Archives for October 2013

PCAOB Announces Settled Disciplinary Order Against Deloitte

The Public Company Accounting Oversight Board (PCAOB) has reached a settlement censuring Deloitte & Touche and imposing a $2 million civil penalty against the firm for violating the Sarbanes-Oxley Act and PCAOB rules.

The PCAOB says Deloitte allowed a former partner to perform or continue to perform activities as an “associated person” that were banned while he was subject to a PCAOB suspension order. The board also ordered Deloitte to ensure that similar violations do not occur in the future. Deloitte consented to the order without admitting or denying the board’s findings. The $2 million penalty against the firm is the PCAOB’s single largest civil money penalty.

Deloitte Launches New Website on Standards-Setting

New York-based Deloitte (FY12 net revenue of $13 billion) has launched US GAAP Plus, (usgaapplus.com) a new website that covers news, publications and project updates about U.S. and international accounting standards-setting. The website covers the activities of the Financial Accounting Standards Board, the Public Company Accounting Oversight Board (PCAOB); the AICPA, the SEC, the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee; and other U.S. and international accounting and auditing standard setters.

EY Pays $99 MIllion in Lehman Brothers Collapse

New York based-Ernst & Young (FY12 net revenue of $8.2 billion) has agreed to pay $99 million to settle investor class-action allegations that it did not act when its audit client, Lehman Brothers Holdings, misled investors prior to its 2008 collapse, Reuters reported.

The agreement must be approved by the courts. Lehman is accused of using the now-infamous “Repo 105″ accounting practice to understate its leverage to make itself appear more solvent. “The settling parties are currently drafting a detailed stipulation of settlement and anticipate” asking the court for permission to notify class members of the deal in about 30 days, the investors said in court papers. Ernst & Young denied all liability. “Lehman’s audited financial statements clearly portrayed Lehman as what it was – a highly leveraged entity operating in a risky and volatile industry; and Lehman’s bankruptcy was not caused by any accounting issues,” Ernst & Young said in a statement.

Haynie & Co. Buys Denver Firm

Salt Lake City-based Haynie & Co. has acquired A. J. Robbins PC of Denver.

Parners A.J. Robbins and Richard Fleischman, along with their staff, have joined Haynie & Co., effective Oct. 1. The team members have been relocated to the Littleton, Colo., office of Haynie & Co.

Averett Warmus Durkee Expands in Central Florida

Orlando, Fla.-based Averett Warmus Durkee (FY12 net revenue of $11.8 million) has acquired the Altamonte Springs, Fla., office of Cohen & Co. in a transaction finalized Oct. 26. The partners of the Altamonte Springs office, Russell Goldberg and Scott McEachron, will become principals with Averett Warmus Durkee.

With the addition of 15 accountants from the acquisition, Averett Warmus Durkee becomes the largest independent accounting firm in Central Florida. With the expansion, the firm is adding a second location. The move is part of a larger growth strategy of the Averett Warmus Durkee, which is actively looking at acquisitions throughout Florida, along with the addition of new hires. Goldberg’s firm ends its relationship with Cleveland-based Cohen & Co. (FY13 net revenue of $40.8 million) on Oct. 31.

Crowe Horwath Names Kirkowski as Chicagoland OMP

Chicago-based Crowe Horwath (FY13 net revenue of $599 million) has named John Kurkowski as the OMP of the Chicago and Oak Brook offices.

Crowe also appointed Stuart Miller as the local geographic leader for the Chicago and Oak Brook general audit practice.

Kurkowski, an audit services partner, has more than 25 years of experience serving clients across a wide variety of industries. Miller, also an audit services partner, has more than 28 years of experience providing audit and advisory services in the higher education and not-for-profit sector.

Four Elected to BDO Board of Directors

Brian Eccleston, William Eisig, Scott Hendon and Brad Schrupp have each been elected to three-year terms to the board of directors of Chicago-based BDO (FY13 net revenue of $683 million).

Eisig, partner and assurance MP for the Atlantic region, is a new director, while the others were re-elected to a new term of service, effective Nov. 1. “We welcome Bill to the board and look forward to the insight he will bring to the process,” says CEO Wayne Berson. “Brian, Scott and Brad have already made valuable contributions in their previous board service and we are pleased that they will continue to do so in the future.”

Mahoney Sabol Partner Fatally Injured in Accident

Robert L. Howard Jr., a partner with Glastonbury, Conn.-based Mahoney Sabol & Co., died Oct. 21 at Hartford Hospital after sustaining fatal injuries in a motocross accident over the weekend, according to the firm.

“Our whole firm is saddened by this horrible tragedy,” says Jim Mahoney, MP of Mahoney Sabol, the Hartford Business Journal reported.

“We have lost an exceptional colleague, leader, and friend in Rob. Our heartfelt sympathies go out to his wife, his children, and his whole family.” Howard previously worked at Grant Thornton and was member of the Hartford Business Journal’s 40 Under Forty class of 2007.

Balhoff Elected as New Chair of AICPA

The AICPA has selected William E. Balhoff, MP and CEO of the Baton Rouge, La.-based Postlethwaite & Netterville (FY13 net revenue of $47.1 million), as the new chair of the AICPA’s board of directors.

Balhoff plans to establish a new Center for Plain English Accounting during his tenure as chairman, he said during his acceptance speech. Balhoff was elected to the one-year post Oct. 22 by the AICPA’s Council at the close of its Fall Meeting of Council in Los Angeles. Tommye Barie, a partner with Atlanta, Ga.-based Mauldin & Jenkins (FY13 net revenue of $38.8 million), was voted vice chair.

Rose Admitted to Partner at Henderson Hutcherson & McCullough

Henderson Hutcherson & McCullough (HHM) of Chattanooga, Tenn. (FY12 net revenue of $12 million) announced that Kevin  Rose has been admitted as a partner.

Rose joined HHM as a senior tax manager in 2012. He previously served as lead senior tax manager for closely held businesses at an Atlanta firm. He brings more than a decade of experience in tax planning, consulting and compliance.