Friday Footnotes: EY’s Lost Bitcoin Problem; Deloitte Gets Snitched On; Armanino Gets a Mention | 8.16.19

Here’s why Jeffrey Epstein likely paid little in the way of taxes [CNBC] Because rich people are usually smarter than the poors when it comes to that stuff?

A Big Four Audit Firm Lost $1 Million In Bitcoin. Victims Are Losing Patience [CoinDesk] The blunder occurred in February, and at the time, the lost bitcoin was worth some $375,000 ($500,000 CAD). The coins are now worth about $1.03 million ($1.37 million CAD). Six months on, EY has not provided much in the way of detail explaining how the bitcoin was transferred to what are effectively locked wallets. In a report published in late February, the firm said the transfer occurred due to a “platform setting error.”

How the Audit Market Penalizes Auditors for Doing Their Job [CPA Practice Advisor] In the words of co-authors Stephen P. Rowe and Elizabeth N. Cowle of the University of Arkansas, “The issuance of an ICMW should neither impair the issuing auditor’s reputation, nor deter clients from selecting auditors with a history of issuing ICMWs.” Yet, “auditors who issue an ICMW are perceived as less attractive in the audit market,” which therefore “disincentivizes auditors from disclosing internal-control information that could make their clients look bad.”

Boss of collapsed UK telecom reports Deloitte to FRC [FT] Deloitte has been dragged into a long-running scandal over a collapsed telecoms company that laid cables in the UK’s sewer network, after its founder reported the auditor to regulators. Elfed Thomas, the founder and former chief executive of H2O Networks, commissioned a forensic accountant to evaluate Deloitte’s performance as the company’s auditor during a period when a £160m financing fraud took place.

GE stock has worst day in 11 years after Madoff whistleblower calls it a bigger fraud than Enron [CNN] Them’s fightin’ words, bruh.

Armanino Earns ‘Best of Accounting’ for Fourth Consecutive Year with Client Satisfaction [GlobeNewswire] The Not-so-little Firm That Could.

Beyond the hype: How AI is being used by accountants today [Accounting Today] AI is not taking jobs and it is certainly not doing anyone’s taxes. What it is doing is helping tax and accounting professionals keep up with the onslaught of new tax legislation, tax code changes and global trade disruption that would otherwise overwhelm them. It is doing this by streamlining the tedious, repetitive, labor-intensive tasks and freeing up brain space for tax pros to think strategically and offer more value to their clients and colleagues.

U.S. regulators to drop accounting test in ‘Volcker’ rewrite: sources [Reuters] U.S. regulators have circulated a new draft of the “Volcker Rule” that would further ease its requirements and scrap a proposed new test that had been met with fierce resistance from Wall Street, according to two people with knowledge of the matter.

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