Jim Ulvog

Football as illustration of differences between audits, reviews, and compilations

2 Comments / Audits, Compilations & reviews /

Since football season is in full swing, let’s go to the nearest stadium to compare an audit to a review, to a compilation, and to the newest level of service, a preparation report.

(Cross-post from my other blog, Nonprofit Update.)

Audit

If you were performing an audit, you would be on the field and receive the kickoff at your 20-yard line. A series of passes and runs would slowly move the ball. With effort you would advance to your opponent’s 10-yard line. Good touchdown position.

Advancing the football would be the same as gathering evidence to provide you a reasonable level of assurance so you could issue an audit opinion on the financial statements.

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Football as illustration of differences between audits, reviews, and compilationsRead More »

Football as illustration of differences between audits, reviews, and compilations Read More »

Consequences – insider trading edition – #10

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Here are a few more consequences awaiting in the near future for Mr. Scott London, former KPMG partner, as he awaits sentencing after his guilty plea to trading on insider information.

These are pulled from his court filing in September.  Going Concern has posted a copy of the filing by Mr. Scott London taking exception to the pre-sentencing report from the United States Probation Office. You can find the filing here.

Here are some more consequences and more detail on some I’ve mentioned before: …

Consequences – insider trading edition – #10Read More »

Consequences – insider trading edition – #10 Read More »

Sentencing recommendation and suggestion for lighter sentence for ex-KPMG partner’s insider trading

6 Comments / Audits /

Going Concern has breaking news about the KPMG insider trading fiasco. They have a copy of the court filing by Mr. Scott London taking exception to the pre-sentencing report from the United States Probation Office.

Check out Reminder: Insider Trading Turned Out Badly for Ex-KPMG Partner Scott London.

The GC copy of the filing can be found here.

I will have more to say about the case after the sentencing. Here are a few initial thoughts on the filing.

Arguments for shorter sentence – amounts involved

The pre-sentencing report (which I now know is called a PSR) called for downgrading to a 36 month sentence from what is calculated from federal guidelines as a 46 to 57 month range.

Mr. London’s attorney argues it should be in the recommended range of 18 to 24 months based on the amount involved that Mr. London would reasonably have expected to be involved.

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Sentencing recommendation and suggestion for lighter sentence for ex-KPMG partner’s insider trading Read More »

Be veeeery careful about upgrading to Evernote version 5

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I’ve been using Evernote very heavily since last December. For an accountant, and especially for a blogger, it is a great tool to clip a copy of interesting stuff in a searchable database.  I have a lot of notes.

Friday morning I decided to finally upgrade to version 5.  

Big mistake.

The notes on the upgrade looked fine. The only thing missing from the notes was a comment that the software would not work after the upgrade

I still heartily recommend accountants use Evernote. It is a great research tool. It is a wonderful way to keep track of dozens or hundreds of articles you may want to revisit.  Just think carefully before you upgrade.

After working fine all morning, immediately after the upgrade I could not clip anything and instead got errors saying the software doesn’t work with 64 bit browsers. I tried multiple workarounds and corrections. Firefox didn’t work.  Nothing fixed it. Help site only said the software doesn’t work with 64 bit browsers.  Couldn’t undo the install (all you techies are laughing as you think, you just figured that out?)

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Be veeeery careful about upgrading to Evernote version 5Read More »

Be veeeery careful about upgrading to Evernote version 5 Read More »

SSARS exposure drafts approved

Leave a Comment / Compilations & reviews /

Keep your eyes open for drafts from the ARSC by end of October.

The Journal of Accountancy reports these drafts were approved:

  • Preparation of Financial Statements
  • Compilation Engagements
  • Association With Financial Statements.

The JofA article says:

The new, proposed preparation standard would govern engagements in which the accountant prepares financial statements but does not perform a compilation, review, or audit. The standard would require the accountant to place a legend on each page stating that no assurance is being provided.

SSARS exposure drafts approved Read More »

Ex-KPMG partner banned from practice before the SEC; sentencing date is in December

1 Comment / Audits, Fraud /

The SEC banned KPMG’s former regional audit PIC Scott London from SEC related work. The key sentence from Bloomberg’s article SEC Bars Former KPMG Partner fo Role in Insider-Trading Scheme:

The SEC’s order prohibits Scott London from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the agency, according to a statement released today.

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Ex-KPMG partner banned from practice before the SEC; sentencing date is in DecemberRead More »

Ex-KPMG partner banned from practice before the SEC; sentencing date is in December Read More »

First hint of increased turnover in CPA firms

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Going Concern cites a report in Rosenberg MAP Survey that turnover in CPA firms increased in 2012.

The post, BREAKING: Staff Leaving CPA Firms for More Money, says turnover is up to around 16%-18% last year. It had been in the 11%-12% range during 2010 and 2011, according to the article.

I’ve been waiting to see the departures rise, but hadn’t thought the economy had improved enough to start the chair-change parade.

My guess is that when the economy finally takes off, far more than the usual amount of accountants will be looking for a new position. What do you think?

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Umm, Greg, you can’t talk about CPE fraud. I think that’s an ethics violation.

Leave a Comment / Fraud, Other stuff /

Greg Kyte expands the boundaries of things you aren’t supposed to discuss publicly in his post at Going Concern:  If You Can’t Admit You’ve Committed CPE Fraud, Then You Need to Take Another Ethics Course.

He offers as an example of CPE fraud his ability to complete a one hour ethics course in 9 minutes.

He then mentions the type of CPE cheating I’ve seen at almost every live course I’ve attended: …

Umm, Greg, you can’t talk about CPE fraud. I think that’s an ethics violation.Read More »

Umm, Greg, you can’t talk about CPE fraud. I think that’s an ethics violation. Read More »

Update on wondering who first discovered the KPMG insider trading mess

Leave a Comment / Audits /

I previously concluded that FINRA, the self-regulatory branch of the securities industry, gets credit for discovering the insider trading scam involving a now-former senior level partner at KPMG.

Now, I’m not so sure.

By the way, we are still waiting for sentencing of Mr. Shaw. I’ve been watching the news closely but nothing has been visible this week. Back to the main question –

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Update on wondering who first discovered the KPMG insider trading messRead More »

Update on wondering who first discovered the KPMG insider trading mess Read More »

Don’t pick a fight with someone who buys pixels by the terabyte – ethics version

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That’s the internet era version of the old line:

Don’t pick a fight with someone who buys ink by the barrel.

Here is today’s illustration of the concept:  Francine McKenna was invited to debate the question “Does ethics training change behavior?” She was going to argue the ‘no’ position.

The Ethics and Compliance Officer Association Annual Conference disinvited her after protests by other speakers and some sponsors, according to her post, Canceled: Why I Won’t Be Speaking At Ethics And Compliance Officers Association Annual Conference.

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Don’t pick a fight with someone who buys pixels by the terabyte – ethics versionRead More »

Don’t pick a fight with someone who buys pixels by the terabyte – ethics version Read More »

Who first discovered the KMPG insider trading mess?

2 Comments / Audits /

Who should get credit for discovering the insider trading by KPMG former partner Scott London and his golfing buddy, Brian Shaw?

That’s the question raised by a reader, Gary Zeune, after I posted this article yesterday: Minor updates on insider trading fiasco at KPMG.

I think the answer is …

Who first discovered the KMPG insider trading mess?Read More »

Who first discovered the KMPG insider trading mess? Read More »