BKM Sowan Horan Admits New Partner to Grow Dallas Practice

Karl Schwabauer

Karl Schwabauer

Dallas-based BKM Sowan Horan admitted Karl Schwabauer as partner as he continues to lead the forensic accounting, business valuation and litigation consulting group.

The firm has recently established an Austin, Texas office which provides a local presence with senior leadership that supports the firm’s existing partnership.

“Our strategy is to double the firm size in five years. The continued expansion of this strategic group will be a major component of our future growth,” says Rick Sowan, MP.

“It is exciting that all of our practice groups are equally committed to the firm’s growth goals, while we are all also on the same page regarding maintaining our commitment to taking the best possible care of our clients,” says Schwabauer.

Kutchins Robbins & Diamond Admits New Partner

Robert Eisenstadt

Robert Eisenstadt

Schaumburg, Ill.-based Kutchins Robbins & Diamond admitted Robert Eisenstadt as a partner. Eisenstadt joins KRD with more than 30 years public accounting experience in manufacturing, distribution and professional services. He provides a variety of accounting, tax and financial consulting to individuals and closely held businesses.

“We are excited to add Rob to our team, we share a common philosophy for excellent client service and Rob’s expertise will be a significant contribution to our firm,” says Allen Kutchins, co-MP.

Deloitte Targeted by Cyberattack

New York-based Deloitte (FY16 net revenue of $17.5 billion) has been targeted by a sophisticated hack that compromised the confidential emails and plans of some of its blue-chip clients, according to the Guardian.

Deloitte discovered the hack in March this year, but it is believed the attackers may have had access to its systems since October or November 2016.

According to the Guardian, the hackers had potential access to:

  • Usernames and passwords
  • IP addresses
  • Architectural diagrams for businesses
  • Health information
  • Email attachments with sensitive security and design details

The breach, which is believed to have been U.S.-focused, was considered so sensitive that only a few of Deloitte’s most senior partners and lawyers were informed.

Deloitte’s internal review into the incident is ongoing. The team investigating the hack is working out of the firm’s offices in Rosslyn, Va., where analysts have been reviewing potentially compromised documents for six months.

So far, six of Deloitte’s clients have been told their information was affected by the hack.

A Deloitte spokesman has stated:

In response to a cyber incident, Deloitte implemented its comprehensive security protocol and began an intensive and thorough review including mobilizing a team of cybersecurity and confidentiality experts inside and outside of Deloitte.

 As part of the review, Deloitte has been in contact with the very few clients impacted and notified governmental authorities and regulators. The review has enabled us to understand what information was at risk and what the hacker actually did, and demonstrated that no disruption has occurred to client businesses, to Deloitte’s ability to continue to serve clients, or to consumers.

 We remain deeply committed to ensuring that our cybersecurity defenses are best in class, to investing heavily in protecting confidential information and to continually reviewing and enhancing cybersecurity. We will continue to evaluate this matter and take additional steps as required. 

Rodman CPAs Acquires Minassian CPA, Admits Partner

Mark Minassian

Mark Minassian

Rodman CPAs of Waltham, Mass., has acquired Minassian CPA of Concord, Mass. Additionally, Rodman CPAs has admitted Minassian managing member, Mark Minassian as a tax partner.

“Minassian CPAs growth, profitability and tax specialty made the decision to combine forces an easy one,” says Steve Rodman, president of Rodman CPAs.

As the new tax partner at Rodman CPAs, Minassian will focus primarily on real estate, partnership tax and tax planning for high net worth individuals.

Minassian CPA worked with growth-oriented entrepreneurs and their companies, real estate investors, and individuals and families with complex tax issues.

PCAOB Flags Increased Number of Audits at Crowe Horwath

According to Compliance Week, after several years of improvement, Chicago-based Crowe Horwath (FY17 net revenue of $809.5 million) saw an increase in adverse findings in its latest regulatory inspection.

The PCAOB examined parts of 15 different audit files at Crowe Horwath during its 2016 inspection and found problems in five of them for a 33% deficiency rate. In its 2015 inspection of the same firm, the board noted problems with only three of 14 audits, or 21%. That rate was the lowest for Crowe Horwath and for the eight largest audit networks that year, Compliance Week reported.

The PCAOB said that its 2016 review of all five of Crowe Horwath’s audits revealed problems with the audit of internal control, but only two of the five also contained errors in the audit of financial statements. In total, PCAOB found 20 different mistakes.

“The firm had the greatest difficulty with testing the design or operating effectiveness of controls selected for testing and with checking the accuracy and completeness of reports or data produced by the issuer,” Compliance Week reported

In a letter attached to the report, Crowe Horwath says it has taken action to address each of the concerns raised in the inspection. “While we are pleased with the overall trend of improvement in our inspection results over the past several years, we are not content with the level of deficiencies in the 2016 report,” says Mark Baer, MP of Crowe Horwath’s audit services group. “We will continue to use this constructive feedback to enhance our audit processes, procedures and training.”

Garibaldi Opens CPA Firm

Michael Garibaldi, the former president and CEO of Garden City-based Israeloff Trattner & Co., has formed his own firm, the Garibaldi Group, in Garden City, N.Y.

Garibaldi, a former president of the Nassau chapter of the New York State Society of Certified Public Accountants, said the firm will provide both traditional and non-traditional services. The firm’s website went live this week and the firm is looking to hire individuals as well as small practices seeking mergers and hoping to expand its practice areas.

“Our team is immersed in our clients’ industries, and they swiftly identify what they need to function efficiently and effectively,” says Garibaldi. “We work side-by-side with our clients, having first level personal contact.”

“Michael was with us for many years,” says Andy Wilder of Israeloff Trattner. “He left to go his own way. We wish him the best.”

UHY Expands Michigan Footprint with Ann Arbor Office

Chicago-based UHY (FY 16 net revenue of $126.8 million) opened its fourth Michigan office in Ann Arbor.

“Being in Ann Arbor will help us recruit and retain top young talent which will ultimately lead to sustainable growth for our firm for years to come,” says Tom Callan, MP and CEO of UHY Advisors. “The move comes three years after opening our Detroit office and on the heels of the Michigan practice’s 50th anniversary (in 2018), marking another milestone in the development of our firm.”

Jerry Grady, Ann Arbor OMP says, “We’ve been wanting to do this for quite a while. The time is right, our location is ideal, and our whole team is excited for this new venture. Having a presence in Ann Arbor will allow us to enhance our service capabilities even further and better serve our clients in the surrounding areas.”

BKR International Announces Two New Members

BKR International announces two new member firms in the Americas Region, Warwick, R.I-based DiSanto Priest & Co. and Atlanta, Ga.-based Nichols Cauley & Associates.

DiSanto Priest & Co., established in 1963, provides accounting, audit, tax, management and other professional services. With 11 partners and a staff of 48, the firm specializes in real estate, wholesale distribution, manufacturing, professional services and Yellow Book audits.

Nichols Cauley & Associates has grown to more than 100 team members in nine offices throughout Georgia. The firm offers a range of accounting, attest and business advisory services. Clients include closely held and public companies, physicians’ groups, government entities, banks and individuals, to name a few. Team members hold a range of certifications to perform services such as business valuations, information technology audits, fraud examination, financial planning and risk management assurance.

“Each of these firms represents their region of North America exclusively for BKR International,” says Maureen Schwartz, BKR International executive director. “Geographic exclusivity is a benefit of membership in BKR International, and it provides members’ clients with resources through the BKR International global alliance.”

MarksNelson Launches National Entrepreneurial Services Practice for Small and Medium-Size Enterprises

MarksNelson (FY16 net revenue of $21.3 million) of Kansas City, Mo. has launched an entrepreneurial services practice, which employs a customized blend of services and technology.

Many entrepreneurs spend 8 to 12 hours a month grappling with bookkeeping. “Imagine what you could do with that time in terms of focusing on growing your business,” says Mark Radetic, MP. “Not only do our SME best practice services free entrepreneurs to focus on their businesses, but we provide them with timely information on which to base smart decisions.”

The entrepreneurial services practice also offers strategy, growth and financial consulting services that mine, evaluate and utilize clients’ information to help drive their success.

“Entrepreneurs need to understand the meaning behind their numbers to help them grow and succeed,” says Radetic. “That is why we tailored an approach that doesn’t just focus on historical data. We want to assist our clients in looking and moving forward.”

In addition to traditional accounting services, MarksNelson’s entrepreneurial services professionals can provide SME’s with accounting software consulting and training, as well as accounting staff training.

“We recognize the value for SME’s of reducing their time burden and freeing them to focus on their business, the benefits of a flexible suite of services, and the significance of being able to turn to a trusted partner to plan for strategic growth and successfully navigate scaling a business,” says Radetic.

Burt & Company Acquires Taos CPA

Burt & Company of Albuquerque, N.M has acquired TaosCPA of Taos, N.M. The company has formed a new entity, Burt Taos CPAs, which is a wholly owned subsidiary of Burt & Company.

“We have prided ourselves on being a great local firm that provides exemplary service to our clients,” says Ron Schranz, Burt & Company MP. “With our expansion now in Taos, we can provide even greater one-on-one services to our clients in northern New Mexico.”

“The new firm will have more resources and more manpower available to provide even better service to clients,” says Fred Winter of TaosCPA.