September 23, 2018

Accounting News Roundup: Theranos’s Fraud and Busy Season Self-Control | 03.15.18

SEC Charges Theranos CEO Elizabeth Holmes With Fraud [WSJ]
Ms. Holmes and Theranos’s former president, the SEC said, perpetrated ” an elaborate, yearslong fraud in which they exaggerated or made false statements about the company’s technology, business and financial performance.” As part of the settlement, Holmes gives up control of the company she founded in 2003 and is banned from being an officer or director of a public company for ten years. A criminal investigation is ongoing.

During busy season you need to work less. Do it by getting paid more. [Thriveal]
Our resident artist Greg Kyte writes over at Thriveal’s blog about the dropoff in productivity, but other stuff too. “We have a certain amount of self-control and it gets used up as we go through the day. By forcing yourself to stay at work for 11 or 12 hours, you gobble up your self control. That’s why you eat like crap from February through April.”

Finance Teams Face Budget Cuts Amid Digital Transformation [WSJ]
A study by the Hackett Group reported that finance departments expect budgets to be cut a smidge, 1.3 percent in 2018. This is down from reductions of 3.4 and 4.0 percent in 2017 and 2016, but CFOs “are unable to fully implement the digital tools needed to further streamline operations without more resources.”

Senate passes rollback of banking rules enacted after financial crisis [WaPo]
The bill allows banks with less than $250 billion in assets to be exempt from certain Dodd-Frank provisions, among other things. It heads to the House where lawmakers want to weaken the oversight of the Consumer Financial Protection Bureau.

Previously, on Going Concern…

Greg Kyte’s Exposure Drafts cartoon addresses dating and the CPA exam.

I noted that off-balance sheet liabilities are still successfully hiding the ugly.

From the archives: CPAs Acting Out a Scene from the Empire Strikes Back

In other news:

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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.