BearingPoint Does File 10-K, Huge Losses in 2005, but 2006 Looking Up

It looks like BearingPoint, Inc. (NYSE: BE) did file its 2005 Form 10-K at 5:42 pm on Wednesday, November 22nd, one day before Thanksgiving and upholding its promised deadline. Here are some highlights...


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Deloitte Gets A Reprieve in Parmalat Case

And in another ruling by Judge Kaplan…he has adjourned a damages case filed by Italian dairy firm Parmalat against its former bankers and auditors to December 31, 2006 to see if the parties can work out a settlement. This trial was set for middle of 2007, but if all parties could workout something, then the trial itself could be avoided....

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Where is BearingPoint’s (NYSE: BE) 10K?

Just a few week ago BearingPoint, Inc. (NYSE:BE)’s CEO, Mr. Harry You, had set a date by which the fully-vetted 2005 10-K would be released: Thanksgiving November 2006. On November 3, 2006, Harry You, the Company's Chief Executive Officer, said "We appreciate the continuing support of our shareholders, banks, surety providers, clients and employees in standing by us as we worked through this process....


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KPMG Tax Case: Another Twist

The KPMG tax trial has had its share of twists and turns, and here is one more:

With trial originally set for January 2007, we now hear that Judge Kaplan has indefinitely postponed the criminal tax fraud trial. As we have said, 16 former KPMG partners are setting off against KPMG, and now the dispute has turned to who would bear their (assumedly large) legal costs. The Judge wants the fee matter settled before trial, the legal bills could be quite enormous and individuals may be unable to pay without KPMG’s assistance....


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Deloitte and Touche, Ernst and Young Alumni Make Career Splashes

Big4 alumni go places after they leave any of the big four firms.

Here is a quick sampling of recently reported alumni career tracks for Deloitte and Touche LLP and Ernst and Young LLP which we have collected from a number of public sources...


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CapGemini First Half 2006 Results: Strong Performance, Confident Outlook

Capgemini Group recently reported detailed results for the first half year 2006. Revenues for the first half 2006 increased to EUR 3, 784 million, up 9.0% from EUR 3,472 in the first half of 2005.....


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KPMG LLP's Private Equity Group - Serving A Huge Market

KPMG LLP will be forming a U.S. Private Equity Group as a dedicated practice to pull together all their top partners to assist the larger Private Equity funds with Donald C. Spitzer as national managing partner -- private equity.

"Formation of the U.S. Private Equity Group brings together KPMG's most experienced private-equity partners and our superior processes into a single, integrated unit," said Spitzer, noting that every member of the Group already provides customized services to the world's largest funds. He added that private-equity funds grew from more than $20 billion in 1996 to more than $200 billion in 2006.

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SEC and PCAOB meet on Sarbox: The Plot Thickens

The Washington Post is reporting that SEC Chairman Christopher Cox and Mark W. Olson, chairman of the Public Company Accounting Oversight Board, met today to discuss their ideas on Sarbanes-Oxley in preparation for the PCAOB public hearings set for December 13th, 2006...


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PCAOB Behind the Curve on Big Four Audits

Big Four News on Wall Street Journal Front Page

Today’s WSJ carries two substantive articles on Sarbanes Oxley and PCAOB / Big Four Firms. It is the very first item on the What’s News front page column, indicating the extraordinary importance of these topics to investors and the business community at large. We are pleased to see that the issues we write about in our blog are critical, timely and central to business and capital markets...

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What We Blog About - Now on Wall Street Journal First Page

Today's WSJ carries two substantive articles on Sarbanes Oxley and PCAOB / Big Four Firms. It is the very first item on the What's News front page column, indicating the extraordinary importance of these topics to investors and the business community at large. We are pleased to see that the issues we write about in our blog are critical, timely and central to business and capital markets...

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Auditors' Tax Advice Shelf Life Extended 6 Months

Peekaboo is giving a sop to accounting firms it appears!

Rule 3523 or "Tax Services for Persons in Financial Reporting Oversight Roles" was adopted on July 26, 2005 and approved by the SEC on April 19, 2006. This rule prohibits auditors from providing any tax services to persons in a financial reporting oversight role at an audit client during the "audit and professional engagement period". As it is likely that the audit firm was providing tax services before it became an auditor, the PCAOB wants to revisit the language vis a vis to only the "audit period". While it thinks through this change, the rule 3523's application has been now delayed to April 30, 2007 from October 30, 2006, thus giving audit firms an additional six months to comply with the rule

A Brave New World: Banish the Static, Welcome the Dynamic

A Brave New World!

That’s what the Big Four Accounting Firms want now! PricewaterhouseCoopers, KPMG, Deloitte & Touche, Ernst & Young, BDO Seidman and Grant Thornton have recently released a joint report.

Together, they are now calling for a complete overhaul and rethink of the way companies are reporting their financial performance to investors...

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PricewaterhouseCoopers Goes for Growth in China

PricewaterhouseCoopers LLP’s Chief Executive Samuel DiPiazza, Jr. has big plans in China, which he believes could become PwC’s second most important market after the US in the next 10 to 15 years. PwC (PricewaterhouseCoopers LLP) plans to invest between US$50 to US$100 million in China in the near future to maintain its lead and grow along with the booming economy, which is over and above the US$200 million invested in the past...

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Giving Thanks: BearingPoint Reaches Agreement with Bondholders

BearingPoint, Inc. (NYSE: BE) reached agreement with its bondholders to provide higher interest rates in exchange for change in terms and the chance to resolve potential default. We reported earlier that a New York state court has found BE (NYSE: BE) in bond default since it had failed to file its 2005 10-K. In this agreement, bond holders waive the filing requirement but get higher bond interest rates, drop their lawsuit and relax their covenants. BearingPoint also got some timing waivers on filing its 10K and 10Q documents...

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Auditors Want Blanket Protection: A Tall Order in Current Circumstances

What is the flip side of terrific growth at the Big Four firms? Risk management!

We understand that Big Four firms want to keep the gravy train rolling by avoiding a disaster that hit Andersen a few years ago and led to its dramatic collapse. The method: seek legislation or other guarantees to protect from financially disastrous consequences of an investor or company law suit...

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PwC Reports 9% Growth in Line with Other Big4...Good Times for All

PricewaterhouseCoopers LLP just announced that its global revenues rose 9% in fiscal 2006 from $20 billion to $22 billion, and 11% in US dollar terms. Advisory and tax businesses, grew at 18% and 11% in US$, while Assurance grew 6%. Sarbanes-Oxley implementation and adoption of International Financial Reporting Standards were flat...

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Now, a Graduate Program to Launch Careers into the Big Four

Vanderbilt’s Owen Graduate School of Management in Nashville, TN will soon be offering a Master’s degree in accountancy to train graduates and help them specifically enter the Big Four. This appears to be the first program of its kind aimed at careers in the top five global accounting firms – Deloitte & Touche, Ernst & Young, Grant Thornton, KPMG and PricewaterhouseCoopers...

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