Accounting News Roundup: Audit-only Firms; Budget Deficits; CohnReznick Quits Longfin | 04.10.18

How Did the Big Four Auditors Get $17 Billion in Revenue Growth? Not From Auditing [WSJ]
Consulting and advisory work earned the Big 4 $56 billion last year, up from $39 billion five years earlier. Their auditing practices, on the other hand, have grown about $1 billion over the same period. As for the idea of “audit-only” firms, the opinions range from “I would love to see that,” to “[It] would undermine significant progress made to strengthen audit quality.”

Federal Budget Deficit Projected to Soar to Over $1 Trillion in 2020 [NYT]
About those tax cuts paying for themselves:

The tax overhaul, which includes permanent tax cuts for corporations and temporary ones for individuals, will increase the size of the economy by an average of 0.7 percent from 2018 to 2028, according to the budget office.

But that added economic growth does not come close to paying for the tax overhaul, which the [Congressional Budget Office] said would add more than $1.8 trillion to deficits over that period, from lost tax revenue and higher interest payments.

Controversial crypto company Longfin says accounting firm has resigned amid SEC investigation [CNBC]
CohnReznick has had all the fun they can handle.

KPMG bans plastic cups in push to reduce pollution [FT]
Some staff in the firm’s Manchester office saw Blue Planet II and “question[ed] the firm’s approach to the environment and, in particular, its use of plastic.” The firm has provided its employees with water bottles.

Previously, on Going Concern…

In Open Items, someone wonders what Grant Thornton pays Rickie Fowler.

From the archives: The Poor Fashion Taste of Accountants, Explained. See also: Long Hours Are the Root of All Your Busy Season Problems.

In other news:

• U.S. watchdog seeks record fine against Wells Fargo for abuses – sources
• You won’t have to sign for credit card purchases much longer
• Tammy Duckworth Becomes First U.S. Senator To Give Birth While In Office
• The Forrest Gump of bitcoin.
• New CrossFit meal kits are just a $200 box of raw meat

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