Good morning! I’ve got some news for you. Let’s start with the bad news.
From The Times: “Graduate jobs slashed as accounting’s big four feel the squeeze“
The big four accounting firms have slashed graduate jobs and shed thousands of staff outside of official redundancy rounds, as they cut costs in the face of a prolonged downturn for professional services.
KPMG, PwC, Deloitte and EY hired a thousand fewer graduates, school leavers and apprentices last year as part of a wider effort to trim headcounts and protect their profits.
Well that’s fine, there’s a shortage anyway. I know you guys aren’t the greatest at reading sarcasm so reread that sentence again in a smarmy voice.
Online furniture company Wayfair has ditched EY and will now be audited by PwC. As far as we can tell it’s nothing personal.
Baker Tilly is acquiring Hancock Askew & Co., LLP, “a well-established accounting and advisory firm with deep roots in Georgia and Florida.”
Said Fred Massanova, Baker Tilly’s chief growth officer and managing principal – Eastern U.S., “The Southeast is a vital region for businesses of all sizes. Hancock Askew’s longstanding commitment to client service and deep regional expertise make them an outstanding fit for Baker Tilly as we continue expanding our capabilities in this market.”
University of St. Louis held a casual accounting mixer (“Some of my students have said it’s like speed dating”), 2024 graduate and Anders associate had this piece of advice for students:
Callaway did so many internships in part because he wanted to get a better idea of the career path he wanted to pursue. When he arrived at UMSL, he intended to pursue the audit track. After a couple of internships in that arena, he was less convinced. Internships in tax showed him the path he wound up following.
“I tell students all the time that it’s crucial to get experience in both, because you’re going to like one more than you like the other,” Callaway said. “I tell them to come to these events and network and meet all these different firms, because you never know when it’s going to be your future employer or something. I was at one of these events having already accepted a fall internship with PwC, and I met my current employer just being here networking.”
This isn’t terribly on topic…or is it? We do fraud here, right? Crypto sometimes? This scammer takedown had me cracking up when I had it on in the background while obsessively playing Powerwash Simulator this weekend.
On the topic of fraud, a CEO with a master’s in accounting behaving very, very badly. Dude bragged he was Madoff the Second which, like, what? That guy got caught, dummy.
When businesses around the world agreed to take loans from La Jolla-based Ethos Asset Management, the deals seemed safe enough — after all, the company’s CEO sent one potential borrower a bank statement showing Ethos had more than $100 million in a Citibank account and another potential customer a financial statement listing more than $2.2 billion in assets.
But it turned out that both financial documents were falsified and that the Ethos CEO had forged the signature of an auditor from a San Diego accounting firm to lend legitimacy to the asset statement. Ultimately, Ethos took up-front fees from the borrowers duped by the falsified claims and failed to disburse the promised loan payments.
DoJ news release: CEO of Financial Firm Pleads Guilty to Running a Multimillion Dollar Fraud
As clients around the country continue to have problems finding and keeping their tax professionals due to shortages and tax professionals finally learning they have the power to fire bad clients, the Connecticut Department of Consumer Protection and Department of Revenue has a warning:
DCP Commissioner Bryan Cafferelli said that all taxpayers must file a correct and timely tax return and that they should begin their research by reading reviews and checking accountants’ credentials.
“A hasty decision in choosing a fake tax preparer can lead to stolen information, an incomplete tax return and a bigger headache than if you’d simply done your taxes yourself,” Cafferelli said.
Anyone still looking for a preparer in February is making a hasty decision. Just saying.
Brigham Young once again proves they’ve got superior accounting skills:
A group of students representing Brigham Young University emerged as the winners of Deloitte’s 2025 FanTAXtic national case study competition by delivering the top analysis on an issue-focused business tax case. This year’s case challenged teams to evaluate the impact of a potential change in corporate income tax rate on the decision to operate a new business entity as a corporation or a partnership. Teams also were asked to calculate revised projections of taxable income based on different options for compensating owners versus providing dividend distributions, as well as incorporating the depreciation of business assets. The national finals were held Jan. 24-25 at Deloitte University, Deloitte’s landmark campus for learning and leadership development in Westlake, Texas.
“I am deeply impressed by the technical knowledge, analytical abilities and teamwork demonstrated by the students who participated in this year’s FanTAXtic competition,” said Carin Giuliante, chair and CEO, Deloitte Tax LLP.
Baruch came in second, University of Florida third.
Nigeria and Canada have come to an agreement that will make it easier for Nigerians to get a CPA:
Nigerian accountants seeking to practice in Canada now have a more direct route to certification, thanks to a new agreement between Chartered Professional Accountants Canada (CPA Canada) and the Institute of Chartered Accountants of Nigeria (ICAN).
The two organisations have signed a Memorandum of Understanding (MOU) that simplifies the certification process for ICAN members who wish to obtain the CPA designation in Canada. This development was confirmed by ICAN through a post on its X account, highlighting the enhanced mobility this agreement offers to its members. The MOU applies to CPA bodies across Canadian provinces, territories, and Bermuda.
Everyone should be keeping an eye on Africa. About two years ago we were tipped to mid-tier firms setting their sights on this financial frontier and it’s beginning to take shape. You laugh now but just wait.
The Financial Reporting Council is looking into the small business reporting burden.
Concerns that audit firms are charging small businesses too much for work they do not always need have led to an investigation into the market by the industry regulator.
As part of its study the FRC will see what, if anything, can be done to “reduce [SMEs’] reporting burden”. There have been concerns in the industry that audit fees for some small businesses are out of step with the complexity of the work needed.
And that’s all for me. Not a whole lot going on in our little corner of the world today. Email or text if you see a story we should cover, have a tip to share, or just want to use me as unpaid therapist. Have a great week!
