Friday Footnotes: EY Buffs PE Practice; A thirst for integrity; “Everyone has the impression that KPMG is 4th” | 6.10.22

Acting SEC chief accountant warns of ‘checklist compliance’ approach to auditor independence [JD Supra] The SEC’s Acting Chief Accountant, Paul Munter, again underscored the SEC’s emphasis on auditor independence in its June 8 statement on “The Critical Importance of the General Standard of Auditor Independence auditors and an ethical culture for the accountancy profession”. This latest statement follows a pair of statements issued in October 2021 and December 2021, both of which similarly emphasized auditor independence. This time, however, the statement goes further by describing both the application of the general independence standard and common recurring issues of auditor independence consultations with the Office of the Chief Accountant (“OCA”).

Reality TV stars found guilty of fraud and tax evasion [Department of Justice] Following a three-week trial, a federal jury found Todd and Julie Chrisley guilty of conspiracy to defraud community banks out of more than $30 million in fraudulent loans. The jury also convicted Todd and Julie Chrisley and their accountant, Peter Tarantino, of a number of tax crimes, including conspiracy to defraud the IRS. The Chrisleys were found guilty of tax evasion and Peter Tarantino was found guilty of filing two false tax returns on behalf of the Chrisleys’ company. The jury also found Julie Chrisley guilty of wire fraud and obstruction of justice. You will recall that the Chrisleys’ accountant tried to absolve himself of blame by saying that he had failed the CPA exam several times, so obviously he shouldn’t be advising clients.

Some tax services do not violate US ban on providing accounting services in relation to Russia sanctions [Journal of Accountancy] A U.S. accounting firm is not prohibited by a White House executive order regarding U.S. sanctions on Russia from providing tax advisory and preparation services to the U.S. subsidiary of a Russian company in certain scenarios, the guidelines say. released Thursday by the Treasury’s Office of Foreign Assets Control (OFAC).

Innovation and integrity are essential for the future of accounting [Accounting Today] “What we bring to the table as a profession is this incredible reputation for trust, in what we do, how we give advice, our willingness to do the right thing, to volunteer and to make a difference in the communities we live in, and so much more,” President and CEO Barry Melancon told attendees of an expert panel at the institute’s Engage 2022 conference, which will is being held this week in Las Vegas.”We couldn’t be better positioned as a profession – the thirst for this integrity has never been greater in any part of the world. It’s one of those characteristics that I hope you talk with customers and employees. We have to leave that to the next generation of accountants.

Accounting Firm CEO Challenges Outdated Talent Paradigms to Declare Organizational Purpose [Thomson Reuters] Spoiler: It’s pretty much the exact same thing with more buzzwords: The professional services industry has long been known for the billable hour, long hours, and dedicated effort toward partnership promotion that is the hallmark of much sought-after success. Acceptance of these industry structures for decades unfortunately perpetuated the survival of the fittest mentality, and most employers and employees assumed that these were necessary work practices, carried out in the name of service to the clientele. Alan Whitman, CEO of Baker Tilly, embraces these longstanding paradigms – what he calls breaking the mold – and declares the company’s goal to “unleash and amplify talent”. “With everything else remaining unchanged, our mission and vision – which are, respectively, to enhance and protect the value of our clients and to create the CPA consultancy of the future today – were all part of our strategy. before the pandemic,” Whitman explains. “When during the pandemic we learned so much about ourselves, how we work together and what people wanted, it clarified our talent-centric organizational focus.”

Why was this posted on r/accounting?

Deloitte Spots a Silent Digital Transformation Killer – CFO-CIO Toxic Tension [Forbes] Deloitte’s quarterly CFO Signals report details financial executives’ views on economic conditions, business risks and performance prospects. The most recent edition has a special “Managing the IT Function” feature that describes the views of key financial leaders on technology spend, business value, and performance.

EY to invest $1 billion to expand its private equity offering and appoints Bridget Walsh as EY’s global private equity leader [EY] “PE services are a key strategic priority for EY’s organization, and this investment will help improve services to clients through the recruitment and development of high quality talent. Bridget is highly respected, both internally and in the global EP community, and I’m thrilled to have her leading this initiative. She has a strong track record of working with some of the largest PE clients on major global transactions and brings exceptional operational knowledge and experience in leading and managing industry teams across the globe,” says Andy Baldwin , EY Global Managing Partner – Client Services.

Big Four pay rise: £1,000 at EY, £2-4,000 at KPMG [eFinancialCareers] LOL: By nature, being grouped under the term “Big Four”, you cannot talk about EY without comparing them to Deloitte, KPMG and PWC. “Everyone feels like KPMG is fourth,” the Audit Associate told us, ranking EY third, PWC second and Deloitte first.

UK accounting watchdog fines PwC over Galliford Try and Kier audit failures [Reuters] The Financial Reporting Council has fined accounting firm PwC around 5 million pounds ($6.22 million) as part of a sanctions package following an investigation into audit failures of construction companies Kier and Galliford Try. The FRC, the UK accounting watchdog, said PwC and its audit partner Jonathan Hook failed in a number of relevant requirements, including identifying and correcting errors in the statements of income and of Kier’s cash flow regarding the presentation of gains on business sales made in 2017.

SEC Addresses New Crypto Accounting Questions Behind The Scenes [Bloomberg Tax] U.S. Securities and Exchange Commission accountants continue to grapple with behind-the-scenes questions about how companies account for cryptocurrencies, not just recently released guidance on how companies report their obligations protect customers’ crypto, a senior SEC accountant said Thursday.

IRS raises mileage rate for remainder of 2022 [IRS] For the last 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate at the start of the year. The new rate of deductible medical or moving expenses (available to active duty military members) will be 22 cents for the remainder of 2022, up 4 cents from the rate in effect at the start of 2022. These new rates will take effect effective July 1. , 2022. The IRS provided legal guidance on the new rates in Announcement 2022-13PDF, released today.

Latest Accounting Jobs – Apply Now:

Do you have something to add to this story? Let us know by email, Twitter, or text/call the phone line at 202-505-8885. As always, all advice is anonymous.

Comments are closed.