Accounting News Roundup: Embracing Technology and A KPMG Museum | 05.23.17

Strauss-Kahn Case Seen as Near Collapse [NYT]
The sexual assault case against Dominique Strauss-Kahn is on the verge of collapse as investigators have uncovered major holes in the credibility of the housekeeper who charged that he attacked her in his Manhattan hotel suite in May, according to two well-placed law enforcement officials. Although forensic tests found unambiguous evidence of a sexual encounter between Mr. Strauss-Kahn, a French politician, and the woman, prosecutors now do not believe much of what the accuser has told them about the circumstances or about herself. Since her initial allegation on May 14, the accuser has repeatedlaw enforcement officials said.

They’re Everywhere! Big Four Auditors Mixed Up In Mortgage Fraud [Forbes]
Francince McKenna sees “complicit auditors.”

Geithner Exit Would Force Obama to Rebuild [Bloomberg]
Treasury Secretary Timothy F. Geithner’s potential departure from the administration would force President Barack Obama to assemble a new economic team as he enters a re-election campaign that’s likely to be dominated by voter concern over jobs. Geithner has told Obama that he’s considering leaving the administration after the president reaches an agreement with Congress to raise the national debt limit, according to a person familiar with the matter.

Bill Clinton Backs Tax Holiday on Foreign Profits, With Caveats [Bloomberg]
Former U.S. President Bill Clinton endorsed a tax holiday on repatriating offshore profits with conditions, taking a position contrary to the Obama administration. “I favor it under certain circumstances,” Clinton said in an interview with Bloomberg Television’s Al Hunt yesterday in Chicago. He suggested an approach that would give companies a 20 percent tax rate on repatriated profits, which could be reduced to 10 percent if they “reinvest it in increasing employment in America.”

H-P Girds for iPad Battle [WSJ]
H-P’s device, the TouchPad, comes more than a year after Apple started selling its iPad. In that time, Apple has sold more than 25 million tablets and added nearly $100 billion in market capitalization. H-P, meanwhile, has lost $50 billion. H-P is planning a marketing blitz for the TouchPad. But it faces an uphill battle in the fast-growing tablet market, which is dominated by the iPad and crowded with devices from Samsung Electronics Co., Motorola Mobility Holdings Inc. to BlackBerry maker Research In Motion Ltd. “We know we’re the fifth man in a four-man race,” said Richard Kerris, the H-P executive in charge of developer relations.

Minnesota government shuts down [CNN]
A budget stalemate forced a virtual full shut down of the Minnesota government on Friday and left only a limited array of state services in operation over the busy holiday weekend. Visitors won’t be able to go to the state parks or the zoo, and travelers will find the highway rest stops shuttered. Road construction projects will cease, as will licensing for teachers and businesses.

Accounting woes threaten Chinese listings in Singapore [Reuters]
The string of blow-ups at overseas-listed Chinese companies could derail Singapore Exchange’s efforts to revive investor confidence and dent its status as a major trading hub for mainland issues. The bourse’s long-running charm offensive in China means Chinese stocks, known in the city-state as S-chips, now make up around 20 percent of its 779 listed companies, up sharply from April 2004 when there were just 41 mainland firms listed on the exchange. But a rash of accounting problems that broke this year, reminiscent of a previous wave in 2008 in Singapore, threatens to undermine SGX’s strategy as investor interest fades.

PricewaterhouseCoopers names new managing partner in Kansas City [KCBJ]
It’s New Year’s Day at PwC (E&Y too) and John Martin takes over in Kansas City from James Gegg. Well, sort of. The entire firm has the day off.

IRS Stuck with $153.3M in Undelivered Tax Refunds [AT]
In what has turned into an annual ritual for the service, the IRS said it has a fortune waiting in its coffers that could not be delivered to taxpayers because of mailing address errors. Taxpayers can still claim their refunds, though, and can probably use a little help from their accountants. The average size of an undelivered refund check this year is $1,547, which makes a nice stocking stuffer for the holidays.

Accountant: Bills for library maintenance ‘didn’t pass the smell test’ [Centro decision on hold for another day [SMH]
Investors in Centro Properties must wait until 11am tomorrow morning to hear if the proposed aggregation plan of its trusts will occur after a court order stopped the process late today. While Justice Barrett passed the scheme of arrangement earlier today, the lawyers for PwC immediately requested a stay of execution in order to read the judgment and determine if PWC wished to appeal. After a two and a half hour session, Justice Barrett in the NSW Supreme Court agreed to a request from the defendant, PwC, to halt any action until 11am tomorrow.

90% of HMRC staff on strike [Accountancy Age]
UNIONS have estimated that up to 90% of HM Revenue & Customs staff are on strike today. The PCS union, which represents lower ranking staff, announced the figure following “early reports” of staff staying away from work. The major public unions are striking over cuts to jobs, pay and pensions. PCS general secretary Mark Serwotka, said: “The impact of these cuts will not only be felt by public sector workers. It will also be felt in those communities where they live and spend their wages, which is why it needs to be stopped.”

At Deloitte, More Pain Before Any Quality Gain [Re:The Auditors]
Francine McKenna: “[A] confidential, internal Deloitte training document, prepared this past summer, […] reveals the firm expects the worst when the inspection reports for their 2009, 2010, and 2011 audits are published by the PCAOB. The 2009 report should be out by the end of this year. The training document also shows how difficult it is for Deloitte leadership to steer the largest global firm away from the “audit failure” iceberg.”

The Big Four Accounting Firms’ Financial Tipping Point — Time for a Fresh Look [Re:Balance]
In the wake of the EU reform goodie bag bonanza, Jim Peterson keeps things in perspective.

Tax Exam Question: 80-Year Old Man Donates Suit to Goodwill With $13k Life Savings Sewn Inside Lining [TaxProf]
An 80-year-old Illinois man mistakenly donated an old suit to Goodwill with his $13,000 life savings sewn inside the lining. (He kept the savings in the suit because he did not trust banks.) He is offering a $1,000 reward for the return of the money, which he needs to help care for his wife, who is battling stage-four cancer.

GOP warns troops on tax votes [The Hill]
House Republican leaders warned their caucus the GOP risks losing its image as the party opposed to tax hikes if it allows the one-year payroll tax break to expire at the end of the year. Majority Leader Eric Cantor (R-Va.) told his rank and file in a closed-door meeting Wednesday that “taxes are a Republican issue and you aren’t a Republican if you want to raise taxes on struggling families to fund bigger government,” according to a source in the room. The leadership bid for support represents the GOP’s clearest endorsement yet of the tax extension, which is a cornerstone of President Obama’s jobs plan.