Friday Footnotes: Yo Dawg I Heard You Like Fraud; PwC’s ‘Hipsturbia’; Busy Season Redux | 10.11.19

Warning Signs about the Future Supply of Accounting Graduates [The CPA Journal] At the ground level, something has gone wrong with student perceptions about the value of an accounting education. It may take a few years for this changed dynamic to show up in economy-wide reports, but that a new dynamic is underway is obvious at the institution-specific level. Enrollment in James Madison University’s (JMU) School of Accounting over the past four years, for example, has dropped 34% in the intermediate accounting courses. This is a stunning decrease for JMU’s accounting program.

IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor [ProPublica] The IRS audits the working poor at about the same rate as the wealthiest 1%. Now, in response to questions from a U.S. senator, the IRS has acknowledged that’s true but professes it can’t change anything unless it is given more money.

Illinois CPA Society Seeks College Student Applicants for Diversity Program [CPA Practice Advisor] The award-winning Mary T. Washington Wylie Internship Preparation Program is a golden opportunity for racial and ethnic minority college students who want to make their way into the accounting and finance profession. The Illinois CPA Society is seeking qualified applicants for its next program, being held January 6-8, 2020 in Chicago. The application is available at www.icpas.org/mtww and the deadline is November 11, 2019.

October is the new April for accountants after tax law confusion [Accounting Today] For Americans who couldn’t figure out how to pay their taxes in April after Republicans overhauled the tax code, there is a new day of dread for accountants: Oct. 15. That’s the filing deadline for individuals and corporations that asked the Internal Revenue Service for a six-month extension to submit their tax documents. Accountants say they’ve seen a surge in clients needing extra time to finish filings for their 2018 income, the first year subject to new rates and regulations following the 2017 tax law.

Facebook under fire over ‘outrageous’ UK tax bill [BBC] The social media firms’s latest UK accounts show that profits last year jumped by 54% to £96.6m. Facebook’s total tax charge on those profits almost doubled to £30.4m, but was reduced due to adjustments. Tax campaigner and MP Margaret Hodge said such a low bill was “outrageous”, but Facebook said it pays what it owes.

Guiliani Associate Indicted for Money Laundering Ran Company That Claimed to Combat Fraud [Rolling Stone] Lev Parnas — one of the Rudy Giuliani associates indicted on conspiracy charges relating to fraudulent campaign donations, including allegedly steering Russian money into the U.S. political system — has listed two businesses dedicated to rooting out financial misfeasance on his political donation records. Parnas listed “Fraud Guarantee” and “Loan Crime Investigation Group” as his employers on federal political contribution forms, along with a firm called Global Energy Producers. That third business — ostensibly dedicated to Liquefied Natural Gas deals — was used by Parnas as a corporate conduit or “straw donor” to obscure the true source of campaign donations, in violation of federal election law, a federal indictment alleges.

New PricewaterhouseCoopers report dubs Evanston as a ‘hipsturbia’ [The Daily Northwestern] According to the report, “hipsturbia” — a combination of “hipster” and “suburbia,” — links Evanston to other vibrant communities like Santa Clara, California, and Yonkers, New York, which are known for their vibrant arts scene and balanced retail spaces. However, some say Evanston is too generic and expensive to be hipsturbia.

Deloitte’s work for Autonomy ‘showed lack of scepticism’ [The Times] Auditors at Deloitte failed to challenge bosses at Autonomy before its sale to Hewlett-Packard, a disciplinary tribunal has heard.

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