CohnReznick Has Had It Up to Here with Mazars USA’s Poaching

Last year, three CohnReznick CPAs—two partners and its chief operating officer—started new jobs as partners at Mazars USA. You would have thought Mazars would’ve sent out a press release about its new haul, like it did last September when it poached two people from KPMG, but the firm kept the CohnReznick poaching a secret. No […]

Playing Candy Crush Is More Interesting Than Life at Deloitte

Dude in the back can’t put his phone down because he’s on Level 971, you guys. View this post on Instagram Official kick-off for the program by Deloitte Leaders Jon Guerena (RISE Program Sponsor & Dean), Haissam Issa (National Managing Principal- CBO) and Kwasi Mitchell (Chief Inclusion Officer) sharing the firms vision for future. Everyone […]

Just How Important Is Which Big 4 Firm You Work For Anyway?

There’s a lively discussion going down on Reddit this morning over this article I’m about to share with you, and I’d recommend checking out the thread if you love to bear witness to semi-anonymous spats about hiring practices on the internet. But we’re not here to talk about that, we’re here to talk about the […]

Big 4 CEOs Crash Davos’ Economic Party

The 2020 World Economic Forum annual meeting kicked off today in Davos, Switzerland, and all of our favorite Big 4 ringleaders from PwC, Deloitte, EY, and KPMG are there and accounted for: BoMo, T-Ry, Punit, Carmine, Kelly, and Lynne. We got the obligatory scenic Swiss Alps shots: Excited to be at #WEF20 again and already […]

Friday Footnotes: The Joys of Accounting; Big Data; Empowered! | 1.17.19

‘Friendly Competitors’ Merge To Form New Boutique CPA Firm [The Newtown Bee] Two local companies whose principles all trained at several of the nation’s most prestigious accounting firms — and who always described themselves as “friendly competitors” — recently merged to form a new and expanded boutique enterprise that local individuals, businesses, and nonprofits can […]

SEC Takes Away Privileges From Another Felon In KPMG/PCAOB Scandal

David Middendorf’s trial buddy, Jeffrey Wada, the now-former PCAOB inspections leader who fed confidential information about upcoming audit inspections to some folks at KPMG, including Middendorf, in the hopes of landing a job at the Big 4 firm, is now prohibited from appearing or practicing before the Securities and Exchange Commission as an accountant. Wada’s […]

Kamp KPMG’s Head Counselor Is Running the Winter Interns Ragged

Lynne Doughtie is building up the KPMG recruits’ stamina for those marathon, 16-hour days during busy season. View this post on Instagram When you’re an intern who just started and the Chairman and CEO joins you for a morning run!! Proof we really live and believe in our core value, #Together. #kpmgfamily #leadership #KPMGLakehouse #kpmgnit […]

FASB’s CECL Standard Is a Disaster Waiting to Happen

“A simple accounting standard is going to decimate the people in my district’s ability to have home mortgages. This has got to stop. This can’t continue. You should stop and look at the damage you’re going to be doing to the citizens of this country. And in essence after that happens, it’s going to devastate […]

Convicted Ex-KPMG Partner David Middendorf Suspended By the SEC

Another “KPMG 5” executive who will be serving prison time for his role in a scheme to steal confidential audit inspection lists from the PCAOB was suspended today from appearing or practicing before the Securities and Exchange Commission as an accountant. The SEC released the following two-page order of suspension against David Middendorf, former national […]

Which Firm Had the Most IPO Audit Clients In Q4 2019?

Our friends at Audit Analytics just released their analysis of the initial public offering auditor market share for the fourth quarter of 2019. But before we look at Q4’s results, let’s quickly review the previous three quarters’ IPO audit engagement leaders: Q1: Marcum 8 ($896 million raised) Q2: Deloitte 17 ($7.87 billion raised) Q3: EY […]

Platinum Hedge Fund Investors Aren’t Big Fans of CohnReznick

CohnReznick is being sued by 49 investors of an ill-fated Platinum Partners hedge fund who claim the accounting firm is complicit in and benefited from a fraud that doomed Platinum. Institutional Investor reported: The group of investors, who collectively sunk $63 million into the Platinum Partners Credit Opportunities Fund, filed a lawsuit against CohnReznick in the […]

Sometimes Life at PwC Involves Bad Improvisation

I don’t think we’ll be seeing Sarah and Rod on Who’s Line Is It Anyway? anytime soon. View this post on Instagram In our digital world, learning from human mistakes can result in big opportunities. This episode features Digital Talent Leader @smceneaney & Talent Acquisition Leader @rodadams9 using improv to share why it’s important to […]

BDO’s World Domination Tour Makes Its Next Stop: Baltimore

Cookies will be served. Why Baltimore? Maybe because BDO USA CEO Wayne Berson is a big fan of Under Armour apparel? Or maybe because he’s binge-watching all five seasons of The Wire on HBO Now? Nah, it’s because BDO just bought a Baltimore-area investment and tax advisory firm. Baltimore Business Journal reported: Chicago-based BDO completed […]

Mike McGuire Is Retiring From Grant Thornton

Mike McGuire with his man-crush, Rickie Fowler. Farewell to Mike McGuire, former CEO-turned-CEO emeritus of Grant Thornton, who is hanging it up in February after 17 years with the Purple Rose of Chicago. “I am so pleased about the progress we’ve made growing our firm and serving clients’ needs during my time at Grant Thornton,” […]

Accountants Behaving Badly: Ex-Senator’s Tax Guy Gets 18 Months, Embezzling $65M From Clients, Swindling Chamber of Commerce

Plus, retired Arkansas accountant pleads guilty to bank fraud, and soon-to-be-jailed Wisconsin accountant used stolen tax refunds to buy a hooker and drugs. Accountant who helped Brian Joyce evade taxes sentenced to 18 months in prison [Boston Globe] John Nardozzi, a CPA from Waltham, MA, who conspired with former Massachusetts senator Brian Joyce to cheat […]

Grant Thornton Made a Little Magic Happen In 2019

Despite layoffs at its U.S. firm and general malaise about its audit practice in the U.K., Grant Thornton pulled a rabbit out of its hat and managed to increase global revenue by 5.1% to $5.72 billion in the 2019 financial year that ended on Sept. 30. Instead of me regurgitating all the numbers provided in […]

Listicle of the Day: Big 4 Bliss?

Each Big 4 firm has unhappy employees. But if you work at Deloitte, EY, and PwC, you must not be as miserable as those lost souls who work at KPMG, according to CareerBliss’s 2020 ranking of the 50 happiest companies in the U.S. The career and recruiting website used 10 factors—including culture, leadership, work atmosphere, […]

RSM U.K. Did a Little House Cleaning

There recently was a shake-up among management at the Queen’s RSM, as the firm kicked a couple people out of the C-suite after it misstated its results by almost £10 million over two years. Sound familiar? Does anyone here remember RSM Tenon? This is the second time that RSM’s internal accounting has tripped it up. […]

What Do You Guys Think of the KPMG Lakehouse Logo?

I don’t know about you but I’m pretty sure I’ve seen Kamp KPMG’s logo on a park district aquatic center or on some flood safety brochure. View this post on Instagram Introducing KPMG's BRAND NEW learning, development and innovation center, Lakehouse! Join us for National Intern Training as we explore our new digs! #KPMGLakehouse #KPMGNIT […]

Former PwC Global Chairman Dennis Nally Has Got Himself a New Gig

It seems to be a right of passage for former Big 4 chairmen and CEOs to eventually end up on a public company’s board of directors. We saw two such instances last year: After Mark Weinberger retired from EY, he joined the board of MetLife. And former Deloitte CEO and current WNBA commissioner Cathy Engelbert […]

Kamp KPMG Puts Out a Welcome Mat

Konstruction on KPMG Lakehouse is finally komplete, and the first group of kampers will descend upon the Orlando community of Lake Nona, FL, next week. New York-based Big Four auditing firm KPMG LLP will bring its first round of “learners” to the $450 million, 780,000-square-foot KPMG Lakehouse in Lake Nona starting on Jan. 6, company […]

Moss Adams Got Hacked, Y’all

Hope everyone is having a good start to 2020. We’re s-l-o-w-l-y easing our way back to normalcy at GC HQ and catching up on things we missed during the past week. Like Moss Adams disclosing a data breach, in which names and Social Security numbers of clients were exposed. How many clients were affected? We […]

Going Concern Presents: Our 10 Most Popular Posts of 2019

Well, you guys did it. You made it through another year. 2019 was a pretty crazy 12 months in the accounting profession, and we were glad to be along for the ride. This year we found out about KPMGers in the U.K. defecating in bathroom sinks. And we thought about who in accounting would survive […]

Who’s Ready to Count Some Inventory?

When I was going to community college, I worked at Sports Authority. And each year around this time, there was one day when we had to work all night after closing and well into the following morning doing inventory counts. Fishing lures, ammunition, tents, sleeping bags, wiffle balls, shoes, hockey sticks—you name it, we had […]

Even During Holiday Time Off, PwC Partner Can’t Take a Break From PwC

Work seems to follow Bhushan Sethi, partner and joint global leader of PwC’s People & Organization practice, everywhere he goes, even to Santiago, Chile for a holiday family vacation. Arrived in Santiago for family vacation and one of the first things we see coming out of the airport is not the Andes but….#teampwc #pwctakesabreak pic.twitter.com/nsEtZMUZeJ […]

Accountants Behaving Badly: Deloitte Malaysia Partner Fined, Guilty Plea In $1.2M Scam, Jailed for Xmas

Plus, several tax preparers have run afoul of the law. SC fines Deloitte’s partner for non-compliance [The Malaysian Reserve] Huang Khean Yeong, a partner at Deloitte PLT, was fined RM63,000 by the Securities Commission Malaysia’s Audit Oversight Board on Dec. 26 for failing to comply with the international standards on auditing when performing an audit of […]

The CPA Exam is Changing Soon, Here’s What We Know

Last week, we caught you up on the latest goings-on with the CPA Evolution process, an ambitious effort by NASBA and the AICPA to tweak the CPA exam to ensure the licensure model is meeting the profession’s demand for future-proof CPAs. This week, we’ve got news that a separate but related effort is underway to […]

Accountants Behaving Badly: Discrimination at EY U.K., Jail For Cancer Center Embezzler, Client Scammer Gets Prison Time

Plus, ex-accountant for city of Dunbar, WV, gets one year in prison for embezzlement, and former Suzuki accountant faces a seven-year jail sentence for stealing $1.8 million. EY deals partners accused of bullying and discrimination [Financial Times] Current and former staff in the Transaction Advisory Services team at EY U.K. described a culture they claimed […]

FAF Did Not Pick You to Be FASB’s Next Chairman

Unless your name is Richard Jones and you’re chief accountant and partner at EY, then the Financial Accounting Foundation did pick you, congratulations. Jones will succeed nice neighborhood dad Russell Golden as FASB chairman after Golden’s term ends on June 30. Golden, a former Deloitte partner, has sat in FASB’s big chair since July 1, […]

Grant Thornton Elects Three Dynamic Individuals to Partnership Board

Purple roses were bestowed to three dynamos who were elected to the partnership board at Chez Preber. The newest board members are: Robert Fox: Bert is national managing partner of professional standards, based in Chicago. He leads the Purple Rose of Chicago’s national office teams over accounting principles, audit methodology, SEC and regulatory matters, and […]

Deloitte Is Finally Finished with That Whole Aequitas Investors Lawsuit Thing

That’s because the $234.6 million settlement Deloitte, EisnerAmper, and five other companies reached with investors of the now-defunct Oregon investment company Aequitas last July was approved in Oregon federal court on Dec. 16. According to Law360, the judge also approved nearly $58 million in attorneys fees and costs. Deloitte, EisnerAmper, law firm Sidley Austin, securities […]

‘Big R’ Restatements Are Quite the Thing For PwC Audit Clients

All the Tesla haters are having a field day with this on Twitter. The Wall Street Journal reported today: [PwC] has had a streak of accounting problems surface recently at U.S. companies it audits, including an uptick in high-profile restatements. Its clients account for three of the five biggest restatements so far this year, measured […]

Friday Footnotes: The CPA Is A-Changin’; Audits Still Suck; CPA.com’s New Partner | 12.13.19

Proposed CPA licensure model emphasizes core plus disciplines [Journal of Accountancy] A newly proposed CPA licensure model developed by the National Association of State Boards of Accountancy (NASBA) and the AICPA is designed to help newly licensed CPAs learn the skills and competencies they will need in the workplace of the future. The draft licensure […]

KPMG Is the Cockroach of the Big 4

“KPMG is obviously such a vast business that it could probably survive nuclear war.” — Daniel Sutherland, a partner at the U.K. business law firm Fox Williams, when asked if a large decline in profits and recent layoffs at KPMG U.K. will eventually lead to an existential crisis.

Here’s a Work-Life Balance Idea: Hangover Days

Over the years there has been much hand-wringing on the part of accounting firms when it comes to offering perks to retain top talent, a large chunk of which has been documented on these here pages. From flexible vacation to (ugh) ping-pong tables, entire firm departments have wasted countless hours coming up with ideas they […]

There Was One Wreck Paul Volcker Couldn’t Salvage

The out-pouring of encomia for Paul Volcker, who has died at age 92, would tower over even his own formidable 6 ft. 7 in. (e.g., samples in the Financial Times and the New York Times). His credits over more than 40 years include the taming of the rampant inflation of the 1980s as Federal Reserve chairman and, post the […]

5 Times Modern Analytics Saved the Day In Accounting and Finance

Around the world and at businesses of every size, accounting and finance professionals are seizing the opportunity to make analytics their ultimate sidekick. Where there’s Batman, there’s a Batmobile—and for these folks, where there’s accounting and finance, there’s a custom-built, mega machine of a platform to assist in the day’s activities. Modern analytics is all […]

KPMG U.K. Shocks the World by Having Somewhat Decent Revenue In 2019

When reports from across the pond started surfacing in September about the cost-cutting frenzy (you know, Project Zebra) going on at KPMG, accounting blabbermouths (like us) were salivating at the thought of how bad the firm’s 2019 revenue would be when the numbers were released in December. Well, that day has finally come, and believe […]

Another Grant Thornton U.K. Audit Was a Total Disaster

So say the folks at the Financial Reporting Council in the U.K., which fined Grant Thornton £650,000 earlier today for crapping up the audit of a publicly listed company in 2016. The name of the company wasn’t released by the FRC, which is bogus, and neither was the name of the engagement partner at GT […]

Ex-Deloitte CEO to Get Free Big Macs For Life

OK, we don’t know if that’s actually true, or if Cathy Engelbert even likes McDonald’s signature “two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun” sandwich, but the former Deloitte CEO and current commissioner of the WNBA is the newest director on Mickey D’s board. The Golden Arches announced today: […]

Accountants Behaving Badly: 367 *Years* In Jail, Scamming the Elderly, Wire Fraud Indictment

Plus, Kia Motors bookkeeper’s embezzlement case continued to January, and tax preparer gets 27-month sentence in scheme to defraud the U.S. Accountant sentenced to 367 years in prison [Onlanka.com] A court in Colombo, Sri Lanka, sentenced Hikkaduwa Liyanage Nandasiri, the former accountant of a public company, to 367 years of rigorous imprisonment [emphasis added] after […]

BDO Is the Little Dipper of Accounting Firms

While we patiently wait for KPMG’s 2019 global revenue results to be released sometime within the next week, BDO slid into our inboxes today announcing that its global revenue hit $9.6 billion in 2019, up from $9 billion last year. One of the keys to BDO’s growth is all the shopping the firm has done […]

EY Thinks It Is the Harvard of the Big 4

Big 4 CEOs comparing their firm’s acceptance rates to those of an Ivy League school is soooo 2012. And soooo 2015. Deloitte Global CEO Punit Renjen used to do it all the time, proclaiming Deloitte as the Harvard of the Big 4. But the whole “we’re more exclusive than Harvard” boasting had quieted down some […]

Critical Audit Matters: The Games Are On

As a guest here recently I took a look at the accumulating experience with extended auditors’ reports—the additional paragraphs that under international standards describe key audit matters (aka critical audit matters under the Public Company Accounting Oversight Board’s standards in the United States). There I noted a major gap—nobody has yet asked whether investors actually […]

RKL Poaches Someone From BDO and Issues a Press Release, Part I

When the 61st ranked accounting firm in the nation steals someone away from a firm like BDO, it’s kinda newsworthy. Well, newsworthy enough for a slow Wednesday late afternoon in early December. And newsworthy enough for RKL that it warranted a press release: RKL LLP announced that Michael T. McAllister, CPA, CITP, CISA, has joined […]

KPMG Poaches Someone From Deloitte and Issues a Press Release, Part I

Competitive poaching of PPMDs among midtier accounting firms has been rampant lately, whether they are taking people away from the Big 4 or from other midtier firms. Even the FASB isn’t immune from being poached. While watching the hiring games these firms are playing is fun and all, we’ve been patiently waiting for some Big […]

Jailed Ex-KPMG Executive Director Barred By the SEC Because Why Not?

Cynthia Holder, one of the “KPMG 5” who was sentenced to eight months in federal prison in August for her role in a scheme to steal confidential audit inspection information from the PCAOB, was “denied the privilege” of appearing or practicing before the SEC as an accountant, the commission announced on Nov. 29. The SEC […]