Monday, October 19, 2009

Accounting's day of reckoning | Crain's Chicago Business

Accounting's day of reckoning | Crain's Chicago Business

Interesting-Chuck Allen at Crowe is up for negotiating on price-clients should definitely negotiate with the partners-not just at Crowe, but the Big 4 and second tier firms. $350,000 plus for a partner in a big firm? What is that for??

Friday, October 16, 2009

JofA article - Auditing at the Speed of Change

Interesting to me that Mr. Keizer speaks to 'opportunity to grow and rise in that organization as their (staff) careers are built' but doesn't address one of the biggest challenges facing public accounting-getting staff who have a desire to be part of it on the long haul to partner.

Gotta be willing to play the games in the firms-sacrifice time with family or find ways to maximize chargeable hours and still party with clients and staff. I was with three firms-KPMG, GT and Crowe and couldn't see myself buying into the partner mentality at any of them.

Auditing at the Speed of Change

Auditing at the Speed of Change

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Monday, October 12, 2009

Public Accounting litigation

As the fiscal year end for many companies nears at 12/31, public accounting auditors are looking at the work papers from last year; but not to plan for a better audit-to see where they can cut the budget this year. The partner just drove up in his Mercedes/BMW and is going to ask how the audit will get done this year without the writeoff like last year.

And the manager on the job only knows how to do what he did last year. When will public accounting wise  up and realize the importance of internal controls in the audit. Yes, SOX pushed the agenda forward a bit, but only because the firms found an opportunity for a new revenue stream. Oh, you thought it was about helping companies comply with strict regulations. COME ON! It was about revenue, stupid!

So, as the auditors ramp up for big hours that they can't charge to the client-they ponder....where is the line of risk management and how they can avoid the next costly lawsuit.

Thursday, October 8, 2009


Attended a not for profit discussion at the IL CPA Society today. Professionals from NFP's looking for their accountants/auditors to be trusted advisors, not just check the box and sign off.

And on ERM-looking for a practical way to understand and implement ERM without pointing to COSO framework. Just another example of the public accounting firms overblowing something in order to drive fees higher from their clients.

ERM doesn't need to be a huge ordeal for companies. It can be implemented with minimal effort from consultants. Companies, including not for profits need a framework, some guidance and it's management's responsibility to implement ERM.

Public accounting firms have developed behemoth models and processes to implement, and it's killing businesses.

Saturday, October 3, 2009

Memo to CPA firm CEO's

Well thought article in Accounting Today based on the convergence of IFRS and GAAP, but discusses drivers of CPA firms. In my opinion, firms are generally focused on their own profitability (after all, they are a business too) and this article discusses what motivates firms to underserve their clients.

Enlightment is truly helping clients to run their businesses better!

Independence for CPA firms

Great article in the current issue of Accounting Today 'Independence Comes Under Fire' and discussion of key elements of reliability of information.