RSM McGladrey Wants a Say in any Reconciliation with McGladrey & Pullen

According to The Triangle Business Journal, RSM McGladrey Inc. wants to make sure it will have some say over any reconciliation with its auditing partner, McGladrey & Pullen LLP.

RSM, the accounting subsidiary of Kansas City-based H&R Block Inc. filed notice in mid-September to terminate an agreement to provide administrative services to McGladrey & Pullen, according to a filing by Block with the SEC.

David Scudder, M&P’s MP, says that M&P can obtain the administrative services that had been provided by RSM “at substantially lower cost” and that it would rather avoid the regulatory restrictions that come with the alternative practice structure created by the service agreement.

Block CEO Russ Smyth, says it was fraught with significant risks. He says H&R Block would prefer to continue working cooperatively with M&P, but that it was prepared to replace the firm if necessary.