• Accounting News Roundup: Reminder: Everything Is in the Cloud | 07.13.17

    By | July 13, 2017

    Cloud Cloud Cloud

    Hey look, everyone, it’s 2017, and the AICPA is still offering people three reasons to “embrace cloud-based technology.” Greg Kyte tweeted it best: You only need one reason to embrace cloud technology: everything is in the fucking cloud. Like, everything. Email. Banking. Ordering food. Your vacation photos. Getting a ride from a stranger in their car. Your friends that you go out of your away to avoid. All of these things are safely in the cloud. And yes, accounting software and all sorts of handy work stuff are in the cloud now too.

    The cloud, aka the Internet, has been around for quite a while and, for the most part, it works quite well. Sure, sometimes there are problems, but it can’t burn to the ground in the literal sense or suffer massive water damage like physically stored things can. And, hey, the cloud aka the Internet doesn’t even care if you pour a Coke onto your computer or run it over with a Mack truck. Once you get a new computer, all your stuff will be right there waiting for you. Of course, you’d never let anything happen to your smartphone, which can access the cloud just fine too, so you don’t even have to wait to get that new computer.

    So I guess what we’re saying here is this: Yes, embrace the cloud. But asking people to embrace the cloud is like asking them to embrace oxygen, or pizza, or sex, or iced tea on a hot day, or cat videos (which are, conveniently, in the cloud). You shouldn’t have to ask them. And if you do have to ask them, they’re beyond help.

    How’s Toshiba doing?

    Well, addressing media reports that say your auditor might not express an opinion on your overdue annual report is never a good sign:

    Toshiba Corp […] on Thursday denied a media report that the company was told by its auditor that it would not provide an opinion, or an endorsement, for its annual report.

    Toshiba has been unable to file an audited financial report for the year ended March. It has been at odds with auditor PricewaterhouseCoopers Aarata (PwC) since a surprise writedown at its now-bankrupt Westinghouse nuclear unit.

    Oh, Arthur Andersen

    This story about the sale of a building once owned by Arthur Andersen in Sarasota, Fla. has a sad little anecdote:

    The 157,000-square-foot complex, 101 Paramount Drive, was built in 1999 and occupied by Arthur Andersen, the “Big Five” accounting firm that once employed 1,000 people in Sarasota after moving its tax software division here. The company had been the auditor for Enron, the Texas energy corporation that collapsed in 2001 after it was found to have engaged in a massive accounting fraud.

    The taint of the scandal was so strong that the name of the street was changed in 2013 from Arthur Anderson Parkway to Paramount.

    It’s true! Here’s the story in the Sarasota Herald-Tribune from 2013 with its own gloomy details:

    The name change was pushed by a company that plans to soon announce its relocation to the Sarasota Commerce Center and one of two large office buildings in the office complex.

    The company insisted that “Arthur Andersen” had to go.

    “It was a deal breaker. We are working with a tenant who felt very strongly about it,” said Lori Hellstrom, director of leasing at Osprey Real Estate Services, whose parent company owns the building.

    “Arthur Andersen is not something they wanted to be associated with. Most people would agree with that. It was long overdue,” Hellstrom said.

    To be fair, to keep a name for 11 years after imploding in scandal is pretty impressive. You’re not going to come across anything named “Madoff” these days.

    Previously, on Going Concern…

    I wrote about EY’s new partner class. In Open Items: Cyber Security @ Big 4.

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