractiveness of women in their office and visited strip clubs has left the firm. Audit watchdog to overhaul UK corporate governance code [Financial Times] The UK’s corporate governance code […]

a cat taking drugs

Friday Footnotes: PwC Partner$; The Ketamine Accountant; Deloitte Mexico Missed Some Stuff | 7.8.22

Wirecard’s former top accountant admits forging documents for KPMG special audit [Financial Times] Wirecard’s ex-head of accounting has admitted to forging documents requested by KPMG during a special audit, ahead of a trial that is set for later this year, according to people familiar with the matter. Stephan von Erffa is one of three defendants […]

Friday Footnotes: XOXO, Accountants; PwC Wants Tax Cuts; KPMG Stacks Partners | 7.1.22

Accountants are voted the best kissers in Britain ahead of doctors and nurses while civil servants, bankers and lawyers are rated as the worst [Daily Mail] Often ridiculed as boring beancounters, accountants have surprisingly been voted the best kissers – ahead of doctors, nurses and engineers. And the worst are civil servants, bankers and lawyers, […]

a white cat and a fan of money

Friday Footnotes: A CPA Grindset We Can Get Behind; The Klynveld Krypto Team; Firms Still Desperate (For People) | 6.24.22

Accounting Firm EY Grapples With Partner Pay, Bear Market in Breakup [Wall Street Journal] Ernst & Young’s leaders, trying to persuade partners to split up the firm, said windfalls would be spread evenly, but a bear market threatens to cut the value of a potential initial public offering of its consulting business, according to an […]

a scruffy dog standing on train tracks looking adorable

Friday Footnotes: Accounting AI Explodes; SOX Compliance Sux; KPMG Gets on a List | 6.17.22

The 2022 Client Advisory Services (CAS) Benchmark Survey is now open for participation [CPA.com] Participation in the CAS Benchmark Survey provides an opportunity for you to work on your business – first, by reviewing the data about your practice in preparation to take the survey, and later, when you can review your practice’s data compared […]

a dog focused on a treat in a hand

Friday Footnotes: EY Buffs PE Practice; A Thirst for Integrity; “Everyone Feels KPMG Is 4th” | 6.10.22

SEC Acting Chief Accountant Cautions Against “Checklist Compliance” Approach to Auditor Independence [JD Supra] SEC Acting Chief Accountant Paul Munter re-emphasized the SEC’s focus on auditor independence in his June 8 statement on “The Critical Importance of the General Standard of Auditor Independence and an Ethical Culture for the Accounting Profession.” This latest statement follows […]

a dog wearing a colorful feather boa

Friday Footnotes: Big 4 Pride; KPMG Gets Snubbed; EY Goes on a Poaching Spree | 6.3.22

Accountant Finds Out Client Has “Skeletons In The Closet”, Gets The IRS Involved And Makes Him Lose Everything [Bored Panda] It was posted on Reddit so obviously it must be true. How a New Accounting Rule Is Making Bank Earnings Go Wild [Wall Street Journal] The new accounting standard, known as current expected credit loss, […]

a Persian cat getting a bath

Friday Footnotes: EY Gets Extra Empathetic; Broke KPMG Partner Sues; Auditor Pay Cuts? | 5.27.22

Accounting Giant EY Created A Chief Wellbeing Officer To Uplift And Empower Their People [Forbes] EY investing in that empathetic leadership everyone loves so much. Bankrupt former KPMG partner sues law firm over job loss [Financial Times] A former KPMG partner who went bankrupt after investing in French ski chalets is suing law firm Herbert […]

a calico kitten in front of a yellow background

Friday Footnotes: Which Firm Puts in the Most Hours?; Clients Pay for the Talent War; Spotting Burnout | 5.20.22

Boring No More: Accountants, Auditors See Themselves as Creative, Curious and Adventurous, Study Shows [PR Newswire] Creative, curious and adventurous may not be traits normally associated with accountants and auditors, but a recent study shows that’s just how a growing number of industry professionals see themselves. The research – conducted by leading software provider Caseware […]

a beautiful young cat

Friday Footnotes: KPMG’s Idea of a Fun Summer; IRS Eats Their Homework; Downsized GT Downsizes | 5.13.22

Junior KPMG auditor ‘should not lose his home’ for misleading regulator, says tribunal [Financial Times] A former junior KPMG auditor should not receive a fine so large it could force him to sell his matrimonial home, a tribunal has said. The UK accounting regulator asked the industry tribunal to fine Pratik Paw £50,000 and ban […]

a cat wearing sunglasses

Friday Footnotes: Firms on India Hiring Spree; PCAOB Heads Overseas; PwC Lets You See Your Family This Summer | 5.6.22

Mesa grandma, 25-year-old accountant share love of Phoenix Suns [Arizona’s Family] JoAnne Ralph and Ben Barchilon have a special bond, and it all started with their love of the Phoenix Suns. “It’s just wonderful to have another grandson,” said Ralph. “It upsets my granddaughter because she says ‘I’m not sharing you!’ And I said, yes […]

a dog in grass

Friday Footnotes: 43% Plan to Quit; Earf Day and ESG; Deloitte Director Stole $3m to Flex | 4.22.22

Ed. note: Happy belated 420 Earth Day, everyone! In honor of the one day a year we recognize the detrimental impact humans have on our home rock, we’re including a couple relevant links on performative environmentalism as it relates to the accounting industry and financial reporting below. Firms and audit committees focus on ESG for […]

a kitten hiding

Friday Footnotes: Client Hid ‘Damning’ Audit; Predictions for the Profession; Accounting Firm Gets Compromised | 4.15.22

Ed. note: Happy almost Easter to those who celebrate, happy 11th birthday today to my cat Cash Money (no, I did not purposely track down a cat born on tax day when I adopted him from Humane Rescue Alliance in DC 11 years ago), and a very happy April 18th to those of you who […]

a sleepy puppy in a hammock

Friday Footnotes: Firms Make Progress on Diversity; EY Growth Plan; PIZZA PARTY! | 3.8.22

CPA firms show progress in diversity amid pipeline challenges [Journal of Accountancy] The AICPA finally got around to releasing their 2021 Trends report, which we’ll dissect shortly. In the meantime, here’s a tidbit: The profession’s efforts to encourage diversity, equity, and inclusion delivered progress with a rise of almost 5 percentage points (a change from […]

a cute pair of young kittens

Friday Footnotes: No Foolin’ Here; 18,000 New Accounting Jobs; Skills Auditors Need NOW to Be Future-Ready | 4.1.22

Ed. note: forgive us, we lack the bandwidth to come up with an April Fool’s prank today. For your reading pleasure, you can reminisce on the time we hid the entire site behind a (fake) Bitcoin paywall for a few hours on April Fool’s Day 2014 and proceeded to get cussed out by readers and […]

a kitten on its back with its paws up

Friday Footnotes: ‘KPMG Did Not Know What They Were Doing’; Are You Boring?; PCAOB Warns About Confirmations | 3.25.22

These are the 5 most ‘boring’ — and exciting — jobs in the world, according to a recent study [CNBC] You’ll be happy to hear accounting made #2 on the most boring list. Don’t feel bad, MY job ranked #3 most exciting and I assure you it absolutely is not, I write about accounting after […]

An orange cat with its paw over its face

Friday Footnotes: The Salary Problem Catches Up to Firms; Deloitte Changes Its Mind; KPMG Punished (Again) | 3.18.22

Accounting Faces Reckoning After Years of Sluggish Pay Growth [Bloomberg Law] Gasp! Asking for time off? WELL I NEVER! The shift in power toward workers and away from employers has forced businesses to meet demands for more time off, remote work, and flexible schedules—not just wages—said Paul McDonald, senior executive director for staffing firm Robert […]

A sad fluffy dog

Friday Footnotes: PwC’s Turn For a Probe; Accounting Professor Does a Naughty; The IRS is Hiring | 3.11.22

‘Big Four’ Targeted Again in U.K.—PwC Becomes Latest Subject of Investigations [Bloomberg Tax] Paul Brehony of Signature Litigation LLP looks at the growing number of investigations by the U.K. tax authority into historic audit failures by the “Big Four” firms, and discusses the prospects for success of proposed major reforms to the audit regime. The […]

a woman holding a black cat

Friday Footnotes: Deloitte’s Naughty Workpapers; Audit Reform Critics; Clients Getting Dropped Like Mics | 3.4.22

Deloitte considers Russia pull out as pressure grows on western firms to exit [Financial News] Deloitte is considering pulling out of Russia, becoming the first Big Four audit firm to do so as pressure grows on Western companies to cut ties with the country following its invasion of Ukraine. The firm is reviewing its “business […]

an apologetic puppy looking sad

Friday Footnotes: KPMG’s ‘Scandal-Ridden’ Crisis; PwC Cheats; Give Me a Straight Answer | 2.25.22

Why KPMG’s Culture Crisis is Symptomatic of a Broken Audit Industry [International Policy Digest] A disciplinary tribunal filed against auditing giant KPMG has unearthed an internal survey conducted between 2016-17, revealing a veritable crisis of culture among the firm’s ranks. Although KPMG may purport to prioritize the ideals of integrity and quality in all their […]

a wrinkly dog in a party hat presented with a lollipop

Friday Footnotes: KPMG Still On Its Bullsh*t; Here’s Why You’re Burned Out; EY Gives Itself a Hand(ie) | 2.18.22

This is why so many accountants are burned out and quitting right now [Fast Company] “If you go into investment banking or medicine, the financial ROI is worth the long hours. It’s not worth it in accounting. A junior accountant could be making $80,000 a year. A bank teller could be at $55,000 a year, […]

a pretty grey cat leaning toward the camera

Friday Footnotes: More Accounting Probes; IRS Gets Out of Your Face; KPMG’s Acquires Krypto | 2.11.22

Deloitte’s $5M Data Security Deal OK Is Sought by Plaintiffs [Bloomberg Law] A $4.95 million settlement with Deloitte Consulting LLP to resolve claims it created websites with poor security should receive final approval, the plaintiffs are arguing in New York federal court. German financial regulator probes Adler over its accounting [Financial Times] Shares in Adler […]

Friday Footnotes: Grant Thornton Flees; Hunting Down Auditors; Getting Students Hyped About Accounting | 2.4.22

Talent shortage turns audits into tactical issue [CFO Dive] As in other parts of the economy, the auditing field is dealing with a war for talent, driven in part by the rise of remote work, which has opened doors to sought-after accountants looking for opportunities elsewhere. And technology changes have led to accountants getting offers […]

Friday Footnotes: Is Work Wrecking Your Body?; Ex-PwC Associate Gets Rich; AICPA to IRS: Do More | 1.28.22

6 red flags your body is breaking down from overwork [Fast Company] “There are two major ways that overwork can reduce health and longevity,” writes BBC contributor, Christina Ro. “One is the biological toll of chronic stress, with an uptick in stress hormones leading to elevated blood pressure and cholesterol.” She continues: “Then there are […]

Friday Footnotes: Canned Deloitte Manager Goes Off; Disrespectful Clients; Audit Smackdown | 1.21.22

Fired manager accuses Deloitte of defrauding VW and a #MeToo cover-up [Financial Times] A manager fired by Deloitte’s German business after raising concerns about alleged misconduct has accused it of defrauding Volkswagen and ignoring sexual harassment allegations against senior staff. The whistleblower made the allegations last week at a labour court in Stuttgart where he […]

a dog wearing a bear costume

Friday Footnotes: KPMG Partner Blames Juniors; Desperate Firms Look to India For Talent; EY’s Old Digs | 1.14.22

Carillion tribunal: Former KPMG staff turn on each other [The Guardian] The former KPMG partner in charge of auditing Carillion’s accounts before its collapse has blamed his more junior colleagues for misleading regulators, as former team members turned on each other during a tribunal hearing allegations against the firm and six individual auditors. Looking abroad: […]

a black cat peeking out of a patterned blanket

Friday Footnotes: Another PwC Failure; Excel JPGs; Busy Season Rants | 1.6.22

Elizabeth Holmes and her Big 4 audit firm buddies at Theranos [The Dig] When audit firms don’t live up to their public duty, everyone gets hurt. The harm at Theranos was more than financial. PwC ‘Failed Dismally’ as Auditor of South African Airways [Bloomberg Tax] A South African judicial report has sharply criticized PwC for […]

Friday Footnotes: Deloitte Sued For Bullying; Auditor Shrinkage; IRS Wants Your Dirty Money | 12.31.21

Ed. note: Happy New Year, everyone! Thank you for spending 2021 with us, believe it or not we’re grateful to each and every one of you for stopping by. See you next year! Deloitte sued by female former employee over harassment claims [Financial Times] Deloitte has been sued by a former female employee who alleged […]

Friday Footnotes: Accounting’s Future; PwC Plants a Flag on the Metaverse; Netflix For Professional Services? | 12.24.21

Ed. note: Have a safe and happy holiday out there, everyone. We hope a good chunk of you are rocking the out of office message this weekend and can get some much-deserved rest and relaxation, and that the rest of you can at least fit in a nap and a text message to your grandma. […]

a dog-shaped sign that says no

Friday Footnotes: KPMG Discipline Looms; Whistleblower Gets 2nd Chance; Firing Auditors | 12.17.21

Deloitte U.S. CEO on the past year’s business challenges and what’s ahead in 2022 [Fortune] “Many came into the year thinking that 2020 was the unprecedented year and things would calm down,” Ucuzoglu said. “Yet you could argue there have actually been more twists and turns [in 2021]. The pandemic is by no means behind […]

Friday Footnotes: KPMGer Sues Over Bullying; Auditing Terrorist Orgs?; Deloitte UAE’s Weekend Plans | 12.10.21

KPMG executive Greg Eldridge is seeking $130,000 in damages against the accounting giant [The Courier Mail] A senior KPMG executive now on stress leave has sued the accounting giant, alleging he was subjected to months of unlawful harassment from a colleague and then told he would have to simply adapt to the abuse. Audit tips […]

a cat wearing a royal crown

Friday Footnotes: PwC Germany Raided; BDO Ballers; Deloitte’s Unexpected New Hiring Push | 12.3.21

Partners at mid-tier accountant BDO paid more than at EY [Financial Times] BDO, the UK’s fifth-largest accounting firm by revenue, paid partners a record average of £760,000 before tax in the year to the end of June, surpassing the £749,000 paid out by EY. PwC Germany Offices Raided by Police in Tax Fraud Investigation [Bloomberg […]

Black Friday Footnotes: Carillion Liquidator Wants Lots of KPMG Money; EY Can’t Handle the Truth; Mattel and PwC Settle with Investors | 11.26.21

Carillion Liquidator Seeks $336 Million From KPMG [Bloomberg] The U.K. government agency charged with liquidating Carillion Plc has lodged a claim at the high court against auditor KPMG, the Sunday Times reported. The official receiver has accused KPMG of negligence in its audit of the U.K. contractor and quantified claims of about 250 million pounds […]

Friday Footnotes: EYers Fed Up; KPMG Love Triangle; CGMA For Young’uns | 11.19.21

EY faces staff backlash over handling of sexual harassment case [Financial Times] EY is facing a backlash by staff over the accounting giant’s handling of an incident in which a partner sexually harassed a female trainee on a work trip. On an all-staff webcast on Tuesday, EY promised staff it would do more to combat […]

Friday Footnotes: More Big 4 Lawsuits; The White Way In the UK; EY-Parthenon Found a Guy | 11.12.21

KPMG Sued for $600 Million Over Alleged Sloppy Auditing in Dubai’s Abraaj Scandal [Bloomberg] KPMG LLP was sued for at least $600 million over its role in the insolvency of Dubai private-equity firm Abraaj Group, the latest in a string of complaints of sloppy auditing made against the Big Four firm. The claimants, two units […]

Friday Footnotes: KPMG Sued (Again); Accounting For Weed; Less Travel Equals Profit For EY Partners | 11.5.21

.CPA Web Domain Launches in Canada [Business Wire] The restricted web domain, administered by the American Institute of CPAs (AICPA) and its business and technology arm, CPA.com, officially launches in Canada this morning at 11 Eastern time. To be eligible, Canadian CPAs and CPA firms must be licensed. Preferred names will be awarded on a […]

Friday Footnotes: A Very Guilty Accountant; Beware Audit Independence; Grant Thornton Does a Thing | 10.29.21

Wealthy retired accountant is found guilty of murder [Daily Mail] The pregnant daughter of a wealthy retired accountant who was today jailed for life after stabbing her husband to death has told the court of her heartbreak, saying: ‘I lost my dad but I’ve also lost my mum.’ Isabelle Potterton said on Friday that her […]

Friday Footnotes: Deloitte Complains Its Way to a Contract; Deficiencies Abound; Beyond the Windowless Audit Room | 10.22.21

How CPAs can rise above a polarized political climate [Journal of Accountancy] Aside from being prepared for these possible changes, [Publisher and editor-in-chief of The Cook Political Report Amy] Walter recommends that CPAs break away from the polarization that has made each side feel like an election is an existential fight for the real America. […]

Friday Footnotes: Deloitte Sued; RSM Sued; PwC Not Sued But Incompetent | 10.15.21

‘What do you actually do?’: Redditors scratch heads at consulting firms [Yahoo News] We’ve often wondered about this too. Deloitte Workers Sue Over ‘Astronomical’ 401(k) Fees [Law360] Deloitte workers slapped the accounting giant with a proposed class action in New York federal court, claiming the company allowed two multibillion-dollar retirement plans to get saddled with […]

Friday Footnotes: Firm Fined For Data Breach; Deloitte Named Most Attractive; EY Expands Legal Arm | 10.8.21

FRC’s changes to fraud auditing standard explained [ICAEW Insights] The Financial Reporting Council (FRC)’s UK Auditing Standard on Fraud (ISA (UK) 240) has been significantly updated for the first time in 16 years. The changes are a response to recent public discussions on the role of audit in identifying fraud, including high profile cases in […]

Friday Footnotes: Deloitte’s Plush Profits; Britney’s New CPA Conservator; KPMG Gives a Partner the Boot | 10.1.21

Deloitte UK profits boosted by public sector pandemic work [Financial Times] Deloitte has confirmed a surge in UK profits helped by public sector contracts during the pandemic, saying that its work on the response to Covid-19 was “essential”. Revenues at the firm’s UK and Swiss businesses, which operate as a single partnership, rose 4.2 per […]

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 […]