PwC Not Sticking Around to See If Stein Mart Can Fix the Rest of Its Lousy Internal Controls
Here's the opening paragraph from a press release released by Stein Mart today: Stein Mart, Inc. (Nasdaq:SMRT) today announced that in connection with a review of the Company's auditor relationship, on June 6, 2013, a request for proposal was sent to several national accounting firms, including PricewaterhouseCoopers LLP (PwC). On June 11, 2013, PwC informed […]
Clifton Gunderson Plays Hardball with KPMG, Other Audit Firms By Pitching a Low Ball
Meanwhile, back in the world of where people actually do work – a friend of GC sent us the following:
I heard an amazing price war story from a very reputable source. Thought you would enjoy.
A KPMG audit client in the Virginia Beach area went out to bid. KPMG bid approx $85K, a regional firm bid mid-60K, another firm approximately 40K, and Clifton Gunderson undercut everyone by bidding $19K on the audit. 19K! How in the hell is that possible? This is a prime example of what is happening out there.
Don’t know if this is SOP at Clifton but that price has to make for some horrendous realization or it’s simply staffed by an entry-level associate and a partner. Other theories on how they plan to pull this off without completely losing their shirts are welcome.