Footnotes is a collection of stories about the accounting profession hand-picked by real people, published every Friday at 5:00 PM ET. while I’m here Subscribe to our newsletter Every Tuesday and Friday, you’ll receive the top stories of the week in your inbox. good bye.
technology
AI threat will push employees back to the office, says PwC chairman [The Telegraph]
PwC Chairman Kevin Ellis said the popularity of AI software will cause employees to abandon working from home in search of “differentiation from robots.” At a livestream event on AI technology to 25,000 staff last week, Ellis told employees: Third year. It enables people to do more. He added, “The latest wave of AI will bring people back to the office. People will want to learn from other people face-to-face, and the best way humans can distinguish themselves from robots is to meet face-to-face.”
ChatGPT Gives CPA “Super Power”, Says Deloitte’s Ukzoglu [Bloomberg Tax]
“The use cases are breathtaking. “They will make people more efficient,” the Deloitte chief added. “And I believe this is a real big plus in terms of the type of work we do and the value we can provide as professionals.”
Investors look to AI-powered trading to gain an edge over rivals [Financial Times]
Big 4 accountant KPMG, hedge fund Coatue, and venture capital firm Headline are among the companies that are using the latest AI tools to advise clients and help guide their trades. “By being able to train or use models that are significantly more efficient initially, we can gain an edge in certain areas of our business that are difficult for latecomers to do,” says Per Eddin, KPMG’s US innovation lead. said Mr. Deal advisory and strategic business. “For any particular use case, it’s important to get there first.”
A scandal so large that it deserves its own category
RBA announces PwC will be barred from all new contracts until scandal is cleared [Bloomberg]
Reserve Bank of Australia Governor Philip Lowe said he was “appalled” by the tax scandal involving PricewaterhouseCoopers and said the central bank would not sign new contracts with consulting giants until a satisfactory resolution was reached. rice field. “We are as appalled as you are,” Lowe told lawmakers at a Senate committee hearing in Canberra on Wednesday. “Using personal information for commercial gain is wrong. It is trust-destroying and as you know, it is unacceptable.”
Healthcare puts PwC contracts back under the microscope [AAP]
The Federal Health Service is reviewing a new $25 million contract with PwC to check for conflicts of interest. The Senate Estimates Committee heard on Friday that the department had 12 contracts with major consultancies. “We are now actively working with PwC to identify potential areas (of conflict),” said Department Secretary Brendan Murphy. “They assure us that they have processes in place to manage these things, but we’re all reviewing our contracts.”
Australia’s largest pension fund freezes work with audit firm PwC [Reuters]
Australia’s largest pension fund will suspend the use of the audit firm for its domestic division of PricewaterhouseCoopers (PwC). It is reeling from a national scandal over how the “Big Four” companies used the government’s confidential tax plans to enhance their work with global customers. About A$290 billion ($196.71 billion) fund Australian Super has frozen new deals with PwC and expressed its “highest level” concern about the scandal, a spokeswoman said. Audit contracts worth A$1.6 million in 2022 will be reviewed this year, the spokesperson added. The fund spent A$700,000 on non-audit services last year, according to filings.
PwC narrowly avoids criminal investigation five years ago [AAP]
The federal police and tax authorities jointly determined that there was insufficient evidence to initiate a criminal investigation into PwC’s tax avoidance leaks dating back to 2018. The Australian Taxation first became aware of the breach of confidentiality in 2016 when it noticed that the company had changed the information. Solving surrounding issues to avoid enforcing transnational anti-evasion laws. An investigation into the suspicious activity uncovered a possible security breach by former PwC partner Peter Collins. Collins, who was later referred to the Australian Federal Police as part of a criminal investigation, is accused of disseminating Treasury Department information about the new tax law to attract new business from customers trying to circumvent the regulation.
‘Existential’ threats facing PwC: Malcolm Turnbull [ABC]
The aftermath of the PWC scandal continues, raising big questions over the confidentiality clause that prevented public disclosure of violations years ago. Malcolm Turnbull, who was prime minister when the legislation central to PWC’s government secrets sales program came into force, says the violation and abuse of classifieds is downright “shocking.”listen here.
M&A
National Accounting Firm Weaver Announces Acquisition of Pasadena-Based HKG [Pasadena Now]
State-owned accounting and advisory firm Weaver has announced that it has acquired Pasadena-based HKG, LLP, effective June 1. Founded in 1995, HKG provides audit, tax and accounting services to clients in many industries, including private equity and healthcare/life sciences. , manufacturing and distribution, real estate, media, professional services, early-stage and emerging growth companies, and nonprofits. “HKG’s partners are excited that this transaction will provide each of our team members with the opportunity to grow and advance their careers as part of Weaver,” said Eric (Tony) A, Managing Partner at HKG. . said Gronruth. “We also believe that the expanded services offered by Weaver, particularly in terms of transaction advisory services, will add value to our existing client relationships.” Weaver’s West Coast presence has grown significantly to six offices and a total of 150 team members, including 18 partners.
Chicago-area accounting firm Porte Brown and RVG Partners announce merger [PR Newswire]
Porte Brown LLC is pleased to announce that it will merge with RVG Partners, LLC effective June 1, 2023. Based in Oak Brook, this chartered accounting firm is widely recognized as one of the most reputable firms in the region, providing superior, personalized accounting and tax services. . RVG professionals now operate under the Porte Brown name and will continue to serve clients from their Oak Brook location. His CEO/Managing His Partner at Porte Brown, Joseph A. Gleba, said: “Their expertise and expertise will complement our services and provide additional value to our clients.”
Region’s Top Accounting Firm Abdo Welcomes HG&K in Strategic Merger [Abdo]
Abd LLP, a leading general accounting and advisory firm based in Minnesota, announced today that HG&K, Ltd. has merged with the company. The transaction includes three HG&K partners and 16 staff, effective June 1, 2023, who will join Abdo. The newly combined company will continue to operate under the Abdo name, with shared values, brand and vision. Coltin Consulting Group CEO Alan D. Coltin, who advised both companies on the merger, said: .
PHB CPA Merges with UHY to Serve Growing Community [Williamson Herald (TN)]
On Wednesday, UHY LLP celebrated its new merger with PHB CPA in Franklin. UHY is a national professional services firm that will provide audit, tax, consulting and advisory services to the middle market in Nashville and Williamson County. “We are very excited to be part of this community and really enjoy the support we have received from Williamson,” said Managing Partner Sarah Hardy at the ceremony. “We are very proud to rebrand under UHY. [this is] It’s a very exciting time for us. ”
promotion
It turns out that I failed to pay due attention to the May 15 FORVIS partner promotion announcement. Thanks to the tipster who gave us that challenge. Let me immediately correct that gross oversight.
FORVIS Promotes 65 New Partners, Principals and Managing Directors [FORVIS]
FORVIS is pleased to announce the selection of 40 new Partners and Principals and the promotion of 25 new Managing Directors effective June 1st. He is the first-in-class partner and managing director elected by the company created by the merger. CEO Tom Watson said, “Just as the one-year anniversary of FORVIS is an important milestone for further success, these promotions are milestones for our leaders.” “I know this group is poised to make an even greater impact on the company for years to come and that the greatest success awaits. , will continue to infuse the energy and passion we need to grow our company, enabling us to maintain our vision for the future and tremendous momentum.”
Deloitte Grows Middle East Management Team With Largest Annual Partner Enrollment Ever [Zawya]
Deloitte, the world’s largest professional services network, has expanded its leadership team to include 60 partners in the Middle East, enhancing its capabilities in a wide range of services including artificial intelligence, analytics, ESG, e-commerce, cybersecurity, M&A, and more. increase. The milestone marks the largest number of partner registrations in a single year in Deloitte’s history in the Middle East.
DEI
Majority of UK business executives see Metaverse as DE&I ‘turnaround’ opportunity [EY]
Woot?
A study released today by EY predicts that the Metaverse could help UK management to “re-orient” their DE&I efforts. As adoption increases and business use cases take hold, early establishment of DE&I best practices can help UK companies seize this opportunity. Adoption of this technology is increasing, according to EY’s 2023 Metaverse Readiness Survey. Nearly half (47%) of business leaders have already invested in or are using some technology, and 61% believe they cannot afford not to use it. When asked how they plan to apply this in their businesses, responses revealed that it is primarily people-based, with a focus on areas such as customer service.
NACD and Deloitte Release New Handbook to Promote Inclusion in Boardrooms Nationwide, Turn Lens Inward to Focus on Culture of Inclusion [PR Newswire]
NACD Chief People Officer Tracy Gee said, “This publication provides a comprehensive approach to empowering all directors to feel valued, respected, and empowered to be their true selves on the board. It is a testament to the ongoing efforts of the Center for Inclusive Governance to create a culture of inclusiveness.” “This is an opportunity to foster dialogue, understanding and empathy, fostering an environment where everyone can offer a unique perspective and grow.”
