When accounting goes unaccounted for
That’s it. That’s the story.
Published today in India’s business paper The Economic Times:
Deloitte plans to have around 30% of its workforce operating from India within the next four years, with an estimated total employee count ranging from 150,000 to 160,000, as the country figures prominently in the firm’s global growth plans, according to Romal Shetty, CEO, Deloitte South Asia.
Discuss.
Last we had heard of Thomas Flanagan, Deloitte had just taken him to the woodshed, successfully suing him for breach of fiduciary duty, fraud, and breach of contract related to Tom’s insider trading activities of Deloitte clients.
Now it’s the SEC’s turn to get in on this sweet action. The Commission charged Flanagan and his son, Patrick Flanagan for insider trading of Deloitte clients including Best Buy, Sears, Walgreens and Motorola.
Why Flanagan, the 38-year veteran of Deloitte and Vice Chairman of Clients and Markets, who thought that in the twilight of his career, the best move would be to engage in some insider trading is still a mystery. Since he was presumably pushing 60, one couldn’t help but wonder if perhaps his memory was going and he just totally spaced the independence thing.
But actually, no. Turns out, Tom Flanagan is just a liar:
According to the SEC’s complaint, Thomas Flanagan concealed his trades in the securities of Deloitte’s clients and circumvented Deloitte’s independence controls. He failed to report the prohibited trades to Deloitte, lied to Deloitte about his compliance with its independence policies, and provided false information to Deloitte’s personal income tax preparers about the identity of the companies whose securities he traded.
Flanagan & Son will be paying over $1.1 million in disgorgement and fines for their little stunt. And Robert Khuzhami had a little reminder for anyone else out there that thinks they can get cute, “Flanagan’s insider trading violated one of the most fundamental rules of public accounting. All audit firms should learn from this unfortunate episode and employ vigorous controls designed to ensure compliance with the SEC’s auditor independence rules.”
SEC Charges Former Deloitte Partner and Son With Insider Trading [SEC Press Release]
SEC Complaint Against Thomas Flanagan and Patrick Flanagan [SEC Complaint]
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Dey took er jobs! But for real, good freakin luck, Gen Z accountants, Boomers are building the ship to wreck.
Deloitte is on the way to becoming Infosys
I worked at Big4 and the quality of work from South Asia is crap. Besides the language barrier, they don’t care because they’re paid crap salaries.
Interesting how none of the commenters nor the author of this post is asking whether this is Deloitte India growing significantly due to in-country growth ops and its headcount is poised to grow to the levels projected by the CEO of Deloitte South Asia, or if the headcount growth is coming from Deloitte US India, which is the offshore arm of the US firm. It’s one thing if it’s growth of client-facing roles within the Deloitte India firm, it’s quite a bit different if the growth is coming from the backoffice functions of Deloitte USI.
It’s offshoring.
And how many India partners will there be? Can anyone say Zero/Notta/None?
>>Deloitte plans to have around 30% of its workforce operating from India within the next four years, with an estimated total employee count ranging from 150,000 to 160,000, as the country figures prominently in the firm’s global growth plans, according to Romal Shetty, CEO, Deloitte South Asia.<<
This isn’t new. A number of the large tech companies are in the process of getting their teams to determine how much of their workforce can be moved abroad. Taking away jobs from Americans because the labor in other countries is “cheaper” just to save money, offer less benefits, and continue growing…