{"id":1000897749,"date":"2024-11-25T11:54:34","date_gmt":"2024-11-25T16:54:34","guid":{"rendered":"https:\/\/www.goingconcern.com\/?p=1000897749"},"modified":"2024-11-25T11:55:12","modified_gmt":"2024-11-25T16:55:12","slug":"monday-morning-accounting-news-brief-pwc-denies-it-got-dui-partner-drunk-kpmg-misses-a-huge-error-11-25-24","status":"publish","type":"post","link":"https:\/\/www.goingconcern.com\/monday-morning-accounting-news-brief-pwc-denies-it-got-dui-partner-drunk-kpmg-misses-a-huge-error-11-25-24\/","title":{"rendered":"Monday Morning Accounting News Brief: PwC Denies It Got DUI Partner Drunk; KPMG Misses a Huge &#8216;Error&#8217; | 11.25.24"},"content":{"rendered":"\n<p>Morning, all. And an early Happy Thanksgiving to our fellow Americans!<\/p>\n\n\n\n<p>Thanks Kuya Mike for alerting us to this situation first thing in the morning in such an entertaining way.<\/p>\n\n\n\n<blockquote class=\"twitter-tweet\"><p lang=\"tl\" dir=\"ltr\">HAHAHAHAHAHAHAHAHAHAH <a href=\"https:\/\/twitter.com\/KPMG?ref_src=twsrc%5Etfw\">@KPMG<\/a> <a href=\"https:\/\/twitter.com\/KPMG_US?ref_src=twsrc%5Etfw\">@KPMG_US<\/a> YALL SUCK HAHAHAHAHAHAHAHAHAHAH<a href=\"https:\/\/twitter.com\/going_concern?ref_src=twsrc%5Etfw\">@going_concern<\/a> <a href=\"https:\/\/t.co\/EpdKyBEw6g\">https:\/\/t.co\/EpdKyBEw6g<\/a><\/p>&mdash; Kuya Mike UNHINGED\ud83c\uddf5\ud83c\udded (@KuyaMikeDG) <a href=\"https:\/\/twitter.com\/KuyaMikeDG\/status\/1861053587725385906?ref_src=twsrc%5Etfw\">November 25, 2024<\/a><\/blockquote> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<p>What happened, <a href=\"https:\/\/www.nytimes.com\/2024\/11\/25\/business\/macys-earnings-delay-accounting-error.html\" target=\"_blank\" rel=\"noreferrer noopener\">according to NYT<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Macy\u2019s said on Monday that an employee had misstated up to $154 million in delivery expenses over the past few years, forcing the retailer to delay a much-anticipated earnings report that Wall Street uses to gauge the strength of holiday shopping.<\/p>\n\n\n\n<p>Macy\u2019s sales in the third quarter fell 2.4 percent \u2014 below analysts\u2019 expectations \u2014 to $4.74 billion. The company\u2019s overall sales were dragged down by weak performance at Macy\u2019s stores and its digital business.<\/p>\n\n\n\n<p>Macy\u2019s said it had found the accounting error while preparing its results for the quarter, which ended Nov. 2. The results had been set to be released on Tuesday. An investigation was opened, and the employee, who was responsible for small package delivery expense accounting, is no longer with the company, Macy\u2019s said. The investigation has not identified involvement by any other employee.<\/p>\n<\/blockquote>\n\n\n\n<p>KPMG has audited Macy&#8217;s since 1988.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In San Jose, <a href=\"https:\/\/www.mercurynews.com\/2024\/11\/22\/high-speed-tesla-crash-that-hurt-young-san-jose-chef-came-after-shot-oclock-kicked-off-company-funded-boozefest-lawsuit\/\" target=\"_blank\" rel=\"noreferrer noopener\">PwC insists it didn&#8217;t ply a partner with alcohol before said partner crashed his Tesla into a chef at 130 MPH<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>A Los Gatos partner for consulting and accounting giant PwC was drunk and speeding on Highway 85 at 130 mph just before his Tesla slammed into the back of a young San Jose man\u2019s car, permanently injuring the 22-year-old chef, a new court filing in a lawsuit over the crash alleged.<\/p>\n\n\n\n<p>Crash victim John Cooper sued PwC partner Ousmane Caba and the company in March, claiming Caba was so drunk he was \u201cbarely conscious\u201d when he left San Francisco in June 2023 after a day and night of drinking at events sponsored by PwC.<br>Caba could not be reached for comment. Messages left for his lawyer were not returned.<\/p>\n\n\n\n<p>PwC, accused in the lawsuit of negligence, did not respond to a request for comment. The company in a court filing last month said evidence produced in the case does not show that PwC paid for \u201cdrink after drink\u201d for Caba.<\/p>\n\n\n\n<p>\u201cInstead, it shows that PwC invited employees to two meal events the day before the incident which were catered by others and which included food and beverage selections available to all attendees,\u201d the filing said. \u201cThere is nothing vile or despicable associated with offering alcoholic beverages at gatherings in any context, whether business or social.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>That last part doesn&#8217;t seem like something a company should say when one of their partners gets trashed and nearly kills someone on the road. But OK, I&#8217;m not a lawyer.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"https:\/\/www.businessinsider.com\/ey-ai-avatar-hiring-process-preinterview-job-candidates-metaverse-2024-11\" target=\"_blank\" rel=\"noreferrer noopener\">EY rolls out &#8216;metaverse&#8217; avatars<\/a>, as if video interviews weren&#8217;t bad enough already.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"559\" src=\"https:\/\/i0.wp.com\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/EY-metaverse-interview-avatar.png?resize=640%2C559&#038;ssl=1\" alt=\"\" class=\"wp-image-1000897750\" srcset=\"https:\/\/i0.wp.com\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/EY-metaverse-interview-avatar.png?w=731&amp;ssl=1 731w, https:\/\/i0.wp.com\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/EY-metaverse-interview-avatar.png?resize=300%2C262&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/EY-metaverse-interview-avatar.png?resize=150%2C131&amp;ssl=1 150w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>A link to the AI-powered avatar, called eVe, is sent out to candidates as soon as they are selected to advance to the interview stage. eVe can answer questions about the company and help candidates prepare for their interview with a real person, according to Francesca Jones, an early careers leader at EY.<\/p>\n\n\n\n<p>The AI avatar, which appears on the screen as a real person would during a video chat, can be spoken to directly and offers verbal answers back within moments, mimicking an actual conversation. It can also be used with text like other chatbots.<\/p>\n<\/blockquote>\n\n\n\n<p>In testing, interns grilled the GPT-4 chatbot more than TPTB expected they would:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;I was amazed by the types of questions they asked and how much time they actually spent with it,&#8221; Domhnaill Hernon, global lead of EY&#8217;s Metaverse Lab, told Business Insider. He suspected the younger generation might spend two to three minutes with eVe and then move on, but they were regularly spending 15 to 20 minutes engaging with it conversationally, asking questions and follow-ups.<\/p>\n\n\n\n<p>One intern who spent 25 minutes talking to eVe went into extreme detail evaluating EY&#8217;s compensation benefits, particularly comparing the company&#8217;s pension plan to its 401K offering.<\/p>\n<\/blockquote>\n\n\n\n<p>Ask it if it prefers <a href=\"https:\/\/www.goingconcern.com\/ey-sexist-training-new-jersey-fine\/\" target=\"_blank\" rel=\"noreferrer noopener\">waffles or pancakes<\/a>!<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In case you hadn&#8217;t heard, PE-backed <a href=\"https:\/\/sfvbj.com\/services\/accounting\/aprio-buys-kkb-in-woodland-hills\/\" target=\"_blank\" rel=\"noreferrer noopener\">Aprio is making moves in California<\/a>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Aprio, an Atlanta-based advisory and accounting firm, recently purchased Kirsch Kohn &amp; Bridge (KKB) in Woodland Hills to continue its expansion efforts in the region. Terms of the deal were not disclosed.<\/p>\n\n\n\n<p>\u201cSouthern California is an economic powerhouse with diverse industries, a robust entrepreneurial spirit and a dynamic business community,\u201d Aprio Chief Executive Richard Kopelman said. \u201cThis expansion reflects Aprio\u2019s commitment to building a stronger West Coast presence and serving our clients where they are.\u201d<\/p>\n\n\n\n<p>Aprio previously made moves in San Francisco and Walnut Creek and views this latest acquisition as an opportunity to dig into prominent Los Angeles industries like construction, manufacturing, retail, real estate and professional services.<\/p>\n<\/blockquote>\n\n\n\n<p>How&#8217;s everyone doing at Aprio these days anyway? Last we heard things weren&#8217;t so great. <a href=\"mailto:adrienne@goingconcern.com\">Let us know<\/a> if you have some scoop on the ground.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>PwC makes <a href=\"https:\/\/www.businessinsider.com\/layoffs-sweeping-us-these-are-companies-making-cuts-2024\" target=\"_blank\" rel=\"noreferrer noopener\">a <em>Business Insider<\/em> list of major US companies to slash staff this year<\/a>. The blurb includes the statement PwC made to BI when the October layoffs were reported in September:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>In an emailed statement to Business Insider, Tim Grady, PwC&#8217;s US chief operating officer, said, &#8220;To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most. Right now, we are focused on running our business well and adapting to meet the needs of our clients and the rapidly changing market.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p>Related:<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-going-concern wp-block-embed-going-concern\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"pW4llXsH3e\"><a href=\"https:\/\/www.goingconcern.com\/pwc-was-thoughtful-enough-to-wait-until-after-hurricane-milton-to-lay-off-tampa-employees\/\">PwC Was Thoughtful Enough to Wait Until After Hurricane Milton to Lay Off Tampa Employees<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;PwC Was Thoughtful Enough to Wait Until After Hurricane Milton to Lay Off Tampa Employees&#8221; &#8212; Going Concern\" src=\"https:\/\/www.goingconcern.com\/pwc-was-thoughtful-enough-to-wait-until-after-hurricane-milton-to-lay-off-tampa-employees\/embed\/#?secret=qopWZg91GF#?secret=pW4llXsH3e\" data-secret=\"pW4llXsH3e\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>University of Northern Iowa <a href=\"https:\/\/www.northerniowan.com\/23217\/showcase\/uni-accounting-tops-cpa-exam-passing-rates\/\" target=\"_blank\" rel=\"noreferrer noopener\">brags about its CPA exam performance<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Continuing its streak of success, the UNI Accounting program was ranked sixth amongst mid-sized schools for single-pass rates of the certified public accounting (CPA) exam by the National Association of State Boards of Accountancy (NASBA).<\/p>\n\n\n\n<p>This specific ranking doesn\u2019t encapsulate all four sections of the CPA exam that prospective accountants must take, but UNI has submitted all four sections to the NASBA. <strong>Out of the top ten institutions ranked in this category, UNI claims the most candidates and the most sections taken by candidates, with 51 candidates completing the CPA and 175 sections total<\/strong>. UNI\u2019s CPA pass rate for the 2023 CPA exam is 78.3%, with the average passing rate being 79.3%.<\/p>\n<\/blockquote>\n\n\n\n<p>I really wish I hadn&#8217;t thrown away my old CPA exam performance books from the 2010s in a decluttering spree the other weekend because I would have loved to compare 2011 to now. 51 candidates doesn&#8217;t feel like much of a brag but to be fair, they did say mid-sized schools.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Across the pond, <a href=\"https:\/\/www.thetimes.com\/business-money\/companies\/article\/rise-in-national-insurance-to-add-40m-to-pwcs-tax-bill-zgbxr2s2g\" target=\"_blank\" rel=\"noreferrer noopener\">federal tax changes will mean PwC UK partners will be taking a hit<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Big Four partners think of themselves as more than just employees. The top ranks of the world\u2019s biggest accountancy firms jointly own and manage their firms \u2014 and share in its profits at the end of the year. These payouts can run into the millions of pounds each year.<\/p>\n\n\n\n<p>But those rewards will now be hit by the sizeable increase in employers\u2019 national insurance contribution (NIC) announced by Rachel Reeves in last month\u2019s budget.<\/p>\n\n\n\n<p>PwC, the UK\u2019s biggest auditor, is paying an extra \u00a335,000 in employer\u2019s NIC for each of its 1,030 partners. That means that Britain\u2019s biggest auditor will see its tax bill increase by nearly \u00a336 million because of the changes. And, as its partners share in the firm\u2019s profits at the end of the year, they will end up paying for the increased cost eventually.<\/p>\n<\/blockquote>\n\n\n\n<p>That&#8217;s all I&#8217;ve got for today. Grant Thornton layoff story is on deck, I neglected to get to it Friday when tips came in and got scooped by WSJ, ugh. We&#8217;ve got some extra details to share though. <\/p>\n\n\n\n<p>Although it&#8217;s a holiday, we&#8217;re still lurking around so feel free to reach out <a href=\"mailto:adrienne@goingconcern.com\">via email<\/a> or <a href=\"tell:2025058885\">text<\/a> if you&#8217;ve got a tip.<\/p>\n\n\n\n<p>Happy Turkey Day! Be safe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morning, all. And an early Happy Thanksgiving to our fellow Americans! Thanks Kuya Mike for [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":1000897751,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1187,1273],"tags":[33321],"class_list":["post-1000897749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-anr","category-news","tag-accounting-news-brief"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.2 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Monday Morning Accounting News Brief: PwC Denies It Got DUI Partner Drunk; KPMG Misses a Huge &#039;Error&#039; | 11.25.24 - Going Concern<\/title>\n<meta name=\"description\" content=\"Slow day at the news factory. 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