Professional Services Monitor: Today


May 30, 2007

New Big Four Tax Shelter Investigation at E&Y

Filed under: Ernst & Young,Firms — psmtoday @ 10:49 am

According to Reuters and the AP, two current E&Y partners and two former partners have been indicted in federal court for tax shelters.

In an indictment filed in U.S. district court in Manhattan, prosecutors allege the defendants at the “Big Four” accounting firm created and marketed tax shelters from 1998 through 2004 based on false and fraudulent scenarios to allow wealthy individuals to reduce the federal taxes they would have to pay.

U.S. Attorney Michael Garcia said in a statement that the indictment targets “tax professionals whose deceit costs this country untold millions in tax revenues.”

Both articles noted that E&Y is cooperating with the government investigation and that the group in question has been dissolved. Little was given on the scope of the shelters or how they worked, other than that they were marketed to individuals with taxable incomes of $10 to $20 million. However, the Reuters article said that three of the four partners used a shelter for their personal taxes and, along with eight other E&Y partners, evaded $3.7 million in taxes.

Regardless, this doesn’t seem to of the same scale as the infamous KPMG shelter case.

E&Y on

Filed under: Careers,Ernst & Young,Firms — psmtoday @ 9:20 am

NPR’s Morning Edition has a brief mention of a new Ernst & Young recruiting tactic, following Gen Y talent to

“Generation Me.” That’s one term for a generation obsessed with affirmation, iPods and Blackberrys. Companies are doing whatever they can to pull them in. The consulting firm Ernst and Young hopes to hire more than 3,000 entry-level associates this year. So it set up a recruiting page on the social networking site Facebook, featuring video testimonials and blogs. More than six-thousand “friends” are signed up on the site. But the company warns its members to be careful to only post comments if its something they would say at work.

E&Y Facebook page

May 23, 2007

Seattle: Wet, Yet Not So Wet

Filed under: General — psmtoday @ 12:10 pm

A frequent opening pleasantry on conference calls is often, “How’s weather there?” When someone learns that ARGI is located in the greater Seattle area, we regularly hear an anecdote of how rainy it was was on a quick business visit several Novembers ago, or how a cousin-in-law nearly drowned by looking up into the pouring Seattle sky. With a mixture of self-loathing and self-defense of our “secret” of life in the Pacific Northwest, we usually go along with the assumption that Seattle Is The Rainiest Place On Earth.

Now, the secret is out. A study summarized at, Study Reveals Top 10 Wettest U.S. Cities, shows that Seattle isn’t even in the top ten.

Mobile, Alabama, actually topped a new list of soggiest cities, with more than 5 feet of rainfall annually, according to a study conducted by San Francisco-based WeatherBill, Inc.
The Southeast dominated the most rainy list, while the Pacific Northwest never enters the list until Olympia, Washington pops up at number 24.

A new conversation-starter is order.

May 14, 2007

ARGI Releases 2007 Big Four Annual Report

Released today, ARGI’s 2007 Big Four Annual Report is the leading, comprehensive analysis of annual Big Four market share and operating results. The report uses a special methodology to analyze firm results and covers all areas critical to major professional service organizations.

2007 Big Four Annual Report cover

For 2007, the Report assesses trends and issues such as “Public Accounting in the Public Eye,” the need for world-class talent, the Post Crisis SOX 404 environment, and prospects for Big Four growth in the next 5-10 years. The report also provides an overview of important market share metrics, such win and losses, net audit market share gain in 2006, and total professional fees billed to public companies during 2006.

In other words, the Big Four Annual report offers an independent and objective comparison of the Big Four firms in clear measures. The biggest firm by revenue, the most profitable firm for partners, the firm with the most employees, and the firm with the highest average per-client fees are all questions answered.

Ordering information, along with sample pages from the report, are available from the Annual Report’s product page. Questions on the report may be directed to