An Accountant's Memorial Day Weekend Reading | 05.25.12</h1> <article> <h1>An Accountant's Memorial Day Weekend Reading | 05.25.12</h1> <p>Caleb Newquist — Fri, 25 May 2012 17:23:25 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><em>That's it for us, team. We'll be back with guns blazing on Tuesday. Have a safe holiday weekend and if you're feeling inspired, <a href="mailto:editor@goingconcern.com?subject=Going%20Concern%20Freelancer">write something up and send it over</a>. Just remember that <a href="http://goingconcern.com/post/brief-word-going-concern-freelancer-search" target="_blank">Adrienne will be reading</a>.</em></p><p><strong>Facebook’s stock should trade for $13.80</strong> [<a href="http://www.marketwatch.com/story/facebooks-stock-should-trade-for-1380-2012-05-25" target="_blank">MW</a>]</p><p><strong>Apple CEO Tim Cook’s Stock Rises With Choice to Turn Down $75 Million Dividend</strong> [<a href="http://allthingsd.com/20120525/apple-ceo-tim-cooks-stock-rises-with-choice-to-turn-down-75-million-dividend/" target="_blank">ATD</a>]<br /><br /><strong>Why JP Morgan’s gamblers need to be spun off</strong> [<a href="http://blogs.reuters.com/felix-salmon/2012/05/25/why-jp-morgans-gamblers-need-to-be-spun-off/" target="_blank">Felix Salmon</a>]<br /><br /><strong>Ron Paul's push for full Fed audit slated for House vote</strong> [<a href="http://thehill.com/blogs/on-the-money/banking-financial-institutions/229539-ron-pauls-push-for-federal-reserve-audit-to-hit-the-house-floor" target="_blank">The Hill</a>]<br /><br /><strong>In Spain, Bank Transfers Reflect Broader Fears</strong> [<a href="http://www.nytimes.com/2012/05/25/business/global/in-spain-bank-transfers-reflect-broader-fears.html?_r=1&hp" target="_blank">NYT</a>]<br /><br /><strong>Little Girl’s Lunch Review Blog Persuades Her School to Serve Healthier Meals</strong> [<a href="http://gawker.com/5912773/little-girls-lunch-review-blog-persuades-her-school-to-serve-healthier-meals" target="_blank">Gawker</a>]<br /><br /><strong>A Harvard Professor Analyzes Why Start-Ups Fail</strong> [<a href="http://boss.blogs.nytimes.com/2012/05/25/a-harvard-professor-analyzes-why-start-ups-fail/?src=rechp" target="_blank">YTB/NYT</a>]</p><div><strong>Berlusconi 'had £16million in CASH brought to bunga bunga parties to pay girls'</strong> [<a href="http://www.dailymail.co.uk/news/article-2149960/Silvio-Berlusconis-accountant-brought-16million-cash-premiers-luxury-villa-pay-girls-attended-infamous-bunga-bunga-parties.html" target="_blank">DM</a>]</div><div> </div><div><strong>Hedge Fund Case Questions Accounting Liability</strong> [<a href="http://www3.cfo.com/article/2012/5/auditing_paron-capital-yulish-rothstein-kass-crombie-fraud" target="_blank">CFO</a>]</div><div> </div><div><strong>Dallas Pizza Chain Ticks Off Latin People and Conservatives With Its New Campaign</strong> [<a href="http://www.jrdeputyaccountant.com/2012/05/dallas-pizza-chain-ticks-off-latin.html">JDA</a>]</div><div> </div><div><strong>And thanks to PK for sending this over:</strong></div><div> </div><div></div><div> </div><p> </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/ji1X5hYB-pr6SypFts-3ZNkp6KE/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/ji1X5hYB-pr6SypFts-3ZNkp6KE/1/da"></img></a></p> </article> <article> <h1>California Board of Accountancy Wants to Throw the Book at Mayer Hoffman McCann for City of Bell Audit</h1> <p>Caleb Newquist — Fri, 25 May 2012 16:31:37 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Remember the fiasco in Bell, California? Mayer Hoffman McCann performed an audit of the city except it turned out that <a href="http://latimesblogs.latimes.com/lanow/2012/05/audit-firm-bell-discipline.html" target="_blank">they didn't really perform an audit</a> and it was later discovered that some of the city's leaders were making off with some money. The California State Board of Accountancy called MHM's audits "little more than a 'rubber-stamp,' " and by all accounts, that appears to be true.</p><p>This debacle has been dragging on, as these things often do, and the latest news is not good for MHM, as the <a href="http://latimesblogs.latimes.com/lanow/2012/05/audit-firm-bell-discipline.html" target="_blank"><em>L.A. Times</em> reports</a> that the firm could be fined up to $1 million and lose its license to practice in the state. That's a less than ideal scenario for MHM who has <a href="http://www.mhm-pc.com/Locations/q/ca.aspx" target="_blank">three locations in California</a>. All this grim news has even the Mayer spinmeisters sounding dejected:</p><blockquote><p>“Obviously, we hope this is the next and final step in resolving the Bell matter,” said Joe Crivelli, a spokeswoman for Mayer Hoffman firm. “The firm is working really hard to make sure what happened in Bell doesn’t happen again.”</p></blockquote><p>Probably not, Joe (spokeswoman?). Can't forget the lawsuits!</p><p><a href="http://latimesblogs.latimes.com/lanow/2012/05/audit-firm-bell-discipline.html" target="_blank">Firm that audited Bell's books hit with disciplinary charges</a> [LAT] </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/ixROfXjE8WZzIAfG4lEli_fJJP8/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/ixROfXjE8WZzIAfG4lEli_fJJP8/1/da"></img></a></p> </article> <article> <h1>Here's Yet Another CPA Exam Candidate Jilted By Prometric's Sloppiness</h1> <p>Adrienne Gonzalez — Fri, 25 May 2012 14:32:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>I know it's shocking but we have another CPA exam candidate upset, stressed out and unnecessarily worked up by a Prometric issue. I have absolutely no reason to believe anyone would make these stories up and after years of working with this stuff, when the same type of story comes to my attention time and time again, I can only assume there is something terribly wrong with this whole deal. If you guys are truly outraged, you need to keep the stories coming. <a href="mailto:adrienne@goingconcern.com">Get in touch</a> and keep the pressure on Prometric to shape up or ship out. You might think the AICPA doesn't care but I guarantee you if big enough of a stink is made about how Prometric is openly violating its agreement by failing to follow its own security procedures, exposing candidates to undue stress, major IT failures and the like, at some point they're going to be forced to address it.</p><p>Note: I'm going to try to edit this into English as best I can but no promises. Thank goodness they got rid of the written communication in FAR, AUD and REG, huh?!</p><blockquote><p>I too had a horrific experience with Prometric while taking my last section of REG. I was all prepared to get it done with and then just one day before the exam, I received an email from Prometric saying due to some technical difficulties my test has been cancelled and that I will have to reschedule. I freaked out as I was prepared mentally to take the exam and also it was my last section. I was determined to take that exam in [the current] window so I went to their office with a plan that I would convince them somehow that if they are not able to take my exam tomorrow, I will request they let me sit for exam today. But there I went and the lady told me "we have NOT cancelled your exam. You are scheduled to appear tomorrow." I was shocked and angry. Had I not cross-checked with them, I would have lost my attempt and also my exam fees not to mention had to study again and go through all the torture again. I appeared for exam next day. After that I followed up with AICPA and Prometric about that false email. First I thought it was a spam but Prometric confirmed that it was sent out to me by mistake. Not a single word of appology from them!!...AICPA kept mum....It was really a bad expereince and since then I keep telling all CPA candidates I meet not to believe on Prometric emails but to double check..!!</p></blockquote><p>Oh technical difficulties! You don't say! Here's the jist of the actual email this candidate received:</p><blockquote><p>Dear candidate,<br /> <br />Please be aware that due to unforeseen circumstances we have been required to reschedule your pending Prometric exam.<br /> <br />Prometric will schedule your exam to the next available date. An email confirmation will be sent with the new exam details within the next 48 hours. When unable to test on the new test date, time and location please call our Regional Contact Center. Contact details can be found on <a href="http://www.prometric.com/contactus" rel="nofollow">www.prometric.com/contactus</a>.</p><p>We apologize for this inconvenience and are looking forward to working with you on a satisfactory solution. </p><p>Sincerely,</p><p>Prometric</p></blockquote><p>Now, anyone who hasn't actually taken a professional exam might look at that and say "Big deal, quit your whining and go take it on another day." That's awesome but some people have kids, jobs and lives to worry about. Not to mention spending weeks to months on end preparing for the exam only to be told you're going to have to reschedule? That's rude. In the case of this candidate, of course, that was all BS but what happens to the candidates who have scheduled their last exam for the very last possible day within their 18 month window? Does Prometric get to subvert exam administrators' own rules and say "Whoops, our bad, forget that 18 months, go take the exam next week, no big deal"?</p><p>Anyway, Prometric did issue this candidate an apology for the mistake and - bigger people that they are - offered to waive the rescheduling fees. Well that's really nice of them.</p><blockquote><p>Subject: Incorrect Prometric e-mail sent January 30th<br />Dear candidate,</p><p>On Friday January 30 you received an e-mail message from Prometric advising that your exam would need to be rescheduled, and that Prometric would contact you with an alternate date and time for your exam. Due to an unfortunate mistake, you received this message in error. If you were able to test at your originally scheduled date and time, no further action is necessary on your part. If you were unable to test at your original date and time as a result of our mistake, please contact us immediately at <a href="mailto:emea.reschedule@prometric.com">emea.reschedule@prometric.com</a> and we will work with you to find a date and time that is convenient to you. You will not be charged a rescheduling fee as a result of our mistake. We sincerely apologize for any confusion or anxiety caused by sending you incorrect information. Please contact us with any questions or concerns.</p></blockquote><p>I'm sure they sincerely apologize for any confusion or anxiety. It's all good, it's not like people are ready to chew off their fingertips with anxiousness heading into their exams or anything to begin with.</p><p>When does it end, Prometric? Seriously.</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/dAkd2IjFPd3LimnTzz5FdC3eEUw/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/dAkd2IjFPd3LimnTzz5FdC3eEUw/1/da"></img></a></p> </article> <article> <h1>ANR: Groupon Disclosures > JPMorgan Disclosures; Cursing and Your Career; A Lease Accounting Breakthrough | 05.25.12</h1> <p>Caleb Newquist — Fri, 25 May 2012 13:00:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>JPMorgan Makes Groupon’s Disclosures Look Good</strong> [<a href="http://www.bloomberg.com/news/2012-05-24/jpmorgan-makes-groupon-s-disclosures-look-good.html" target="_blank">Bloomberg</a>]<br />With the benefit of hindsight, anyone can see there must have been something amiss with the way JPMorgan Chase & Co. (JPM) put together some of the disclosures for its first-quarter earnings release on April 13. The press release contained inaccurate data about the market risks at the bank’s chief investment office, which was the source of the mysterious $2 billion trading loss that JPMorgan divulged this month. Here’s the odd part: To believe JPMorgan, there was nothing wrong with the company’s disclosure procedures at the end of the first quarter, or at least not anything worth mentioning. In a report JPMorgan filed with regulators May 10, the bank’s management concluded that as of March 31 -- only 13 days before the earnings release with the erroneous numbers -- the company’s “disclosure controls and procedures were effective.”</p><p><strong>Despite Doubts, Lehman Charges Still Possible</strong> [<a href="http://dealbook.nytimes.com/2012/05/24/despite-doubts-lehman-charges-still-possible/" target="_blank">DealBook</a>]<br />Lehman and its executives are hardly home free. People close to the matter cautioned that the memo was months old, had been updated since and did not necessarily reflect how more senior agency officials viewed the case. The full contents of the memo are unclear. While the enforcement staff may be done digging into the case, having interviewed witnesses and poured over the firm’s internal documents and public filings, the agency’s top officials are still analyzing a potential case. After further review, the agency could still file an enforcement action.</p><p><strong>A Curse Upon Your Career</strong> [<a href="http://online.wsj.com/article/SB10001424052702304840904577422683764866606.html?grcc=9236000382ee78afaa46091de5ab6af3Z3ZhpgeZ0Z950Z200Z71Z2&mod=WSJ_hps_sections_management" target="_blank">WSJ</a>]<br />Generally, cursing at work can damn your career. Managers who cuss appear unprofessional and out of control, executive coaches and recruiters say. But that's not always the case. Deployed at the right moment and in the right setting, a well-chosen curse word can motivate a team, dissolve tension or win over an audience. "Companies increasingly prefer authentic leaders,'' says Jeffrey Cohn, a CEO succession-planning expert. "Using colorful language can play to your advantage—as long as you also demonstrate empathy and good business judgment.'' Consider Michael Dubin, founder of e-commerce startup Dollar Shave Club. He stars in an online video where he boasts its razor blades "are "F---ing great.'' Still, he bleeped part of that motto.</p><div><strong>Lease Accounting Breakthrough Could Come in June</strong> [<a href="http://blogs.wsj.com/cfo/2012/05/24/lease-accounting-breakthrough-could-come-in-june/?mod=google_news_blog" target="_blank">CFOJ</a>]</div><div>U.S. and international accounting rule makers finally may be ready next month to resolve a debate over corporate lease accounting, that would bring $2 trillion worth of lease obligations onto corporate balance sheets. Members of the U.S. Financial Accounting Standards Board and the International Accounting Standards Board said Thursday they were ready to vote on a method for how new lease accounting rules will impact corporate earnings in June, which means a new draft of the rules could be finished by the end of this year.</div><div> </div><div><strong>AICPA Supports FAF's Creation of Private Company Council</strong> [<a href="http://www.accountingweb.com/topic/accounting-auditing/aicpa-supports-fafs-creation-private-company-council?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Accountingwebcom-News+%28AccountingWEB.com+-+News%29" target="_blank">AWEB</a>]</div><div><div>On May 23, today the Financial Accounting Foundation (FAF) announced its decision to make process and structural improvements by creating the Private Company Council (PCC). The PPC is based upon the body proposed last October by the FAF to set differences in U.S. generally accepted accounting principles ( GAAP), where appropriate, for privately held companies. "With the news announced today by the FAF, we recognize and appreciate that the FAF has taken solid steps in the right direction regarding the Private Company Council. The AICPA is encouraged by this approach and awaits more of the details of the FAF decision. We look forward to continuing to work together to effect meaningful changes in U.S. GAAP for private companies and the users of their financial statements," said Barry C. Melancon, CPA, CGMA, president and CEO of the American Institute of CPAs (AICPA).</div><div> </div><div><strong>Mao Sugiyama Cooks, Serves Own Genitals At Banquet In Tokyo</strong> [<a href="http://www.huffingtonpost.com/2012/05/24/asexual-mao-sugiyama-cooks-serves-own-genitals_n_1543307.html?ref=weird-news">HP</a>]<br />Just days after Sugiyama's 22nd birthday, the artist underwent elective genital-removal surgery, divvied up the severed penis shaft, testicles, and scrotal skin between five people, and garnished it with button mushrooms and Italian parsley. On April 13, five of six diners who signed up for the $250-a-plate feast, sat down to dinner. The sixth person was a no-show.</div><div> </div><div><strong>Here's What Happened When This Guy Tried To Pay A $114,000 Student Loan In Cash</strong> [<a href="http://www.businessinsider.com/alex-kenjeev-paid-his-student-loan-in-cash-2012-5" target="_blank">BI</a>]<br />You probably won't do it this way.</div></div><p> </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/QkQ4RplHG5nsXBX-6VDieaokKA8/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/QkQ4RplHG5nsXBX-6VDieaokKA8/1/da"></img></a></p> </article> <article> <h1>Anyone Holding Their Breath for the SEC to Give Lehman Brothers a Slap on the Wrist Will Be Passing Out Soon</h1> <p>Caleb Newquist — Thu, 24 May 2012 22:31:57 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><a href="http://www.bloomberg.com/news/2012-05-24/sec-staff-said-to-end-lehman-probe-without-recommending-action.html"><em>Bloomberg</em> reports</a> that an internal memo states that the crack squad looking at the Commission is wrapping up their investigation and a stern talking to is the probably the worst it'll get for Dick Fuld et al.: </p><blockquote><div>Under a heading reading “Activity in Last Four Weeks,” the undated document reads, “The staff has concluded its investigation and determined that charges will likely not be recommended.” SEC officials didn’t dispute the authenticity of the memo or its contents. Pressure on the agency to punish any wrongdoing related to Lehman’s collapse escalated after Anton Valukas, the court- appointed bankruptcy examiner, found the firm misled investors with “accounting gimmicks” that disguised the firm’s leverage. Senior officials have been reluctant to formally close the matter even though investigators found a lack of evidence of wrongdoing, according to people with direct knowledge of the matter. The officials have weighed issuing a public report on their findings that would stop short of an enforcement action while describing questionable conduct.</div></blockquote><div><a href="http://www.bloomberg.com/news/2012-05-24/sec-staff-said-to-end-lehman-probe-without-recommending-action.html" target="_blank">SEC Staff Said To End Lehman Probe Without Seeking Action</a> [Bloomberg]</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/s3JHy3VM2kGaTsM6Ld8gsIyu2Lg/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/s3JHy3VM2kGaTsM6Ld8gsIyu2Lg/1/da"></img></a></p> </article> <article> <h1>Ironically for Some, This Ernst & Young Guide to a 'Smooth IPO Registration' Just Came Out Today</h1> <p>Caleb Newquist — Thu, 24 May 2012 22:04:15 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>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 <a href="http://money.cnn.com/2012/05/07/markets/facebook-ipo-roadshow/index.htm" target="_blank">roadshows</a>, <a href="http://www.cnbc.com/id/15837548/cid/203923/Mark_Zuckerberg" target="_blank">CNBC hype</a>, and typically you get to <a href="http://www.huffingtonpost.com/2012/05/18/zuckerberg-rings-nasdaq-b_n_1527204.html?ref=technology" target="_blank">ring a bell</a>. Pretty sweet. Unfortunately, there are all kinds of boring details that involve securities law, GAAP, fancy-pants bankers, and technology that can trip you up along the way. </p><p>Luckily, Ernst & Young has you covered. Today, the firm issued a "To the Point" memo entitled "<a href="http://www.ey.com/Publication/vwLUAssetsAL/TothePoint_CC0349_IPOBestPractices_24May2012/$FILE/TothePoint_CC0349_IPOBestPractices_24May2012.pdf" target="_blank">Leading practices for a smooth IPO registration</a>" (free registration required). This handy-dandy guide will ensure that your IPO experience is as pleasant as possible. Some "Leading Practices" we'll call attention to:</p><blockquote><div><em><strong>Discuss complex or unique accounting matters with the SEC staff before submitting your initial registration statement</strong></em></div><div>Companies that are uncertain about the SEC staff’s view on the application of US GAAP or IFRS in a specific fact pattern should consider formal preclearance of accounting conclusions with the Office of the Chief Accountant (e.g., revenue recognition, consolidation, debt versus equity classification). </div></blockquote><div>Even if this memo had been issued, say, last summer, it doesn't specifically mention <a href="http://goingconcern.com/2011/7/whats-the-deal-with-groupons-adjusted-csoi" target="_blank">Adjusted Consolidated Segment Operating Income</a>, so it's hard to say if you can <em>always</em> prevent an <a href="http://online.wsj.com/article/SB10001424053111903635604576472531846174782.html?mod=wsj_share_twitter" target="_blank">embarrassment</a>.</div><div> </div><div>Okay, so that's great, but what about more recent IPOers?</div><div><blockquote><div><em><strong>Disclose any preliminary results or capsule information carefully</strong></em></div><div>Capsule financial information (i.e., financial information such as sales or net income for a recently completed period for which financial statements are not included in the IPO registration statement) may be presented in a registration statement for the most recent interim period and the corresponding period of the prior year. While a discussion of preliminary results or estimates for the latest reporting period can be useful to investors, companies should provide the proper context for such a discussion and determine that the disclosure of such amounts is balanced. For example, a company highlighting increases in revenue also should highlight any declines in net income or other key metrics. <em><strong>Given the potential liabilities associated with false or misleading disclosures</strong></em>, companies should consider excluding financial estimates that are subject to a high risk of change.</div></blockquote></div><div><a href="http://www.syracuse.com/news/index.ssf/2012/04/facebook_reports_lower_first_q.html" target="_blank">Check</a> and err, <a href="http://www.reuters.com/article/2012/05/23/us-facebook-lawsuit-idUSBRE84M0RK20120523" target="_blank">check</a>.</div><div> </div><div>Anything else worth noting?</div><div><blockquote><div><em><strong>Include your estimated price range in the filing as soon as possible</strong></em></div><div>To complete its review, the SEC staff requires a complete registration statement, including the capitalization table, dilution calculation and pro forma financial information. These disclosures are all determined using the estimated sales price range in the IPO document. <em><strong>The sooner the estimated sales price is included in the document, the sooner the SEC staff can fully review the document for possible comment and provide sufficient time for any concerns to be addressed.</strong></em></div></blockquote></div><div>Hmmm, so is <a href="http://money.cnn.com/2012/05/14/technology/facebook-raises-price-range/index.htm" target="_blank">changing it a few days beforehand</a> a problem?</div><div> </div><div>Anyone can get this document through <a href="http://www.ey.com/UL/en/AccountingLink/AccountingLink---Registration" target="_blank">E&Y's Accounting Link</a>, and according to a disclaimer, it's in "summary form" and "not intended to be a substitute for detailed research or the exercise of professional judgment" but <em>maybe</em> this could've helped? It's debatable - the document still doesn't say anything about offending investors <a href="http://www.businessinsider.com/michael-pachter-on-the-facebook-flop-2012-5" target="_blank">by wearing a hoodie</a>.</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/9uRM7h-BAhQg2qJTzvhMTtCM8yg/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/9uRM7h-BAhQg2qJTzvhMTtCM8yg/1/da"></img></a></p> </article> <article> <h1>'Constantly Confused' Accountant Is Clearly Confused About What Constitutes 'Sexism'</h1> <p>Caleb Newquist — Thu, 24 May 2012 19:59:56 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>As you know, from time to time we like to see what's poppin' with our friends in the Old Empire. Today, we discover an inquisitor over at AWEB UK, "<a href="http://www.accountingweb.co.uk/anyanswers/question/sexism-work-place?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+co%2FFxiZ+%28AccountingWeb+UK+-+All%29" target="_blank">Constantly Confused</a>" is still living in the 1960s. For starters, it doesn't appear that his office has air conditioning. As a result, he's a little bent out of shape that the ladies have it so much better than he does:</p><blockquote><div>I'm sitting here in my shirt and tie, sweating like a proverbial. Maybe, just maybe, I'll be allowed to take my tie off later provided I then hide from clients like the Phantom of the Opera, but chances are I will have to sweat it out. All the women are swanning in in [sic] their light dresses, bare legged, minimal fabric (sadly only the older women), nice and cool. And I thought sexism was dead in these enlightened times. I'd burn something in protest, but I can't think what.</div></blockquote><div>Actually, it seems sexism is alive and well, Mr. Confused. But since you're of the opinion that wearing a dress is such a bonus, we turned to our token Going Concern female, Adrienne Gonzalez for her take on the matter: </div><blockquote><div>What a load of crap. Wearing a dress isn't all it's cracked up to be. You gotta keep your legs crossed, your thighs get all sweaty, not to mention that we wear bras which is like a medieval torture device. This is far worse than a shirt and tie could ever be.</div></blockquote><div>Back to you, Rush Limbaugh.</div><div> </div><div><a href="http://www.accountingweb.co.uk/anyanswers/question/sexism-work-place?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+co%2FFxiZ+%28AccountingWeb+UK+-+All%29" target="_blank">Sexism in the work place</a> [AWEB]</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/1iCjf9HZr-OpHWKNHK--UcxM1CE/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/1iCjf9HZr-OpHWKNHK--UcxM1CE/1/da"></img></a></p> </article> <article> <h1>Oddly, Chuck Schumer Didn't Appreciate the Nazi Comparison</h1> <p>Caleb Newquist — Thu, 24 May 2012 18:45:30 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Last week, tax slayer Grover Norquist chimed in on the Ex-PATRIOT Act, legislation that was introduced by Senators Chuck Schumer (D-NY) and Bob Casey (D-PA). The Senators were concerned that ultra-rich dudes who no longer fancy American citizenship - namely <a href="http://goingconcern.com/post/irs-facebook-co-founder-gonna-take-now" target="_blank">Facebook co-founder Eduardo Saverin</a> - were turning their backs on the USofA to avoid taxes. This <a href="http://thehill.com/blogs/on-the-money/international-taxes/228427-norquist-compares-schumers-tax-dodger-bill-to-the-nazis" target="_blank">did not sit well with Norquist</a> who opted to make a historical comparison:</p><blockquote><p>“I think Schumer can probably find the legislation to do this. It existed in Germany in the 1930s and Rhodesia in the ’70s and in South Africa as well,” said Norquist. “He probably just plagiarized it and translated it from the original German.”</p></blockquote><p>It took a little while, but <a href="http://thehill.com/blogs/hillicon-valley/technology/229357-schumer-fires-back-at-nazi-comparison-for-backing-facebook-tax-dodger-bill" target="_blank">Senator Schumer has now responded</a>, taking exception with the comment:</p><blockquote><p>"I know a thing or two about what Nazis did. Some of my relatives were killed by them," Schumer, who is Jewish, said in a speech on the Senate floor. "And saying that a person who made their fortune specifically because of the positive elements in American society in turn has a responsibility to do right by America is not even on the same planet as comparing what the Nazis did to the Jews."</p></blockquote><p><em>Not to mention</em> how unflattering a plagiarism accusation is.</p><p><a href="http://thehill.com/blogs/hillicon-valley/technology/229357-schumer-fires-back-at-nazi-comparison-for-backing-facebook-tax-dodger-bill">Schumer fires back at Nazi comparison</a> [HV/The Hill]</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/UMYrx1vCZj8B7iHfO3DLjHaahXc/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/UMYrx1vCZj8B7iHfO3DLjHaahXc/1/da"></img></a></p> </article> <article> <h1>Dixon, Illinois Finds Itself in a Bit of Pinch Since, Ya Know, $53 Million Went Missing</h1> <p>Caleb Newquist — Thu, 24 May 2012 17:33:36 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Accordingly, <a href="http://www.wandtv.com/story/18606224/dixon-to-delay-investigating-former-comptroller" target="_blank">Dixon Mayor Jim Burke is putting the brakes on any investigation</a> because "[it] would cost the city hundreds of thousands of dollars" and the <a href="http://goingconcern.com/tags/rita-crundwell" target="_blank">woman</a> who had the magic credit card is in a bit of trouble. Hey, someone had to apply the torniquet after the city bled out. [<a href="http://www.wandtv.com/story/18606224/dixon-to-delay-investigating-former-comptroller" target="_blank">WAND</a>] </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/cXmncfZlRKr1rniAHbgeGL4rM_o/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/cXmncfZlRKr1rniAHbgeGL4rM_o/1/da"></img></a></p> </article> <article> <h1>Here's Your Public Accounting Interns Open Thread for Summer 2012</h1> <p>Caleb Newquist — Thu, 24 May 2012 16:26:20 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>If you're like me, you checked out on earlier than normal this week due to the long weekend of bad decisions ahead. It's a welcome reprieve for those of you that are firmly entrenched in the day-to-day amusement park that is public accounting. However, very soon the latest crop of presumptive capital market servants will be join you in the bliss. Yes, I'm talking about the summer interns and they are getting restless:</p><blockquote><div>Can you please get another Summer Interns open thread going soon? I'm starting in two weeks and need somewhere to be anxious. </div></blockquote><div>It's understandable that these young business casual soldiers are slightly uneasy about the hours at the copier that will fill their summer days, not to mention the possibility of <a href="http://goingconcern.com/post/should-big-4-interns-be-hazed" target="_blank">hazing</a>, <a href="http://goingconcern.com/post/watch-these-big-4-auditors-pull-mildly-humorous-prank-their-intern" target="_blank">pranks</a>, and ultimately, the possibility of a <a href="http://goingconcern.com/post/average-kpmg-intern-concerned-about-firms-dance-around-full-time-offers" target="_blank">fulltime offer</a>.</div><div> </div><div>So consider this your thread for questions, answers, advice (good and bad are both welcome), directions to the tickmark room, and anything else that is appropriate. If you're still not satisfied then <a href="mailto:advice@goingconcern.com?subject=Intern%20Question">email us your </a>intern query with "Intern Question" in the subject line and if it's not the stupidest thing we've ever been asked, we'll hopefully get to it. Play nice. </div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/k6VSz4luHgntKNqORSE5wpFMbB4/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/k6VSz4luHgntKNqORSE5wpFMbB4/1/da"></img></a></p> </article> <article> <h1>A Miserable Internal Auditor Wants to Jump Into Public Accounting</h1> <p>Adrienne Gonzalez — Thu, 24 May 2012 14:55:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><em>Need help putting together your typo-laden farewell email? Need assurance that your GC trolling doesn't present an ethical conflict? Unsure which flavor of Doritos to choose from the office snack machine? <a href="mailto:advice@goingconcern.com">Get in touch</a> and we'll do what we can.</em></p><blockquote><p>Hi Adrienne,<br /><br />I have not seen a post about Internal Audit to Public Accounting so I figured I would ask. I absolutely cannot stand my job as an internal auditor. I currently work in the gambling industry and contrary to what some believe it is not all fun and games.</p><p>If I to do one more compliance or operational audit I just might have to join someone in jumping off the parking garage (not really). Anyway I was wondering how some one goes from Internal Audit to Public Accounting? I have an MBA, two years of Internal Audit experience, I passed AUD, waiting for REG scores, and studying for BEC and FAR.</p><p>Please help! Any advice would be greatly appreciated. Thanks.</p></blockquote><p>Well, there goes my lifelong dream of being a one-armed bandit technician!</p><p>Before you go leaping off the parking garage, slow down and tell us what you've done so far. Have you just been sitting there stewing at your current position, plotting revenge against the jerk who talked you into taking this job? Or are you taking proactive steps now to get out?</p><p>How's your LinkedIn profile look these days? That's a sure way to attract the recruiting sharks - it's not the ideal route to take but sounds like you're in crisis mode at this point and don't have the luxury to get picky. Do you maintain any sort of relationship with your state society of CPAs, attend any professional events or otherwise rub elbows with CPAs in the very area you're trying to break into? You're likely already aware of this but at this point in your career, it isn't going to be as easy as standing around at a college recruiting event, waiting for the vultures to descend upon you. Making connections might help put you in front of the right people, or at a minimum help you realize in the meantime that you aren't the only one who hates your current position.</p><p>And just curious, why does public accounting look appealing to you? Perhaps you've got some kind of weird form of hysteria from your miserable time in IA but you have heard the phrase <em>the grass is always greener... </em>yes?</p><p>I see no problem with combing the websites of firms in your area and spamming the bejezus out of them with your <span class="st">résumé</span> and qualifications. Be sure to give a clear declaration of your unhealthy desire to subject yourself to the horror of public accounting and CPA eligibility as soon as you knock out those last two sections. Have you updated your <span class="st">résumé</span> yet? What on Earth are you waiting for?! As with any other job, be careful not to trash your current employer when you start talking to firms, just talk up the target firm's [insert specific impressive client or specialty] and make it clear that you're the sort of eager beaver who would love nothing more than to be pushed around, worked like a dog and treated like a bitch. Now's not the time to be stubborn or hold out for a bigger offer; worry about being a bad ass after you have a little leverage (namely, your CPA).</p><p>On paper, you sound like an ideal candidate. I can't imagine you'll be hitting the pavement looking for a break for that long. It's just a matter of getting in front of the right people.</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/tB8c9zohB1KLKBdZ3AdUT_lFWrI/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/tB8c9zohB1KLKBdZ3AdUT_lFWrI/1/da"></img></a></p> </article> <article> <h1>ANR: PCAOB Doesn't Take Kindly to Amateurs; Americans Find Taxes Harder Than Eating Healthy; Aussie Accountant Lands Neil Armstrong Interview | 05.24.12</h1> <p>Caleb Newquist — Thu, 24 May 2012 13:27:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>Accounting Deals in China Cost a Firm Its Registration</strong> [<a href="http://www.nytimes.com/2012/05/24/business/firm-loses-registration-for-improper-audits-of-chinese-companies.html?src=recg" target="_blank">NYT</a>, <a href="http://pcaobus.org/Enforcement/Decisions/Documents/05-22-Waggoner.pdf" target="_blank">PCAOB</a>, <a href="http://pcaobus.org/Enforcement/Decisions/Documents/05-22-Brock.pdf" target="_blank">PCAOB</a>]<br />The Public Company Accounting Oversight Board announced on Wednesday that it had revoked the registration of [Brock, Schechter & Polakoff] and fined it $20,000. It also barred James R. Waggoner, the firm’s former director of accounting and auditing, from auditing public companies. The board said that in 2006 Brock, Schechter was approached by audit firms in Taiwan and China with an interesting proposition: the American firm would become the auditor of record of several companies, but the Chinese and Taiwanese firms would do all the work. Brock, Schechter agreed. Brock, Schechter did so despite the fact that neither the firm nor any of its employees had any experience doing audits of public companies anywhere, according to the board. Nor did anyone working for the firm know how to read or speak Chinese.</p><div><strong>Accounting Allegations Rising Again in Securities Class Actions</strong> [<a href="http://blogs.wsj.com/cfo/2012/05/23/accounting-allegations-rising-again-in-securities-class-actions/" target="_blank">CFOJ</a>]<br /><div>The number of securities class action cases that involve allegations of accounting fraud is on the rise again, thanks to a slew of accounting restatements and an increase in market volatility last year, according to a new report from Cornerstone Research. Class actions that included accounting allegations increased in 2011 to 70, up 52% from a four-year low of 46 in 2010, according to Cornerstone. Securities class action filings also edged up in the last year, with the cases including accounting allegations representing 37% of all 188 class actions filed in 2011, compared to 26% of 176 class actions filed in 2010.<br /><br /><strong>Like an Anorexic, U.S. Sees Itself Fat With Taxes</strong> [<a href="http://www.nytimes.com/2012/05/25/world/americas/25iht-letter25.html?_r=1">Reuters</a>]<br />Like anorexics, who think they are grossly fat when they are very thin, the American body politic is suffering from a national version of body dysmorphia, with nearly half the country believing taxes are high, when they are comparatively and historically low.<br /> </div><div><strong>More Americans Believe It's Easier To Understand Tax Than How To Eat Healthy</strong> [<a href="http://www.forbes.com/sites/kellyphillipserb/2012/05/23/more-americans-believe-its-easier-to-understand-tax-than-how-to-eat-healthy/" target="_blank">Forbes</a>]<br />Because realizing that fruit is healthy is far more complicated than the instructions for the AMT.<br /><br /><strong>Neil Armstrong grants rare interview – to Australian accountant</strong> [<a href="http://www.telegraph.co.uk/science/space/9286987/Neil-Armstrong-grants-rare-interview-to-Australian-accountant.html" target="_blank">AFP</a>]<br />[Certified Practicing Accountants of Australia] head Alex Malley said he suggested the idea to the space veteran when he was in Australia last year helping the organisation with its 125th anniversary, and he agreed. "I know something not a lot of people know about Neil Armstrong – his dad was an auditor," Malley told News Limited newspapers.<br /><br /><strong>H&R Block Names Gregory J. Macfarlane Chief Financial Officer</strong> [<a href="http://www.marketwatch.com/story/hr-block-names-gregory-j-macfarlane-chief-financial-officer-2012-05-23" target="_blank">H&RB</a>]<br />Relieving Jeff Brown who will assume the Chief Accounting Officer role.</div></div><div><br /><strong>New Private Company Standards Council Established</strong> [<a href="http://www.accountingtoday.com/news/Private-Company-Council-Established-Accounting-Standards-62759-1.html" target="_blank">AT</a>]<br />The new council will replace the Private Company Financial Reporting Committee and will have the ability to identify, deliberate, and vote on any proposed changes, which will be subject to endorsement by the Financial Accounting Standards Board, which the FAF oversees, and be submitted for public comment before being incorporated into GAAP. The PCC will also serve as the primary advisory body to FASB on the appropriate treatment for private companies for items under active consideration on the FASB's technical agenda.</div><div> </div><div><div><strong>Former CB James admits failing to file tax returns</strong> [<a href="http://sportsillustrated.cnn.com/2012/football/nfl/05/23/william.james.ap/index.html" target="_blank">AP</a>]<br />William James, formerly of the New York Football Giants and Philadelphia Eagles, admitted that he wasn't even <em>trying</em> to file his income tax returns.<br /><br /><strong>Ted Kaczynski, the Unabomber, lists himself in Harvard 1962 alumni report; says ‘awards’ include eight life sentences</strong> [<a href="http://www.boston.com/metrodesk/2012/05/23/harvard-alumni-directory-contains-bizarre-entry-for-ted-kaczynski-the-unabomber/c0BFPYTlF48lDqdoU7ZnMK/story.html" target="_blank">BG</a>]<br />Ted Kaczynski, the Unabomber, who is serving life in prison for sending deadly mail bombs, won’t be able to attend his 50th reunion festivities at Harvard College. But he did contribute a bizarre entry to the alumni report for the class of 1962. While many of his classmates sent in lengthy updates on their lives for the 2 ½-inch-thick “red book,” the entry for “Theodore John Kaczynski” only contains nine lines. The listing says his occupation is “Prisoner,” and his home address is “No. 04475-046, US Penitentiary—Max, P.O. Box 8500, Florence, CO 8126-8500.” Under the awards section, the listing says, “Eight life sentences, issued by the United States District Court for the Eastern District of California, 1998.”</div></div><p> </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/ZLWEB9a2yXs5pgmIR4iSN4YzXSc/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/ZLWEB9a2yXs5pgmIR4iSN4YzXSc/1/da"></img></a></p> </article> <article> <h1>Cranky Old Coot Alan Simpson Gives 'Wretched' Seniors Group a Piece of His Mind</h1> <p>Caleb Newquist — Wed, 23 May 2012 20:52:41 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Eighty year-old Alan Simpson, who typically saves his Grandpa Simpson outbursts for <a href="http://goingconcern.com/2011/5/former-senator-alan-simpson-is-having-trouble-expressing-his-thoughts-on-grover-norquist" target="_blank">Grover Norquist</a>, would prefer it if the California Alliance of Retired Americans <a href="http://thehill.com/blogs/on-the-money/budget/229143-alan-simpson-calls-seniors-group-qwretchedq" target="_blank">quit their rambling</a>, sat back and chewed their Jell-O slowly, and let the coherent adults handle the nation's fiscal crisis: </p><blockquote><div>Alan Simpson, a co-chairman of President Obama’s fiscal commission, has lashed out at a California seniors group for criticizing the debt panel’s proposals on Social Security. Simpson accused the California Alliance of Retired Americans (CARA) of pushing “blather and drivel,” and knocked the group for using the pictures of young people on a flyer. “What a wretched group of seniors you must be to use the faces of the very people that we are trying to save, while the 'greedy geezers' like you use them as a tool and a front for your nefarious bunch of crap,” Simpson, a former GOP senator from Wyoming, wrote to the group in a letter dated April 7 but sent out this month.</div></blockquote><div>Shortly after making these statements, the former Senator was found snoring in a recliner in front of a TV broadcasting <em>The People's Court</em>.</div><div> </div><div><a href="http://thehill.com/blogs/on-the-money/budget/229143-alan-simpson-calls-seniors-group-qwretchedq">Alan Simpson calls seniors group 'wretched'</a> [OTM/The Hill]</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/s6zPHM-tcH3wC6XBh__z3qpSM58/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/s6zPHM-tcH3wC6XBh__z3qpSM58/1/da"></img></a></p> </article> <article> <h1>A Warning to CPA Exam Candidates Trying to Sit In States Other Than Their Own</h1> <p>Adrienne Gonzalez — Wed, 23 May 2012 19:09:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>This is simply my perception and sadly I don't have actual numbers to back it up so you'll have to forgive me but it seems like in recent years, CPA exam candidates have been having a difficult time transferring scores between states. Back in my CPA review days, I would tell candidates that it's easier to transfer a license than it is CPA exam scores (which was true then and is true now) but it seems to have gotten more difficult since I started spitting out that line like a little MCQ-pushing crack dealer.</p><p>So you can imagine that I wasn't at all surprised when I got this note from one candidate who has all but given up on their CPA dreams simply because the 18 month window of the initial state and destination state did not line up:</p><blockquote><p>When I signed up for the CPA exam, I lived in Pennsylvania. I passed the first part of the exam in Pennsylvania on or around July 5th of 2010. In Pennsylvania, the 18 month window starts on the first day of the month following the month you passed the exam. For example, if you took and passed the exam on July 5th, 2010, the 18-month window starts on August 1, 2010 and ends on January 31, 2012.</p><p>Then in May of last year I moved to North Carolina. I took and passed the remaining three parts of the by the end of the 18-month period (i.e. January 31, 2012) as prescribed by the state of Pennsylvania.</p><p>Lo and behold, I gathered my materials to apply for the CPA license in North Carolina, and have the state of Pennsylvania transfer my scores. Easy process, right? Well, I have to tell you, they are not accepting the scores from Pennsylvania, because their window starts 18 months to the day the exam is actually taken i.e. July 5th, 2010 until December 5, 2011. So by following the rules in Pennsylvania, I cannot become a CPA in NC where I now live. THESE PEOPLE ARE EVIL! ACCORDING TO THE STATE OF NORTH CAROLINA, I MISSED THEIR DEADLINE BY 25 DAYS.</p></blockquote><p>As all of you know, I don't normally side with procrastinators who wait until the very last minute to meet their requirements but in the case of this particular candidate, I don't know the full picture and it still appears that they did everything as they were supposed to.</p><p>In the case of someone trying to cheat the system (e.g. someone who sits in Maine but lives in another state) perhaps I could understand enforcing this rule. But this is someone who MOVED and had no way of knowing in advance that they would have to meet the requirement of a new destination state 18 months after starting their CPA exam journey. So as far as they knew, they were in compliance.</p><p>To me, 25 days doesn't seem like that big of a deal. I know if you're transferring scores you have to meet the requirements of the destination state just to prevent people from bypassing the system (which they still do anyway) but this person simply moved. Should their entire career be ruined over 25 days and a non-uniform rule for the UNIFORM CPA exam?</p><p>I was going to make a comment about mobility here but the candidate in question already nailed it in a letter to the NC Board of Accountancy requesting leniency:</p><blockquote><p>If the primary purpose of the licensure of CPAs is to protect the public, I cannot understand why the State of North Carolina will not accept my scores from Pennsylvania. There does not seem to be a public policy issue relating to this matter. To the contrary, it seems petty and spiteful in an era of almost universal practice mobility.</p></blockquote><p>I'll save you the rest of the sob story but you have a candidate here who sacrificed to meet the requirements and get through the exam. You have a candidate who took and passed the exams within 18 months according to the state in which they sat. And then you have a candidate who was forced to move to another state and now cannot meet their experience requirement since the destination state will not accept the scores and working in Pennsylvania just isn't an option (had it been, I imagine candidate would have never moved in the first place).</p><p>It's shocking to me A) that there aren't more uniform rules across the boards of accountancy given the mobile nature of the profession and B) the NC Board cannot make some kind of exception for this person. I mean come on, it's 25 days. Would it really risk the integrity of the license to have someone over there in NC stamp the application "APPROVED" and just let this person have the fulfilling life in public accounting they always dreamed of? Trust me, it won't cause a flood of candidates trying to cheat the system. The world won't come to an end. The Chinese won't become supreme overlords.</p><p>Has anyone else had this issue? Agree with the candidate and me that it's complete nonsense? Would the NC Board care to comment?</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/P8jp4pZzR4SJuKYOzDBlN0ZgQws/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/P8jp4pZzR4SJuKYOzDBlN0ZgQws/1/da"></img></a></p> </article> <article> <h1>BREAKING: Balancing Work, Life Is Stressful</h1> <p>Caleb Newquist — Wed, 23 May 2012 17:59:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>According to an <a href="http://www.marketwatch.com/story/survey-juggling-work-and-personal-demands-is-greatest-workplace-stressor-2012-05-23" target="_blank">intrepid survey by Accountemps</a> that investigated what stresses out CFOs, balancing work and life responsibilities was listed as the biggest drag. This beat out office politics, keeping up with accounting and finance regulations, higher workloads, and a "challenging commute." Maybe all these men and women wouldn't be so stressed if more of them had the chance to unwind at <a href="http://goingconcern.com/post/comp-watch-12-cfos" target="_blank">a nice country club</a>. Just a suggestion. [<a href="http://www.marketwatch.com/story/survey-juggling-work-and-personal-demands-is-greatest-workplace-stressor-2012-05-23" target="_blank">Accountemps</a>]</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/N9NThvD7bC4fofpJKZ0gcI3AXEc/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/N9NThvD7bC4fofpJKZ0gcI3AXEc/1/da"></img></a></p> </article> <article> <h1>A Brief Word on the Going Concern Freelancer Search</h1> <p>Adrienne Gonzalez — Wed, 23 May 2012 16:12:12 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Alright, you guys know me so I'm not going to mince words here but let's just say the entries we've gotten thus far for the <a href="http://goingconcern.com/post/going-concern-seeks-new-writer" target="_blank">Going Concern freelancer</a> spot have been, well, kinda sad. Dismal. Depressing. Pathetic, even. Do any of you actually read the site?</p><p>Sure, there are a few gems (you'll be hearing from us) but for the most part, applicants have been behaving as if this is some lucrative Big 4 opportunity and we're the recruiters talking up the illustrious position created just for you. Get over yourselves (trust us, we got over our own selves <em>years</em> ago or we wouldn't be here with you now), we both know that's BS so let's just cut the crap.</p><p>Colin is far nicer than I am so he won't say it but I will: BRING IT or don't bother. Serious. Don't waste your time or ours, we all have better things to do.</p><p>Applying for the gig like it's a job in public accounting is almost always an automatic disqualification. Again, have you READ this site? We don't want drones, we want revolutionaries. Proper grammar is of course a must (don't ask me how Colin got the job) but so is a healthy sense of humor (note: your love of LOLcats does not qualify as humor for purposes of this position), a bit of self-loathing, a desire to stir the pot and an innate need to make people feel uncomfortable by talking about things that have been silently known but not discussed for years.</p><p>If you're on the fast track to partner, want to retain your firm's alleged respect or still haven't shaken off the programming, this might not be the right gig for you. That doesn't mean we're automatically going to reject you for having career goals, just know that helping our objective here (see above re: stirring the pot) and advancing your own career in public accounting just might not work out well together. </p><p>It may sound like a novelty now but let's be real: coming up with content week in and week out about the most boring subject of all time is not easy. It's fun only because we have a good team and get to do (mostly) whatever we want but some days, it's certainly a chore. Our ideal candidate has already tried his or her hand at coming up with content and realizes how unglamorous this can be. </p><p>Truth be told, we're looking for an accounting wonk who actually LIKES delving into the nerdy stuff but can do so in a way that doesn't alienate the 80% of those in public accounting who don't actually give a flying rat's ass. It's a lot harder than it looks. It's especially hard when Colin is breathing down your neck expecting you to populate his editorial calendar on the agreed-upon schedule.</p><p>Why are we getting freelancer application emails addressed "to whom it concerns" when if you READ this site you know DAMN WELL to whom it concerns and it isn't <em>to whom it concerns</em>. Frankly, I'm disappointed. I get that some of you are understandably reluctant to give us the best you've got as you're worried we'll publish your full name to berate you for bad application emails but trust us, we have no desire to do so. We want to find amazing writers who are hiding out in public accounting somewhere (or already exiled from it à la Colin or on the fringes of it like me) and in order for both parties to get this to work, we need to trust each other. Let it out. Give us the best you have. I can't promise that we won't make fun of your applications in private email exchanges to each other but beyond that, we won't front you off or ruin your careers (unless, of course, you get the job but we'll talk then...). Gmail is free, go make a fake one under a fake name and reveal yourself later when we offer you the job if you're that afraid.</p><p>That's the thing. You can't be afraid if you're going to take this job. I've been called everything from the C-word after we first launched to... well... way too many things. A certain crazy CEO's lackey accused me of being a 45-year-old man directly due to my work here on GC. That's not to be taken lightly. It's a terribly fulfilling gig and as stressful as it has been these last 3 years, it's been worth it to somehow get into the AICPA 125th anniversary and be able to freak strangers out when I tell them I "write for an accounting website." Er, <em>tabloid</em>, depending on who I'm telling. No one is asking you to post your LinkedIn profile to be considered for the job so please keep that in mind.</p><p>Are we clear? It's pretty fun but it isn't easy and it certainly doesn't call for "to whom it concerns." Grow a pair for once in your life and say what you've been dying to say for years.</p><p>It's been terribly refreshing for me and somehow my career hasn't been ruined in the process so it's really not as scary as it seems.</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/7dsUhwxmZzam8TbIlDc_YL-uh6c/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/7dsUhwxmZzam8TbIlDc_YL-uh6c/1/da"></img></a></p> </article> <article> <h1>Here's Your CPA Exam Score Open Thread for the April/May Testing Window</h1> <p>Caleb Newquist — Wed, 23 May 2012 15:01:25 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>For those of you that studied for the CPA exam through busy season, today may be the day where you discover that all those <em>extra</em> long hours you put in - working for 10 hours, studying for 2 hours, working for 2 more hours, studying for 2 more hours - were all for naught. </p><blockquote class="twitter-tweet tw-align-center"><p>The <a href="https://twitter.com/search/%2523AICPA">#AICPA</a> released the following scores to <a href="https://twitter.com/search/%2523NASBA">#NASBA</a> from the April/May 2012 testing window: 4,215 AUD, 3,343 BEC, 3,326 FAR and 3,648 REG.</p>— NASBA (@NASBA) <a data-datetime="2012-05-23T14:10:39+00:00" href="https://twitter.com/NASBA/status/205299709840064515">May 23, 2012</a></blockquote><script src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>This may result in banging your head against your desk for the rest of the day, raiding the fridge of its contents recklessly dismissing the notes identifying their owners, screaming at NASBA customer service reps over the phone, or throwing your Herman Miller at the nearest window. If those types of completely warranted reactions are not welcome in your office, we ask that you take a deep breath and share your frustrations here and now.</p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/ICF6eRmAj8MR0k06UMeXAECPPgM/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/ICF6eRmAj8MR0k06UMeXAECPPgM/1/da"></img></a></p> </article> <article> <h1>ANR: Re-grading Facebook's Financial Reporting; More CFOs Down with Paying Bribes; Lease Accounting Changes Get Pushback | 05.23.12</h1> <p>Caleb Newquist — Wed, 23 May 2012 13:23:23 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>Inside Fumbled Facebook Offering</strong> [<a href="http://online.wsj.com/article/SB10001424052702304019404577420660698374718.html?mod=WSJ_hps_LEFTTopStories" target="_blank">WSJ</a>]<br />Less than three days before Facebook Inc.'s initial public offering, Chief Financial Officer David Ebersman decided to boost the number of shares the company would offer investors by 25%, said people familiar with the planning. His main adviser at lead underwriter Morgan Stanley assured him there was plenty of demand, they said. That decision by the 41-year-old Facebook executive may have doomed any real chance the social-networking company had that its stock would jump on its first day of trading—a hallmark of successful IPOs. On Tuesday, the second full day of trading, Facebook shares fell $3.03, or 8.9%, to $31, after falling 11% on Monday. Investors are blaming the downdraft on the last-moment expansion of the offering.</p><p><strong>Does Facebook Still Deserve an "A" for Its Financial Reporting?</strong> [<a href="http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/681" target="_blank">GOA</a>]<br />The short answer: yes.</p><p><strong>More Finance Chiefs Willing To Pay Bribes, Global Survey Finds</strong> [<a href="http://www.bloomberg.com/news/2012-05-23/more-finance-chiefs-willing-to-pay-bribes-global-survey-finds.html" target="_blank">Bloomberg</a>]<br />Fifteen percent of chief financial officers around the world are willing to make cash payments to win or retain business, according to a survey of executives interviewed by the accounting firm Ernst & Young LLP. The firm’s annual “global fraud survey” of 400 finance chiefs, interviewed from November to February, found a greater tolerance of bribery compared with the previous year, when 9 percent said they would make cash payments. Five percent of CFOs said they would misstate financial performance, while 3 percent said that the year before, according to the survey. “One of the most troubling findings of the survey is the widespread acceptance of unethical business practices,” according to the survey released yesterday. “It is particularly alarming that respondents are increasingly willing to make cash payments” and misstate results to survive an economic downturn.</p><p><strong>CBO: Recession in 2013 unless Congress acts on fiscal issues</strong> [<a href="http://thehill.com/blogs/on-the-money/budget/228903-cbo-sees-recession-in-2013-unless-lawmakers-act" target="_blank">OTM/The Hill</a>]<br />FYI.</p><p><strong>CEO Sought Nod for Romance</strong> [<a href="http://online.wsj.com/article/SB10001424052702304791704577420681311173856.html?mod=WSJ_hps_MIDDLENexttoWhatsNewsThird" target="_blank">WSJ</a>]<br />At the recent annual meeting of medical-device maker Stryker Corp., Chairman William U. Parfet puzzled attendees when he began with a brief statement about former Chief Executive Stephen P. MacMillan, who was pushed out two months earlier. "Just to clarify, on behalf of the board of directors, we'd like to clearly state that Steve never violated any company policy nor any code of conduct," Mr. Parfet said at the meeting April 24. It wasn't clear why he made the comment—Stryker had said in February that the CEO was leaving for "family reasons"—and Mr. Parfet didn't explain. The circumstances, pieced together from interviews with people who had direct knowledge of the events, offer a cautionary tale about how an office romance and resulting concerns about credibility could bring down a well-regarded CEO.</p><div><strong>Leases Suffer Identity Crisis</strong> [<a href="http://blogs.wsj.com/cfo/2012/05/22/leases-suffer-identity-crisis/" target="_blank">CFOJ</a>]<br />Six years after beginning a project to overhaul lease accounting, the U.S. Financial Accounting Standards Board and London-based International Accounting Standards Board, which sets accounting rules for more than 100 countries, are still struggling to craft a joint standard that would bring some $2 trillion in lease obligations onto corporate balance sheets. The two boards have made aligning lease-accounting standards a top priority, because it would give investors a more complete and consistent view of a company’s obligations. But they might have to go back to the drawing board for the second time in less than a year if they can’t begin to agree on a joint approach at a meeting this week in Norwalk, Conn.</div><div> </div><div><strong>Altria Reaches $500 Million Settlement With IRS On Leases</strong> [<a href="http://www.bloomberg.com/news/2012-05-22/altria-reaches-500-million-settlement-with-irs-on-leases.html" target="_blank">Bloomberg</a>]<br /><div>Altria Group Inc. (MO) said it agreed to a $500 million settlement over lease transactions challenged by the U.S. Internal Revenue Service. The dispute covered transactions between 1996 and 2003 in which the company would buy ownership stakes in public utilities, lease the assets back to the previous owners and take tax deductions. Altria, based in Richmond, Virginia, owns cigarette manufacturer Philip Morris USA Inc. The company took a $627 million charge last year in anticipation of the resolution of the tax dispute. Altria will record a one-time earnings benefit of $68 million because of the difference between what it expected to pay and the final terms of the settlement, the company said. The company, one of the last to defend the validity of leasing transactions that the government curtailed in 2004 and 2005, said the $500 million was composed of taxes and interest, not penalties.</div><div> </div><div><strong>Congressmen Urge FASB to Reconsider Lease Accounting Changes</strong> [<a href="http://www.accountingtoday.com/news/Congressmen-Urge-FASB-Reconsider-Lease-Accounting-Changes-62744-1.html" target="_blank">AT</a>]<br />A group of 60 members of Congress, led by two CPAs turned lawmakers, have written a letter to the Financial Accounting Standards Board warning of “disastrous consequences” for American businesses and the real estate industry if FASB’s proposed changes in lease accounting standards are approved. The letter, from Congressmen Brad Sherman, CPA, D-Calif., and John Campbell, CPA, R-Calif., along with 58 other members of the House from both parties, urges a careful rethinking of the proposed rule changes, which FASB has been working on with the International Accounting Standards Board as one of their four remaining priority convergence projects. “As one of only a few certified public accountants in Congress, and a co-founder of the bipartisan, bicameral Congressional CPA and Accountants Caucus, I have a unique understanding and the utmost respect for FASB’s independent process for developing sound accounting standards,” Sherman said in a statement. “That’s why I helped lead this effort in Congress to make sure that FASB carefully considers the potential consequences of this proposal.”</div><div> </div><div><strong>Yong Hyun Kim Accused Of Hitting Noisy Kid At Seattle Suburb Movie Theater</strong> [<a href="http://www.huffingtonpost.com/2012/05/22/yong-hyun-kim-hits-kid_n_1537207.html?ref=weird-news&ir=Weird%20News" target="_blank">AP</a>]<br />The man, who told police he thought the person he hit was a grown man, was watching "Titanic" in 3-D with his girlfriend and had asked the people sitting behind to quiet down and stop throwing popcorn, but they laughed at him, he said. "I got so mad that it just happened," Yong Hyun Kim, 21, told police who arrested him the night of April 11 at the AMC Kent Station 14, in Kent, a south Seattle suburb. The 10-year-old lost a tooth and had a bloody nose in the confrontation.</div></div><p> </p></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/UPU3CL7PQayqCYUWrf04aQykoxY/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/UPU3CL7PQayqCYUWrf04aQykoxY/1/da"></img></a></p> </article> <article> <h1>Casey Poking Boehner to Like the Ex-PATRIOT Act</h1> <p>Caleb Newquist — Tue, 22 May 2012 20:22:36 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>After the world discovered that Facebook co-founder <a href="http://goingconcern.com/post/irs-facebook-co-founder-gonna-take-now" target="_blank">Eduardo Saverin had high-tailed it for Singapore</a> and wasn't interested in being a citizen of the USA, Senators Chuck Schumer (D-NY) and Bob Casey (D-PA) <a href="http://www.bloomberg.com/news/2012-05-17/schumer-proposes-tax-on-people-like-facebook-s-severin.html" target="_blank">introduced the Ex-PATRIOT act</a>. They did so in order to teach Eddie and other rich, tax-dodging Benedict Arnolds what happens when you bolt the RW&B to avoid paying your fair share of taxes. Not wanting to miss a perfect opportunity to pander to the richhunters while the torches are hot, <a href="http://thehill.com/blogs/on-the-money/domestic-taxes/228671-senate-dem-urges-boehner-to-schedule-vote-on-tax-dodging-bill" target="_blank">Casey has urged Speaker of the House John Boehner</a> to pick up his own torch on this matter:</p><blockquote><div>“We must take action against those who capitalize on the advantages of United States citizenship, but abuse the system to avoid paying their fair share,” Casey wrote to Boehner. “If the expatriate has built their fortune using resources only available to them because of their United States citizenship, then it is only fair that they pay their portion of tax on future gains instead of simply renouncing the country that has made their success possible.” Boehner, in an interview with ABC News that aired on Sunday, didn’t close the door on bringing up the bill from Casey and Schumer, declaring it was “outrageous” for someone to ditch their citizenship for tax reasons.</div></blockquote><div>The Speaker is holding out for now though, saying, "the United States already had a law to combat that sort of action," but if Casey 'Likes' Boehner's next set of golf course photos, then he'll give it more thought.</div><div> </div><div><a href="http://thehill.com/blogs/on-the-money/domestic-taxes/228671-senate-dem-urges-boehner-to-schedule-vote-on-tax-dodging-bill" target="_blank">Senate Dem urges Boehner to schedule vote on tax-dodging bill</a> [OTM/The Hill]</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/i2P3QnUrJ9ThoVsozXZjp_pAUkk/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/i2P3QnUrJ9ThoVsozXZjp_pAUkk/1/da"></img></a></p> </article> <article> <h1>Here's an Email That Reznick Group CEO Ken Baggett Sent to the Firm's Clients About the Merger with J.H. Cohn</h1> <p>Caleb Newquist — Tue, 22 May 2012 17:35:00 +0000</p> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>At least that's what we were told! It was just a copy and paste job so there's no official Reznickness on it but reading through it, you get the sense that this was definitely what the big man sent out:</p><blockquote><div>Reznick Group, J.H. Cohn LLP Announce Merger</div><div> </div><div>New Firm Will Be The 11th Largest Accounting Firm in the U.S. With More Than 2,000 Employees, 25 Offices, $445M in Revenue</div><div> </div><div>On behalf of your client service team at Reznick Group, I am excited to share some news about the future of Reznick Group and what it means for you and your business.</div><div> </div><div>Today, Reznick Group and J.H. Cohn LLP announced plans to merge and become the 11th largest firm in the country with more than 2,000 employees, 280 partners, 25 offices and combined revenues of more than $445M. The principals and partners of both firms have agreed to the combination and terms. Pending final approvals, the merger will take effect in September.</div><div> </div><div>This merger of equals creates broad geographic presence and enhanced industry and technical expertise that increase our ability to create opportunity for our clients, our employees, and our firm. J.H. Cohn has very diverse clients across a wide array of industries. The combined firm will have an unprecedented concentration of industry experience in commercial real estate and affordable housing and highly specialized, combined experience in industries such as renewable energy, hospitality, manufacturing and distribution, banking, capital markets, government, construction, life sciences and technology, and valuations.</div><div> </div><div>We’re confident that the combined firm will enable us to better serve your accounting, tax and business advisory needs with:</div><ul><li>Broader resources across industries</li><li>Access to additional expertise in many industries</li><li>A wider range of technical and industry experience</li><li>A more extensive national footprint including a strong presence in the New York metro area</li><li>A better ability to attract top talent to meet the changing needs and business goals of clients</li></ul><div> </div><div>While the merger bears an abundance of advantages for our clients, the firm’s service and commitment to meeting your business objectives will remain unchanged:</div><ul><li>Your client service team will not change</li><li>There will be no change in client fee structures beyond standard adjustments</li><li>We will continue to maintain the flexible, high-touch service approach clients demand</li><li>Our focus on serving middle-market companies continues</li></ul><div> </div><div>We are truly excited about the future of our firm and what the pending merger with J.H. Cohn means to the firm, our people and, most importantly, to you – our clients. We will work to ensure that the transition to the combined firm is seamless and continue to provide you with updates as we work through the details of the merger.</div><div> </div><div>On behalf of the principals and employees of Reznick Group, I want to thank you for your business. If you have any questions, please contact the principal in charge of your professional services team.</div><div> </div><div>Sincerely,</div><div> </div><div>Kenneth E. Baggett</div><div>Managing Principal & CEO</div></blockquote><div>So nothing Earth-shattering here, but I'm sure the assurance of unchanged fee structures and client service teams is appreciated. If you've got similar emails for J.H. Cohn or more information on the deal, <a href="mailto:tips@goingconcern.com?subject=Reznick%20Group%2C%20J.H.%20Cohn%20Merger">email us</a>.</div></div></div></div> <p><a href="http://feedads.g.doubleclick.net/~a/dJhRwGat6APTIwnPAGLiw3x4JtU/0/da"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/dJhRwGat6APTIwnPAGLiw3x4JtU/1/da"></img></a></p> </article> </main></body></html>