August 18, 2018

Accounting News Roundup: Red Tape, Easy IPOs and Creative Accountants | 04.04.18

White House Turf Battle Threatens to Delay Tax Law Rollout [NYT]
Last week, we mentioned the dance off between Office of Management and Budget Director Mick Mulvaney and Treasury Secretary Steve Mnuchin, and this NYT story reports the latest details. Mulvaney believes “the I.R.S. should be subject to greater accountability,” and that OMB should be the hall monitor. However, adding another level of red tape — “which Mr. Trump famously hates in other areas of regulation” — could slow things down even further, much to the chagrin of businesses and accountants eager for some explanations on the trickier aspects of the new tax law.

Longfin Collapse Puts Focus on Lax IPO Rules [WSJ]
The fintech company listed under the JOBS Act’s Reg A+, allowing it avoid certain “accounting and disclosure standards for conventional IPOs.” Its stock price fell 30 percent yesterday, the day after it disclosed that it was under SEC investigation and “reported material weaknesses in financial controls.”

Accounting watchdog eyes ‘front-to-back’ audit of annual reports [FT]
The U.K.’s Financial Reporting Council “is considering expanding auditors’ responsibilities by requiring them to examine the entirety of companies’ annual reports and accounts” which would include “strategic reports, director reports and corporate governance statements.”

WPP Is Looking at CEO Martin Sorrell’s Possible Misuse of Assets and Allegations of Improper Behavior​ [WSJ]
A spokesman for the mega agency “said the amounts involved weren’t material to the company.”

These 2 accountants ditched their City careers to teach arts and crafts instead [BI]
Diana Muendo and Sam Lehane left EY and KPMG to create M.Y.O. (Make Your Own), a studio that teaches ceramic painting, pottery, and calligraphy.

Previously, on Going Concern…

Our partner, Gleim CPA Review, covered the new CPA Exam renovation that went live on April 1st.

I told everyone to leave Scott Foster, the accountant-turned-Chicago-Blackhawks-folk-hero goalie, alone. He has accounting to do.

Megan Lewczyk wrote about some of the new features in Excel 2019.

In Open Items, someone’s missing the inflation adjustment in starting salaries at Deloitte.

From the archives: Busy Season Problems: Auditing During a Tornado; See also: Selling Pot Out of Your Tax Prep Business Named ‘420 Multi Services’ Will Only Fool People for So Long

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.