June 22, 2018

Accounting News Roundup: ‘Accounting Improprieties’ Hit HP; Deloitte’s ‘All Clear’ Sign Off; Stanford Accountants Convicted | 11.20.12

H.P. Takes Big Hit on ‘Accounting Improprieties’ at Autonomy [DealBook]
Hewlett-Packard said on Tuesday that it has taken an $8.8 billion accounting charge, after discovering “serious accounting improprieties” and “outright misrepresentations” at Autonomy, the British software maker that it bought for $11.7 billion last year.

Deloitte's 2011 Autonomy Independent Auditor "All Clear" Sign Off [ZH]
Nigel Mercer is your signer.

Commodity trader Olam punches back after Muddy Waters attack [Reuters]
Olam International Ltd defended itself after short-seller Muddy Waters attacked its accounting practices and bet against the Singapore commodities trader. Olam's shares tumbled as much as 11 percent in heavy volume.

Adoboli Cleared of All False Accounting Counts, Guilty on Fraud [Bloomberg]
The $2.3 billion loss was "the largest from unauthorized trading in British history."

Stanford’s Accountants Guilty of Hiding $7 Billion Fraud [Bloomberg]
A jury of seven men and five women in federal court in Houston deliberated for 16 hours over three days before convicting Stanford’s ex-Chief Accounting Officer Gilbert Lopez, 70, and former Global Controller Mark Kuhrt, 40, of conspiring to hide a fraud scheme built on bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. The men were each found guilty today of 9 of 10 wire fraud counts and one count of conspiracy to commit wire fraud. “They knew the bank was doing one thing and promising investors another, and they helped hide it,” prosecutor Jason Varnado told jurors during closing arguments Nov. 14. “The only explanation for that is a criminal explanation.”

Former AICPA chairwoman named deputy president on IFAC board [JofA]
Olivia Kirtley, CPA, CGMA, a member of the AICPA’s governing Council and former chairwoman of the AICPA board of directors, has been named deputy president on the board of the International Federation of Accountants, a global organization dedicated to strengthening the accounting profession. […] “Olivia’s CPA and CGMA credentials demonstrate deep financial and management accounting experience that is crucial for the future of a profession that underpins the global economy,” said Charles Tilley, FCMA, CGMA, chief executive of the Chartered Institute of Management Accountants.
 
Chinese Tech Firm Gives Employees "Love Bonus" to Hook Up [WC]
In China’s own Silicon Valley in Sichuan Province, the Chengdu cloud computing company has decided to reward its employees for falling in love, reports the People’s Daily. […] Chengdu executives told the People’s Daily, that they came up with the idea after seeing the emotional turmoil of his young workers, awarding a financial bonus for workers willing to tuoguang – “strip” – slang for saying goodbye to the single life. Each “stripper” would get a bonus of 1112 Yuan ($180) a number that was chosen to represent 1111+1. The company hopes that if their employees fall in love with their colleagues, they will “have an even more harmonious team” – a notion that leads us to believe that they have not really thought this through. Still, the company doesn't mind it if their employees fall in love with their counterparts in other Chengdu IT firms. On the contrary! The employees finding love outside work will be awarded a bonus of 500-1000 Yuan ($80 to $160). The idea is that the Chengdu cloud company will be able to poach these enamored young engineers.

Related articles

Accounting News Roundup | 01.21.10

How to find the “best and brightest” [CPA Success]
This may be a better topic for the friendly HR professional but figuring out who these future accounting rock stars are before they show up on their first day is “more art than science”, as Tom Hood notes.
Popular to some old-school thought, GPA does not always indicate who’s going to dominate in the real world and “soft skills” — besides being a terrible term — are in more demand than ever.
Help The The American Red Cross of Greater Chicago Help Haiti [Re: The Auditors]
The American Red Cross of Greater Chicago is having a drive today and since Francine’s friend is the CFO, we’ll be glad pass around the news:

One of my oldest and dearest friends, Guillermo Becerra, is the CFO of the American Red Cross of Greater Chicago. I asked him how I could help him, and the Red Cross, during what must be an incredibly busy time post-Haiti earthquake.


“The Chicagoland community will come together on Thursday, January 21 to give to the American Red Cross as we help the people of Haiti recover from the catastrophic earthquake that devastated their country last week.
The Chicago Helps Haiti media relief drive begins at 5 a.m. and lasts until 11 p.m. Nearly every TV and radio station in our area will be promoting this fundraising effort throughout the day. You can help too, by giving via phone or online, and sharing your thoughts here, on Facebook or Twitter, and by asking others to give.
To give from 5 a.m. to 11 p.m. CALL 1 (877) 565-5000 or visit www.chicagoredcross.org/haiti

Plus, we’re guessing that if you give, your 2009 tax return isn’t much of a concern.
If Your Password Is 123456, Just Make It HackMe [NYT]
The Times is concerned that you have a shitty password which puts you at a huge risk of being hacked by someone sitting in their parents’ basement.

Imperva found that nearly 1 percent of the 32 million people it studied had used “123456” as a password. The second-most-popular password was “12345.” Others in the top 20 included “qwerty,” “abc123” and “princess.”

You know who you are, ye with stupid passwords. Also, don’t even think of changing it to “654321” because that drops in at #19.

Accounting News Roundup: Haiti Relief Passes Senate; Accounting Job Surge? CPAs Basically Control People’s Lives | 01.22.10

Senate votes for faster tax breaks for Haiti gifts [WaPo]
As expected, the U.S. Senate unanimously passed legislation yesterday that allows taxpayers to deduct donations made for Haiti relief efforts. You have until the end of February to donate so that it may be included on your 2009 return.

Maybe it’s bad legislation but we’ve been over that.

CPA Jobs Set for Surge. But When? [CPA Trendlines]
That’s the question, isn’t it? Rick Telberg, who has done a great job of tracking the Bureau of Labor Statistics on accountants, points out that while the latest BLS forecasts a 22% increase (279,400 jobs) by 2018, there’s no indication that it’s happening now:

[M]any tax, accounting and finance professionals are still slogging through the Great Recession. The Association for Financial Professionals, for instance, reported that about one in four respondents say their organizations will contract in 2010. At the same time, a PricewaterhouseCoopers survey of private companies found 43 percent of CEOs and CFOs still budgeting no expansion over the next 12 months to 18 months. The data just seem to reinforce economic uncertainties and a weak outlook.


The BLS is looking past the past the recession for the jump in opportunities but just when the hell will that be? Just because the economy isn’t contracting currently, doesn’t mean it won’t in the future and this “recovery” has been tepid at best.

Theismann to CPAs: You Are the Conscience of America [Web CPA]
Joe Theismann gets it. He knows that without all of you out there in CPA land, your clients don’t stand a chance. They’d be finished. Finished!

“You’re the conscience of America,” Theismann told conference-goers. “You are the survivors in tough times. With accountants, I’m not looking for someone to file taxes and do my financials. I can do that myself online. In your position you can basically control people’s lives.”

So get out there and control somebody’s life. Joe Theismann is expecting it.