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Technological Advances Inside Deloitte Have Some People All Excited

We here at GC received the following email in our inboxes this Moanday morning:

Finally!!! See below 🙂

Direct Pay makes managing your expenses easier
Published: 05-Dec-11

With the implementation of Direct Pay, managing your business expenses just got simpler. Direct Pay is the process where Deloitte pays American Express directly, on your behalf, for your business expenses that have been imported into DTE.

There is no change to billing dates, the point rewards program, or the way you enter your expenses.

Direct Pay will begin for U.S. professionals with expense reports dated December 17 (U.S. India professionals are not part of Direct Pay at this time.)

The process is simple:

• Use your American Express corporate card for business expenses
• Import your expenses into DTE
• Deloitte pays American Express for the imported expenses

Professionals will still be responsible for paying American Express directly for any minor non-business corporate card charges, or any American Express business charges that are manually entered into DTE. To help you with this process, there is a new tool in DTE that reconciles your monthly American Express charges to what you have imported.

Sweet Baby Jesus, it doesn’t take much to excite the Green Dots these days, does it? It’s impossible for us to tell whether or not our contributor is a traveling worker bee or the executive assistant of some traveling Big Wig (Joey E!), but it doesn’t really matter because they are SUPER PSYCHED. Is this what it’s come to for us? Forget about holiday bonuses or even some free schwag; filing expense reports just got only slightly marginally sorta kinda maybe better. No word yet on a charge code for the strip joint, errrr “Big Ben’s Steakhouse.” Continue to pay those charges with your excess per diem.

So this got us thinking. What other kinds of techy improvements would improve your lives at work? Some off-the-cuffers:

1. Partner calls sent straight to voicemail.
2. Starbucks, delivered.*
3. The ability to work from home and have a work/life bal…oh wait. Nevermind.

Who is else in a dizzy tizzy about Big D’s technological advancement? Spill your joys below.

*Interns do not count.

We Read This Awful Interview with Deloitte’s Joe Echevarria So You Don’t Have To

You don’t have to be Bob Woodward to recognize the formulaic nature of the CEO interview. Reporter goes to CEO’s office, asks loaded questions about the issues of the day, describes the view from the office, elaborates on the person’s exercise regimen, humble (or not so humble) beginnings, people they admire, yada yada yada. Cripes, reading these things makes you want to shave with broken glass but hey! editors get in ruts just liwe’re stuck with the puff. By extension, interviews with Big 4 CEOs are worse because they typically occur with General Counsel sitting in the next room zapping their genitals every time a question is asked that necessitates “I can’t comment on that.”

Today’s example comes courtesy of Reuters who interviewed Deloitte’s Joe Echevarria. What prompted this little chat was the PCAOB’s release of Part II of the firm’s 2008 inspection report. It wasn’t exactly a flattering portrayal of a firm who, when asked to brush up on their audit skills, basically told the PCAOB to drop dead.

Accordingly, the firm is running damage control and that involves getting Joe E. in front of some friendly reporters (read: not Jon Weil or Francine McKenna).

Recently faulted by the main U.S. auditor watchdog, Deloitte has told its professionals that skepticism should be the No. 1 focus during the upcoming auditing season for annual financial reports, CEO Joe Echevarria said.

“I know there’s a heightened awareness about professional skepticism in the firm,” he said. “It’s going to take a while for heightened awareness to manifest itself in actions and documentation because humans are involved here.”

The natural follow-up question here would be, “But Mr. Echevarria, the PCAOB asked you to fix things in 2008-2009, are you saying that you’re now just ‘manifesting itself in actions’?” but that brings out the zapper. That’s okay, we’re all used to it. You know what else we’re used to? Talking about the “expectations gap”:

There is an “expectations gap” between what auditors do and what the public expects, but auditors do have an obligation to detect and report material fraud, Echevarria said.

Echevarria is also asked about auditor rotation, IFRS and (for some odd reason) its settlement over the Adelphia fraud in 2005. Why not ask about the swinging insider trading scandal? What about Taylor, Bean & Whitaker? What about associates sneaking bloggers into the downtown W? WHAT ABOUT THIS FAUX TARA REID MARRIAGE? People want these all-important questions on the record and yet it never happens. Sigh.

By the way since it’s obvious that some of you care about these details, Joe is from the Bronx and his office is in Midtown.

Deloitte pressing for more skeptical audits (God, the headline is even awful) [Reuters]

Deloitte Associate Who Supports Occupy Wall Street Admits That His Idea of Camping is the W Hotel

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As you know, a number of people in Lower Manhattan have spent the last two months Occupying Wall Street by way of camping out in Zuccotti Park. While September and October proved to be unseasonably warm, thus allowing Occupiers to exercise their 1st Amendment rights in relative comfort, November has brought cooler temps which has caused some relative discomfort among the campers. Oh, and Mayor Bloomberg was sorta sick of the mess and had everyone’s tents forcibly removed.

While many protesters have had to seek less squalid accommodations, other supporters of the movement have been able to find quarters that are more suitable for their tastes. This includes Deloitte associate Brad Spitzer who has been traveling to New York from California for work and has taken the opportunity to get his occupy on. And while he’s enthusiastic about the cause, Spitzer isn’t exactly down for park living:

“Tents are not for me,” he confessed, when confronted in the sleek black lobby of the Washington Street hotel where sources described him as a “repeat” guest.

Spitzer, 24, an associate at financial-services giant Deloitte, which netted $29 billion in revenue last year, admitted he joined the protest at Zuccotti Park several times.

“I’m staying here for work,” said Spitzer, dressed down in a company T-shirt and holding a backpack and his suitcase. “I do finance, but I support it still.”

You guys understand. There are just certain comforts that a Green Dot employee gets accustomed to – a soft mattress, a hot shower, room service – no matter how good of a drum circle you find.

Occupy Wall Street protesters stay at $700-a-night hotel [NYP]

Deloitte Taking Precautions for Possible Unwelcome Guests

This just in:

WFC Update
Zuccotti Park Evacuation

As a result of the evacuation of protestors in Zuccotti Park early this morning, there will be limited access into 1 and 2 WFC until further notice.

Currently, the walkway bridge that connects 1 and 2 WFC will be closed. All building tenants must present identification to gain access. For visitors, the name of the tenant and person visiting will need to be provided to building security.

Access restrictions are subject to change, as information and updates from building management are changing rapidly.

We appreciate your cooperation and will continue to keep you informed through this mailbox. If you have any questions or concerns please do not hesitate to reach out to myself [redacted email] or [redacted].

[Guy who gets to deal with these sorts of things]

Area Operations Manager

Deloitte Services LP

Layoffs Watch ’11: Deloitte

Sounds like the aforementioned rumored layoffs have begun.

Yes they are occurring and I know as I am one of the individual’s impacted. There was no advance warning. I know one other individual in Philly that was also laid off. We are both in the tax practice. My understanding is that it is nationwide and mostly impacts senior managers.

Keep us updated if cuts are going down at your office.

The Big 4 and the Revolving Door

Last week the bane of Big 4 auditors existence, the PCAOB, broke their cherry on releasing Part II of an inspection report for a Big 4 firm. The honor went to Deloitte, who sufficiently blew off the Board’s recommendations for 12 months, which led to the release of Part II.

Bloomberg‘s Jonathan Weil, who usually sits back with popcorn while these things go down before chiming in, got to it today but with a twist that you probably weren’t expecting:


board members had recused themselves from participating in meetings or discussions this year concerning Deloitte, because of past or current ties to the firm, according to three people with knowledge of the matter.

The board members — Lewis Ferguson, Jay Hanson and the board’s chairman, James Doty — were appointed by the Securities and Exchange Commission in January. Doty had been a partner at the law firm Baker Botts LLP, where Deloitte is a client. Ferguson was a partner at the law firm Gibson Dunn & Crutcher LLP, which also represents Deloitte. Hanson, a former partner at the accounting firm McGladrey & Pullen LLP, has a daughter who works for Deloitte in its Phoenix office.

The board’s policy is to not disclose recusals, in spite of its mission to “further the public interest,” as if these are none of the public’s business. “Recusals are confidential,” Colleen Brennan, a board spokeswoman, said. Doty, Ferguson and Hanson declined to comment. A Deloitte spokesman, Jonathan Gandal, said: “The PCAOB itself does not comment on recusals, and as such it would be inappropriate for us to do so.”

It’s a pretty nice scoop by Jon and we’re all used to the silence from the PCAOB and Deloitte when someone gets the best of them but honestly, is anyone surprised? Does anyone care? The answer to the first question is “No.” The answer is the second question is “Maybe.”

With the exception of Mr. Hanson (family connection, we’ll give you that one), the recusals seem a little silly since neither Ferguson or Doty actually worked directly for Deloitte. Okay, so Baker Botts and Gibson Dunn have Deloitte has a client. Which Big Law firm doesn’t? It’d be pretty tough to find any DC lawyer who didn’t do some time at a firm that represented Deloitte. That goes for any Big 4 firm. They’ve all got deep pockets with lots of legal problems, of course they’re going to hire the best lawyers money can buy. Does that make guys like Ferguson and Doty unfit to make decisions with regard to that firm?

Well, for one year it does. Under the Board’s ethics code, Doty and Ferguson will be able to vote on matters involving Deloitte in January. Still, Weil doesn’t like the smell of it. And it doesn’t stop with the PCAOB:

[T]alk about being wired: The SEC’s chief accountant, James Kroeker, is a Deloitte alumnus. At the Financial Accounting Standards Board, which writes U.S. accounting rules, the wife of one board member, Russell Golden, is a Deloitte partner.

Look, we like Jon (even if he is a Colorado grad). But how do you find accounting policy makers who aren’t from the biggest, best connected firms that have the most resources? Should the Commission start appointing academics to develop policy? Eeek. Or maybe we’ll let the public make recommendations, “Yeah, my cousin’s a CPA out of Tulsa. Really knows his stuff. He’d be good.” Please.

Dan Goelzer’s seat is coming up and he’ll be replaced by a CPA. Weil hopes that the SEC will find “a qualified person without Big 4 allegiances” but with the revolving door spinning, he’d better hope for a wild card.

Goldman Sachs Envy Gains New Meaning at Big Four [Jonathan Weil/Bloomberg]

A Slightly Haggard Tara Reid Says She Was Not Legally Married to That Deloitte Consultant

Back in August, we learned that Bunny Lebowski (aka Tara Reid) had become engaged and married to a Deloitte consultant named Zachary Kehayov in a matter of hours. We were quite happy to learn that someone in the Big 4 was able to grace the pages of TMZ and not because they were found dead in Charlie Sheen’s pool.

ANYWAY, yesterday I was trolling over some incoming links and discovered that the Celebritology Blog over at the Washington Post was wondering aloud if the wedding was legit based on a TMZ video featuring Bunny and also that “some blogs” (i.e. Going Concern) reported that he lived in DC. After peeling my palm off my face, realizing that Tweets, pictures, and all the media hysteria around BL’s wedding could all be BS, I watched the video:

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Now there are only a few scenarios that would cause me to look like this: 1) After obtaining leaked financial statements from all the Big 4 firms, I reach levels of paranoia that rival Eric Bana’s character in Munich; 2) 24-48 straight hours of dancing in an undisclosed location; 3) Watching an Oz marathon with Adrienne. Typically in the aftermath of those scenarios, I would probably say anything that would disavow any past reckless behavior. Or, on second thought, I’d probably just own up to it.

That said, I’m not a celebrity and I don’t typically do things that are quite as impulsive as getting engaged and married to a Deloitte hack in less time than it takes to fly from New York to L.A. But that’s just me. Discuss as you see fit.

Layoff Watch ’11: Cuts a Comin’ at Deloitte?

From the mailbag:

Heard this from a Director in the firm: Deloitte layoffs coming. Lists are made…cuts coming soon. Said a lot of it has to do with thinning out the ranks (too many people jumping ship because their level is top heavy and promotion nowhere in sight) as well as letting go underperformers.


As you probably noticed, 2011 hasn’t had much in the way of layoff news with the exception of some support staff that were cut at McGladrey, Grant Thornton, and KPMG. That said, this seems like an opportune time to kick a few people to the curb. If you wait until November, well, that just looks bad.

Keep us updated with any news and if you’re in the know, get in touch.

Schwag Watch ’11: Deloitte May Be Implying That Recruits Have Poor Personal Hygiene

Earlier this month our resident big man on campus, DWB, put out a call for all the schwagtacular gear that recruits were snatching up this fall. We didn’t get much for submissions at first but luckily a friend from the north passed along photos that ranged from “a bunch of junk” to Dr. Seuss to a PwC cookie describe as “soft” and “amazing.”

Things have quieted down since then but thankfully, another enterprising young recruit who is right in the wheelhouse of recruiting passed along a couple more pics that include examples of loot from Deloitte and Grant Thornton.


First our tipster’s thoughts on GT’s offering: “The GT cup is ok but the straw is totally useless.” And for the gazillionth time, purple just sucks.


According to our tipster, the Deloitte sanitizer is really the most perplexing item: “I am not sure what to think of Deloitte’s hand sanitizer.”

So what do we make of this? It’s not a surprise that Deloitte isn’t a “If it’s brown flush it down; if it’s yellow keep it mellow” kinda place but what does this bottle of freshness really communicate? Do they simply think college students are unkempt? Is Deloitte making the assumption that all the recruits are applying there because the Occupy movement rejected their applications? Or, since there is fairly new leadership in place, does this speak more directly to the firm’s position on germs in general? Put simply: Are Joe Echevarria and Barry Salzgerg germophobes? I’m inclined to go with option 3 but would entertain other theories.

Former Deloitte Employee Swings to Settlement with SEC Over Insider Trading Charges

Remember Annabel McClellan? She’s the wife of former Deloitte partner Arnold McClellan who sorta got wrapped up into an insider trading mess with her sister and brother-in-law last fall. Annabel is also a former Deloitte employee who gave up the glamorous life of a Salzberg solider to be a stay-at-home mom. Oh! and she was working on swingers app called My Nookie that was on the verge of taking the scene by storm. The whole insider trading thing put those ambitions on hold due to the fact that Annabel may be looking at some jail time and she settled civil charges with the SEC yesterday for $1 million. The good news for Arnie is that if judge gives the settlement the thumbs-up, he’ll be off the hook who, prosecutors say, had no clue that the Mrs. was engaging in extracurricular activities:

McClellan, who pleaded guilty in April to one count of obstructing the SEC’s investigation, said she overhead her husband talking about the deals and passed the information to her brother-in-law, according to a transcript of her change of plea hearing.[…] McClellan told prosecutors that her husband wasn’t aware of or involved in passing information, according to documents filed in the SEC case.

Of course, if Arnie wasn’t aware that Annabel was trading under his nose, it makes you wonder with whom she was researching Amazon Squat and the Foldover.

Wife of former Deloitte partner to pay $1 million [Bloomberg]

PCAOB Publishes Part II of Deloitte’s 2008 Inspection Report, First Ever for a Big 4 Firm

They really, really, really don’t appreciate it when you blow off their recommendations. Here’s the statement from the Board:

The Public Company Accounting Oversight Board, in anticipation of questions about the publication of previously nonpublic portions of its May 19, 2008 inspection report on Deloitte & Touche LLP, issued the following statement today:

“The quality control remediation process is central to the Board’s efforts to cause firms to improve the quality of their audits and thereby better protect investors. The Board therefore takes very seriously the importance of firms making sufficient progress on quality control isn inspection report in the 12 months following the report. Particularly with the largest firms, which are inspected annually, the Board devotes considerable time and resources to critically evaluating whether the firm did in fact make sufficient progress in that period. The Board can and does make the relevant criticisms public when a firm has failed to do so.”

So to clarify, Deloitte had until May 19, 2009 to get their methods up to par but failed to do so. To put this into a little bit of context, Jim Doty was not yet the Chair of the PCAOB and Barry Salzberg was still the CEO of Deloitte’s U.S. firm. Does this mean that the PCAOB has been stepping up its game and this is the first instance of many to come? Hard to say but the audits that this inspection report cover are nearly five years old, so it’s debatable as to the value of Part II being made public now.

For Deloitte’s part, here’s current CEO Joe Echevarria’s statement:

“Deloitte is committed to the highest standards of audit quality and as newly elected CEO, it is my foremost priority. Our commitment extends from the top and cascades throughout our entire organization. We place great value on the PCAOB’s input and continue to work with the Board in support of our shared objectives. We recognize that audit quality is fundamental to protecting investors and ensuring the effective functioning of the capital markets.

“We have complete confidence in our professionals and the quality of our audits, and agree that there were and always will be areas where we can improve. In our drive for continuous improvement, we have been making a series of investments focused on strengthening and improving our practice, and will continue to do so to make Deloitte the standard for audit quality.”

In other words, a non-response response. However, it’s much more measured than Deloitte’s response to the initial release of the report. Their response letter spelled out their feelings quite clearly:

Professional judgments of reasonable and highly competent people may differ as to the nature and extent of necessary auditing procedures,conclusions reached and required documentation. We believe that reasonable judgments should not be second guessed and therefore disagree with a number of comments as indicated[.]

Deloitte’s letter is located Appendix C. You can read the full report, including all the details from Part II that were previously unpublished, on page 2.

PCAOB_2008_Deloitte