Accounting News Roundup: Shutdown; Former EY Partner Sues Firm; Hong Kong Audit Regs | 01.22.18

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Many SEC Functions to Cease With Shutdown [WSJ]
The Commission says it will be open for “a limited number of days” but if the shutdown continues, “At some point the SEC would stop reviewing or processing all new and pending corporate registration statements.”

Whistleblower suing Ernst & Young over gold dealings with Dubai firm [The Guardian]
Former EY audit partner Amjad Rihan claims that he was fired after blowing the whistle on a client “that was allegedly involved in money laundering and buying gold from conflict zones.” In his lawsuit, Rihan claims that his team found that the client, Kaloti, “had imported 5 tons of gold bars from Morocco painted silver to avoid Moroccan restrictions on gold exports,” among other offenses.

Why Private Equity Isn’t Cheering the Tax Overhaul [NYT]
Although the capital gains treatment of carried interest remains, the limits on tax-deductible interest expense will cramp private equity’s style.

Drown HK audit regulation in a bathtub [China Accounting Blog]
Paul Gillis writes that the Hong Kong Institute of CPAs expects the Financial Reporting Council to regulate Hong Kong audit firms with a meager budget, keeping the regulator small enough to “drown in a bathtub.”

Previously, on Going Concern…

Grant Hutchinson wrote about the benefits and challenging work at nonprofits. (This post is sponsored by BlueCross BlueShield of Tennessee.)

From the archives: KPMG To Keep Phil Mickelson in Blue Hats and Heavy Taxation For at Least Two More Years

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