“Zero Hedge kindly requests any and all Big 4 (and all other) accounting firm whistleblowers to please stand up and let us know of any and every case of improper accounting they are aware of (preferably with supporting documentation).”
- Caleb Newquist
- August 4, 2010
So far there are several reports of low to mid-teens and some as high as 20%, which some simply don’t believe.
We do have some specific details for assurance associates in New York and they don’t sound terrible:
NYC first year associate went from $55k to $64k, associate raises [are] coming in around 11-18%
So if you’re keeping score at home (and we know you are) it appears that the partner at E&Y who prognosticated that raises at his firm would beat PwC’s Raises appears to be right in some cases but perhaps not all.
Sooo, Ernie troops – are you happy? Disappointed? Suicidal? Ready to jump ship? Or calling your friends at PwC to brag how you’re keeping the pace? Discuss.
- Caleb Newquist
- July 23, 2010
Sir Michael Rake, the Chairman of BT Group plc (also the former Chairman of KPMG International) presumably wasn’t happy that the $2.4 billion writedown the British telecom giant had to take this past year. No one likes surprises, especially red, multi-billion dollar ones, and after some careful consideration, Rake asked PwC to clean house:
Sir Michael Rake said that PwC changed its personnel after BT expressed its concerns.
He said: “We have reviewed and strengthened our internal audit [function]. We have had discussions with our external auditors and we asked for changes in their team.
“We did a complete review as to what went wrong and why we took longer than we should have to pick up on this issue.”
There is typically some rotation in audit teams working on big accounts but for the client to demand wholesale change is rare. BT had also considered dropping the firm.
SO! Rather than give PwC the heave-ho, cooler heads seem to have prevailed. Since Rake is is a former Klynveldian, that option is out (he left in ’07) and since the FTSE 100 loves the Big 4, that only leaves two options.
Rather than go slumming with E&Y, Deloitte or – God forbid – Grant Thornton or BDO, BT will stick it out with P. Dubs. BUT a knight doesn’t have to like it.
- Daniel Braddock
- June 4, 2010
Chances are good that at this time yesterday you didn’t know anything about James Joyce III. Today, America can’t stop talking about the poor sap. His Wikipedia page has been frozen and he’s a trending topic on Twitter.
BP sent Joyce a bottle of tequila this morning, the card reading, “Thank you for taking the heat off of us. Enjoy the spotlight. Remember to wear sunscreen. XOXO – BP”
Experts have varying opinions on what this means for baseball and the implementation of instant replay. What is easier to agree on is that Joyce deserves respect not for his poor call but for the fact that he was humble enough to admit that he was wrong, saying, “I just cost that kid a perfect game. I thought he beat the throw. I was convinced he beat the throw, until I saw the replay. Biggest call of my career, and I kicked the shit out of it.”
If nothing else, Little Leaguers everywhere can learn from this moment. But the lesson doesn’t need to end there. What can every accounting firm take away from this situation in hopes of never pulling a JimJoyce* themselves?
Admit when you are wrong – Listen to your mother, George Washington, or whatever truth-telling role model you have in your life and fess up when you are wrong. Deloitte did just that back in April when they admitted to handling the “headcount adjustment” in poor fashion.
Don’t point fingers – I don’t know if you’ve noticed the bickering going on between E&Y and PwC recently, but it’s kind of…what’s the word for it…pathetic? First there was the “our raises are bigger than yours” spout from E&Y leadership. Boys, boys, keep it in your pants. Size doesn’t mat…oh wait, what? It does in this case? Well then. Brag away. Then PDubs’ London arm decided to pull a Joe McGinniss and set up camp a mere 10 meters from E&Y’s fish ‘n chips office. Awkward love affair or uber-competitive personalities? Either way it’s immature to act like this. Grow up.
Hide – Joyce is probably in the process of doing this (don’t expect him to return to the field anytime soon). But the newly branded McGladrey is leadership’s efforts to mask the fact that cuts are affecting morale and staff ranks. Perhaps no one commented on Caleb’s putting green post because no one is left. Just sayin’.
What else can your firm learn from Jimbo? Comment below.
*you heard that phrase here first.