Tag: Survey says…

Report: Nearly 20% of Financial Statement Users Think the Auditor’s Report Is Worthless

Last December, the PCAOB announced that they were going to kick around some ideas for a new and improved audit model. See, you may have heard about a few financial institutions that, it turned out, weren’t in such great shape. Funny thing – all these companies had clean audit opinions. This got people asking pretty awkward questions out loud like, “Are Auditors Irrelevant?” and making statements such as, “Get rid of [them]” AND “They add no value.”

The PCAOB listened to all this gnashing of teeth for about a year (or maybe their entire existence) and they came to the conclusion that some conversations needed to be had and even some changes might be appropriate. What exactly does that mean? Well, it sounds like we’ll hear some suggetions next Thursday when the next Standing Advisory Group meeting is held but in the meantime, the PCAOB’s Investor Advisory Group was plenty busy today, making several presentations that included some very interesting findings.


The first is “Improving the Auditor’s Report” that was prepared by Joseph Carcello of the University of Tennessee, Norman Harrison of Breeden Capital, Gus Sauter of Vanguard and Ann Yerger of the Council of Institutional Investors. Some items worth noting:

• 45% of respondents believe that the current audit report does not provide valuable information that is integral to understanding financial statements while 23% of respondents believe the current audit report provides valuable information.

• 18% believe the auditor report is of no use to them at all.

• Two selected comments from the report: “The statement feels very binary. Either a qualified opinion or not. Not a lot of incremental information once a company gets an unqualified opinion.” and “The audit report is valuable both because of what it says, i.e., an opinion, and by virtue of what it does not say, i.e., an exception.”

• Examples of disclosures that users were asked about: Disclosure of risks (“77% believe auditor should disclose areas with greatest financial statement and audit risk and the audit work performed in those areas”); disclosure of audit hours (“51% believe the auditor should not be required to disclose hours spent on individual financial statement accounts”); materiality thresholds (“56% believe the auditor should disclose quantitative and qualitative materiality thresholds and considerations”); audit partner signature (“44% support requiring the audit partner to personally sign the audit opinion”).

There’s more where this came from so check out the full presentation for some interesting reading. We’ll have more tomorrow.

Chief Audit Executives Like Sarbanes-Oxley…No, They Really Like It

A new survey of more than 300 chief audit executives (CAEs) by Grant Thornton LLP finds that while nearly half believe that the shifting regulatory landscape poses the greatest threat to their company, a vast majority (88%) do not believe that the Sarbanes-Oxley Act (SOX) should be repealed. Of those that believe SOX should be repealed, the cost of compliance is the main reason for doing so. “Since the passage of SOX, organizations have had to dedicate significant resources to comply with a host of new laws and regulations,” noted Warren Stippich, a Chicago-based partner and Grant Thornton’s national Governance, Risk and Compliance solution leader. “Based on discussions with various CAEs during the survey process, many believe that SOX brings a continued focus by management on financial and governance-related controls. However, CAEs believe that compliance audit processes are now well-defined and are currently exploring ways to contribute value creation to the organization well beyond compliance monitoring and reporting.” [GT]

Nearly One in Four of Your Co-workers Is Not Down with March Madness Pools

Our friends at Vault put together a fun little survey on your gambling habits at work and, no surprise, nearly 75% of you participate in a March Madness pool. What about the remainder? Well, there are the puritanical types who probably leave Bible verses on your desk, “My office is awash in sinners. Some day a real rain will come and these cubicles will be cleansed.” But then there’s the jerks who are simply all business:

“The next time I see [colleagues using work time to focus on office pools], I’m going to put an anonymous note on all the bosses desks to make them aware” warns one respondent. (Presumably they fall into the 22 percent of respondents who disapprove of workplace betting altogether.)

If you know someone who is capable of this level of dickishness, the temptation to violently pinch them with a stapler remover is great, however we’d ask that you refrain from this until they actually make good on their threat. Of course if you impress upon them that there is a valid purpose for studying a bracket, maybe they’ll let it slide.

Vault 2011 Office Betting Survey

View more presentations from philstott.

New Robert Half Survey Reveals CFOs Will Need You to Go Ahead and Come in on Saturday

We’re not very good at math or statistics so perhaps our numbers are off a bit, but how do 89% of CFOs expect their firms to grow in the second quarter of 2011 while 85% also do not expect to add any new full-time accounting and finance professionals? It doesn’t take a mathlete to figure out what that means for those of you lucky enough to work for these CFOs, so you better get to slacking off now before they come down to your cube and kindly inform you you’ll need to go ahead and come in on Saturday.

Robert Half interviewed 1400 CFOs across the country for their Robert Half Financial Hiring Index and here’s what they came up with:

Most (85 percent) chief financial officers (CFOs) interviewed for the Robert Half Financial Hiring Index said they expect to make no changes to their current staffing levels during the second quarter of 2011. Seven percent anticipate adding full-time accounting and finance professionals, while another 7 percent plan personnel reductions. The net 0 percent projection is down two points from the first-quarter 2011 forecast.

As businesses navigate the current economy, they remain optimistic about the outlook for their own companies. Eighty-nine percent of CFOs expressed confidence in their firms’ growth potential in the second quarter, up one point from the first-quarter survey.

Looking to relocate? Try the Pacific or Mid-Atlantic regions. Twelve percent of CFOs plan to add full-time accounting and finance professionals and 5 percent foresee cutbacks, a net 7 percent increase.

“Many Pacific-region companies, particularly those in the manufacturing and technology sectors, are rebuilding their teams to meet renewed demand for their products and services,” said Max Messmer, chairman and CEO of Robert Half International. “In particular, firms are looking for skilled financial analysts to help them control costs and prepare for potential growth.”

In the end, a net 0 hiring projection is a lot better than previous recent surveys which were in the negative however we’d be remiss if we did not point out that the last time the survey showed a net 0 projection was for 3rd quarter 2008. And we all know how that particular period of time went.

What does this mean? New grads who are still waiting around for jobs can keep waiting, and more seasoned professionals who have been out of work for quite some time should probably just give up. Thanks for the great news, RH!

Are Accountants in Denial About North Africa?

From February 9th to 24th, they may have been.

A CPA Outlook Index put together by the American Institute of Certified Public Accountants and the University of North Carolina rose to its highest level since the third quarter of 2007 — before the recession took hold. That was largely due to a big jump in optimism over the U.S. economy, but the 1168 accountants surveyed were also felt better about their own firms and expect stronger sales, profits, spending and hiring. The survey was conducted between Feb. 9 and 24 — a period that captures the resignation of Egypt’s Hosni Mubarak, growing unrest in Libya and rising energy prices. That offers evidence that, thus far, the tremors in the Middle East and North Africa haven’t seriously unsettled U.S. businesses.

Possibly related – CBS had just suspended Two and a Half Men on February 24th, thus, this survey may not accurately reflect the effect this loss has had on our nation.

Accountants Get More Optimistic [WSJ]

Survey Says: Accountants and Small Businesses are Optimistic About the Future

It must be survey season so since you kids received the last one so well (surely I jest), we humbly present this latest survey of 1,217 Intuit small business and 1,200 Intuit accountant customers between Oct. 15 – 20, 2010. Thanks, Intuit!

The good news is that there really is no good news but that hasn’t put a damper on survey respondents’ view of things to come. It’s sort of exceptional, in our opinion, that 75 – 80% of respondents feel today’s economic climate is just fair or poor but more than that feel optimistic about opportunities in the future.

In a considerable showing of resilience, 65 percent of accounting professionals and 54 percent of small business owners said their companies grew in the last 12 months. Despite this growth, 75 percent of accounting professionals and 80 percent of small business owners rate today’s economic climate as “just fair” or “poor.”

Both groups expressed optimism for the future, with 94 percent of accounting professionals and 87 percent of small business owners seeing opportunities to grow their businesses in today’s economy.

Well if there are going to be new opportunities once things look up, where are they going to come from? According to respondents, news and technology are the key:

77 percent of accounting professionals said “access to industry news and/or trends” is the most important; “investing in new technology” ranked second.

73 percent of small business owners placed “marketing and/or advertising” as the most important; 57 percent said they plan to focus on “expanding their range of offerings.”

Funny, Sage just asked 533 accountants and IT professionals what keeps them up at night and they responded with getting new clients and regulatory compliance. For Intuit’s respondents, however, client retention ranked higher than finding new ones.

When asked what keeps them up at night, 32 percent of accounting professionals said “keeping clients happy.” For 26 percent of small businesses, “paying bills” is their number one concern.

Fine, so what does all this mean?

“Accounting professionals and small business owners are extremely adaptable and flexible individuals,” said Shawn McMorrough, lead research manager of Intuit’s Accounting Professionals Division. “Despite feeling the pinch in this challenging economic environment, they are optimistic and continue to weather the rapidly shifting business environment. Their unrelenting passion for serving their customers helps accounting professionals and small businesses succeed in the face of any challenge the market presents them.”

Should the rest of the world take that as a good sign that things aren’t as bad as Jr Deputy Accountant, Michael Panzner and the Mogambo Guru might make it seem? It looks that way, though the doomsayers are still in business for the foreseeable future. Yay?

Being Twitter Savvy Does Not Keep Accountants Awake at Night

Because we can never get enough surveys, Sage came through with the skinny on what keeps accountants awake at night (no joke). We’re proud to say that alcoholism and Caleb’s typos did not make the list but there’s always next year. Way to go, profession!


Sage surveyed more than 500 of its Sage Accountants Network members across the U.S. in December 2010 to figure out what gets accountants’ knickers in a twist. Results as follows:

Among the 533 respondents, 34% stated that getting new clients tops their list of concerns. 28% cited tax law complexity and changes as an issue; followed by the effect of new regulations and standards on small firms, keeping up with technology, and time management concerns, all at 24%. Work/life balance was cited by 20% of respondents, and keeping up with professional standards was a key concern for 17% of those surveyed. 13% of respondents cited access to affordable healthcare for employees as a worry for their firms.

Perhaps in response to the search for new clients, 83% of firms currently specialize or are planning to specialize in specific vertical business segments. By far, services/consulting was the most popular category for specialization (63% of those surveyed), followed by construction at 43% and retail at 39%. Other popular areas of specialization include working with nonprofits (35%), restaurants (30%), and manufacturing/distribution (29%) clients.

The full survey may be found here.

We found it a bit odd that retaining clients, retaining staff and managing staff came in at 9%, 3% and 2%, respectively. Obviously there is a bit of a work/life balance overlap in there somewhere but because we here at Going Concern know no such thing, we could not bring ourselves to analyze these results further.

It’s the social media section of the survey that shocked us most. Not to say that the results themselves were shocking, exactly, as the shocking part lies in how some of these firms actually manage to make money. What do they use to attract new clients, carrier pigeons and sandwich boards? Thirty-seven percent of survey respondents use their own websites as “social media,” though in our humble opinion the “social” part means using a more conversational form of communication than some .com with your firm name in it. Twenty-eight percent use LinkedIn, 19% are on Facebook and – wait for it – 7% have gotten into Twitter. 7%! A frightening 43% of respondents don’t use social media at all, perhaps explaining why 34% are concerned about getting new clients. They must not be that concerned if they aren’t using social media to put themselves out there.

Know what this says to me if I’m a firm looking to make a killing through social media? Hit Twitter, it’s a no man’s land and you won’t have to elbow out the competition. Really, people? 7%?!

Know what else this also says to me? All my evangelizing about not acting like an ass on Twitter has been in vain; if firms aren’t using it, they probably don’t know how to search for your tweets about getting wasted and wanting to stab the senior for acting like a jackass. So have at it, it’s just you and the MLM bots tweeting out there until these guys get a clue and jump on board.

I think you kids know what to do from here.

Your Company Smartphone Scares the Crap Out of Your Boss

Let’s be honest here, how many of you use your work-issued phone strictly for work? Promise I won’t snitch anyone out. Some of you might even be lucky enough to be able to tweak your wallpaper, add apps and get your significant other on BBM for all day sexting without the pesky messaging data trail.

The AICPA’s 2011 Top Technology Initiatives Survey is out and shows that IT professionals’ biggest business technology concern is not that they could be replaced with robots but the proliferation of smartphones and other mobile devices in the workplace.

The 22nd Annual AICPA Top Technology Initiative survey, conducted Jan. 13 to Jan. 26, shows control and use of mobile devices was the No. 1 challenge for IT professionals. The finding was based on responses from nearly 1,400 CPAs nationwide specializing in information technology. In addition to mobile devices, the survey signaled future IT issues will revolve around implementation of touch-screen technology, deployment of faster networks and voice recognition technology.

“The surging use of smartphones and tablets means people are doing business, exchanging sensitive data wherever, whenever they want to,” said Ron Box, CPA/CITP, CFF. “The technology is advancing so rapidly that the capabilities for controlling and protecting the information on mobile devices is lagging behind. What was once as simple as losing your phone, could now create an enormous security risk for organizations.”

Remember back in the day when you might, say, accidentally drop your phone in the toilet at the bar and simply have to worry about recouping your contact list? Now our phones hold pictures, banking information and even client information that is oftentimes carelessly stored on unsecured devices that are taken everywhere. IT professionals can’t be expected to manage the network when the network is in your pocket, and when your pocket sometimes happens to be in the bar (you are a professional, after all).

Some of the top issues identified by CPAs in public accounting included data retention, control and use of mobile devices and privacy.

The complete Top Technology Initiatives list as voted on by CPAs, IT professionals, and others responsible for making or influencing technology decisions includes initiatives and emerging technologies that IT decision makers should be aware of over the next 12 – 18 months.

Deloitte: Thanks to the Internet, Americans Are More or Less Obsessed with TV All the Time

One big concern: once Charlie Sheen continues his epic run (does anyone believe that rehab is going to take?) will the masses be able to survive without Two and a Half Men? Personally, I’ll manage but what about all those American Families that depend on this show to complete that void in their lives every week?

In a media environment saturated with new and evolving online entertainment platforms, TV continues to be king. Released today, Deloitte’s fifth edition “State of the Media Democracy” survey reveals that 71 percent of Americans still rate watching TV on any device among their favorite media activities.

The survey results indicate that live viewing on a home TV system continues to be the most common method among individuals for watching their favorite programming, and supporting the notion that traditional television advertising continues to be a viable model. In addition, 86 percent of Americans stated that TV advertising still has the most impact on their buying decisions.

Deloitte’s State of the Media Democracy survey assesses media consumption preferences of nearly 2,000 consumers, ages 14 to 75 years old in the United States, revealing significant trends including the power of TV when supplemented by the Internet, a dramatic rise in smartphone adoption, the steady popularity of print magazines, and the emergence of cloud computing as a potential consumer entertainment storage and access solution.

And guess what? Not only are people watching more TV, they’re talking about it more. But not face-to-face: Americans can’t be bothered with leaving the confines of their homes or take their eyes off their computers long enough to manage human interaction and thanks to social media, they don’t have to!

Deloitte’s survey indicates that the Internet, mobile and social media channels are enhancing the overall television viewer experience, driving people to watch first-run programs and live events during their initial broadcast. The survey also reveals that nearly three-quarters of American consumers are multitasking while watching TV. According to the research, 42 percent are online, 29 percent are talking on cellphones or mobile devices, and 26 percent are sending instant messages or text messages.

Perhaps even more importantly, 61 percent of U.S. consumers now maintain a social networking site, where constant streams of updates and discussion forums have made delaying awareness of live TV outcomes a near impossibility.

“Consumers are not only watching television, they are talking about it, and those conversations are frequently taking place in real-time online and via IM/texting,” said Phil Asmundson, vice chairman and technology, media and telecommunications industry leader, Deloitte LLP. “By embracing the Internet as a platform that encourages audiences to participate in discussions about their favorite programs, television is maintaining its hold on the American public. People want to be part of the real-time conversation and they are embracing both platforms in a complementary fashion.

Because discussing the train wreck that is Sammi and Ronnie in real time is crucial to the human experience. Carry on.

PwC Survey: Working People to Death Might Cause Them to Quit Their Jobs

Shocking survey results out of PwC today as the firm announced that overworking staff increases turnover at law firms. If you can believe that.

There is a “strong correlation” between staff turnover and chargeable hours at law firms, according to PricewaterhouseCoopers.

Numbers released as part of their annual survey of the sector show that the top ten law firms have average turnover rates of 17-18%.
According to the accountancy firm, reducing turnover to less than 10% can reduce costs by £32,000 per equity partner.

In semi-ironic and related news, a bunch of bitter Big 4 employees finally decided over the Thanksgiving holiday that they would be leaving their respective firms because they are sick of the hours.

CFOs: We’ll Adopt IFRS Just as Soon as You Finish Your Little Convergence Exercise

Actually it’s about half of CFOs with that attitude, according to Grant Thornton’s latest survey. They’re ballparking it around 5-7 years while nearly a quarter of the responders think we need to get on this ASAP.

Stephen Chipman, is keeping the faith even though, people aren’t as enthusiastic as he:

“While there is movement toward greater acceptance of International Financial Reporting Standards based on our previous surveys, it is clear that there is still much work to be done in educating the U.S. financial community on the benefits of IFRS,” said Grant Thornton LLP CEO Stephen Chipman.

“We have been, and continue to be, staunch supporters of the ongoing movement toward one set of high-quality, globally accepted accounting standards. As dynamic businesses continue to expand their international footprint, it is increasingly sub-optimal to be using different reporting standards, which sometimes increase costs while decreasing comparability. Just as international business has benefited over the last 30-odd years from the increased shared use of English, so too will global companies reap the benefits of one financial reporting language.”

Deloitte Survey: If Everyone Would Get Passionate About Their Job, This Economic Recovery Would Be a Cinch

Doesn’t it sometimes feel like we’re thisclose to breaking out of the economic doldrums? If we just got a little push we’d be back to the McMansions and mall marathons in no time. What’s holding us back, you ask? Ourselves of course!

It’s your lack of enthusiasm about your very own job that is keeping this country from being great again. Forget about Democrats, Republicans (although, it is fun hating both of them, isn’t it?) or quantitative easing (no one really knows what it means, anyway). You have the power deep inside you to change your attitude about being stuck in a gray cubicle for 12+ hours a day in an office with a bunch of jerks and have only limited access to the bathroom.


Deloitte’s survey gets all Tony Robbins on us without the price tag:

According to the Shift Index, the solution lies in empowering passionate employees, those who feel truly engaged with their work and constantly push the performance envelope, by accelerating institutional innovation and driving corporate growth. However, Deloitte’s 2010 Worker Passion Survey – one of several separate studies that feed into the overall Shift Index report – reveals that only 23 percent of U.S. workers are passionate about their current jobs.

“By squeezing resources tighter in response to the near-term downturn, companies risk losing passionate employees,” said John Hagel, co-chairman, Deloitte Center for the Edge. “These individuals will play a critical role in sustaining the extreme performance improvement required for firms to survive and succeed beyond the recovery. Unfortunately, as the recovery picks up steam, these very employees are likely to be the most at risk for fleeing for better employment platforms.”

Right then! And you know what gets people impassioned? Social media of course! Your constant desire to be networking 24/7 with people that are as excited about [insert] as you are. You don’t need to meet a person in the flesh:

“Passionate workers actively seek like-minded people using digital tools and social media to advance dialogue, learning and collaboration,” said Hagel. “Their urge to connect fuels inter-firm knowledge flows, which often go unrecognized but are a vital part of any organization that wants to be successful in today’s hyper-competitive environment.”

So until you’re ready to get drenched in passion for whatever it is that gets your blood boiling (former Jets sideline reporters don’t count) you’re holding this economy back. Hope you sleep well knowing that.