Friday Footnotes: No Foolin’ Here; 18,000 new accounting jobs; Skills auditors need NOW to be ready for the future | 4.1.22
Ed. note: forgive us, we are running out of bandwidth to offer an april fool today. For your reading pleasure, you can reminisce about the time we hid the entire site behind a (fake) Bitcoin paywall for a few hours on April Fool’s Day 2014 and got insulted by readers and critics. Oh, memories.
431,000 jobs added in March, including 18,200 in accounting [Accounting Today] Some of the biggest job gains were in recreation and hospitality, professional and business services, and retail and manufacturing. Professional and business services added a total of 102,000 jobs in March, including 18,200 in accounting and bookkeeping services. Overall employment in professional and business services was 723,000 higher than in February 2020. Average earnings rose 13 cents to $31.73 in March. Over the past year, the average hourly wage has increased by 5.6%. The labor force participation rate fell to 62.4%, about one percentage point below its pre-pandemic level.
How Accounting Firms Handle Hybrid Working [Journal of Accountancy] Accounting firm executives collectively say they face many challenges: establishing formal and fair policies that work for everyone, especially with talent at such a premium; maintaining a cohesive corporate culture when people are dispersed; in some cases, monitoring productivity, especially with younger or newer employees; in the face of resistance from some leaders, who want everyone to return to headquarters; integrate new recruits into a half-empty office; and perhaps, more importantly, ensuring that everyone in the company is visible and noticed, regardless of their location, and that cliques do not appear among office workers.
The auditor of the ARB, MM. BDO, voluntarily resigns after failure to reach agreement on proposed increase in audit fees [The Edge] Expect to see a lot in the future: ARB Bhd announced on Friday April 1 that its auditor, MM. BDO PLT (BDO), had voluntarily resigned. Elaborating on the reason for its auditor’s resignation, the software and platform provider said in a stock exchange filing: “We were unable to reach consensus on the proposed increase in audit fees covering statements financial statements for the 18 months ending June 30, 2022 of the company and certain of its subsidiaries.
SEC Begins Identifying Public Companies Under Foreign Company Accountability Act [JD Supra] Pursuant to the Holding Foreign Companies Accountable Act, the United States Securities and Exchange Commission has begun identifying public companies that have engaged audit firms that the Public Company Accounting Oversight Board has determined cannot fully inspect in because of a position taken by the authorities of a foreign jurisdiction.
Dispute over audit of US-listed Chinese stocks: Chinese regulator asks auditors to consider preparing for inspections [CNBC] The China Securities Regulatory Commission said in a statement to CNBC on Friday that it called a meeting this week with some accounting firms and told them to consider preparing for joint inspections. Consultations with Chinese and U.S. regulators on audit supervision and cooperation are generally going well, the commission said.
Congresswoman Sylvia Garcia (TX) reintroduces PCAOB whistleblower protection bill [Congresswoman Sylvia Garcia] âThe PCAOB Whistleblower Bill of 2022 strengthens transparency in our country’s government procurement by protecting whistleblowers who have reliable information for law enforcement,â said Congresswoman Garcia. âThis bill is a necessary first step to protect the integrity of public companies and markets.
The IRS doesn’t need more workers; it takes less work [The Telegraph] The IRS has its problems. Law professor Beverly Moran reported that last year, “taxpayers struggled to reach the IRS, tax returns took months to process, nearly a quarter of refunds failed to process. were made before 2022 and collection notices were sent even after tax owed was paid,â and added that the IRS failed to respond to 250 million phone calls. The Washington Post suggested that “What the IRS really needs is a big investment to staff and modernize its systems. Congress needs to address this with the same degree of urgency as the nation’s crumbling infrastructure. is one way to go.Another approach would be to significantly reduce the complexity of federal taxes.
The auditor in 10 years [Accounting Today] In 10 years, auditors will need a number of new skill sets, new skills and new abilities, and they will want to start developing many of them now, whether they are currently in the profession or they are just starting their career.
#TaxTwitter is a ghost town. I think we all know why.
is it over yet?#TaxTwitter
â Andrea Carr CPA (@andreacpa0) March 31, 2022
After accounting problems, Plug Power fires KPMG [Times Union] About a year after revealing it had made unintentional errors in its financial reporting to federal regulators over a period of years, fuel cell maker Plug Power has fired its accounting firm KPMG. Plug Power’s audit committee, a subgroup of its board, voted on March 16 to fire KPMG in light of accounting issues that, when announced, sent Plug shares plummeting. Power. Shareholders also sued the company over it.
Report examines goodwill impairments throughout the COVID-19 pandemic [CPA Practice Advisor] Total goodwill impairments recorded by U.S. public companies more than doubled in 2020, according to the 2021 U.S. Goodwill Impairment Study (â2021 Studyâ) released today by Valuation Advisory Services practice. Kroll, the leading provider of data, technology and insights related to risk, governance and growth.
How autism can help close the talent gap in Canada â Deloitte [Business Chief] âThe autism community has so much to offer, and unfortunately much of the potential of neurodiverse Canadians is either lost to employers or untapped,â says Roland Labuhn, Partner, Digital and Analytics, Deloitte Canada. “From the hiring process to a clear lack of support systems for employees, the autistic community still faces significant barriers to finding meaningful work, and it’s important that employers recognize that removing these barriers will lead to a more inclusive workplace for all employees.”
Upcoming fee bonanza for PwC and KPMG thanks to climate disclosure rules [Australian Financial Review] Auditing firms will get a “boost” from proposed climate disclosure rules in the US, which will require companies to seek external assurance before releasing details of their carbon footprint.
Remember this? Yeah, it always happens. In 2015, an AICPA Exposure Draft indicated that the AICPA estimated that approximately 75% of its members would be eligible to retire by 2020. Reddit talks about it here:
Climate Change: What the SEC Proposal Means for Companies and Auditors [Journal of Accountancy] A long-awaited draft proposal from the SEC could bring new normalization to how companies report on climate-related risks and their own carbon emissions, with auditors set to play a major role in assuring climate change reporting. weather. The proposed rule builds on previous SEC guidance and reflects changes in the marketplace, said Wes Bricker, CPA, PwC’s U.S. vice president and co-leader of U.S. trust solutions. âI think this is a very important step for companies in their emissions reporting, but everything needs context,â Bricker said in an interview.
Dubai-based MContent partners with PwC to launch Doc ‘Ripple vs SEC Saga’ into the metaverse (EXCLUSIVE) [Variety] Dubai-based cryptocurrency-based content platform, MContent, has teamed up with PricewaterhouseCoopers (PwC) Middle East to launch its documentary âRipple vs SEC Sagaâ in a virtual metaverse theater. Produced by Amsterdam-based MContent and Insight TV, in tandem with Villain Studios, âRipple vs SEC Sagaâ (first image above) dives into the ongoing case brought by the Securities Exchange Commission (SEC) since 2020 against the blockchain company Ripple Labs.
PwC in talks to lease 38K SF at 545wyn Miami [Commercial Observer] Accounting giant PwC is negotiating a lease for about 38,000 square feet, or one floor, in the 545wyn office building, according to people familiar with the negotiations.
picture by Cristyen Bohn