Not sure how we missed this but since it’s still slow out there we’ll kindly inform you that the country of Uzbekistan has had enough of KPMG.
According to Kazakhstan Newsline, “Uzbekistan’s Ministry of Finance has canceled licenses for audit activity on the part of KPMG Ltd.”
Obviously you can see how this would not be good if you wanted to audit anything in Uzbekistan. If any of you are willing to bite the bullet for everyone and get a subscription to this fine source of media so we can know the full story, that’d be great.
Otherwise, just use your imagination about the reason for the Radio Station banishment and discuss in the comments.
Personally, we’re hoping it had something to do with two physically repelling male employees running naked around in a hotel conference room but perhaps that’s a stretch*.
Uzbekistan takes away KPMG’s license [Life of An Auditor via JDA]
*Thanks for pointing out that Borat was from Kazakhstan. They’re neighboring countries, close enough for today.
Tag: KPMG
Firms Sponsoring Golfers – An Analysis
Accounting firms don’t do much advertising. It’s got something to do with ethics and since the CPA exam is ancient history for some we can’t talk specifics.
Firms do like to sponsor stuff related to golf. Tournaments, players, etc. One recipient of accounting firm cash has been widely followed here but now we recently discovered another firm sponsoree that, we feel, may rouse as loyal of a following as Phil.
This is Natalie Gulbis who is sponsored by RSM McGladrey.
Natalie works with RSM in partnering with the Special Olympics Golf Program and will be a contributor to RSM’s new golf blog.
We’re not really into golf so we can’t really debate who has a better game or who garners better exposure for their sponsor so, after the jump, we’ve presented a more superficial analysis:
We admit that we know nothing about promotion or advertising but if you’ve got opinions on which firm seems to have found the better golfer to sponsor, discuss in the comments.
Chrysler Auditor Switcheroo Follow-up (UPDATE)
We’ve confirmed with a Chrysler Spokesperson that the new entity emerging from bankruptcy has appointed Deloitte as the external auditors, a role that KPMG held for the entity that remains in bankruptcy:
More, after the jump
[We] can confirm that, as a new company, Chrysler Group LLC has appointed Deloitte as its external auditors. KPMG had previously served this role for the old Chrysler, which remains in bankruptcy. The new company, Chrysler Group LLC became operational on June 10, 2009.
Basically, as some have speculated, this may be a chance for Deloitte to poach the entire KPMG team, which, we have to admit, might not be a bad idea.
KPMG did not immediately respond to our requests for comment. Deloitte got back to us with no comment.
UPDATE: Chrysler got back to us with some additional information including
• Why the change in auditors – “Chrysler Group LLC is a new company and, as such, the company has decided to appoint Deloitte as its new external auditors.”
• If Deloitte was in the field – “Deloitte has begun initial planning work for the 2009 audit.”
• KPMG’s remaining responsibilities – “We cannot address any services KPMG may be performing for OldCarco (the official name of the company that remains in bankruptcy).”
Nothing too surprising here except for the hilarious awesomeness of “OldCarco”.
Rumor of the Day: Deloitte Snagging Chrysler Audit from KPMG?
Maybe figuring that bankruptcy means a fresh start with everything, we received a tip that Chrysler is dumping KPMG for Deloitte as their external auditors:
“it was announced to KPMG Detroit employees late yesterday…via voicemail or conference call”
Could be the reason the Green-dots in Detroit were rumored to be getting raises but WTFK.
Right now we’ve reached out to all three members of this love triangle and only Deloitte has gotten back to us and could not confirm or comment.
If you’re at Radio Station or the D in Detriot and have details on this, let us know. We keep all sources anonymous.
More KPMGers Have Their Labor Day Plans Put in Jeopardy
This time it’s San Fran:
See the text after the jump
Dear Senior Managers, Managers, Senior Associates and Associates,
Thank you for your hard work and continued commitment to the firm. As you know, we continue to do everything reasonably possible to achieve our chargeable hour goal for the remaining fiscal year. While we have made progress toward achieving our collective goal, there remains a gap between where we are and what we need to achieve to give ourselves the best chance of meeting our forecast for the month of September.
In order to close this gap, we are increasing the scheduled chargeable time for each senior associate and associate in the month of September to 50 hours per week (average of 10 hours per day). Teams already scheduled at 10 hours per day or more will remain as scheduled. We ask that each engagement team does its best to find meaningful work to fill this additional chargeable time. If seniors and associates are unable to identify meaningful work for themselves or their team, they should contact their engagement partner or manager to discuss ideas for utilizing this time. This increase in chargeable time has been discussed with and is supported by the engagement partners on your accounts.
Any idea what qualifies as “meaningful work”? Discuss in the comments.
KPMG Didn’t Hear You Say ‘Uncle’
So we know why the final numbers in a few offices haven’t been reported for last week’s layoffs at KPMG: They’re still happening, circa now. According to somebody within earshot: “I passed someone in the hallway mumbling about getting the ax. I thought they were over; clearly not the case.”
We hear that the timing of these is partially due to the firm sending little auditors to training first and then bringing them back only to say, “Hope you enjoyed yourself, ’cause it was your last.”
This begs the obvious question of why the hell KPMG would go to this expense of sending them down there only to can their asses upon return.
We’d love to hear some wild speculation on the reasoning although based on yesterday’s mention, you’re all numb at this point.
KPMG Arrives at the Paperless Audit Party
We’ve received several reports about Klynveldians attending “eAudit” training this summer which marks the firm’s attempt to get break into the “paperless” audit world. Reports have been mixed with some saying that it’s best technology KPMG has invested in but others claiming that it will only run on Vista which may be problematic when Windows 7 rolls out.
Forgetting the technology mumbo-jumbo, it’s been long rumored that KPMG was the last major firm to make the move to a paperless audit. This could have been due to a number of things:
More, after the jump
• Partners that have been around since WWII that can’t even use email put the kibosh on the whole idea
• M-O-N-E-Y
• Accountants, in general, resist the idea of trying a new restaurant so don’t even think about messing with their audit methods
What’s more surprising is that some Radio Station clients have said that they prefer the old school audit. Not exactly sure what is so appealing about young auditors schleping around boxes of binders that weigh a few metric asstons but whatevs.
Our point, dude, is that KPMG has finally caved on this whole “paperless” idea. Since audits aren’t truly paperless we’re not sure what all the fuss is about but KPMGers got an extra week in Florida in the dead of summer out of it. Discuss the firm breaking into the new century in the comments or let us know how terrible your lives will be because of it.
Possible Confirmation for Your Unfounded Rumors about Partner Expenses
There’s a large misconception that partners and directors can run anything through on their expense reports. Lapdances, red meat at Bobby Van’s, shoes at Bergdorf’s, you know, the usual rumored fare.
Alleged abuse notwithstanding, one KPMG director in London has managed to live up to the reputation of flagrantly assaulting the expense reimbursement policy:
More, after the jump
Andrew Wetherall, a director at the firm, fraudulently claimed expenses to pay for holidays, cars, computers and even his divorce from his first wife. The 49-year-old also used them over five and a half years to keep his second wife happy by funding her £15,000-a-month lifestyle. Southwark crown court heard today how he falsely claimed £545,620.89, making several claims for flights abroad and expenses relating to business trips he never went on. After a boss raised the alarm, Wetherall initially claimed it was a mistake. But he owned up to the fraud after an internal probe.
We’re all for bending the rules for some bagels here and there but seriously. What did this guy spend his salary on? Did he have a Stevie Nicks-type coke habit? Whatever happened, all’s forgiven because according to the piece, Wetherall was “suspended by KPMG and has repaid more than £337,000.” It’s only money, right?
Accountant paid for divorce and holidays with £545,000 fraud [London Evening Standard]
KPMG: We’re Not Done
The Radio Station, presumably not wanting to break its stride, is not done handing out bad news. Apparently layoffs have still been occurring as recently as yesterday in Chicago. The total there is now between 30 and 35. Check out the final numbers for other cities in our debrief post and if you have updated numbers please pass them along or discuss in the comments.
KPMG Needs Everyone’s Help
Whether or not you’ll be working on Labor Day isn’t exactly clear:
More, after the jump
As we approach year end, we need everyone’s help to finish the fiscal year strong. Our goal is to achieve our forecast for the month of September. Based on the hours that are currently projected…we are falling short of that goal.
As a result, we have asked all Client Service Delivery professionals (including partners, senior managers and managers) to increase their chargeable hours in the month of September. With respect to seniors and associates, we are asking each of you to work an additional 32 hours in the month of September. We recognize this may result in overtime hours for some individuals
I encourage you…to make sure all chargeable hours for September are reflected. The amount reflected…will be increased by 32 hours to arrive at your goal. Please work with your managers to determine the best way to utilize this additional time in a productive manner.
We encourage you to delay any non-charge activity until October, assuming there are no required deadlines. This will help maximize our chargeable hours
At least they’re kind enough to “recognize this my result in overtime hours”. Tax associates probably won’t have any problem coming up with the extra hours but as for the rest of you, we’d love to hear your feelings on your extra four days of work in September.
UPDATE, 7:46 am: Our understanding is that this email was sent to audit professionals in the New York Office but judging by the comments, other offices have been put on notice to squeeze in some extra time for September. If you’ve received a similar email for your practice or office, shoot us the details.
Today in Big 4 Thriftiness
Our post from yesterday re: PwC’s concern over your consumption of high fructose corn syrupy beverages has struck a nerve with some.
So, being big believers in striking while the iron is hot, we thought we’d tell you that about a tip we received telling us that KPMG has also recently raised the price of soda in their offices from 50 cents to 75 cents.
Thriftiness continued, after the jump
We also learned that any perks, luncheons, birthday cakes, etc., etc. that do not benefit the entire office have been eliminated. Gourmet coffee machines apparently still remain because the coffee drinkers will not settle for freeze-dried Taster’s Choice.
Bottom line seems to be one of two things: 1) The firms are squeezing pennies until Lincoln’s beard pops off or B) The powers that be are faux-concerned about the reality of you sitting on your asses for 12+ hours a day and are attempting to get you to cut down on the calories.
Discuss your firm’s favorite cost cutting measure, unique revenue ideas, or your plans for losing the Big 4 fifteen in the comments.