{"id":1000897742,"date":"2024-11-22T17:00:00","date_gmt":"2024-11-22T22:00:00","guid":{"rendered":"https:\/\/www.goingconcern.com\/?p=1000897742"},"modified":"2024-11-22T17:05:39","modified_gmt":"2024-11-22T22:05:39","slug":"friday-footnotes-pcaob-demands-more-tedious-paperwork-from-firms-pwc-partners-retire-early-kpmg-redeems-itself-11-22-24","status":"publish","type":"post","link":"https:\/\/www.goingconcern.com\/friday-footnotes-pcaob-demands-more-tedious-paperwork-from-firms-pwc-partners-retire-early-kpmg-redeems-itself-11-22-24\/","title":{"rendered":"Friday Footnotes: PCAOB Demands More Tedious Paperwork From Firms; PwC Partners Retire Early; KPMG Redeems Itself? | 11.22.24"},"content":{"rendered":"\nFootnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you’re here, subscribe to our newsletter<\/a> to get the week’s top stories in your inbox every Tuesday and Friday.<\/em>

Comments are closed on Friday Footnotes<\/a> and the Monday Morning Accounting News Brief<\/a> by default. If you have something to say about any stories linked here you are welcome to email the editor<\/a>, text us<\/a> at 202-505-8885, or hit us up on Twitter @going_concern<\/a>. See ya.<\/em>\n\n\n\n

Audit<\/h2>\n\n\n\n

Large Accounting Firms Will Have to Submit Financial Statements to U.S. Regulator<\/strong> [Wall Street Journal<\/a>]
Large accounting firms will have to submit financial statements annually to the U.S. audit regulator for the first time, among new requirements that have faced pushback from auditors but have received support from many investors The Public Company Accounting Oversight Board on Thursday voted 4-1 to bolster the rules around firms\u2019 reporting annually and for special circumstances, such as a filed lawsuit or private-equity investment. The U.S. audit watchdog also voted 4-1 on a separate rule to require hundreds of firms to publicly disclose a set of eight metrics, ranging from auditor turnover to partner involvement, workload and work experience.
PCAOB news release here:<\/em> https:\/\/pcaobus.org\/news-events\/news-releases\/news-release-detail\/pcaob-adopts-new-requirements-to-standardize-disclosure-of-firm-and-engagement-metrics-and-to-modernize-the-pcaob-s-reporting-framework<\/a><\/p>\n\n\n\n

DLA Finance pursues artificial intelligence to pass financial audit<\/strong> [Defence Logistics Agency<\/a>]
The Defense Logistics Agency deputy chief financial officer is exploring the power of artificial intelligence to accelerate the agency\u2019s path to a clean financial audit. \u201cAlthough we\u2019re at the beginning stages of using AI in finance, we believe there\u2019s a lot of potential. We\u2019ve already had success with technology such as bots and robotics process automation. We plan to build on that with AI,\u201d Shawn Lennon said. AI can transform DLA\u2019s progress by loading policies, data, process documents and more into a searchable large language model for easy, fast retrieval. The goal is to input data from DLA\u2019s business systems and use AI to detect errors, generate insights, and propose solutions to improve data quality and financial reporting, Lennon added.<\/p>\n\n\n\n

Supermicro hot-swaps auditor in hope of dodging Nasdaq delisting<\/strong> [The Register<\/a>]
Server maker Supermicro has appointed a new independent auditor and submitted a compliance plan to the Nasdaq stock exchange to avoid being delisted amid reports it is losing customers because of uncertainty over its future. The San Jose-based hyperscaler supplier has engaged BDO USA, the American arm of one of the top five global accounting operations, as its auditor with immediate effect. This latest move follows the earlier resignation of Ernst & Young, which previously served as Supermicro’s auditor, over concerns about the company’s accounting practices. The server biz was also more than two months late in filing its 10-K annual report and was at risk of being delisted from Nasdaq as a consequence.<\/p>\n\n\n\n

Long Reads<\/h2>\n\n\n\n

The rehabilitation of KPMG<\/strong> [Financial Times<\/a>]
At Legal & General\u2019s annual meeting in May 2022, a shareholder took to the floor to air some grievances \u2014 not about the performance of the FTSE 100 insurer but that of KPMG, its auditor. \u201cDon\u2019t we as a company with an enormous reputation deserve to have auditors of the very highest reputation too,\u201d he asked the group\u2019s board. Referencing press coverage of KPMG\u2019s multiple audit failings, he also questioned whether L&G should \u201cditch them and get someone else to do that work\u201d. The remarks generated applause in the room and illustrated the extent to which the reputation of the accounting and consulting firm had been damaged by a litany of scandals in the preceding years.<\/p>\n\n\n\n

News<\/h2>\n\n\n\n

In major victory for AICPA, judge rules against paid overtime for accountants and other professional workers<\/strong> [Reddit<\/a>]
Sayeth r\/accounting, “Fuck the AICPA.”
Most notable comment:<\/em>
“Apparently the AICPA deleted their anti-overtime advocacy page in the last month but here is the archived version: https:\/\/web.archive.org\/web\/20240831222059\/https:\/\/us.aicpa.org\/advocacy\/cpaadvocate\/2016\/aicpa-reacts-to-dol-overtime-rule<\/a> EDIT: Here’s a more detailed letter they still have posted- https:\/\/us.aicpa.org\/content\/dam\/aicpa\/advocacy\/issues\/downloadabledocuments\/aicpa-letter-to-dol-overtime-rule-rin-1235-aa11.pdf<\/a>“<\/p>\n\n\n\n

Billionaire Luksic Family Seeks \u20ac217 Million From Santander, PwC<\/strong> [Bloomberg<\/a>]
Chile\u2019s billionaire Luksic family is seeking \u20ac217 million ($226 million) in compensation from Banco Santander SA, PriceWaterhouseCoopers LLP and others in connection to the collapse of a Spanish lender seven years ago. Aeris Invest, a Luxembourg-based financial holding company owned by South America\u2019s second wealthiest family, is demanding the payment to cover losses incurred as shareholders of Banco Popular, after the lender went bankrupt and was taken over by Santander in 2017, according to legal documents seen by Bloomberg.<\/p>\n\n\n\n

Trump win, interest rate cuts could spur M&A spike next year: EY<\/strong> [CFO Dive<\/a>]
Merger-and-acquisition activity could pick up next year thanks to pent-up demand and interest rate cuts, as well as deregulation efforts expected in the incoming Trump administration, according to Ernst & Young\u2019s latest monthly report on deal activity. \u201cWith Trump having secured a decisive victory, investors will be weighing the impact his proposed economic and regulatory policies could have,\u201d the report said. \u201cDetermining the deal momentum in the longer term will likely depend on how much of Trump\u2019s tax, energy, trade and regulatory agenda is enacted.\u201d<\/p>\n\n\n\n

CapRadio releases audited 2024 financial reports, revealing $10M in debt and its repayment plans<\/strong> [CapRadio<\/a> (Sacramento)]
Capital Public Radio management released audited financial statements for the 2023-24 fiscal year on Thursday, revealing roughly $10 million in debt. CapRadio\u2019s Chief Marketing and Revenue Officer Chris Bruno called the report a \u201cstandard annual financial audit\u201d in a media briefing earlier this week. He added that it is the first opportunity for people to review the station\u2019s audited financial data \u2014 and its efforts to dig itself out of a major hole \u2014 after two previous audits found severe financial mismanagement and significant debt. After an initial audit was released in September 2023 and found significant accounting problems, Sacramento State took over CapRadio\u2019s financial operations. The university worked with the station over the past year to prepare its financial statements for the audit released on Thursday. The most recent financial statements were audited by CliftonLarsonAllen, the same accounting firm which released a forensic analysis of CapRadio\u2019s finances in August. (That report found the station made roughly $760,000 in unsupported payments between July 2020 and June 2023, a large portion of which went to the station\u2019s former General Manager, Jun Reina.)<\/p>\n\n\n\n

Talent<\/h2>\n\n\n\n

Accountants ramp up offshoring to bring down costs<\/strong> [Financial Review<\/a>]
We’re doomed.<\/em>
Up to a third of staff at some of the nation\u2019s top accounting firms are located offshore and leaders say the trend will only accelerate as they seek to cut costs and deliver work more quickly. The Australian Financial Review Top 100 Accounting Firms list<\/a>\u00a0for 2024 shows countries such as India and the Philippines have become key hubs for preparing the tax returns and financial reports of corporate Australia, including high-level, potentially sensitive work.<\/p>\n\n\n\n

A Great Resignation 2.0 is simmering as employees feel overworked and underpaid, forcing them to look for greener pastures<\/strong> [Fortune<\/a>]
Firms would love for this to be true. The sooner you leave, the sooner they can replace you with 5 Indians.<\/em>
More people are now mulling their options as they increasingly feel overworked and underpaid amid relentless cost pressures. Employees feel so bogged down by work that far more people are considering resigning now than during the mass resignations we saw in 2022, auditor PwC found in its Global Workforce Hopes & Fears Survey published earlier this year, covering over 56,000 workers worldwide. The report, with nearly half of its respondents being millennial, followed by Gen X and Gen Z employees, found a staggering increase of 28% in the number of people who plan to change jobs, compared to 19% during the Great Resignation in 2022.<\/p>\n\n\n\n

Dozens of partners take early retirement from accountancy giant PwC<\/strong> [Sky News<\/a>]
Sky News has learnt that PwC’s 1,030 UK partners were notified earlier this week that a larger-than-usual round of partner retirements would take place at the end of the year. Sources said the round would involve several dozen partners – who command average pay packages of about \u00a31m – leaving the firm.<\/p>\n\n\n\n

Attention firms looking to hire: Check out this week’s Top Remote Accounting Candidates<\/a> from Accountingfly. You might find your next great hire! If none of these professionals tickle your fancy, sign up for Always-On Recruiting<\/a> to get a fresh batch in your inbox every week.<\/em><\/p>\n\n\n\n

\n
Top Remote Accountants of the Week | November 21, 2024<\/a><\/blockquote>