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Rite-Aid Taps Deloitte as Audit Firm

Deloitte & Touche has been hired by drug retailer Rite-Aid to replace KPMG as the company's audit firm. KPMG resigned the account last month, claiming that it could not trust the information the drug store chain provided to it.The hiring of Deloitte coincides with the hiring of new CEO Robert G. Miller, vice chairman of Kroger Corporation and former chief of Fred Meyer Inc. Kroger owns Rite-Aid.The company announced in October that it had to restate downward pretax earnings for the last three fiscal years to the tune of approximately $500 million.
Community News

E&Y Ranked High for Knowledge Management

Kudos go to Ernst & Young for receiving an award for one of the top five most admired organizations for knowledge management.The MAKE, or "Most Admired Knowledge Enterprise" awards are conducted by conducted by Teleos in conjunction wtih the KNOW Network, a group of knowledge management companies that share best practices.
Community News

Andersen Family Feud Heats Up to the Tune of $14B

The saga between Andersen Worldwide and Andersen Consulting continues to make the news, although negotiations are moving slower than previously expected.This week, Andersen Worldwide filed a $14.6 billion countersuit against Andersen Consulting, maintaining its position that if Andersen Consulting wants to make the split between firms permanent, it must return the "Andersen" brand name, along with the technology it uses to run its business.Andersen Consulting has gone on record by saying that a counterclaim has n
Community News

Andersen Consulting Sues for Lost Compensation

Andersen Consulting has filed a suit against Computer Sciences Corporation, alleging that the company neglected to pay the consulting firm $10 million for work associated with a subcontracted project.Andersen was not successful in settling the suit through mediation. The work stems from a seven-year outsourcing agreement dating back to 1993 in which the two companies would jointly manage J.P.
Community News

Andersen Drives Into Lucrative Financial Market With GM

Arthur Andersen has entered into an agreement with General Motors to acquire the car manufacturer's transaction processing assets worth $250 billion.In a separate agreement, Andersen also will provide General Motors with various transaction processing services for a new service center environment.
Community News

H&R Block Participates in Fast IRS Refund Program

Kansas City-based H&R Block has joined one of several tax services participating in a new IRS pilot program offering faster refunds in exchange for more heavily scrutinizing taxpayer claims.It's a win-win situation for both parties.
Practice

The Ultimate Price War - Free Tax Return Preparation

The audit department has been dealing with it for years: deep discounts in the price of an audit in exchange for higher fees on the consulting side. Now the commoditization of tax return preparation -- already hammered by do-it-yourself software -- has reached the ultimate in price wars. Financial management company H D Vest announced that it will provide it's customers with free tax return preparation beginning this next season. The hook? More clients, more assets under management, more profits for HD Vest.Through the H.D.
Community News

Venture Capital Funding Hits The Accounting Market

A PricewaterhouseCoopers survey reports this week that $21 billion in venture capital funding was invested in US companies in the first nine months of this year. Here's the story of one accounting/bookkeeping company that snagged $12 million of it this week.Virtual Growth, Incorporated is a pioneer in providing outsourced bookkeeping and accounting services to fast growing small and medium sized businesses.
Community News

Deloitte Jumps on the Internet Bandwagon

Feeling the pressure of rival Big 5 firms who announced in recent weeks a move to more Web-based consulting services through new alliances and partnerships, Deloitte & Touche also have announced a migration to the Internet.Deloitte will parter with US Interactive to provide high-tech services like Web design, Internet strategy and implementation services alongside the firm's already-established consulting practice.Source say Deloitte and US Interactive are working on their first project that will be announced in early 2000.
Community News

Making Partner at Andersen Will be Easier

In a concerted effort to retain talented staff, Andersen Consulting has announced that beginning next September, becoming a parter will become easier than under the current scenario.For example, managers will be voted directly into the partnership, and an associate partner title will be available to employees who do not want to become a partner and take on the duties associated with the partner level.Also being changed, according to company sources, is the compensation system to personnel who normally would not qualify for extended benefits and profit-shar
Community News

"Accounting Outsourcing" Has Just Been Redefined

PricewaterhouseCoopers and BP Amoco announced this week a 10 year outsourcing contract transferring much of the energy giant's back office and accounting work to PWC.
Community News

Centerprise Withdraws IPO Bid

Two weeks ago, CPA firm roll-up-wanna-be Centerprise Advisors LLC got approval from the SEC to start determining investor interest in a planned IPO. This Monday, Centerprise received regulatory approval from the SEC to begin trading on Tuesday morning.
Community News

CPA/Law Alliance Now A Reality

As reported here last week, Big 5 CPA firm Ernst & Young this week announced that it has entered into a landscape-altering alliance this week with a new DC law firm called McKee Nelson Ernst & Young LLP. This integrated professional services model has been in place in many countries around the world, but until now has never been available in this country.
Community News

New Andersen Consulting CEO Renews Firm Focus

E-commerce will be the central focus for Andersen Consulting (AC), according to Joe W. Forehand, who was just named chief executive to replace former chairman George T. Shaheen. The announcement was made Monday.The firm also will concentrate on taking a greater financial interest in its own client base.
Community News

PWC Eliminates 1,000 Administrative Jobs

On Wednesday, PricewaterhouseCoopers announced it would eliminate 1,000 administrative and internal support positions in an effort to focus greater attention on e-commerce consulting services.About 750 employees would actually be let go, with the 250 balance taken care of through attrition and a hiring freeze.A spokesman said cuts would not affect any accountants or consultants working within the organization. Departments affected through cuts include human resources, finance, marketing and administration.
Community News

Makers of Gore-Tex sue Deloitte and PeopleSoft Over Software Installation

Well-known manufacturer W.L. Gore & Associates, makers of Gore-Tex outerwear, have filed suit against Deloitte & Touche and PeopleSoft.
Community News

Consulting Arms of Big 5 Accounting Firms Invest in Start-Ups

These days, it seems that everyone is getting into the potentially high-profit, yet high-risk start-up arena, and the Big 5 is no exception.Just last week on October 20, AccountingWeb ran a story in which PricewaterhouseCoopers bought into Web designers Methodfive, and now it seems that Andersen Consulting has moved in a similar fashion by buying into start-up ChemConnect, the Internet's largest global chemical and plastic exchange.Analysts report that investments like these mark a r
Community News

Saga Between KPMG and Theater Group Continues

The ongoing debacle between Livent, Inc. and KPMG continued yesterday in a Toronto court when lawyers for former Livent exec Garth Drabinsky brought a suit against the Big 5 firm for conflicts of interest.CPAs will recall that Livent, producer of several well-known Broadway shows, including Phantom of the Opera and Ragtime, made the news in August 1998 when its new owners, investment banker Roy Furman and former Walt Disney executive Michael Ovitz, revealed that an internal audit had uncovered serious accounting irregularities.
Community News

Arthur Andersen and Andersen Consulting go to Court to Split Firms

Arbitration hearings began yesterday in New York for Arthur Andersen (AA) and its sister firm, Andersen Consulting (AC), to permanently make AC an independent firm.The hearings are the result of a two-year disagreement, and the latest court appearances with the International Chamber of Commerce (ICC) are expected to take up to two weeks.AC claims its sister firm violated a partnership agreement five years ago when it began a consulting services unit in direct competition against the Big 5 firm.Among those expe
Practice

Legal Eagles Nest at Ernst & Young

Remember when non-CPAs could not become owners of CPA firms? Times are changing ... and it looks as if Big 5 giants like Ernst & Young may be entering the legal arena some time soon.Getting around the system is the key, according to experts who understand that State Bar ethics rules prohibit non-practicing lawyers from owning or controlling law firms. As a result, E&Y is reportedly in negotiations with lawyers in the Washington, D.C.

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