Friday Footnotes: The Least Disingenuous Senior Partner; Accounting Education Evolves; KPMG Rings a Bell | 9.6.24

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Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you’re here, subscribe to our newsletter to get the week’s top stories in your inbox every Tuesday and Friday.

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How To Make Accounting Cool Again [Forbes]
Oh here we go with this shit again. The best part of this article:

Navigating New Age of Accounting Means Balancing Books and Bots [Bloomberg Tax]
University of Richmond professor Robert Pawlewicz writes:
The accounting profession today isn’t the one I entered in 2000. It’s not even the profession that some of my students entered just six or seven years ago. Technology enhancements, including analytics and generative artificial intelligence, a dwindling pipeline of accounting students, and a generational shift in the population of accountants have forced structural changes on what has been typically seen as a hidebound and stodgy profession. The good news is universities that educate future accountants are adapting to this brave new world so their graduates can handle these new demands.

Former audit partner at Grant Thornton joins college as executive-in-residence [Marquette Today]
The College of Business Administration has added Gregg Rusk as its latest executive-in-residence in accounting. Rusk spent 35 years working at public accounting firm Grant Thornton, with 23 of them as a partner. During that time, Rusk advised more than 50 public companies and their boards on audit, internal controls and accounting issues. He assisted clients with initial public offerings that raised over $2.5 billion, public and private debt offerings totaling $10 billion, along with over 75 mergers and acquisitions. He worked at GT’s Chicago, London and Miami offices. He specialized in international companies and traveled and worked in 50+ countries across six continents.

Donald Trump says he’ll task Elon Musk with auditing the entire federal government [The Verge]
Former President Donald Trump says that if reelected, he’ll create a government efficiency task force — and that Elon Musk has already agreed to lead it. During a speech in New York on Thursday, Trump said the new efficiency commission would conduct a “complete financial and performance audit of the entire federal government” and make recommendations for “drastic reforms.”

Labor market isn’t breaking down but it’s ‘skating on thin ice,’ says KPMG’s Diane Swonk [CNBC]

Ultra-Rich Families Set to Control $9.5 Trillion by 2030, Deloitte Says [Bloomberg]
The wealth of ultra-rich families will likely swell to $9.5 trillion by 2030, according to estimates from consultancy Deloitte, as family offices grow and morph to rival hedge funds. The figure would mark a 73% jump from the current $5.5 trillion controlled by people represented by family offices, according to the report. The number of investment firms for the wealthy is expected to grow by one-third over the same time period, to 10,720.

Pawhuska financial auditor resigns [Pawhuska Journal-Capital]
The Vinita-based accountant that the City of Pawhuska engaged to perform its 2022-2023 audit [for a cost of $12,000] resigned, leaving the job more than eight months late and unfinished. City Manager Jerry Eubanks said he was informed by telephone Thursday, Sept. 5 by City Attorney John Heskett that the auditor, David Clanin, had resigned. Clanin was tasked with completing the 2022-2023 Pawhuska audit which was due to the state auditor and inspector by Dec. 31, 2023. With the report unfinished, the state is withholding the monthly remittance of gasoline tax revenue to the city. “I guess we’re going to have to find someone to do that audit,” Eubanks said. It is probable that this will mean a new auditor will have to start the job all over again, he said.

Earlier: Late financial audit frustrates Pawhuska city officials, complicates city budget

Deloitte, top executive part ways over ‘conflict of interest’ [The Economic Times]
Professional services major Deloitte India has parted ways with its turnaround and restructuring services leader, Sumit Khanna, due to concerns related to a conflict of interest, multiple sources familiar with the situation told ET. “Deloitte conducted an inquiry for almost two months after an anonymous letter was received detailing certain allegations against Khanna. Both parties decided to part ways after this inquiry, which included clarifications sought from his side as well,” said a person aware of the case.

KPMG and Stephen Curry’s UNDERRATED Golf Ring the Opening Bell [Nasdaq]
UNDERRATED Golf is a purpose-driven business endeavor with the overarching commitment to providing equity, access and opportunity to student-athletes from every community.

Are you an ethical tax advisor? If not, watch out! [Deloitte]
More fallout from the PwC tax scandal. Way to go, P-Dubs, way to go.
The International Ethics Standards Board for Accountants (IESBA) tax planning project has culminated in a framework of expected ethical behaviours for accountants providing tax planning services and a new Ethical Standard for Tax Planning (the Standard). The Standard applies to ‘tax planning services’ and related activities. This does not include tax evasion, which is illegal, and covered by existing Code of Ethics standards. Instead, ‘tax planning’ covers advisory activities that assist an employing organisation or a client in planning or structuring affairs in a tax-efficient manner. Different sections apply to members in business who perform tax planning activities and members in public practice who provide tax planning services. This distinction essentially separates accountants who perform the in-house tax function of an organisation (‘in business’) and accountants employed by advisory firms (‘in public practice’).

Deloitte leases 80,000 sq ft space in Oberoi Commerz building in Mumbai for ₹2.09 crore per month [Hindustan Times] ₹2.09 crore = $249k USD. Deloitte Shared Services India LLP has leased 80,849 sq ft of office space at the Oberoi Commerz III building in Mumbai at a monthly rent of ₹2.09 crore a month, according to the leave and license agreement shared by Propstack. The space spread across two floors has been leased for five years. Terms of the deal include a 15% escalation in rent after 36 months. The starting rent works out to be ₹258 per sq ft per month, the documents showed.

Meet the 2024 Best Midsized and Large Firms to Work For [Accounting Today]
Each year, Accounting Today and Best Companies Group select the Best Accounting Firms to Work For. This slideshow includes the best in the Midsized Category (firms with between 50-249 employees) and the Large Category (250 or more employees) with their rankings and select information on the firms, as well as photos the firms submitted themselves (or, occasionally, their website).

EY draws up female-dominated shortlist for top UK job [Financial Times]
EY has drawn up a female-dominated shortlist of candidates to succeed Hywel Ball as the firm’s UK managing partner, laying the groundwork for a contest that could produce the first woman to become the permanent head of a Big Four accountancy in Britain.

Binance Hires UK-Based Accounting Firm Grant Thornton to Advise on Audits [CoinDesk]
Binance has hired U.K.-based Grant Thornton’s Singapore devision to advise on accounting and tax matters, it announced Wednesday. The crypto exchange previously worked with auditing firm Mazars to produce a proof-of-reserves report for crypto clients, however, Mazars in December 2022 said it had paused work with Binance and other crypto clients amid concerns over the public’s misunderstanding of those reports.

Marcum Announces 15 New Partners Across the U.S. [Marcum]
Jeffrey Weiner, Chairman & Chief Executive Officer of Marcum, praised the newly appointed partners, stating, “These individuals represent Marcum’s dedication to excellence. They bring a wealth of experience, skill, and an entrepreneurial spirit. In a rapidly evolving world, they have shown adaptability and dedication to understanding and exceeding our clients’ expectations. On behalf of the entire firm, I congratulate our new partners on this well-deserved achievement.” The new partners assumed their roles September 1.

Justice Jackson Had ‘Wrenching’ Time as Big Law Working Mom [Bloomberg]
Supreme Court Justice Ketanji Brown Jackson described her return to law firm life after the birth of her first daughter as “wrenching,” saying she “drastically underestimated the challenges of new motherhood.” “I can honestly say that going back into the office as a new mother, and returning to the cadence and pressures of Big Law, was the stuff of nightmares,” Jackson said in her memoir, “Lovely One,” which was released Tuesday.