I shouldn't be blogging, I shouldn't be blogging, I shouldn't be blogging .... sigh. Ok now that that's off my chest (exam at 8am tomorrow btw), on to more pressing matters.
Today it was officially announced that Deloitte lost it's biggest client, Nortel. This represents over $80 million in annual revenues for the Toronto office, and over 2000 jobs. One of which, because I am specifically employed by the Technology, Media, and Telecommunications group, may be mine.
Deloitte had been Nortel's auditors since 1914. The file will be going to KPMG, which reportedly drastically under bid the Deloitte audit fee rate.
To make matters worse, Nortel shareholders are suing both the company and it's auditors (Deloitte) for all the accounting trouble (endless restatements) that have occurred in the last 5 or 10 years. Fortunately, I know enough about the audit to know that the trouble is with their control systems, not suspected maliciousness. In other words, they are ridiculously disorganized, not trying to hide something. Nevertheless, depending on the findings of the court case and outcome, Deloitte could potentially go under like Arthur Andersen (Enron's auditors). Now isn't that something to look forward to with your first full-time employment?
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2 comments:
Sorry to hear that, T - Even if it doesn't work out with Deloitte, I'm sure you'll have no trouble getting a good job somewhere else - maybe KPMG!?
Well isn't that nasty news? But I would expect that KPMG would need to pick up Auditors in order to take on the Nortel account.
So just stay positive. You still have a job until you hear otherwise. Think about what other areas of Deloitte auditing you'd be interested in (as they may ask). You might also want shop your resume to other firms. Try and stay positive!
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