Ernst & Young

Caption This: What’s Going Through Jim Turley’s Head at This Very Uncomfortable Moment?

Traipsing lazily around the Internet the other day looking for old white guys to pin to Pinterest, I came across this unsettling photo of Jim Turley crammed into what appears to be a wine cellar for a photo op from New York Social Diary. Turley and the Mrs. were hobnobbing with the NY bigshots in […]

Ernst & Young’s Global Entrepreneur of the Year Awards Entertainment Cheaps Out a Bit on Special Effects

Did anyone get an invite to the Ernst & Young Global Entrepreneur of the Year Awards? Yeah, me neither. In case you don't have a Google alert set up, Dr. James Mwangi, CEO and Managing Director of Kenya's Equity Bank Limited was named Entrepreneur of the Year in Monte Carlo. EY CEO Jimbo Turley gushed, "Over […]

Ernst & Young’s Jim Turley Comes Out Against Boy Scouts’ Exclusion of Gay Members

JT's already has a sky-high approval rating inside E&Y and with this announcement it seems he's going for wider appeal:  "I support the meaningful work of the Boy Scouts in preparing young people for adventure, leadership, learning and service, however the membership policy is not one I would personally endorse," Turley said in a statement […]

Grant Thornton’s New Private Equity Services Managing Director Is a Public Accounting Firm Bicycle

Kevin Hudson is not quite the bounder that Reznick Group's Joe Mudd is, but he has seen a few firms in his day: [Prior to Grant Thornton], Hudson served as a National Director with McGladrey’s Private Equity Services Group and was their Regional Private Equity Leader for the Northeast and Southeast regions. He has more than 19 years of […]

We Actually Learned (and Debunked) a Couple Things After Reading This Interview with Ernst & Young’s Director of Campus Recruiting

Dan Black is Ernst & Young's Director of Campus Recruiting and yesterday, Forbes gave him the chance to say whatever he wanted about E&Y's campus recruiting efforts. Seriously, they should have just let him write a blog post. It's filled with platitudes about training, international opportunities, social media, and kowtowing to Gen Y types, etc. etc. […]

Ironically for Some, This Ernst & Young Guide to a ‘Smooth IPO Registration’ Just Came Out Today

Recently, some high profile companies have been going public. Leading up to the big day, all kinds of people get ants in their pants because, contrary to what some of you believe, going public is AWESOME. There are roadshows, CNBC hype, and typically you get to ring a bell. Pretty sweet. Unfortunately, there are all […]

Former Ernst & Young Senior Manager Who Wrote an Epic Failure of a Farewell Email Explains His Choices

Last week we presented you with the worst farewell email committed to…err, email. At a shade over 3,000 words, I was forced to submit myself to the Clockwork Orange eye-opener just to get through the damn thing. There were many other objectionable attributes mentioned that we won't rehash here, but I got the sense that the lion's share […]

Comp Watch ’12: At Least One Ernst & Young Partner Is Throwing Numbers Around

From a tipster who is on his way out: A partner told me that raises for top performers will be in the 20% ballpark. Don't know if this is true. It was from a very Senior Partner in an Upper Midwest (not Chicago) office. He could just be talking. This is a Senior Associate 2 in the […]

This Farewell Email from a Former Ernst & Young Senior Manager Is an Epic Failure

The farewell email is one of few art forms in the corporate world. There are good ones. There are bad ones. There are the ones that when you read them, you recognize its genius instantly. They are similar to street art in the sense that they have very short shelf lives; you will probably see […]

Ernst & Young Demonstrates That Immaterial Differences Can Exist in Surnames

In the range of complex services provided by Big 4 accounting firms, counting votes for awards should be ranked somewhere between "easy as pie" to "I can do this shit with my eyes closed." Of course, sometimes even the simplest of tasks can go awry: After further review, Andrew Bynum finished all alone in fourth […]

Ladies: You Have Jim Turley’s Attention

Although it took a very awkward moment to get it: Even well-intentioned executives tend, often unconsciously, to dismiss women's contributions. At Ernst & Young, where 23% to 26% of leadership teams internationally are women, CEO James Turley told the WSJ conference that he was running a meeting years ago when "three or four women said […]

Nobody Seems to Care About Williams Companies’ $497 Million Accounting Error

Bloomberg's Jonathan Weil likes digging through dirty laundry. If you're an auditor, the PCAOB, a TBTF bank or in today's case, a natural gas producer, playing games that just so happen to cross his radar and it insults his intelligence, you can expect JW to open up your ringer of dirty undies for all of […]

Comp Watch ’12: Sizing Up the Big 4

It's the last day of April, which means that hopefully you've tied up all the loose ends that were left over from Busy Season 2012 (aka the best one yet). The month of May brings flowers, drunken afternoons at the baseball diamond in your fair city, and speculation about your compensation adjustments. Of course, some […]

Ernst & Young Tops Vault’s Accounting 50 (2013)

Imagine my surprise when a link to the 2013 Vault Accounting 50 found its way to our tip box. It comes to us five months earlier than last year and I really didn't expect to see all of the Big 4 in the type five, especially the likes of E&Y and KPMG who were doing well […]

The Knicks’ Tyson Chandler Might Be Getting Last Minute Tax Advice

A tipster just informed us a short time ago that, "Tyson Chandler is in the lobby of EY NYC right now." This could mean he's there to cut a check with his extension, or he simply got lost on his way to Madam Tussauds. Either way, dude is huge, so you can't miss him. If […]

Apparently an Ernst & Young “Strategy Update” Meeting in London Got Out of Hand

Rumor has it that the bobbies had to get involved because the situation "involved broken bar property":  From: [Operations Manager Whose Responsibilities Include Being the Fun Killing Messenger] To: [Lots of People] Date: 11/04/2012 12:00 Subject: Behaviour at staff social events   All,    We recently held a BCM Strategy update meeting last week in London. […]

Ernst & Young Auditor Is Trying His Hand at This Reality TV Thing

Look, you guys. I know the Big 4 isn't the most glamorous career you could possibly have and it's definitely not the ideal place to be showing off your finer physical attributes, but going on reality TV rarely falls into the category of good life decisions. I mean seriously, how bad do you need your […]

Ernst & Young Employees Think Jim Turley Is Doing a Bang-up Job

Ernst & Young global CEO Jim Turley will be retiring next summer and judging by the results of a Glassdoor ranking, that will be a very disappointing day, when JT steps down. According to the ranking, Jimbo has a 95% approval rating, good enough for second place, finishing behind Apple's Tim Cook. This was a […]

Groupon Got Some of Their Numbers Wrong

The Wall St. Journal reports: Groupon Inc. GRPN +3.84% said it was revising lower the financial results it reported for its fourth quarter, after discovering the company had to set aside more money for customer refunds. The online-coupon site, which went public in November, said its auditor, Ernst & Young, discovered a "material weakness in its […]

Ernst & Young Has Been Buying Ad Space on Dudes’ Faces, Will Now Sponsor Dudes’ Website

Ross Harper and Ed Moyse are a couple of Brits who created BuyMyFace.com to pay off their college debt. They started this little project back in October 2011 and by all accounts, it's been rather successful. They've been thrown out planes, shredding down wintry slopes, and go-karting [!] "all in the name of advertising."  Ernst […]

Remember Accountants, Busy Season Makes You Stronger

Over the days, weeks, and months of this busy season and busy seasons past, we have offered up many videos for your visual and audio enjoyment. Their quality ranges from downright awful to the legendary to debates over (red)beards. And some videos are even instructional in nature. The latest effort serves as a reminder more than […]

Ernst & Young Goes on a Competitive Poaching and Publicity Spree

The competitive poaching efforts of PwC have been well documented in these pages, primarily because the communications is really good at issuing press releases announcing the talent they've scooped up. Other accounting firms of notable size have not embraced the power of the poaching press release…until Wednesday when Ernst & Young announced that they had […]

Are Ernst & Young’s Lobbying Activities a Violation of Auditor Independence Rules?

This morning we linked to a Reuters story that revealed Ernst & Young doing quite a fancy dance with auditor independence rules. You see, there is an advisory group within the firm known as Washington Council Ernst & Young who "helps clients manage opportunities and risks associated with the legislative and regulatory process." That's a quite […]

Ernst & Young Intern Really Needs Help with an Essay So He Can Go Overseas for Two Weeks

Ed. note: Troubled this busy season? Email us your predicament at advice@goingconcern.com. For the most part, the emails we receive seeking advice are genuine.  We have struggling GPA’ers and struggling interviewers.  Managers tempted by the partner carrot and the curious public-to-public hopper. And generally, you all turn out solid, noteworthy advice. This is not one […]

Ernst & Young Tag Line Takes on a Whole New Meaning in the Lavatory

February was filled with toilet humor and it appears that the posted rules of etiquette at Ernst & Young were taken very, very seriously by one office (that we've been asked not to disclose).  I'm not really sure what kind events would have led up to an official posting of this magnitude but too much Tex-mex take […]

Caption Contest Monday: The Pot of Black and Yellow at the End of the Rainbow

Kicking off with: If Mark Weinberger catches the leprechaun, you can bet he'll have to explain Repo 105 several times before getting that treasure.

KPMG Sorta Making Up for Losing All Those Partners to PwC By Taking Some of Their Audit Clients

Accounting News Report, using data from Audit Analytics, puts out an Auditor Change Analysis every year and it usually finds its way into our inbox, however, because the analysis is a subscription-based publication (and a pricey one at that), reproducing the whole thing is usually not an option. This year we asked pretty please, and we got […]

Ernst & Young Employee Reminds Everyone Just How Important Workplace Flexibility Is

From somewhere inside 5 Times Square:                           

Apparently Someone at EY Is Concerned About Restroom Etiquette Too

Thanks to a tipster for sending along the following note which curiously appeared in one EY office AFTER the Above The Law bathroom etiquette email was posted but BEFORE GC managed to get on that. Although it's too close to the original to call it a parody, it's nice to know someone over there has […]

Ernst & Young Settles a $2 Million Slap on the Hand With the PCAOB

And no, before anyone asks, this has nothing to do with Lehman. According to the PCAOB, Ernst & Young settled with the Board yesterday related to three EY audits of Medicis Pharmaceutical Corporation to the tune of $2 million, the largest civil penalty levied by the PCAOB to date. Note that a settlement doesn't mean […]

Let’s Get to Know the Facebook Audit Committee Members

Cripes, this Facebook IPO thing has people going bonkers so we figured digging up a little relevant information for you all was in order. Most of you probably knew that Ernst & Young was the auditor of Zuckerberg's playland but you probably aren't yet clued in to the members of the audit committee that E&Y […]

Even Savvy Big 4 Professionals Get Freaked Out About All This Retirement Planning Stuff

For many capital market servants, the idea of retirement is a dream. No more spreadsheets, no more commuting, no more awful happy hours where people discuss obscure accounting/tax/advisory projects that makes you put the finger-gun in your mouth and make sound effects. Nothing but beaches, international travel and living off of room service. RIGHT? Well, […]

Yes, Ernst & Young Lost a Flash Drive with a Lot of Important Client Information on It But Nothing Bad Has Happened Yet, Okay?

Auditors are gatekeepers. Or something. They are trusted to keep client confidentiality on many matters and are entrusted with very sensitive information on a daily basis. They are paid handsomely for this so you can imagine the frustration a client must feel when something like this happens: Personal information about Regions Financial Corp. current and former […]

Apparently, Quite a Few People at Ernst & Young Have Been Fired for ‘Flagrant Disregard’ of the Firm’s Expense Policy

On Monday, we had a very serious discussion about business expense abuse. Who’s committing it? Why are they committing it? Can the fun be stopped? The discussion must have made its way to the hallowed hallways of Ernst & Young because yesterday an email went out to all FSO employees (and subsequently forwarded to us) […]

Ernst & Young CEO-elect Mark Weinberger’s Mom Just *Knew* He Was Going to Make Something of Himself

Moms. God love 'em. Where would we be if they hadn't sat up on the couch waiting for us to get home, wondering if we had been involved in some fiery car crash when we were, in fact, in backseat of the car that was perfectly still, fumbling with those damn hooks. We'd all be […]

The Big 4 Accounting Firms Had a Decent 2011

Big4.com released its 2011 performance analysis for the…er…Big 4 this week and there were a few items of note. PwC is the big enchilada again. KPMG surprised everyone with the largest growth in revenues (albeit barely), closing in on 3rd place E&Y. OH! And the $103 billion in revenue is the most ever earned by […]

Dropping That Ampersand Appears to Have Hurt Plante Moran Standing in Latest Meaningless Best Companies to Work for Ranking

Because some people still care, here are the accounting firms that made the 2012 Fortune's 100 Best Companies to Work For: 37 (26) Plante Moran 48 (73) PwC 59 (77) Ernst & Young 67 (63) Deloitte 94 (86) KPMG PwC and Ernst & Young seem to be taking this shit seriously once again while Deloitte […]

Mark Weinberger Is the Future Ernst & Young CEO. You Shut Up.

Yesterday we broke the news of Mark Weinberger jumping into the big Black and Yellow chair when Jim Turley steps down next year. It's pretty big news for E&Y as JT has been running the show since July 2001. With all his fancy schmancy credentials, there's no question that Mark is up for the job […]

Mark Weinberger Will Succeed Jim Turley as Ernst & Young Chairman and CEO

Ernst & Young has internally announced that Mark Weinberger will be the next Chairman and CEO of the firm. Mark is a tax guy, currently the Global Vice Chair of Tax but has a lot of experience inside the federal government serving as an Assistant Secretary to the Treasury of Tax Policy under President George W. […]

Ernst & Young: Just Try and Come After Our Lehman Brothers Audit Fees

E&Y worked hard ignoring whistleblowers, goat poo assets, and cowering to unqualified CFOs to earn those fees from that Titantic of an engagement, so don't you think you can waltz into court and demand they give that money back.   Ernst & Young, which was sued by New York in 2010 for allegedly helping Lehman Brothers […]

Ernst & Young Becomes First Big 4 Firm to Equalize Health Insurance Costs for LGBT Employees

Nice job, E&Y. Hope to see the other Big 4 follow suit. Ernst & Young and its affiliates have begun reimbursing lesbian, gay, bisexual and transgender employees for any additional federal and state taxes they incur for their same-sex domestic partners’ medical benefits in the U.S., starting Jan. 1, 2012. E&Y is joining a small […]

Almost Everyone Thinks Mandatory Auditor Rotation is an Awful Idea

Back in August, the PCAOB issued a concept release on audit firm rotation and invited anyone who had the time and/or energy to comment on it (as did we). In the wonky little corners of the accounting blogosphere, there was strong opposition to rotation from Jim Peterson and Francine McKenna (although their reasons differ from your […]

Who Is the Going Concern Accountant of the Year?

Continuing with the theme of, "It's the end of the year so we have to compile posts that remind us of how bad it was," we're offering up nominees for accountant of the year. Now, the term "accountant," for the purposes of this post won't follow strict construction. For example, if you work for an […]

Here’s the Ernst & Young PCAOB Inspection Report for Your Reading Pleasure

Yesterday, we discussed Deloitte stinking up the joint with its PCAOB inspection report. While the firm, at large, probably puts out hundreds of quality audits, the PCAOB gumshoes found that 45% of audits stamped with a green dot had deficiencies. Today, the Board stuffed our stocking with Ernst & Young's inspection report and while it's not […]

One Ernst & Young CEO Candidate Not Shy About Asking for Help with the Application Process

I hear from a trustworthy source that exiting Ernst & Young CEO Jim Turley was recently trolled by an eager member of Uncle Ernie's family looking to steal the throne in Canada. Someone else trolling him – asking how he can apply for his job. You know he's retiring in 2 years? So during the […]

It Sounds Like KPMG Is *ThisClose* to Jumping Ernst & Young in Revenues

Not sure how we missed this story but thanks to the random commenter who brought it to our attention. New KPMG Global Chairman Michael Andrew was recently interviewed by The Australian and it sounds like KPMG had a pretty kickass fiscal 2011.

We’re still waiting for the official revenue numbers (I’m guessing they’ll be out next week) but Drew kinda spilled the beans already:

New KPMG global chairman Michael Andrew revealed to The Weekend Australian yesterday that the company had recorded a 10.1 per cent increase in revenue in the past financial year, to $22.7 billion. The numbers are due to be released officially later this month.

“If we had not had the Japanese earthquake, I suspect we would have gone past Ernst & Young. Japan is a good market for us. We had really good growth in the Americas and really good growth in tax,” he said yesterday.

FUCKING JAPAN AND YOUR EPIC NATURAL DISASTER! You just cost one of the premier professional services firms on EARTH the chance to leave a rival in the dust. Since there was enormous death and destruction, I guess everyone at the firm will let this go but they’re trying really hard not to throw out some pro forma numbers just for the sake of argument. ANYWAY, for those of you scoring at home, the $22.7 bil puts the House of Klynveld slightly behind E&Y who racked up $22.9 billion for FY ’11. It will also make for the second straight year of a bumper crop of Omaha Steaks for the employees at the firm.

But despite earthquakes and actual hard numbers, Mike is calling it like he sees it:

“We are basically equal No 3. There is still a big gap to PwC and Deloitte, which have been buying large consulting practices in the systems implementation area.”

In other words, if all things were equal, KPMG would probably be the largest firm. They’re just keeping their heads about it.

KPMG grows to match rival Ernst & Young [The Australian]

Latest Madoff Lawsuit Filed Against Ernst & Young Is Refreshingly Brief

Bloomberg reports, that E&Y was sued for “negligence, malpractice and breach of contract in connection with audits of financial statements over a five- year period,” which sounds like the standard fair in these matters. The pleasant surprise being the brevity of the suit. “The two-page filing doesn’t provide any details of the allegations against Ernst & Young,” which may cause you to wonder if it’s really just a one-page lawsuit (unthinkable, I know) with the second page simply stating, “This page is intentionally left blank.” Of course the downside here (aside from another lawsuit being lumped on the pile) is that E&Y’s lawyers won’t get a chance to rack up many billable hours just yet. Which is to say, there is no downside. [Bloomberg, Earlier]

A Sunshine and Rainbows GC Advice Column Success Story

It must be advice week here on GC, what with me yelling at everyone and DWB pulling double duty pissing on kids’ dreams of a fulfilling life in public accounting. I’m OK with that.

But today, I’ve got something a little different. You see, giving advice here is sort of like working at an animal shelter. You deal with the person extensively up until the moment that you hand over the animal, after which you probably never hear from them again. It’s rare that we ever get follow-ups from those who’ve written in for advice, so all that much more special to see that everything worked out for this repentant public accounting wanna-be.


Back in September, we met the Zero to Hero, who took a page from the AG playbook and decided to enjoy his youth instead of frittering it away with responsibility. While I’m sure this made for a much better experience than many of you had in your very early twenties (except for PwCASSociate, who probably woke up in the same pool of vomit as I did many a morning), it also made it difficult for this guy to get serious once he realized GPA is a real number and that cute face just isn’t going to be able to pull all the weight anymore.

DWB advised him to be honest and network his ass off, advice that many of you agreed with. Since we know for a fact many of you are confirmed slackers who somehow stay gainfully employed in this industry, it was safe to say that advice was spot on.

And now we know just a few short months later that we were right. Writes Zero to Hero:

Daniel et al:

Just to let you fine people know, the recruiting process is over for me. I ended up receiving offers from EY, Deloitte, and two second tier firms. I officially signed myself over as an EY Advisory intern last week. I am really appreciative of the advice I received and believe that it is one of the reasons I was successful. Thanks again, you guys rock.

Love,
Z to H

Congrats, kiddo, we’re proud of you.

Check back in and let us know if when you get a full-time offer, and remember, we’ll be here in a year when you’re hating life and wishing you were back in the van getting stoned.

Future Ernst & Young Associate Can’t Stop Talking About PwC

If you haven’t already, please read Adrienne’s post on submitting questions to the site. I applaud her for hitting every damn nail on the head, and I want to echo her bottom line: we love hearing from you; the advice columns keep this place buzzing; but please check to see if we answered your question last week. I’d also like to add that the details you can provide (practice lines, office location, level, etc.) make it easier for us to offer more precise feedback. Keep ‘em coming.

In the meantime, consider this post as Example A as to what will happen when a lazy ass individual seeks advice they can find right under their noses. With thistried to find some shred of a question to answer, but instead I found myself screaming at my monitor. If this is the product of Helicopter Parenting, we as a society are screwed. Nevertheless, we’ll get right to it:

Hey GC, how’s it going? I am writing about making a decision between EY’s FSO practice and their TAS practice. Right now there is a lot of squawk about PWC’s FSR and EY’s FSO practices. These are both very hot topics and I believe relevant to readers, as seen after the EY FSO Assurance article [this one].

First off, you’re making a decision between two different options at EY, yet refer to the “hot topic” of PwC’s FSR practice (Financial Instruments, Structured Products and Real Estate). Let’s spell out some definitions for people here who are not familiar:


1. EY FSO – Not a practice but rather a term that stands for Financial Services Office. Per their website (which I Googled like any child can do) EY’s FSO practice includes all three lines of business: assurance, tax, and advisory. It’s a go-to-market philosophy/marketing strategy/organizational hierarchy more than anything else. Go to the website to learn more, if you’re so inclined.

2. EY TAS – Transaction Advisory Services – an advisory practice by name, includes a variety of services (due diligence, restructuring, valuation, etc.). Without splitting hairs here, a TAS associate will work on FSO clients (e.g. valuing insurance claims at AIG). Said associate could also work on a transaction involving a factory in Topeka, Kansas.

3. PwC FSR – Most closely related to EY TAS as it would fall under TAS if it were at EY. But it’s not. It’s at PwC, where you don’t have an offer. Again, not relevant.

Many students have accepted or are contemplating offers from the big 4, and there are rumors circulating that FSR and FSO employees work banker hours and get paid like consultants.

You are clearly new to public accounting, Going Concern, and the world in general. Get paid like consultants? WTF does that even mean? And for the love of God, you’re not working at PwC. Stop talking about it. Note: At this point the contributor goes on with a list of questions; my feedback at the bottom.

I am having trouble making a decision between TAS and FSO. For staff one’s in NYC, total year one compensation with salary and signing bonus is between 60-70 thousand on average. Not bad, but with what kind of hours?

On the other hand, TAS year one salary is about 55k, no bonus. What type of hours can be expected? Being that all new hires in EY FSO start in BAP [link for those playing at home], a 4 year rotational program, does good old uncle Ernie just rotate their staff through busy season after busy season? How much travel can be expected in NYC, aren’t most financial clients located in the city? FSO and FSR new hires are earning on average about 10k more than their audit and TAS counterparts. If the hours are comparable to these service lines, why so much more money? If the hours are much longer in FSO, does the staff ever receive a bonus? There must be a hitch…

Readers should note: This contributor happened to email us from a company email address of a flailing/failing/going-down-in-flames investment bank and – in this writer’s opinion – should be thankful to have ANY job at ANY Big4 firm. Turns out this person has already worked at EY during a previous (and VERY recent) internship and assumedly had ample time/networks/professionals/resources/access to the Internet to answer the above asinine questions.

The hitch is that you don’t have an offer from PwC, so drop the comparison. It’s like comparing my ideal commute to work (jet pack, duh) to the one I currently have (6 train, running with delays). Comparing a PwC FSR offer to an EY TAS offer would at least be a bit more relevant.

I’m going to ignore all questions about busy season hours/travel because you should have asked them while going through the interview process. After all, that’s the point of the interview process. I’m also going to point out that your statement that, “FSO and FSR new hires are earning on average about 10k more than their audit and TAS counterparts” is wrong on many levels. First, FSO includes auditors. Second, new hires within FSO make different salaries (tax hires make XYZ, auditors makes ABC, etc.). Finally, STOP COMPARING EVERYTHING TO PwC’s FSR PRACTICE.

What you do have:

1. An offer in EY FSO: What group? I don’t have a f*cking clue, and you never told us.

2. An offer in EY TAS: Which sub-group? There are six spelled out on the company website.

So, back to one the question in your email that hasn’t been answered at GC a thousand times before:

Hey GC, how’s it going?

Overworked and underpaid. Ring a bell? Take a number.

Bottom line: read through EY’s website to understand their practice lines and acronyms, something you should have done before emailing us. Also, consider taking a job in a “safer” practice…because the last time we had record Black Friday sales was November 2008…and we all know that the house was on fire then…

Jim Turley Stepping Down as Chairman and CEO of Ernst & Young

~ Update includes statement from Ernst & Young

This morning we learned from a couple of sources that the big guy will be calling it a career officially on June 30, 2013 and the firm will announce a new CEO-elect at some point in early 2012.


Here’s JT’s message to the troops:

I have written to all our partners to let them know about my plans to retire from Ernst & Young on 30 June 2013.

Every year, our Global Executive (GE) considers the priorities and initiatives we feel Ernst & Young should focus on in the upcoming year, and these priorities are then approved by our Global Advisory Council (GAC), the top governance body of Ernst & Young.

Periodically, we also take a longer look at our strategy and vision, and involve the GAC in this as well. In July, we informed our partners that we were beginning such a long-term strategic review. The GE and I believe that our new strategy and leadership-succession plans are inextricably linked, and we agreed that June 2013 would be the right time for me to retire.

This is a normal process and the timing has worked out perfectly. I will be 58 years old, which is the normal early retirement age for many of our partners. By then, we will be implementing our new strategy and it’s right that a new leader should steer this implementation.

We are starting a robust process to identify the man or woman who will succeed me, in accordance with our regulations. We intend to identify a new Chairman and CEO elect during the first part of 2012. What I feel very good about is that we’re the type of organization that continually develops large numbers of great leaders, so I see many men and women who could lead Ernst & Young successfully into the future.

This is not a retirement letter or speech to you all, as there is much to do before June 2013. However, I wanted to be very open with you about our plans. Thank you for your continued support as we continue both our strategy and succession-planning process.

James S. Turley
Chairman and CEO

UPDATE: Ernst & Young provided us with the following statement:

In a communication to all Ernst & Young partners worldwide on 10 November 2011, James S. Turley, Chairman and Chief Executive Officer of Ernst & Young confirmed that he will retire as planned, aged 58, on 30 June 2013. The succession process to decide a new Chairman and CEO-elect is now underway and will conclude in early 2012, no later than April.

So after riding out Lehman, handing out a lot of trophies, and inspiring the greatest lyric in the history of Big 4 employee produced videos, (I’m sure there are other accomplishments too) Jimbo will ride off into the Black and Yellow sunset. This seems like an appropriate tribute:

Feel free to leave other well wishes below.

Interns, Here’s the Lowdown on Ernst & Young’s FSO Assurance Practice in NYC

Ed. note: Have a question for the career advice brain trust? Email us at advice@goingconcern.com with your problem(s) but only if you’re comfortable being mocked in an older sibling kind of way.

GC,

I know my question is somewhat specific but I just accepted an Internship offer for E&Y FSO Assurance in NYC and was interested in gaining some insight into the 3 divisions within FSO Assurance. First, I would love to hear your opinion on the pros and cons of each of the three sectors (Asset Management, Banking, & Insurance) including which EY is best known for. I was also wondering if there was a clear leader in each of those sectors in NYC and was wondering which of the Big Four was bestnks so much for your help. I know I am still a year away from having to actually select one of those options but gaining people’s opinions never hurt. Thanks so much.


Congratulations on landing a sweet summer gig with Uncle Ernie. You’ll be working for a great firm in a great city making a great salary while fetching great coffee for your superiors. Cheers!

But really, welcome to New York. You’re smart in thinking ahead to the fact that where you start with your internship will lead to a fulltime offer with the same group. This is because internships are essentially training camp for your first year – make it through the summer successfully and you’re in the club. I did a little digging within my professional circle to uncover some of the EY clients that you’d have the potential of working on, as well as my own two Lincolns.

Insurance – Let’s start with this one because I have a feeling that the group consensus will be unanimous: DO NOT JOIN THIS GROUP. Sure, it is a small, “family-like” practice in the financial services industry, but you’re not coming to work for the warm and fuzzies (if you are, avoid public accounting altogether). You’re coming to make yourself a valuable asset to future employers – one, three, or ten years from now. Can you receive accelerated responsibilities and extensive interaction with your clients? Yeah, but that’s because your co-workers are jumping ship and no one within the firm wants to transfer to the Insurance group. Unless you have an absolute passion for the industry (which you don’t, since you emailed us), I would avoid this group. Stay in this group for five years (you know, to make the dream promo to manager) and you’re setting yourself up for a career working for an insurance (or re-insurance) firm.

Banking and Capital Markets – This group is bigger and more prominent than the Insurance group. It’s taken its hit in recent years because…ummm…the banking industry is in turmoil, but some of the pain has been buoyed by their growing Broker Dealer client base (also falls into this group). Potential clients include Bank of America (*gulp*), UBS Wealth Management (the shining star in the UBS sky), Icahn Securities, JG Wentworth, ING Financial Holdings, and Cantor “run for the hills” Fitzgerald. Sources tell me audit staff are constantly trying to take rotations to the asset management group, so take that for what it’s worth. Career advancement outside of public can take you to either a banking or hedge fund depending on your client exposure, but have you read the papers recently? Banking ain’t the hottest date to the prom to these days.

Asset Management – this is EY’s money train in New York when it comes to audit (and even tax) services. EY and PwC dominate this market in New York, and depending on whom you ask EY has a more rounded client base (blue chip and start ups). Premier clients include Eton Park, Reservoir Capital, Anchorage Capital, and Och Ziff Capital (do some Googling to get an idea about these firms). The exposure to different investment strategies and financial products you will see will be second to none. Don’t forget that you can count the relevant investment banks left standing on two hands, whereas there are thousands of hedge funds and private equity firms in the country (most of which are in the greater NYC area, too). Your easiest and most lucrative path out of audit and into the private sector will be with a background in asset management. Absolutely, positively, 100%.

So there you have it. As always, GC’er please chime in below with your comments.

Your Ernst & Young Entrepreneurs Of The Year Include the Dude From Groupon, Patrick Byrne

We really don’t pay much attention to the E&Y Entrepreneur thingamajigs because, well, it’s boring. Sure, we like entrepreneurs just fine but c’mon. These guys are filthy rich and successful and E&Y gives them trophies? Is this sort of commercial circle jerk really necessary? Regardless of our personal feelings, the awards are a big deal – Jay Leno hosted this year’s event for crissakes – and the Google News feed for E&Y is constantly clogged with stories about people advancing to the next round of voting like some sort of capitalist March Madness.

Anyway, Casa de Turley officially announced this year’s winners over the weekend and Reid Hoffman and Jeff Weiner, founders of Facebook for Suits LinkedIn, are your entrepreneuriest entrepreneurs.


In addition to the dynamic duo there are quite a few guys you’ve never heard of that are doing well for themselves including Roger Linquist and Jose R. Mas. See? Never heard of them, have you?

There are also some winners that you have heard of including Andrew Mason, one of the co-founders of virtual clipfest and increasingly looking insolvent Groupon. As well as Patrick Byrne, the founder of Overstock.com. You know, the guy on the Segway. The guy who Sam Antar can’t help to poke and prod every chance he gets. The guy whose company is being sued by seven California counties thanks to a Walmart sticker. The guy who may have had some weirdo trolling a bunch of bloggers’ Facebook friends. Yes, that Patrick Byrne.

But HEY! not every entrepreneur can be squeaky clean. It’s not like he’s Pete Rose or anything. Unless you count this.

[via E&Y]

So Olympus Didn’t Tell Investors That They Fired KPMG After a Dispute Over an Accounting Matter, So What?

Once in awhile, management and their auditors don’t see eye to eye on things. If semi-well adjusted adults are involved, usually cooler heads prevail and differences are sorted out. On the other hand, if there are egomaniacs or individuals of Irish descent involved, then things can sometimes go badly. Not badly in the physical sense, mind you. Badly in the sense that auditors usually get fired. When that happens it usually raises eyebrows of investors and people start asking all sorts of questions. Luckily, footnote disclosures usually detail the dispute and everyone moves on. That’s precisely what didn’t happen at Olympus:

In May 2009, Tsuyoshi Kikukawa, the then president of the camera-maker and medical equipment firm, announced that the contract for its then auditor, KPMG, had ended and that another global accounting firm, Ernst & Young, would take over. Kikukawa made no mention of any row with KPMG, although Japanese disclosure rules require companies to notify investors of “any matters concerning the opinions” of an outgoing auditor. In a confidential internal document, Kikukawa wrote to executives in the United States and Europe, revealing that there had been a disagreement with KPMG which he did not plan to disclose to the stock market. “The release to be published today says that the reason of this termination is due simply to expiry of accounting auditors’ terms of office,” Kikukawa said in the letter dated May 25, 2009, which was written in English.

You may have recently heard that Olympus is in a bit of situation. They up and fired their new CEO after he was on the job for two weeks because he was asking a few too many questions. You see, Michael Woodford was of the opinion that the $687 million advisory fee the company was paying for to a firm assisting them with a purchase the company in the UK was a tad steep and wouldn’t keep [yapping motion with hands]. Mr. Kikukawa – who has a reputation as an ‘emperor‘ – didn’t care for that, so he and the Board of Directors told Woodford that his services were no longer needed, chalking it up to Woodford being a little too British.

Fast-forward to today’s news – The accounting issue in question – goodwill impairment – was related to the company, Gyrus Group Plc., Olympus purchased back in 2009. And who do you suppose gave Reuters the memo outlining the whole we’re-firing-KPMG-because-they-disagree-with-us-and-we’re-not-telling-anyone-about-it thing?

The confidential letter was given to Reuters by former Olympus CEO Michael Woodford who was ousted after just two weeks in the job on October 14 for what he says was his persistent questioning over the Gyrus advisory fee and other odd-looking acquisitions. Woodford says the letter was addressed to him in his role as head of Olympus Europe at the time and to Mark Gumz, then head of Olympus Corp America.

Apparently this is no big whoop as long as it’s not material and “the numbers add up” says an accounting professor who has ties to Olympus. Oh! In that case, I guess everyone should just move along.

Exclusive: Olympus removed auditor after accounting [Reuters]

Hiring Watch ’11/’12: Ernst & Young Chicago Taking Applications

They’re looking to fill 500 JITs with new Black and Yellows by June of next year.

Chicago Mayor Rahm Emanuel announced the jobs on Tuesday, saying the firm will start hiring immediately and hopes to have all the positions filled by June. Ernst and Young currently employs about 2,000 people in Chicago. The hires will be diverse across experience levels and include support workers.

Just remember that E&Y seems to be upgrading the gene pool, so uglies need not apply.

Ernst & Young to add 500 jobs in Chicago [CT]

The Fall Busy Season Has One Ernst & Young Team in Danger of Going into Diabetic Shock

By way of the Ernst & Young Staff Twitter account, we learn that the young associates are quite fond of the snack drawer:

While I’m not one to condone such unhealthy life choices, I am not lost on the fact that these drawers of death are not uncommon. That said, if all of you out there in E&Y land insist on this type of sustenance, I suggest you get a pair and put down the whole drawer in a prescribed amount of time. The bankers and hedgies have been doing this for years and since many of you think yourselves worthy of their ilk, you should be able to hold your own in the mass consumption of factory produced crap. Anyone up for the challenge should provide a full inventory of the items to be consumed as well as the time limit and the prize to the winner should they emerge victorious. Additionally, I would need to be given a play by play in order to appropriately report the progress and results to the world at large.

We’re waiting. The gauntlet has been thrown.

New Jersey Hasn’t Forgiven Ernst & Young for the Whole Lehman Brothers Thing

I mean, you know how it is, when you lose $192 million. It’s a tough thing to forget. The Journal reports that the Garden State has renewed its lawsuit against E&Y saying “Those review reports were false, as E&Y knew or should have known that Lehman’s quarterly financial statements were not prepared in accordance with [GAAP].” When reached for comment, E&Y spokesman Charlie Perkins’s voice was barely audible on a nearly worn out tape recording, “Lehman’s demise was caused by the global financial crisis that impacted the entire financial sector, not by accounting or financial reporting issues.” Wouldn’t it be nice if Chuck had Nick DeSanto sing the statement? With a rock accompaniment? At least it would liven up this story again. [WSJ]

Another Ernst & Young Employee Is Yearned for in Craigslist Missed Connections

This past summer, a comely E&Y auditor was the subject of a missed connection for “personal and professional” reasons. As disappointing as that is, we’re hopeful that we can make true Internet love happen, as another E&Y employee is the object of someone’s Craigslist Missed Connections post, which makes us wonder if the firm’s recruiting efforts have taken a turn for the superficial. Regardless, this particular encounter is of anonymous affections but is far less creepy.


I had to split up the post since our lady friend opted not to use the “Return” button. The rest of it is on the next page.

Since this was in Rutherford, we’ll go out on a limb and say that this is a Secaucus employee. If you’ve got some idea of who, what and where, help us figure out a way to get these two together. We’re trying to make some love happen, people.

[via Craigslist]

Comp Watch ’11: Big 4 Starting Salaries North of the Border

There’s been quite a bit of chatter out of Canada recently (Happy Thanksgiving, btw) and we now have some of the details for those receiving offers from 3 of the Big 4.

KPMG is offering $40,800 per year. They claim they will pay over time if you work over 40 hours per week.
PwC is offering $40,800 per year with a 0-15% bonus based on performance.
EY is offering $40,500 per year. No mentions of overtime.

This is for the Toronto offices and these figures are all in Canadian Dollars, which comes out to slightly below $40k USD but with the possibility of overtime, obviously the haul could be a lot more. If you’ve heard different numbers (or any Deloitte numbers at all) for these firms, get in touch or discuss below.

Here’s Some of the Loot Big 4 Firms Are Giving to Recruits (UPDATE) – Even More Stuff

Earlier this week, DWB put out an open call for accounting firm recruiting schwag. Pictures, comments, hell we’d even take your extras but none of you have bothered to email me to get my addy. Your lack of sharing ability will be forgiven but not forgotten, dear readers. Luckily, one recruit out of Toronto sent us a few images of the corporate treasures that Ernst & Young, KPMG, and PwC are tossing to those receiving offers. We’ve laid out the images on the following pages for your viewing pleasure and included our tipster’s thoughts on each.


Apparently this is how the E&Y stuff arrived. Someone needs to work on their bo”https://goingconcern.com/2011/10/heres-some-of-the-loot-big-4-firms-are-giving-to-recruits/ey-offer-1/” rel=”attachment wp-att-49718″>


EY offer package – “Cheaply made luggage tag, ball point pen, and passport wallet. A bunch of junk.”

Signing package for EY – EY branded luggage and carry on.

KPMG Offer package – “Dr.Seuss’ Oh the places you’ll go (Party Edition, nonetheless). Neoprene logo computer bag.”

Signing package for KPMG – “No one has received it yet.” UPDATE: Apparently there is no signing package from KPMG, however our tipster did say that the computer bag “was the best pre-signing gift of the three firms, so maybe that’s KPMG didn’t give out anything else.” The House of Klynveld is also throwing a second signing party for the newbies, whereas E&Y and PwC are just throwing one.


Offer package for PwC (not pictured) Now on the following pages – “PwC – PwC branded cookies, $50 prepaid AMEX credit card, hand signed PwC card.”

Signing package for PwC – “Choice between two options. (1) Backpack, binder, coffee mug. (2) Gym bag, water bottle, umbrella.”

PwC Signing

This recruit told us that he’ll be accepting with PwC but didn’t elaborate on whether he was choosing the coffee cup or the umbrella but did say that PwC is coming on pretty strong to those receiving offers:

Another student who has offers from both EY and PwC received a call from the CEO of PwC to ask her to join PwC. Now I wish I hadn’t signed yet, so I could have talked to him.

Choose wisely, grasshoppers.

That cookies looks repulsive but our tipster says that “It’s soft and looks amazing.” Right.

Where Is Ernst & Young Finding All This Musical Talent?

Look, I understand that these firms want well-rounded individuals but when more and more people start showing talents that outshine their professional services skills, it makes you wonder if the recruiting folks need a talking to. I bring this up because, unbeknownst to us, FORTUNE puts together a Battle of the Corporate Bands every year and this year’s winner is American PI, a 12-member band, 11 of which are E&Y employees. Granted, they won’t be winning Record of the Year any time soon since they’re simply covering I Heard It Through the Grapevine, Southbound, People Get Ready, and Superstition but they did have three members win “best of” awards.

And with this triumph by American PI, E&Y now has rock, show tunes, and hip-hop covered. It’s probably only a matter of time until they manage to poach the PwC pianist.

[via AT]

Ernst & Young Just Gave the New York Attorney General 22.9 Billion Reasons to Feel a Little More Motivated Today

Because business is good at E&Y. Not PwC good or Deloitte good but good enough.

Ernst & Young today announced combined global revenues of US$22.9 billion for the financial year ended 30 June 2011, compared with US$21.3 billion in 2010, a 7.6% increase. In local currency, revenues grew 5.3%. “We have had a very strong year in each of our four geographic areas. We continue to see very positive reactions to the way we have globalized our organization over the last few years, our investments in emerging markets and the great dedication and commitment of our people,” said Jim Turley, Global Chairman and CEO of Ernst & Young.

Also, Jimbo says that E&Y is “focused on building lifelong relationships with our people. This ensures we have outstanding talent to provide our clients the best service wherever they do business.” So if your heart belongs to show business, fine. But your ass belongs to Ernst & Young.

[via E&Y]

Is This Ernst & Young Auditor the Next Character on Glee?

I don’t watch Glee. Hell, I don’t even have TV. I did flip through the GQ spread with Lea Michelle and Dianna Agron but otherwise, I’m completely unfamiliar with any of the characters on the show. ANYWAY, I hear it’s popular. It’s so popular that regular people want to be characters on the show as overblown versions of themselves and are submitting auditions for a chance to do so. One of these regular people is Nick DeSanto, an auditor at Ernst & Young.

We can’t embed Nick’s audition video from the Glee Project web page but we did find his YouTube channel so we can give you idea of his talent:


More about Nick – he worked for a couple of years at McGladrey before joining E&Y’s FSO Media & Entertainment group, where he’s been for about a year. We spoke to him over email and by phone (he “visit[s] GC almost every day”) and that this audition is his first stab at breaking into showbiz. Can you imagine if he had been involved with the In a JIT project? His singing career would already be on the fast track, winning Tonys and such.

So go over and support him at his Glee Audition page by liking his page if you feel so inclined. And even if you don’t feel the urge, go and like/vote for him anyway. Just because your dreams won’t come true, doesn’t mean you can’t support someone who’s trying to do something to achieve theirs.

Silvercorp Metals CEO Reminds Everyone That They’re a ‘Real Company’

As we’ve discussed, Silvercorp Metals hasn’t appreciated the anonymous letters floating around the Series of Tubes accusing the Canadian miner of accounting fraud and has stated that, save their assets in China, “this wouldn’t be happening.” What the company would really like is for these jerks to show themselves and cooperate with investigators. But until that happens, Silvercorp hired KPMG to poke around to calm all the fears out there. According to reports, the House of Klynveld will have a report out soon but in the meantime, Silvercorp CEO Feng Rui will address everyone who thinks that his company is just a bunch of Tonka trucks in a sandbox:

“We’re a real company and will fight against shorters and distorters,” Feng Rui, Silvercorp chief executive officer, said today at a meeting in Beijing.

Furthermore, the auditors in this matter, Ernst & Young, have carried out their duties to a T and if you think some bullshit letters are going to cause them (or Feng & Co.) to do things differently, you’d be wrong:

“Our auditing doesn’t have anything wrong, the allegations are fabrication,” Feng said today in an interview on the sidelines of the meeting.[…] “The allegations won’t prompt us to make any changes in the process of financial reporting and auditing,” he said

Frankly, it’s embarrassing that they even have to address this but you’ve given them no choice.

Silvercorp Says KPMG to Issue Fraud Allegation Report ‘Soon’ [Bloomberg]

Analysis: If Your Accounting Firm Was a College Football Team

Pack up your white pants and seersucker suits – Labor Day has come and gone which means only one (actually important) thing: college football is back. You NFL loving freaks can have your Sundays of Hollywood-produced sport; I believe the good Lord created Sundays solely as a recovery day for college football fans. Well, for that and drunk brunches, of course.

It is no secret that good ol’ Caleb is a vehement Husker fan,he only reason he’s given me the green light to churn out a post comparing your respective accounting firms to the likes of fried-butter-eating college football fanatics.

I can only pray that my effort will inspire the semi-regular infusion of sport, accounting, and bantering commenters around here, so I give you the “Accounting Firms If They Were A College Football Program” top nine rankings. Grab your body paint and come along for the tailgate.


Firm: Deloitte
Team: Oklahoma Sooners
First Take: Both are always in title contention but seem to shit the bed come Pay Day. Deloitte raises are on par with the Sooners’ BCS bowl record under Coach Bob Stoops (2-8).
Keep it in the Family: During Hurricane Irene, Deloitte encouraged employees to bunk up together, obviously a practice long in use in Oklahoma.
Sputter, Sputter: Sooner alum Blake Griffin jumped over a KIA at last year’s NBA slam dunk contest. A certain Deloitte consultant also prefers a certain overused and washed out mode of transportation…

Firm: PwC
Team: Oregon Ducks
First Take: They’re in the news for legit (raises, hurry-up offense) and controversial (fireside chats, BCS infractions) more often than you’d like. Also, their team colors are atrocious.
Hotties Everywhere: PDubs has Ireland. The Ducks have these ladies.
Just Pick One Already: PwC doesn’t churn out new logo/uniform re-designs as often as the Ducks but both cause a stir when they do. Whether the changes for either team result in better winnings has yet to be seen.

Firm: Ernst & Young
Team: Ohio State Buckeyes
First Take: You hate going up against them, but even if they do win, you’re thankful you’re not affiliated with their alumni.
Compliance? What Compliance? Former coach Jim Tressell thought it best to let a tattoos-for-autographs program run its course. E&Y is apparently doing the same with this minor Sino-Forest sitch.
Questionable Mascots: The poisonous nuts of the Midwest are no match for the Black & Yellow guy.

Firm: KPMG
Team: Notre Dame Fighting Irish
First Take: Still talking about that big win in 1983. An exodus of leadership. The general public has gone from loathing them to just feeling bad for them. Give it up, you’re no longer the powerhouse you (thought you) once were.
Johnny Be Good. The Chairman is also a proud ND alum. Need we say more?
Empty Promises: We’re going to win it all! We’re going to hire thousands!

Firm: Grant Thornton
Team: Northwestern Wildcats
First Take: As hard you they try to be tough, they’re still nerds dressed in purple.
Off-the-Mark Advertising: GT – the lack of aligned teeth took some bite out of your full-page WSJ ad. And Dan Persa for Heisman – really? Your mom for Heisman.

Firm: Rothstein Kass
Team: Boise State Broncos
First Take: First it was a feel-good story but their continued rise through the ranks is pissing off the traditionalists.
The-Anybody-But-The-Other-Guy- Vote: Whether it was Boise’s ridiculously fantastic win over Oklahoma years ago in the Fiesta Bowl or RK’s dominance in the Going Concern March Madness pool, oftentimes their fan support stemmed from us just hating their competition more.

Firm: McGladrey
Team: Missouri Tigers
Only Take: You’re supposed to be on this list; we know you belong on this list; we don’t know what you’ve done to deserve being on this list.

Firm: BDO
Team: Penn State Nittany Lions
First Take: Your parents would have been pleased if you went there but better options awaited you.
Race to the Retirement Home: JoePa is 84 and coaching from the press box. Rumor has it Jack Weisbaum calls the shots from his personal tanning bed.

Firm: CBIZ/Mayer Hoffman McCann
Team: University Buffalo Bulls
Only Take: You think you’re a big deal, but really everyone uses you as an exhibition punching bag.

How’d we do? What team best parodies your firm? Share it in the comments below.

Silvercorp Metals Asks That You Not Believe Anonymous Letters Alleging Accounting Fraud Just Because They Have Assets in China

As we’ve discussed, companies listed on North American stock exchanges that happen to have ties to China haven’t faired too well. The problem? Some dodgy accounting and disclosures. It’s caused a lot of angst amongst investors and there was enough concern that someone actually decided to wake up the PCAOB and SEC to let them know that something might not quite right over there.

Today’s news that Silvercorp Metals, a Canadian mining company who happens to do some work in China, is the subject of a letter that is making the rounds alleging accounting fraud probably doesn’t come as a surprise to anyone but it sure has irked the hell out of the company.

The allegations against Silvercorp are “entirely bogus,” Lorne Waldman, a Silvercorp spokesman, said today in a telephone interview. “If we didn’t have assets in China this wouldn’t be happening.”

And while they’re at it, the company will have you know that they were not created in a one those so-called reverse mergers that have everyone sketched out.

Waldman denied the mining company was created in a so- called reverse takeover, as was Sino-Forest. He said that Silvercorp’s auditor is Ernst & Young LLP, the same firm that audited Sino-Forest’s financial statements.

Oh, right. Ernst & Young. There’s no cause for concern since they’ve seen this before so they’ll probably just sit tight to see what happens. The silver lining for Silvercorp is that Roddy Boyd has written anything about them. Yet.

Silvercorp Says Accounting-Fraud Allegation in Anonymous Letter Is False [Bloomberg]

Ernst & Young Aware of This Sino-Forest Situation, Seems Content to Watch It Play Out

Jonathan Weil has a column today on the train wreck that is Sino-Forest, the Chinese-Canadian timber company. In case you need caught up, there have been some questions about the company’s ability to report accurate disclosures and accounting. This led the research firm Muddy Waters to issue a not-so-flattering analysis of the company. Things like “Ponzi scheme” and “investing for the 23rd Century” don’t exactly get people jumping up and down for your company. Ask John Paulson.

Of course Sino-Forest didn’t do this all by themselves. They had credit rating agencies and auditors telling them everything was hunky dory for years and that’s Weil’s point. He reports that Fitch pulled its rating on S-F back in July and S&P finally pulled their rating this week. That just leaves Moody’s but guess who else is still hanging in there? Ernst & Young, baby! They’re still standing behind their audit opinions and showing no sign of budging. And JW is really curious to know who’s going to jump out of this tree first.

One question lingers: Which of the company’s paid opinion merchants will be the last to step aside? Will it be a credit rater? Or will it be the company’s auditor, Ernst & Young LLP in Toronto, which has yet to rescind any of its reports on Sino-Forest’s finances?

So far Ernst looks like the favorite, with only one rating company left in the hunt. Think of it as a contest between giant tortoises to see which one is slower. This time-honored ritual — of market gatekeepers waiting to blow the whistle until long after a scam has been exposed — has become so familiar, we might as well revel in the spectacle.

So these “gatekeepers” Weil speaks of – obviously this includes the Big 4. And it’s true that we’re all used to them waving their arms, screaming “DANGER!” in front of the burning heap that everyone has been aware of for ages (I didn’t say Lehman Brothers. Did you say Lehman Brothers? Who said Lehman Brothers?).

ANYWAY, E&Y should know that they have choices:

Ernst does have options, aside from bracing for the inevitable years of litigation and investigations. It could resign, explain why it is doing so and face criticism for acting too late. It could withdraw its previous audit opinions. It could insist to Sino-Forest’s directors that it be permitted to answer questions from the public about the work it has performed, as a condition of remaining onboard. Or it could hang on in silence, as it’s doing now, and watch its reputation endure more damage.

Could be that this is just another part of E&Y’s strategy. Sit tight while things play out, wait until things get really serious (i.e. bankruptcy, severe economic turmoil, civil charges, etc. etc.) and then come out swinging.

Tree Falls on Sino-Forest, Auditor Can’t Hear It [Bloomberg]

Ernst & Young Still ‘Flawlessly’ Tabulating Those Emmy Awards Ballots

For the past 23 years, Primetime Emmy® Award winners have remained television’s best-kept secret thanks to the efforts of Ernst & Young LLP, part of the global Ernst & Young organization that is a leader in assurance, tax, transaction, advisory services and strategic growth markets. “We are extremely proud to be continuing what has become a 23-year tradition for Ernst & Young by maintaining the integrity of the Emmy® Awards tabulation process and the accuracy of the results,” said Andy Sale, Ernst & Young LLP, lead partner for the 2011 Emmy® Awards engagement. “The Emmy® Awards have a far-reaching impact on the television industry and it is critical that the balloting and tabulation process be implemented flawlessly.” [E&Y]

All of the Big 4 Land on This Year’s Vault Consulting 50 List (2012)

Back with more lists that include your favorite accounting firm. Today’s edition is the Vault Consulting 50. Mostly this list consists of firms that you wish you could work for but you can’t because you either have no pedigree or are dumber than a sack of hammers. That said, all the Big 4 are represented with Deloitte Consulting breaking into the top 5 (2011 ranking in parenthesis):

1 (1) Bain & Co.
2 (3) McKinsey
3 (2) Boston Consulting Group
4 (6) Deloitte Consulting
5 (25) Monitor Group


6 (8) A.T. Kearney
7 (7) Oliver Wyman
8 (5) The Cambridge Group
9 (4) Analysis Group, Inc.
10 (16) Booz & Company

This is a pretty fun list mostly because there was a lot of jumping around by the firms (*ahem* Monitor Group, where did you come from?). Other notables that you’re probably curious about include:

11 (32) Accenture
12 (13) PwC
21 (19) PRTM (who PwC just purchased)
36 (44) Navigant Consulting
42 (45) Capgemini
45 (42) FTI Consulting
47 (NR) Ernst & Young
50 (NR) KPMG

Jump over to the full list if you’re interested to see the rest of the Top 50 and here’s Vault’s methodology for those curious about that sort of thing.

Vault Consulting 50 [Vault]
Last year’s coverage:
Big 4 Have Big Presence on Vault’s Prestige List, Less So in Top 50

Reznick Group’s New National Director of Tax Really Gets Around

With firms, anyway.
Joseph D. Mudd has been named Reznick Group’s new National Director of Tax, according to a firm press release. Prior to the new gig, he served as a partner and managing director with McGladrey’s New York Economic Unit Specialty Tax Services Practice. Before that, he was a partner at Ernst & Young, leading the Metro New York Area accounting methods and inventories practice, as well as the firm’s Internal Revenue Code 199 domestic manufacturing deduction practice (yes, apparently that’s a group). Before that he was with PwC. Before that, Andersen. Presumably, he’ll join KPMG next only to be snatched up PwC, thus bringing his career full circle (RIP Andersen). [Reznick Group]

Today in Sketchy Chinese Company News: Ernst & Young Suspends Audit of Zungui Haixi

It’s been quite the year for the Chinese-based, reverse-merger clients of accounting firms. There have been curious press releases, audit workpapers held hostage, and the run-of-the-mill blowing off of auditor recommendations among other things. With all that, you probably figured the fun was over.

Not so! The latest in China-doesn’t-really-know-what-the-hell-it’s-doing news is the report that Ernst & Young has walked out on Zungui Haixi, an athletic footwear and apparel company listed in Canada. Why? Well, it’s not really clear but it sounds like Zungui has some explaining to do:

Zungui said auditor Ernst & Young LLP has advised its board that its has suspended its audit for the year ended June 30, 2011, until the company “clarifies and substantiates its position with respect to issues pertaining to the current and prior year”.

Ernst & Young recommended that the issues identified be addressed by an independent investigation, the company said in a brief statement that did not provide any details on the issues.

As we all know, “issues” could be just about anything from missing cash, to a CFO resigning. Hopefully it’s nothing quite so serious and the crack squad of investigators assigned to the task will get to the bottom of it and not wait for Roddy Boyd to pick it up.

Zungui Haixi shares tumble after E&Y suspends audit [Reuters]

Ernst & Young Serving Simpler Businesses After the Sour Taste Left by Lehman Brothers

Actually, it’s just for the kids.

Ernst & Young LLP, a global professional services firm, will be the Presenting Sponsor of a Guinness World Records attempt by local area elementary school students to make history with the “Longest Lemonade Stand.”

The record-setting attempt will be made Saturday, August 20, National Lemonade Day, in Beverly Park in Beverly Hills, Michigan, with proceeds going to support local school initiatives. The Longest Lemonade Stand record attempt includes an age-appropriate curriculum specifically designed to use the lemonade stand concept to teach kids basic business principles.

The students have already sold nearly 300 individual stand “kits” to families representing 16 area public, private and parochial schools. Participating families will bring their individually decorated stand sections to the park on event day to create the 1,200-foot-long stand required for the Guinness World Record!

Considering the fact that it’s not uncommon for local authorities to take a no tolerance stance on non-compliant stands, I hope Ernst & Young has informed participants that attention to detail is very important in business.

[via LLS]

And Now…Ernst & Young Interns Employees Singing a Song About Making Partner, Acronyms in the Tune of Katy Perry’s ‘Teenage Dream’

UPDATE: Don’t ask me why staff are singing a song about “Intern Dreams” but apparently that is the case, hence the change in the headline. Carry on.

After being away for awhile, many you probably thought that I get on here and bitch and moan how awful it is to be back to grind with you all. It’s been quite the opposite experience actually, as we’ve learned that Adrienne is more than capable of getting people’s attention that inevitably result in emails being sent directly to me while it was widely known that I could be doing any number of things at the time, including A) watching someone’s Vespa go up in flames in London B) eating space cakes C) speaking to French women with a bad American accent D) watching a shockingly violent fight at Amsterdam’s Gay Pride Parade.

But nevermind all that. Cooler heads typically prevail around here so it’s nothing that couldn’t be handled. Plus, it nice to know that I can leave for a couple of weeks and the site doesn’t miss a beat.

But what really makes my life easy is coming back to emails pointing me to the EYConnects Facebook page where you can find this video:


As any long time reader of GC knows, Ernst & Young runs away with from the rest of the Big 4 when it comes to producing videos that border on hilarity. No need to look further than the masterpiece of “In a JIT” to the video from the Las Vegas office featuring an Elvis impersonator.

While “EY Dream” doesn’t feature legendary lyrics like “On a jet like Turley” mocking acronyms and well-rehearsed choreography wins points in our book. Still would have been funny to hear some self-deprecating lyrics related to Lehman Brothers. Oh well, we’ll keep waiting.

Feel free to leave your thoughts on this latest effort below.

The Greatest Farewell Email We’ve Seen…EVER

Subject: And When I Leave Come Together Like Butt Cheeks

You can figure out where this is going to go based on that alone, I’m sure.

Predictably, this email has been making the rounds since it was sent. If the OP was shocked it went viral in public accounting inboxes up until this point, wait until he sees it here. Names have been changed to protect the innocent, including the OP, who isn’t innocent at all but still deserves that. I think.

Hey Motherfuckers!

Guess who just got the fuck outta Dodge?! This guy! How many people had Craig Douchenozzlestein lasting until August 4, 2011 in the YMP pool?

But seriously, it is NOT easy to get out of these contracts. Im pretty sure it would have been easier to escape from Auschwitz th knew from the second week I start here that this wasn’t going to work out. I mean, working past 7pm cuts significantly into my drinking and foundling women time. So therefore, since October 28, 2008 when I was forced to work until 10pm on my fucking 23rd birthday, these wheels have been in motion.

I feel like it is probably appropriate to go over what got me to this point of release, in case anyone wants to take a similar approach and not have to pay back any tuition money and get a severance package.

The first breaking point for EY was during my staff 2 year when I lost an inventory count and the bitch of a senior manager WOULD NOT stop hassling me about it. Dude, I told you I lost it. No matter how many emails or sametimes you sent me, that sheet isn’t coming back. Get over it. Rose cried less when the Titanic sank. Needless to say, he personally wrote my review. Didn’t go over too well during roundtables.

The next “occurrence” happened in February 2009 during busy season. It was a Friday night and I was newly broken up with [the girlfriend] for the 24th time. That Saturday I had to work on [rando client] in the office because we just received their 10K. However, this was a minor inconvenience because 2 buddies from college were in town and I had a kitchen full of liquor waiting for them. During that night at the bars, I hit it off with one of the girls in our party and, as any guy knows, the first lay after a break up is as necessary as oxygen. So we leave to go back to my apartment only to realize I had given my buddy from college my keys so he could get in later. In a crime of passion and lack of forethought, I punched through our glass window to get into the lobby, only to realize the door to my apartment was still locked. Not letting this stop my teenage sex drive, we hopped a 30 minute cab to her place. The next morning I awoke at 11am realizing I should have been at work 2 hours ago. By the time I got to work it was 1pm, I reeked of booze and was bleeding all over the place because of my hand. AND I had forgotten my badge so called the senior manager to come let me in who greeted me with a “what the hell happened to you?” I also found out I had texted my senior the prior night while in the cab saying “Getting laid in West Randombury, Ill be at work ASAP” at 3am. Needless to say, my year end review mentioned something about “unprofessional” and “this is a career, not some part time job”

Those 2 situations resulted in me being held back for my staff 2 year. After that, there was not much anyone could do that would prevent me from doing what I wanted to do. I worked from home, ignored deadlines, and pretty much didn’t give a shit. I even made up some bullshit excuse that I was stuck travelling back from the Kentucky Derby in Pennsylvania during a 3/31 year-end just so I could catch up on the DVR I missed while away for the weekend.

The final straw that broke Camel Craig’s back resulted from a year-end job at the beginning of January. The Manager was a complete bitch and I spent most of my day exchanging texts with a girl I had met the prior weekend at the bar. She did not take kindly to this. But the breaking point for her was definitely when I didn’t show up til 2pm on that Friday because it was my roommates birthday the night before. Everyone knows Roommates birthday=Your Birthday, right?!?! That’s another thing that gets me about this place, everyone is so caught up in work they forget about enjoying life. Shit, life is so short (especially if you are a raging alcoholic) and is way too short to spend stressing over excel sheets all damn day. Every once in a while enjoy it! Take a sick day to go to the beach. Get hammered on your roommates birthday and come in late, have unprotected se…. well, maybe not too much enjoyment. But you get the message!

But I digress, I truly enjoyed my summers with you guys and the shit we got away with. I hope I was able to have a positive effect on your lives in some way, even if it was just “damn, at least Im not as bad as Craig . Did you see him lick the Backer pole last night?!” I hope you all keep in touch and wish you the best down the road.

If you guys are ever in the Random City area, Im always down to meet up. Just no rioting like we did when Joey and Dan were here.

One Love,

Craig

Good luck to you in your future endeavors, “Craig,” you’ll need it.

Please note, we’re pretty sure this guy is a one-off and not at all reflective of the overall quality of his colleagues. Therefore let’s reserve any judgments for Craig and Craig alone. Judge away, my darlings.

Comp Watch ’11: A Detailed Explanation of Uncle Ernie’s Complicated “Metrics”

… and it promises that if you just stick around for 12 years, you could be an executive, director, partner or principal.

Warning: the propaganda is absolutely raging in this piece of HR gold, dive into it accordingly (and turn your head to be able to read it).

EY Curve

PCAOB Bans Former Auditors From Faking the Audit Trail For the Near Future

The PCAOB has banned former Ernst & Young partner Peter O’Toole from associating with a PCAOB-registered firm for the next three years and fined him $50,000 for his part of a 2009 scheme to fake audit paperwork. E&Y removed O’Toole from the audit engagement team in June of 2010 and canned him several months later in September. The three year ban from audits is the longest bar that the PCAOB has imposed on a partner of a Big 4 accounting firm to date.

“These actions threatened to undermine the integrity of PCAOB inspection processes, and the ability of the Board to discharge its mandate to inspect the auditors of public companies,” said James R. Doty, PCAOB Chairman in a statement. “The Board moved swiftly to address this conduct, having commenced litigation against these respondents within seven months of learning of their conduct. I commend the Board’s Division of Enforcement and Investigations for its timely and effective work,” he added.

The PCAOB has also banned Darrin Estella from working with a PCAOB-registered firm for two years in connection with the improper creation, addition, and backdating of audit documentation in this case. Estella was a senior manager with E&Y’s Boston office and also let go in September of 2010.

The Board found that, shortly before a PCAOB inspection of an E&Y audit, O’Toole and Estella — acting with O’Toole’s knowledge and authorization — created, backdated, and added a document to the audit working papers that related to the most significant issue in that audit. The Board also found that O’Toole authorized other members of the audit engagement team, including Estella, to alter, add, and backdate other working papers in advance of the PCAOB inspection.

Additionally, the Board found that O’Toole and Estella provided a written document to PCAOB inspectors in which E&Y represented to the Board that no changes had been made to the audit working papers following the documentation completion date for the audit. Neither O’Toole nor Estella ever disclosed to the PCAOB inspectors that, in fact, the working papers were altered after the documentation completion date and shortly before the inspection.

The Board found that O’Toole and Estella’s actions violated PCAOB Rule 4006, which requires cooperation with Board inspections, as well as PCAOB Auditing Standard No. 3, which governs audit documentation.

The PCAOB has not released the name of the company involved, who hired E&Y as  independent auditor in 2002. E&Y expressed an unqualified opinion on the company’s September 30, 2009 financial statements, which led to notice by the PCAOB that an inspection of the unknown company’s audit was being performed on March 30, 2010. The partner, senior manager and manager on the engagement were given notice on March 31, 2010. The inspection fieldwork was set to begin on April 19, 2010.

This comes on the heels of an earlier PCAOB decision which censured 27-year-old Jacqueline Higgins for her part in the scheme. Word is she has since taken a job with McGladrey’s Boston office (unconfirmed rumor), who could probably use the help.

Comp Watch ’11: Ernst & Young Comp Discussions Start Today

We’ve received several short, anxious emails (presumably all from Uncle Ernie’s nervous camp) tipping us off to the fact that E&Y comp discussions are going down this week, so it must be true. Of course, this post is useless without actual comp numbers, which we’re sure you’ll give us as soon as you have your sit-downs.

Hi Going Concern –

To give you heads up, E&Y comp and promotions dicussions [sic] are happening this week (they’re happening today in my office). Perhaps it’s a good time to open the new thread on the topic.

Cheers,
E&Yer

Great, so does this mean the Ohio and Michigan crews have already packed up and are ready to bail if they get anything less than whatever it was they are holding out for?

Rumors so far are that raises will be in line with last year’s, which were not at all disappointing considering that we are still (not technically) in a recession, not to mention all that Lehman drama the E&Y lawyers are still hashing out. Too soon? Anyway, as usual, you’re welcome to entertain each other with disparaging comments about the size of your, er, comp packages until we hear news on actual numbers.

Update: Looks like some pretty good numbers are rolling in but please, for the sake of your fellow EY brethren, if you want to share your comp info, be sure to at a minimum include where you are (general metro or region is fine), what service line you are in, your rating (hint: this is a number) and, of course, the actual new pay and bonus number (if any).

Ex-Ernst & Young Partner’s Former Lover Skirts Jail Time, ‘Ashamed’ for Sleeping Around to Land Insider Trading Tips

Early last year, James Gansman, a former Transaction Services partner was sentenced to a year and a day for securities fraud. This all came about after Gansman met Donna Murdoch on ashleymadison.com which eventually evolved from run-of-the-mill extramarital activities across the tri-state area to Gansman giving Murdoch hot tips on M&A activity. She then picked up Richard Hansen on Ashley Madison, who also gave her a few more tips that were used for monetary gain. All told, it came to about $392k for Murdoch.

Unfortunately, her trading activity got some people’s attention and this particular jig was up. Accordingly, Murdoch flipped on both her boy toys and as luck would have it, that will kept her out of jail. That’s obviously great and all but Murdoch has found the whole situation quite regrettable.

Donna Murdoch, 49, buried her face in her hands and began blubbering after the judge said she wouldn’t be heading off to the pokey. “Your honor, I will carry the shame of all my wrongdoing for the rest of my life,” the heavyset blonde said as her forgiving hubby and three kids watched from the gallery in Manhattan federal court.

It’s a tough, tough situation to be sure. You know what else is a tough situation? Deciding whether or not to sell out the people you were banging for the information so you could stay out of jail:

“It’s been really painful, but I still feel like the decision to cooperate was the right one, given the situation,” Murdoch said yesterday.

Hot tips from hot lips [NYP]

Ernst & Young Is Really Wishing They Hadn’t Blown Off That Lehman Brothers Whistleblower

FT Alphaville found this notable quote from District Judge Lewis Kaplan’s opinion (whole thing after the jump):

The TAC alleges that Lee told E&Y in June 2008 “that Lehman moved $50 billion of inventory off its balance sheet at quarter-end through Repo 105 transactions and that these assets returned to the balance sheet about a week later.” Assuming that is so, E&Y arguably was on 308 notice by June 2008 that Lehman had used Repo 105s to portray its net leverage more favorably than its financial position warranted, a circumstance that could well have resulted in the published balance sheet for that quarter being inconsistent with GAAP’s overall requirement of fair presentation. Accordingly, the TAC adequately alleges that E&Y misrepresented in the 2Q08 that it was “not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles” notwithstanding Lee’s disclosure to it.


“Lee” you may remember is Matthew Lee Lee, the Senior VP for Global Balance Sheet and Legal Entity Accounting who also said this about E&Y’s reaction to his warning on Repo 105:

They certainly didn’t support it. On the Repo 105 issue, they knew about it; they did not appear to know that the number was so large.

Ouch.

lehmanruling

Comp Watch ’11: Rumors of Imminent Exodus at Ernst & Young Has Some Perplexed

This just in:

I have been talking to a variety of people at E&Y from several offices in Ohio and Michigan. The word from them is that there is going to be a significant movement of people once compensation info is passed out. It’s kinda conflicting since the rumor is that raises should be around what they were last year. Not sure what to make about it.

As you recall, last year’s raises and bonuses at Ernst & Young were competitive with PwC, which came as a pleasant surprise to everyone at Black and Yellow but understandably this rumor has our tipster in a flummox. Of course, this could be limited to the Ohio/Michigan area but it’s worth seeing what the Turley’s Troops in other areas are hearing. Share below.

Ex-Ernst & Young Partner Trades Tech Companies for Cuddlesome Creatures

The Oakland Tribune shares this charming story of an accountant who discovered her talents would be more appreciated in helping animals:

Like many people who love animals, Sue James dreamed of becoming a veterinarian when she was a child.

“I looked into going to vet school but my parents, they wanted me to pursue a more traditional career,” said James, a Danville resident who grew up in a house in New York state where the family pets included dogs, rabbits — even a monkey.

After a long stint in the corporate world, James found an outlet for her lifelong love of animals at Tri-Valley Animal Rescue, an all-volunteer group founded in 1992 with a mission to prevent the unnecessary euthanasia of shelter animals.

Uncle Ernie gets a badass plug in the next bit:

She started volunteering in 2005 as she was winding down a long and successful career at Ernst & Young. There, she was a partner who oversaw audit work for some of Silicon Valley’s leading high-tech companies. Today, she serves on the boards of Yahoo, Applied Materials and Coherent.

Working at Ernst & Young, she learned the importance of teamwork to meet the needs of clients. That focus also carries over to her volunteer work. “It’s about the cats and dogs,” she said. “But also, for me, it’s how can we work effectively as a team.”

It makes sense that she’d end up at the shelter; from what I hear, actual auditing isn’t much different.

By the way, she’s 65. She holds a bachelor’s in math from Hunter College, New York (1967) and bachelor’s in accounting from San Jose State (1975). She taught math and science in junior high and high school in New York state from 1967-69, worked in San Jose office of Ernst & Young starting in 1975, was named partner in 1987, retired in 2006, then consulted for the company through 2009.

Promotion Watch ’11: Ernst & Young Admits 548 New Partners Worldwide

Still a little perplexed that I have to find this out via press release but I understand that at least some of you are beating off clients

with a stick.

Jim Turley, Chairman and CEO of Ernst & Young says, “Building the next generation of partners to lead our business is vital to our future. This year’s marked increase in numbers reflects our ongoing commitment to excellence and our confidence in the future.”

John Ferraro, Chief Operating Officer of Ernst & Young says, “These admissions are the result of a rigorous selection process and recognizes the significant contribution of each individual to our success. This is a strong vote of confidence in the leadership potential of these outstanding individuals.”

Congrats to the all the new partners at E&Y!

Comp Watch ’11: Someone at Ernst & Young Wasn’t Too Discreet with Sensitive Info on Their Commute

From the mailbag:

Happened to be sitting behind someone on my NYC commute this week who was reading a deck (in font large enough for me to read) on EY’s salary ranges etc. Didn’t see any $ numbers and most was hard to see without context or the full page but I did see this:

(I don’t know ey terms – apr = annual performance rating?)

APR345
S. Mgr1%2%3%
Mgr2%3%4%

Our tipster stated that the percentages were supposed to represent “minimum raise.” Hard what to make of this as rumors have been all over the board from “They told us not to have very high expectations,” to ” Per my discussions with an Office Managing Partner and a National Practice Leader …. raises should be close to (if not the same) as prior year.” But considering there’s an expensive legal battle on the horizon, maybe this isn’t so crazy? Discuss.

(UPDATE) Ernst & Young Auditor Area Man Takes His Crush for Co-worker Ernst & Young Auditor to Craigslist Missed Connections

Don’t you just love missed connections? Maybe you’re more of a casual encounters person but there’s something to be said for someone that is experiencing such infatuation that dropping a post on Craiglist seems like the best thing to do. Of course, it’s another thing entirely when you are infatuated with someone at work and you conclude that your best way to tell them that they are the most beautiful creature on Earth is by posting on missed connections. Apparently, UPDATE: some dude crushing on an Ernst & Young auditor did just that.

Dating Fails: Dating, Breakup, Boyfriend, Girlfriend - Office Romances Don't Count Online, Right?
see more

Okay, a few notes:

1. For a lot of reasons, personal and professional, there’s no way I can say anything to you. – What exactly are the “personal” reasons? You can’t speak in coherent sentences? You have awful body odor? You’re actually a serial killer? As for “professional” reasons, we all know that auditors are banging auditors all over the place (SEE UPDATE BELOW), so if you’re simply saying that this can’t happen because it’s against your professional morals then fine but other people around you are getting busy and you will not.

2. I can’t believe you don’t hear that all the time. You probably do. – You’re right. She probably does hear it all the time. But not from anonymous people on the Internet.

3. I wish I could tell you and not come across as a sleaze! – You’re not “coming across,” broski. You’re already there.

This was posted in NYC (expired now) so maybe we can track this guy down and help him with his game.

UPDATE:
After reader input and discussing it with my partner in crime, it’s clear that this is a client leering at the E&Y auditor and AG and others are postulating that our Craiglist creeper is either married or in a committed relationship. If this is the “personal reasons” he spoke of, it’s far less interesting and funny than some kind of social anxiety disorder that renders him a stuttering love-sick fool. But it does begs several societal questions among them: 1) does posting a missed connection constitute cheating? or 2) do we applaud his self-control (until he gets home of course). Discuss.

Are Ernst & Young Employees Looking Forward to Their Performance Discussions?

Since this feels like one of those days where everyone is at a ball game or is so hung over that they can’t operate their email, I’ll share the latest news from the mail-cum-money bag:

@EY – Just got an email saying we need to meet with our counselors before 7/31 to discuss annual review. I doubt any comp info though.

Even if these chats don’t involve any numbers, they may be useful in one of two ways: 1) It gives cranky employees the opportunity to fly off the handle because this last busy season was a special kind of personal hell and that no amount of money can possibly make up for that. or 2) It may be the perfect time to inform counselors about what kind of numbers are being thrown around at another firm who the Black Yellow had no problem keeping pace with last year.

Smiling and nodding works too, if that’s more your speed.

The Company That Brought You Farmville Is Going Public

In addition to the Nets’ financials, you’ve got plenty of reading to do over this long weekend.

Some highlights from Zynga’s S-1 courtesy of Zero Hedge:

• Q1 2011 revenue: $235.4MM, up from $100.9MM YoY, LTM revenue $731.9 MM
• Q1 Net Income: $11.8MM up from $6.4MM YoY, LTM Net Income: $96.2MM
• Q1 Adjusted EBITDA: $112.2MM, up from $93.5MM, LTM EBITDA: $411.4MM
• Adjusted EBITDA definition also excludes stock based comp and change in deferred revenue
• Cash: $995.6MM, almost the same size as the entire proposed IPO
• Working Capital: $603.4MM

Some other fun things of note:

&bull Jeffrey Katzenberg, CEO of DreamWorks is on the Board of Directors and serves on the compensation committee.

• CFO David Wehner is formerly of Allen & Company, an investment bank that specializes in media and technology. He has an M.S. in Applied Physics from Stanford and a B.S. in Chemistry from Georgetown. His total compensation for 2010 was $17,996,057, $16,087,500 of which was stock awards.

• The audit committee consists of Brad Feld, Reid Hoffman and Stanley Meresman. Feld is a MD at the VC firm Foundry Group, Hoffman is the former CEO of LinkedIn and Meresman, the chair of the committee, selected for “his background as chair of the audit committee of other public companies and his financial and accounting expertise from his prior extensive experience as chief financial officer of two publicly traded corporations.”

• Mark Vranesh is the Chief Accounting Officer and had total compensation for 2010 of $1,544,940, $1,287,000 was stock awards.

There’s plenty more to pour through, so have it. And yes, Ernst & Young says everything is kosher, so who wants a piece of this?

Zynga S-1 [SEC]

Ernst & Young Auditor Wants to Give a Partner an Earful About Comp Even If He Receives a ‘Very Generous’ Raise

Last week, we tried to get the ball rolling on Ernst & Young compensation rumors and while some may chalk up the lack of chatter to “PwC sticker shock,” others claim this is simply standard operating procedure. If you remember last year, eventually Ernst & Young reported some impressive raises that kept pace with P. Dubs but one of Turley’s troops is expecting the worst this year and would like to give a partner a piece of his mind. Unfortunately, he isn’t sure how to do it:

Hello,

By way of introduction, I am a loyal reader of going concern as well as a big four slave in the audit practice. Slavery had begun four years ago at EY and with all the compensation talk going on at other big four firms, I can’t help but to think –

What is a tactful way of telling a partner during the comp talk, “well thank you for that oh so very generous double digit percentage raise (assuming if it’s even double digit), but I am still unhappy because even after this supposed raise, you are still not paying me jack for the amount of contribution and commitment that you demand from me.”

As noted above, I’m a second year senior from an east coast office and my base is still not breaking mid-60s. Seriously, what the f___?

I will be forever grateful if you post my question up for discussion. Thanks so much!!!

Yours,

Angry EY audit senior

There are various directions we can take here so I’ll try to cover a few options before turning it over to you all.

A. Start off with a variation of, “Look, I’m an ungrateful, bitchy auditor. I also have unrealistic expectations and an inflated notion of my self-worth. I’d really appreciate an explanation as to how you can reconcile these traits to this paltry 10-15% raise.”

B. Continue with the slavery narrative.

C. Start questioning leadership at every turn, from challenging Andrew Cuomo to rumored twisting of Senators’ arms. “If this is the type of firm your running, yada yada yada.”

D. Simply ask if E&Y’s raises will beat PwC’s.

Now you may not think these are “tactful” ways to have this conversation but he did sign, “Angry EY Audit Senior.” If I tried to reason with this person, I’d be doing him a disservice. And when is honesty ever not tactful? If you sugarcoat your frustration, the partner will assume you’re a pushover like everyone else. My guess is most partners want you to give it to them straight. If you’re a performer (and something tells me you think you are) than this partner doesn’t want to lose your talent.

Having said all that, not everyone can muster up the courage to ditch the filter in these meetings. If you’ve got better more practical ideas than what I’ve listed, feel free to bestow your sage advice below.

Comp Watch ’11: Ernst & Young Keeps ‘Em Waiting

If I seemed impatient about hearing from the Black and Yellow, it’s because I was. Fortunately, someone answered the call:

As of now, we haven’t heard ANYTHING regarding raises/bonuses etc. On our performance management internal website the status of my annual review just changed from “Leadership Review/Roundtable” to “Release to Compensation” so hopefully we will be getting some news soon!

So, no news is…news, isn’t it? Last year, we started hearing Ernst & Young compensation rumors around the 15th and here we are, one week from our nation’s birthday and hardly a peep. Someone buy a partner a happy hour beer tonight or something, wouldja? Keep us updated.

(UPDATE) Can Anyone Make Sense of Ernst & Young’s Hiring Numbers?

I’ve been out of the numbers game for awhile now but for the life of me, I can’t figure out just how many people Ernst & Young will be hiring off campus for this year. Or is it last year? The firm put out a press release yesterday that states that it “will hire approximately 5,000 students from campuses across the US in the 2010-2011 academic year.” That’s all fine and good but it’s different from the report in CNN back in March that we told you about that said “It’s looking to hire 7,000 employees from college campuses — 4,500 full-time and 2,500 interns […] in 2011.”


That report also stated that “campus recruits are up 20%,” but yesterday’s press release said “campus hiring [increased] 25 percent from last year.”

All told, E&Y and the rest of the Big 4 are hiring lots of people but the numbers don’t quite add up. The nice folks at E&Y are trying to help me out, so I’ll report back when I’ve got some answers.

UPDATE: I’ve been informed by an E&Y spokesperson that “numbers referenced in the release are for the US, whereas the numbers cited in the Fortune article are for the Americas.” To clarify, the “Americas” includes the U.S., Canada, Mexico, Central America, South America, Bermuda, the Bahamas, the Cayman Islands and the Caribbean.

[via Ernst & Young]

Ernst & Young Didn’t Appreciate the Threat of ‘Action’ By Audit Client Who Wanted Rubber-Stamped Financial Statements

Some clients treat their auditors like dirt. Given. To these haters, the financial statement audit is an onerous task that is mandated by the SEC and it amounts to an assault on liberty, capitalism and Ayn Rand’s genius. Accordingly, some clients try to push auditors around because typically they can. Today we bring you a rare example of a pushy-ass client going too far and an auditor standing up for themselves.

Ernst & Young resigned at the auditor of Life Partners Holdings Inc. in a letter dated June 6, 2011 after the CEO, Brian Pardo, WROTE IN A MEMO that he would “take action” against the firm if they did not sign off on the financial statement committee got wind of this little soapbox moment and promptly told E&Y about it.

From the 8-K Filing:

On June 6, 2011, Life Partners Holdings, Inc. (“we” or “Life Partners”) received a letter from Ernst & Young LLP (“Ernst & Young”) addressed to the Chairman of our Audit Committee (the “Resignation Letter”) confirming that it had resigned effective June 3, 2011, as our independent registered public accounting firm, as had been orally communicated to the Chairman of the Audit Committee on June 3, 2011. The resignation means that Ernst & Young will not certify our financial statements for the fiscal year ended February 28, 2011 (“Fiscal 2011”), which is necessary for completing and filing our Annual Report on Form 10-K for Fiscal 2011 (the “2011 Annual Report”).

The resignation follows a letter from Mr. Brian Pardo, our Chairman and CEO, to our licensee network (persons who refer purchasers to us) commenting upon the delayed filing of our 2011 Annual Report. The letter stated that it was Mr. Pardo’s position that we would “take action” against Ernst & Young if it did not promptly complete its audit and sign off on our financial statements without adjustment. Our Audit Committee wrote to Ernst & Young disclaiming the letter’s statements and asserting that the letter did not speak for the Audit Committee. Notwithstanding the Audit Committee’s disclaimer, Ernst & Young stated that the letter compromised its independence, and when considered with other recent developments, that it was no longer able to rely upon management’s representations, and that it was unwilling to be associated with the financial statements prepared by management.

Just for good measure, E&Y also stated that the company’s revenue recognition policy sucks, needs revised and they pulled their unqualified opinion over the 2010 financial statements. How’s that for “action”?

8-K [SEC via WSJ]

UPDATE:
As noted by the first comment below, the second comment on a post over at Deal Journal has what appears to be the memo in question from Brian Pardo.

Message From Brian Pardo

Yesterday we filed for an extension of the time to file our annual10K which should have been filed by May 15th because the Auditors have not yet completed their part. Quite frankly I am confident that the SEC is interfering with us by trying to unnerve the Auditors (by asking frivolous questions) which has added to the delay in getting out the 10K which is done and ready to release. They are trying to force us to “restate” our revenue recognition criteria; one that has been in use for ten years now.

Restating for any period, for any reason is viewed by the market as an implicit admission that prior quarters were probably misstated, which they were not. We do expect to file shortly, but the WSJ called last night to print another negative article.

There is no reason to restate because any proposed adjustment is immaterial under GAAP guidelines. E&Y signed off on our revenue recognition criteria policy last year and every other audit firm has as well since we went public in 2000. However some of your clients will probably read about it in the WSJ or in some other supposedly legitimate news media. And, the shorts will no doubt make a big deal about it.

My position is we either ratify the 10k as is very soon or we will take action against E&Y as well as with the SEC in Washington. It is time to put an end to this nonsense! I believe E&Y is trying to mitigate problems they may have with the SEC at our expense. For instance, we were never told by E&Y that they audited at least one large organization in the Madoff matter.

We are well within GAAP boundaries regarding every of aspect of our financial statements including all materials created, used or reviewed in relation to our published financial statements. We have ten years of doing this the exact same way and every Auditor from every firm for the entire time has signed off on every single 10k over those last 10 years.

Brian D. Pardo

PS You are authorized to share my statement with concerned clients and Licensees, but, not the press although the matter is in the public domain now.

Ernst & Young Toronto Invites Employees to Don Their ‘Best’ Denim This Summer

It’s not everyday we get news from north of the border, so it’s nice to see our Canadian friends reaching out to us. If you’re from the True North and have some gossip or other newsworthy items to share, send them our way. As for today’s news, we’ve been informed that Ernst & Young’s Toronto office has given the green light to their employees to rock half of the Canadian Tuxedo starting this Friday through Labor Day. Our tipster was quite excited about this since, “This is unheard of in Big 4 accounting firms in Toronto.”

Hi everyone,
If you watched my “[Toronto OMP] Korner” video from last week, you’ll know that the topic of Jeans Day was discussed.

I know many of you have been waiting for a few Jeans Days in the [Greater Toronto Area], so I’m pleased to share that there will be many opportunities for you to wear your best jeans to work over the summer months.

Starting this Friday, 20 May until 2 September, every Friday will be Jeans Day.

From time to time we’ll add a charity-challenge component to Jeans Day. However, for the most part, feel free to wear your best jeans to work on Friday just because.

Retaining a professional appearance is important to us — even when wearing jeans. Please — no rips or tears in your jeans, no t-shirts or running shoes either. If you’re seeing a client on a Friday, please wear your usual office attire.

Best regards,

[Toronto OMP]
Managing Partner, [Greater Toronto Area]

All the emphasis is the original, so you know when “best” is best, the Toronto brass means business. Per usual in these situations when you give an inch of denim, some people take a mile of looking like a complete slob, so please pass the warning on to the Toronto leadership.

Big 4 firms have a staunch pro-denim track record here in the States, as E&Y’s FSO was given a similar reprieve from the drabness of the business casual uniform last busy season and KPMG’s Summer Blast last year. It’s likely that you’ll be seeing more denim around the office the summer again this year but we’d be very interested in seeing pictures of some egregious vilolations. So if you fancy yourself a member of the fashion police and see a perpetrator, take a pic and send it our way.

What Was Discussed on Ernst & Young’s ‘All Hands Broadcast’?

We’ve heard from a couple people that Ernst & Young had an “all hands webcast” of some kind today but so far, no one has given us any details as to what was discussed.


Of course there were probably kind words about all your hard work this busy season, your commitment to the firm and so on and so forth but we want to get to the crux; this calls for speculation on our part, until we get something more solid. Possible topics include:

1. Hazing methods for the folks from LECG Corp.

2. The announcement of special screenings of In a JIT.

3. Two minutes’ hate for a certain Governor.

4. Mysterious references to “exciting changes” to the compensation structure that won’t be revealed until “details” are sorted out (i.e. management knows what PwC is doing).

5. Your input.

Ernst & Young Advisory Intern Wants to Get an Idea of What the Overtime Gravy Train Will Be Like

From the mailbag:

I will be a full time Advisory intern at Ernst and Young in Manhattan this coming summer. The duration of the internship is 7 weeks starting mid June. We just received a raise in our salary which has me thinking about compensation.

As you know, interns receive overtime which can contribute significant weight to overall pay. After researching the internet and the GC archives, I have not been able to find a clear answer regarding what I can expect for overtime hours. I know this varies by firm, workload, work groups etc but can you estimate an average of overtime hours per week? If any?

Right you are, grasshopper – it will depend on various factors you mentioned as well the clients you are assigned to, and what kind of expectations your superiors have (maybe that’s what you mean by work groups?). ANYWAY. In all likelihood, you’ll see some overtime hours which will probably result in some nice paychecks this summer but don’t be surprised if managers are staying on top of the hours you’re working. The Big 4 and other accounting firms aren’t quite as loose with the wallet as they used to be so I’d guess your hours will top out somewhere in the 50s on a weekly basis. That puts you in the range of 10 to 15 hours of OT a week (20+ only for those who work for lunatics). If your senior isn’t a headcase then you can expect 40-50 hours a week.

If you fancy yourself a intern hour handicapper, throw some numbers out there. And, interns, when things get rolling, get back to us with your numbers.

Ernst & Young Adding 30 Professionals From LECG

A little bit of fresh news from the LECG implosion as Ernst & Young announced yesterday that it was picking up thirty professionals to add to its insurance tax and life actuarial practices in the firm’s Financial Services Office.

These LECG refugees are led by Chris DesRochers and Greg Stephenson, according to the release, and E&Y is thrilled to have them, “This represents a significant addition of intellectual capital to our insurance tax and actuarial teams,” said Carmine DiSibio, Vice Chair and Managing Partner, Financial Services, Ernst & Young LLP. “We were very fortunate to be able to add so many experienced professionals at one time — additional talent that greatly enhances the breadth and depth of the services we provide.”

E&Y is the latest beneficiary of the LECG collapse, joining Grant Thornton, WeiserMazars and FTI Consulting.

[via E&Y]

Did Ernst & Young Convince Republicans to Skip Last Week’s Senate Subcommittee Hearing?

If you followed last week’s “Role of the Accounting Profession in Preventing Another Financial Crisis” hearing before the Senate Banking Subcommittee on Securities, Insurance, and Investment, you may have noticed that “Ernst & Young” was never uttered by anyone on the panel, although Lehman Brothers was mentioned a number of times throughout the hearing. Anton Valukas, the bankruptcy examiner for the Lehman, was there after all and “Ernst & Young” appears in his report probably thousands of times. So why wouldn’t Ernst & Young be mentioned? This is a hearing about the accounting profession preventing, after all and Mr Valukas has stated in his report and elsewhere that “colorable claims” could be filed against E&Y. Stands to reason that perhaps the firm would come up at some point.


Also, if you followed the hearing with us on our live-blog, you definitely heard Francine McKenna and I complaining about the sorry turnout by the members of the subcommittee. The majority of questions coming from the subcommittee chairman, Senator Jack Reed (D-RI), with a few from Senators Kay Hagan (D-NC) and Jeff Merkley (D-OR). The eight GOP members were nowhere to be found. Now maybe accounting isn’t the sexiest of topics but it’s hard to argue that this wasn’t an important hearing where many questions could have been asked of an industry that witnessed excrement coming into contact with an old Century. However, after a tip from a person familiar with situation, we may have an idea why there was such a pathetic turnout:

[T]he auditing firms did not like it they were holding the hearing and E&Y really was complaining to Reed that Valukas had been invited. As a result, the Republicans agreed that none of them would attend the hearing which in fact, none did.

Gotta love spiteful absence! Obviously we had to call around on this one and Ernst & Young spokesman Charlie Perkins declined to comment. As for the Republican members of the subcommittee, we have…well, nothing else to share at this point. But we’re hopeful! It’s entirely possible that all eight GOP members had something better to do than ask questions of industry experts that had a front row seat to the financial crisis, but then again the hearing was pretty early in the morning.

UPDATE: A spokeswoman for Senator Mike Crapo, the ranking member on the subcommittee, informed us that Mr Crapo was sick last Wednesday and canceled all his appointments for that day.

ISA Consulting Takes Up with Ernst & Young

The firm that wouldn’t be named adds the Philadelphia-based company to the advisory business.

“The acquisition of ISA Consulting is part of a broader strategy to expand Ernst & Young’s already strong presence in the performance management and analytics market,” said Bob Patton, Americas Advisory Services Leader, Ernst & Young LLP. “ISA Consulting’s reputation for quality service and integrity, as well as the experience of their team, makes them a great cultural fit with Ernst & Young.” Just don’t get mixed up with those auditors. [PRN]

In Case You Forgot, the Big 4 Are Hiring a Small Army of People This Year

CNN/Fortune managed to dig up this corpse of a story: “Bean counters wanted: Why the Big 4 are in a hiring frenzy.”  This refers to the hiring bonanza that Deloitte announced last September that was followed by various announcements by the rest of the Big 4:

[T]here’s one unlikely place where the help wanted sign is up, big time: Accounting firms.

Deloitte plans to hire 17,000 professionals in the U.S. and India in 2011, according to Cathleen Benko, its chief talent officer. It’s seeking accountants, auditors, consultants, and IT staff. Hiring is split evenly between experienced and entry-level applicants.

Ernst & Young has stepped up recruiting. It’s looking to hire 7,000 employees from college campuses — 4,500 full-time and 2,500 interns — and 6,000 experienced staff, totaling 13,000 people in 2011, says Dan Black, its director of Americas Campus Recruiting. Experienced staffing is up 80% from last year and campus recruits are up 20%.

Both firms compete for talent against PricewaterhouseCoopers, KPMG, and large consulting firms such as McKinsey and Bain. The hiring confirms a 2011 Bureau of Labor Statistics report that predicted employment in accounting and auditing would spike 22%.

For starters I don’t know why accounting firms are an “unlikely” place for the “help wanted sign” but don’t forget that this is the same outlet that told us that the firms were making money hand over fist back in the Fall of ’09. Also, why CNN/Fortune is now reporting Deloitte’s India’s hiring numbers as part of this story is a little confusing. Plus, if “hiring is split” between experienced and new hires that is a change in the breakdown from what was reported last September. Again, maybe the India numbers change things up a bit and I lost my 10-key long ago.

And we’ll also mention that the E&Y numbers are slightly better than what they initially reported last September so make of all these stats what you will, the rainbow and unicorn PR machine is in full force and CNN is happy to scoop them up spit them out.

Bean counters wanted: Why the Big 4 are in a hiring frenzy [CNNMoney]

Future Ernst & Young Intern Wants to Know How to Land on a Prestigious Engagement

Welcome to the slightly-less-mad-Friday edition of Accounting Career Emergencies. In today’s edition, a future E&Y intern only wants to work on the sexiest tech clients that the House of Turley has to offer. How can one ensure that he/she lands only on the clients worth bragging to their peers? Let’s find out!

Caught in a busy season love-triangle (audit-cleaning crew-admin)? Not sure if your auditor is being honest with you? Upset over a rival’s shady moves? Email us at advice@goingconcern.comDear Going Concern,

I am a future 2011 Assurance Intern for EY. Do you suggest emailing my contacts in the firm regarding preferences as to industry and clients? They know from my interviews that I prefer tech clients, but is it wise to go into greater detail? I don’t want to seem entitled, but I also don’t want to get stuck on some crappy client because everyone else voiced their preferences and got spots at Apple, Google, Facebook, etc. Suggestions on how to voice such opinions would be welcome also.

– Future Staff 1


Dear FS1,

I like it when someone knows exactly what they want but I feel that you need some perspective. Let me start by answering your question directly. I don’t see anything wrong with voicing your interests in the clients you mentioned to your contacts at E&Y, especially if those contacts work on those engagements. If none of the people that you met during the recruiting process serve those clients, attempt to get in touch with someone via the contacts you did make. “The squeaky wheel gets the grease” or “the hooker won’t land the john in the Mercedes across the street if they don’t yell at him” certainly applies here.

Now for that perspective I mentioned – Apple, Google, Facebook are all sexy names and are obviously prestigious clients but let me be clear, these engagements’ allure is extremely deceiving. When I was a resident in the House of Klynveld, I worked on one of the most prestigious private equity clients the firm had. I landed a spot on this team because this is exactly what I wanted at the time, I spoke up and with some luck, I got what I asked for. It was great experience and I worked with a lot of talented people but the majority of the time, I wouldn’t say it was a pleasant experience. The hours were long, there were lots of political games and it was a GIANT rumor mill. Now if you think you can thrive in such an environment, then I say go for it but in my experience it wears on most people. I would expect the teams you mentioned would be a similar experience.

However, as an intern, I’d expect that you’ll be mostly on the fringes of most of the negative aspects of working on such a team because the firm wants you to think it’s a great place to work and managers and partners on those clients want you to think it’s a great engagement. And because you want a full-time job someday, you’re going to do your best to impress the wrinkled pants off these people. If you accomplish that feat, they will want you back on their team. The problem is that once you’re on that team, it may be very difficult to get off that team when you discover that it is Hell on Earth. Now maybe you’ll get mentored by one of those I’m-working-my-ass-off-for-very-little-gratitude-because-I-want-to-get-ahead-in-this-firm types and you’ll really like it. But if that doesn’t sound like your cup of tea, then learn as much about the team while you are an intern to determine if you want to work on it or a similar client in the future. Talk to the A2s and SA1s (sorry A1s, you’re still clueless) to get their perspective but make sure it’s the people that will level with you about what life is really like on that engagement. HINT: If you get a rah-rah speech about the “experience on such a great client” you’re not getting an honest take.

So make your client desires known to get a taste of the life on a sexy client but once you land there, be sure to take a look around to see what life (or a pathetic version of it) will be really like if you’re still there in the future. Good luck.

Ernst & Young, Guy Who Plays Boy Wizard to be Recognized by Trevor Project

Having seen the rabid crowds outside FAO Schwarz to see this guy first hand, it’s hard telling what kind of internal battle there is at E&Y to rub elbows with Harry Potter (even if he’s likely to be sans spectacles).

Daniel Radcliffe will be honored by The Trevor Project with the Trevor Hero Award during “Trevor LIVE” at Capitale (130 Bowery, NY, NY). The annual show benefits the life-saving work of The Trevor Project and will also honor Ernst & Young LLP with the Trevor 2020 Award.

If you’re not familiar with the Trevor Project, they do great work, focusing on “suicide prevention efforts among lesbian, gay, bisexual, transgender and questioning (LGBTQ) youth.” Kudos to E&Y for the recognition.

ESPN’s Website Deemed Not Crucial for Ernst & Young’s Non-Monetary NCAA Bracket Competition

Perhaps circumstances have changed but as of yesterday, access to the most popular and comprehensive coverage on the web will not be allowed.


Which is unfortunate since some offices appear to be supportive of some bracketing.

Are you ready for March Madness?

As part of _______________ into spring campaign, it’s time to join the festivities during the 2011 NCAA Basketball Tournament. The “Madness” begins today with a non-monetary NCAA Tournament bracket competition. Everyone in the ___________ office can submit an online Tournament bracket. At the end of the Tournament, the person from each service line who picks the most winning teams will receive _____________________ (and bragging rights!).

You must complete your Tournament bracket before Thursday, March 17 __________________. Expand the section below for instructions on how to submit a bracket under your service line. During the Tournament, which concludes with the championship game on April 4, you can visit your group’s page and see how your bracket is performing compared with your service line colleagues’ brackets. If you have any questions, please contact ____________________________

Not exactly sure how you guys feel about a non-monetary competition but as far as strategy goes, since we’ve already given you access to the best strategy you can find. Of course some people are enjoying this immensely.

Latest Epic Video Out of Ernst & Young Includes Lots of Bleeps, Faux-Coffee Diss, Best Lyric Ever

It’s been increasingly obvious that Ernst & Young has the most talented video producers amongst the rank ‘n’ file Big 4 professionals. Last year we saw a video from the Las Vegas office (it was pulled) that was not the most impressive in terms of the talent presented but a Elvis impersonator made up for the rest of the group.

More recently from the Black and Yellow we’ve seen a farewell rock video and a mockumentary from across the pond (also pulled) that both demonstrate the sort of right-brained capabilities that exist within E&Y. Today, we bring you the latest in epic E&Y videos that brings voice to the frustration of being stuck in a JIT (“just-in-time”) cubicle.


So there’s a lot to digest here but I’ve got my favorite moments picked out:

1. I’m not sure who wears vests to the office these days but it’s fashion-forward and I like it.

2. Cursing right off the bat (and not letting up) score bigs points with Adrienne.

3. A Flavia diss is always apropriate.

4. Best lyric ever: I’M THE KING OF EY; ON A JET LIKE TURLEY; YOU’RE IN PUBLIC ACCOUNTING, NO YOU AIN’T LEAVIN’ EARLY

5. Kicking the roller was mean (but hilarious).

6. They should have known they were doomed when they wrote the lyric about a partner “seeing me now.”

7. Chuck Norris? Obama? Paddycake? Things really took a strange turn at the end.

The word from the tubes is that it’s been making the rounds inside and outside E&Y so we’re not exactly sure when this was made but our tipster was a little miffed about the possibility of these guys not having anything to do:

Here’s another video produced by auditors in the midst of busy season who somehow find time for this shit. This one comes courtesy of EY San Jose. Apparently it’s been making it’s rounds inside (and outside) of EY all day. HR must be thrilled at this use of company time (and property, from what it appears).

Apparently it never occurred to our tipster that this was a firm-sanctioned production since the Vegas vid went over so well. There’s only one way to find out so I left voicemails for both of these guys to try and get the behind-the-JIT story. So far I haven’t heard back from either of them but it’s still a little early out in San Jose. But whenever you can guys, email us.

Your thoughts on this latest bit of video ingenuity are welcome at this time.