Friday footnotes: KPMG downsizing (office space); CPA CPA CPA; Some good news on diversity | 26.08.22

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Big 4

Deloitte sees diversity improving at senior levels [Accounting Today] More than 35% of senior executives this year identify as racially and ethnically diverse, and more than 42% identify as women, according to Deloitte’s DEI Transparency 2022 report.

India is on the verge of becoming the next SaaS capital of the world, according to an EY-CII study [Business Standard] According to a study by EY and CII titled “India: The Next SaaS Capital of the World”, India is poised to become the next SaaS capital over the next few years, driven primarily by small and medium-sized businesses, with a focus on large companies. The report also states that industry estimates put the market at $20-25 billion by 2025, up from $4-7 billion in 2020.

KPMG to reduce Manhattan office space in move to new US headquarters in Hudson Yards [Wall Street Journal] Global auditing and consulting firm KPMG LLP is slashing its New York offices by more than 40%, becoming the latest major firm to cut real estate spending as it embraces hybrid working.

PWC’s Ryan on the talent shortage [Bloomberg] Tim Ryan, Senior Partner and President of PWC, discusses workforce and talent concerns across companies and sectors. He chats with David Westin on Bloomberg’s “Balance of Power.”

‘Solving visa issues’: KPMG wants more migrants, now [Australian Financial Review] Professional services firm KPMG will ask the federal government to lift the immigration cap to ease widespread labor shortages at next week’s Jobs and Skills Summit. The government will also need to fix the country’s bogged down visa processing system and actively market Australia as a destination of choice for overseas workers given the current international competition for skilled workers, KPMG Chairman Alison Kitchen said.

Law and order:

NLRB judge rules Art Directors Guild fired accountant for unionizing guild staff [Deadline] In a scathing rebuke from the Art Directors Guild and Chuck Parker, its national executive director, an NLRB administrative law judge found that Parker had “unlawfully” fired the guild’s longtime accountant “in retaliation” for her successful efforts to form a union among guild members. Personal.

An accounting firm and two partners conducted flawed custody reviews [SEC] The SEC order finds that Farber Hass Hurley LLP and his associates, Michel Abedian and Michael Hurley, deviated from standards applicable to attestation engagements and compliance reviews when performing surprise client reviews. Specifically, the order finds that Abedian, the lead engagement partner, failed to confirm balances and transactions with custodial clients and failed to reconcile brokerage confirmations to advisor books and records. . The order finds that Hurley, who performed examination quality control reviews, failed to ensure that sufficient and proper procedures were performed and that examination reports were appropriate in the circumstances.

Audit

US and China announce agreement to share audits of US-listed Chinese companies [New York Times] U.S. and Chinese officials said on Friday they had reached an agreement to allow accounting firms in China to share more information with U.S. regulators about the finances of Chinese companies listed on U.S. exchanges. The deal is a potentially significant step towards resolving a dispute that seemed likely to force some of China’s biggest companies off US stock exchanges from 2024.

Statement on the Agreement Governing Inspections and Investigations of Audit Firms Based in China and Hong Kong [SEC] SEC Chairman Gary Gensler: Why are these inspections and investigations important? It is a privilege for foreign issuers to have access to our markets — the largest, deepest and most liquid markets in the world. Investors in US markets need to be protected and have confidence in a company’s financial numbers, whether the issuer is foreign or domestic. Moreover, if foreign issuers want access to our public capital markets, they must be on equal footing with US companies.

Welp now we know why nobody can find old people

We found Barry Melancon’s Reddit account

practice management

Do we need accounting firms? [Accounting Today Opinion] Daniel Hood writes in AT: Corporate structure is not a particularly effective means of raising or raising capital. Given the number of companies complaining about the difficulty of finding the next generation of partners, this is clearly less attractive as a structure for potential partners than it once was. Too many companies don’t even capitalize on one of the obvious advantages of the form – the ability to have a wide range of expertise in one place – to aggressively sell services to a single customer base; instead, they act more like a collection of individual practitioners in a WeWork space. And partnership rules can often slow down decision-making and prevent companies from taking risks and meeting challenges with agility.

Does the hybrid work model work? CPAs spill the beans [CPA Canada] Three accountants share their experience back in the office. Find out how they fit and explore the benefits.

How to get your business started with ESG [Accountancy Age] Some partners think they can wait until ESG services are more developed and view the opportunity as a check box service. They fear that the current directions are directed towards larger entities and that their companies lack expertise – they should be confident. ESG is not a tick box exercise. It is about helping a company to clarify its objectives and business model. This requires support for data capture, reporting and auditing – the core competencies of an accounting firm.

Changing roles: managing evolving changes in company structures and employee expectations [Thomson Reuters] There are multiple reasons why the legal, tax and accounting sectors are seeing changes to long-established roles within their businesses.

IRS

The claim that members of Congress exempted themselves from IRS audits began as a satire [Poynter] The claim that Congress is exempt from IRS audits appears to come from a satirical Twitter account called News That Matters. On August 17, the account tweeted: “BREAKING In order to protect democracy, Congress has voted to exempt itself and its members from upcoming IRS audits.

IRS assesses security of offices and staff after political attacks [Bloomberg] “We are conducting a comprehensive review of existing safety and security measures, IRS Commissioner Chuck Rettig said in a memo to employees on Tuesday. “This includes conducting risk assessments based on data-driven decisions given the current environment and monitoring perimeter security, designations of restricted areas, exterior lighting, security around entrances of our facilities and other miscellaneous protections.

Corporate mergers and acquisitions

Baker Tilly acquires consulting firm Management Partners [CPA Practice Advisor] National accounting and consulting firm Baker Tilly US, LLP (Baker Tilly) will acquire Management Partners, effective October 1. Management Partners specializes in strategic planning, process improvement, organizational analysis, financial analysis, executive search, interim management, coaching, facilitation, and local government training. The acquisition adds a unique and significant layer of experience to Baker Tilly’s strong practice in the public sector.

Dark Horse CPA merges with Mary Pierce of Pierce & Company LLC [PRWeb] Dark Horse CPAs, a leading accounting and tax firm serving small businesses and individuals across the country, announces the addition of Mary Pierce, CPA, owner of Pierce & Company LLC, to the profession’s only democratized CPA firm . Ms. Pierce brings with her over 25 years of experience as an internal and external controller and chief financial officer for SMEs. With this acquisition, Dark Horse CPAs expands its presence in the Florida market.

Tax Twitter has way too much fun with IRS SWAT team memes

New

Accountant, 26, and her IT consultant boyfriend, 27, who had had enough of the 9-5 monotony, quit their jobs to travel across Europe in a van – and finance their lifestyle by renting their two-bedroom house in Oxford [Daily Mail] Fed up with the frantic race, former IT consultant Kieran Field, 27, and former accountant, Alice Ballard, 26, from Oxford, gambled it all on a £7,000 van to create a home on wheels – with a double bed, compostable toilet under the sofa, one square meter kitchen and outdoor shower. After quitting their jobs and renting out their refurbished two-bedroom semi-detached house in Oxford to fund their new lifestyle, Kieran and Alice began their adventures in northern France in August 2020.

Diversity among CEOs and CFOs continues to increase [Journal of Accountancy] According to a long-standing report, the percentage of women and CEOs and CFOs of various races or ethnicities in large corporations has nearly doubled in the past decade. The Crist | Kolder Associates’ 2022 Volatility Report, in its 19th year, collected data for the first half of 2022 from 681 Fortune 500 and S&P 500 companies. The report’s latest data revealed a record percentage of women and business leaders of various races or ethnicities. Currently, 158 CEOs and CFOs of the companies surveyed are women or racially or ethnically diverse (or both), nearly double the number reported in the 2012 report (86).

Eisner Advisory Group promotes 10 partners [Consultancy.org] Eisner Advisory Group, the business advisory arm of mid-market accounting and consulting firm EisnerAmper, promoted 10 team members to associate status, effective August 1.

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