Because some of you are obviously jonesing for it, we’ve got some updated details on this week’s Radio Station bloodbath:
• Dallas Somewhere between 30-40
• Silicon Valley Between 20-30
• Kansas City Five staff – Two associates, three SA’s and three in client service support
Still no final word on New York. Shall we just call it 50?
Tag: KPMG
PwC Calls Out KPMG
Awhile back, we mentioned how KPMG didn’t seem so concerned about the appearance of independence. Well now it appears that P. Dubs might be getting a little self-righteous about the whole issue or they’re just bent out of shape that the Radio Station swiped the Rentokil audit by lowballing the proposal:
More, after the jump
KPMG’s arrangement was able to shave 30% from Rentokil’s audit, but it was the manner in which the firm brought about the cost saving that raised eyebrows. Audit guidelines warn against two threats when an external auditor takes on internal audit work. The first threat, known as the self-review threat, warns against the external auditor relying heavily on its own internal audit work. The second threat, known as the management threat, warns against the internal auditors assuming the role of management.
KPMG says it’s totally fine because that’s where the client’s interest was:
KPMG said it was fielding interest from potential clients. ‘Unequivocally we have found interest,’ says Oliver Tant, KPMG’s UK head of audit. ‘We will be discussing it with more people, undoubtedly as will other competitors.’
PwC, at present, seems to be taking the highroad, even though we’re pretty sure they think Rentokil are a bunch of cheapskates:
PwC, would not be drawn on its opinion on the Rentokil audit, citing its policy not to comment on clients, but did say: ‘It is vital that we maintain our independence from – and in no way are seen to act as part of – management infrastructure…Internal audit can often be regarded as acting as part of that infrastructure.’
Typical passive-aggressive accounting rhetoric but it still sounds like P. Dubs is calling bullsh*t on KPMG. Feel free to defend your firm’s position by whatever means necessary (we suggest low blows and name calling) or get on your soap box about independence.
Debate rages on over KPMG’s cut-price Rentokil audit deal [Accountancy Age]
For the Record
Radio Station NYC finally sent out the email today notifying everyone that the fiesta in Times Square got the kibosh. FTW.
KPMG Layoff Debrief
Akin to talking gun control at the RNC, we’re here to dispense more red meat.
Here are the final numbers that we have for select cities:
Gory details, after the jump
• San Fran – 9 17 total, at least 8 SA’s
• Dallas – 16
• Chicago – “close to 15“ Between 30-35 50
• NYC – Someone help us out. We know it’s big but we haven’t gotten any specifics
• Louisville – 3, including a 9th year Senior Manager
• LA – 18, 6 associates, 10 SA’s, and two managers.
Why such good details on LA? Here’s a tip we received:
how do I know this so precisely? Because today our office also sent out an email notification of a staff meeting tomorrow to discuss what happened, and the email shows the names of everyone in the audit practice it was sent to. All lay offs were left out of the email. Way to be sensitive KPMG. Within a day, our whole practice knows the names of everyone who was let go. Also, Orange County office had 10 total lay offs in external audit. For a smaller office, that was quite significant.
See yesterday afternoon’s post for additional cities that we didn’t get final numbers for. If you’ve got the details, either post them in the comments or send us the bodycount to tips@goingconcern.com.
UPDATE, 1:54 pm: Word is that the remaining Klynveldians in San Fran will also have an awkward meeting re: yesterday’s bloodbath. We’d ask you to submit audio/video of the proceedings if possible.
UPDATE, 5:47 pm: Two managers in Oklahoma City down.
UPDATE, August 26, 11:29 am: One lonely SA in Bodymore, Murdaland and two associates in Boise, ID.
Radio Station Black Tuesday Update
Four weeks severance, termination date of September 1st, not performance related. Cities reporting bodies include: New York, Hartford, Dallas, Kansas City, Chicago, Indianapolis, and Cleveland. We’ve heard all levels have taken a hit, although it varies by city. We haven’t gotten any confirmation of partners being bought out at this point. West coast cities have yet to confirm victims since last night’s comments.
If you’ve got final numbers on your office or any other details we didn’t discuss here, shoot us an email: tips@goingconcern.com.
KPMG representatives had no comment.
UPDATE 4:11 pm: San Fran reports at least seven victims, six of which are SA’s.
UPDATE 2, 6:16 pm: San Fran updated to nine total, eight SA’s. Other cities reporting layoffs: Boston, Houston, and Louisville.
Good Luck Today KPMGers
Received word last night that a known executioner (and we’re assuming others) at the Dallas office has reserved several conference rooms from 7 am to 3 pm today and that some had already received emails setting up with their meetings last night. Let us know when the shooting starts in your office and drop us any details, including where you’re getting bombed tonight. Go with God (and for the atheists, just go).
KPMG Doomsday Eve?
We’re going to briefly remind you about the hammer that is going to drop on some unlucky Klynveldians tomorrow.
So far it sounds like there has been blood shed in Dallas, Indianapolis, and New York but no details on severance and it sounds like only second year associates have gotten shown the door so far.
If you’re one of the KPMG casualties, drop us a line at tips@goingconcern.com and give us the gory details: severance, number laid off, lunging across the desk, did the partner you met with wear an executioner’s mask? Tell us everything.
KPMG Decides that Eating Lunch While Traveling for Work is Acceptable
Last week we learned about KPMG’s latest effort to do some belt tightening for the last two months of their fiscal year. These penny pinching plans included, most notably, filling your stockings with coal before winter.
On Thursday of last week a lot of the Kylnveldians, mostly in the Northeast, had not received the gracious and long winded email. Our suspicions at that time were that Tim Flynn and Co. were reconsidering the butchering of time honored tradition of drunken idiocy on company dime.
More, after the jump
Turns out out we were half right. It was noted in the comments and we received several tips that the Radio Station did indeed cave on their grand idea of not letting traveling partners and professionals expense their lunches “since this is a meal that one would buy during the workday regardless of location.”
If we were to guess, this would have been #2 on the list of the new policies that garnered most of your wrath. Well, you must have let them know because the firm then came out with this:
after hearing feedback from many of you about the short-term change to meal reimbursement policy, the firm has decided that for now the existing meal reimbursement policy provides the appropriate level of flexibility and room for judgement when it comes ot managing the cost of meals while traveling….
So FOR NOW your ass better get used to value menus and $5 footlongs because we’re guessing that’s the meaning of “ROOM FOR JUDGMENT“. If there has been more correspondence from up on high about this particular issue send us the details or discuss in the comments. On the other hand, folks in the Northeast, if you’re still in the dark, let us know.
Oh, and Santa Claus is still not coming to town.
KPMG UK’s Sweet New JPM Gig
Nothing like a good (alleged) fraud story to finish up our week, eh?
Just in case you missed the story, it appears as though KPMG UK will be a tad busy in the near term trying to unravel this little mess. I suppose that’s good news for the kids working those 4 day work weeks across the pond, though the same cannot be said for JPM, who is facing an unlimited fine as a result.
UK’s Daily Mail:
More, after the jump
The FSA has called in a top firm of accountants to examine the bank’s London activities after evidence emerged that JP Morgan had mixed customers’ funds with its own.
Banks are meant to maintain a strict segregation of their own money from that which is held on behalf of clients.
But JP Morgan managers in London discovered last month that client and bank money used for trading futures and options – a way of speculating on movements in currencies, share prices and commodities – had apparently been put into a single pool.
This isn’t the first time regulatory authorities have busted firms for pooling client money and using it to play craps in the market but it is certainly the first time the FSA has gone after a big player like JP Morgan.
JP Morgan claims an “operational error” in their options and futures arm dating as far back as 2002 caused the “mix-up” though we aren’t sure we buy that line. “We identified an operational error that was corrected within 24 hours of its discovery. No clients have lost money as a result of this error and we are cooperating fully with the FSA,” a spokeswoman for the bank said.
Sure, okay. Just because no clients lost any money doesn’t make it legal. It’s now up to KPMG to slog through 7 years of transactions (at JPM’s expense) to see if any clients missed out on interest due as a result. Prelim findings are due to the FSA by the end of August, with a final report expected in September.
Have fun, KPMG UK!
Fill to be Part of a RIF at the PGA?
Continuing our coverage of Fill’s quest to not finish second in the PGA Championship, our hero has finished up his second round and he shot another round of +2. That puts him at +4 for the tournament and in serious danger of missing the cut and possibly being included in the rumored upcoming reduction in force.
Check out the latest 9 box, after the jump
Fill, this is going to be a difficult conversation. Obviously this isn’t where we’d like to see you. We had high expectations for you. Maybe too high. We have to make a lot of hard choices when there are so many talented people out there. Fill, we don’t want you to wear the Radio Station hat any more.
While there are several hackers out there the projected cut is currently at +2, so we don’t like the chances of seeing the Radio Station hat on the weekend. Got anything you want to say Fill? Tell us in the comments.
Rumor of the Day: KPMG Layoffs in Dallas Next Week
As if you didn’t need another excuse to go on a three day bender, we received a tip that audit professionals will be getting laid off at the Dallas Radio Station next Tuesday, the 18th. Tax professionals will get their turn in September, most likely after the filing deadline.
Word is that no one level is safe as the cuts will be made at all levels including partners.
KPMG did not immediately respond to our request for declined to comment.
If you’ve got more information on the sitch or you’ve heard similar rumors for other offices, drop us a line at tips@goingconcern.com.
Phil Mickelson 9 Box Update
Fill had a less than ideal first round, shooting +2, which is seven shots behind the leader. On the one hand, he’s well on his way to not winning the tournament. On the other, he’s well on his way to not finishing second.
Check our initial rating if you need to get caught up.
So after not considering a hell of a lot, we’ve come up with Fill’s new ranking:
Check out where the Radio Station billboard falls, after the jump
As you can see, Fill has dropped from the relative safety of SP5 to the less than acceptable position in NI7. He teed off at 9:35 EDT so Radio Station employees can waste their entire Friday watching Fill try to step it up.
Discuss the current ranking in the comments and if by chance you’re at the tournament following Fill, let him know that Going Concern (and Tim Flynn) would like to see more out of him today.