A Counting School - Hardcore Chartered Accountancy

since 1494

News

"Hardcore Chartered Accountant" does have a nice ring to it

Receive Email Updates

ACS & www.krupo.ca

Other good places

Timesinks

January 2007 - Posts

CAs = Cat Accountants
You can tell I'm pretty busy when I have little to add other than cute videos featuring cats.



Ah, Conan. It's particularly funnier in countries where you're familiar with the CA designation, since we now have a new - ableit senseless - meaning for it.

Thanks Videosift.
Posted: Jan 31 2007, 01:15 AM by Krupo | with 1 comment(s)
Filed under:
First thing to show anyone who takes anything too literally
Send them to God Hates Shrimp.
Maintaining Anonymity and staying on the happy side of Cynicism Cycles [a.k.a. Emotional Rollercoaster of Auditing]
I'm tired after a long but very good week, and with an (a)typically cavalier attitude, I have two disparate topics that cry out to be welded together - if this works, it's evidence that my wordsmithing abilities in bridging together thoughts is strong. If not, the readership is rendered hopelessly confused.

Assuming my readership is smarter than the teacher in charge of moderating my editorials in the high school newspaper, though, then this shouldn't be too difficult - so the ball's in my court, and I like a challenge.

Since throwing in non-sequitors is an excellent substitute for actually trying to write something funny - which never works anyway - I offer some appropriately dramatic music courtesy of Videosift is in order to help you settle into your reading.



The topic of the day is the series of recent discussions among the small but increasingly vocal community of auditors and accountants talking shop. And it's motivated in no small part by the flattering attention paid from Dennis' blog.

This little 'echo chamber' of sorts provides a relatively easy and 'safe' way to come up with new things to discuss that won't impact anyone's 'vows' of confidentiality as cited by the Detoured Economist.

Going ahead and finding a 'safe' way to discuss the fun experiences you have at work and their attendant issues is something all professionals have to deal with. And don't think you need some sort of swanky office or fancy designation to consider yourself someone with professionalism at stake - Adrian, the Man of Lettuce, wrestles with the same issue from the point of view of a cabbie and deals with it quite adroitly.

And Adrian also, one should note, doesn't bother hiding his name - which is sensisble, since anonymity is only a partial solution. Aside from simply making you look less credible, that strategy has a fatal flaw: you can be "outed" by any of your friends, either as a stupid prank or - if they're false friends, so to speak - with malice.

That's why, as I already decided almost a year ago, passive anonymity is the way to go. I steer clear of anything that would bring serious embarassment (i.e., trouble) to anyone should their complete name and identity be known. Which is in strong contrast to, say, obnoxious morning radio shows and their "anything goes" attitude.

Rather than talk about specific tragedies - or successes - on jobs, it's easier - and safer - to talk about Big Issues.

Safer for us anyway - it's a luxury to be able to safely comment on The Powers That Be without fear of repercussions that we take for granted in Canada and allied countries. I might be overstating our freedom considering the poor/non-existent whistle-blower laws in Canada, but I do know that there are many many things that are fair game.

Such as the article where Neil identifies the potential associated with working as a UN auditor. Ignoring the job itself - Neil discusses that quite ably - the focus drifts back to discussing the UN.

It had and continues to have the potential to be a great force for good. Unfortunately it's been undermined repeatedly talk, however, reminds me of the various instances I've read about where the organization has failed completely in its mission.

And it happens to serve as a good example of the cycle of cynicism: initially you're pleased to know the UN exists, and it'll make the world a better place. Then you learn that it's populated by representatives from all countries, including those that don't necessarily care about making the world a better place. You start sliding towards despair.

At the same time, arch-conservative newspaper columnists argue the UN should be abolished. You feel revulsion for having an opinion that drifts towards some armchair-quarterback blowhards, which gives you motivation to look for the Upside.

Does it mean you automatically realize that all is well? Not necessarily. But the reversal has a big positive effect: you regain your optimism.

It's like life and all the 'enjoy the ride' cliches: enjoy the upward trend from living in the mode of optimism. If you never hit your 'peak' of optimism and cycle back downwards, that's a good thing.

The tenuous connection to the alleged general theme of ACS? You can experience this phenomenon in parts of life that affect you more than just World Government.

Becoming a bitter husk of a human being is an occupational hazard for 'knowledge' workers. In most parts of the world - and even less than a century ago in Canada - this sort of occupational hazard would be reserved for some idle bourgeois types. The real risks involved getting killed or maimed by mine collapses or industiral mishaps.

Sadly physical threats still exist - after all, Workmen's Comp is often an important balance auditors have to test! - but the attitude you bring to work will make or break you.

One of my favourite examples - which seems to resonate with many others, it seems - comes from my first day doing a traditional paper audit, doing some typical testing, ticking and tying. Having been off that type of work for months, it was reassuring to get that "you never forget how to ride a bicycle feeling": yes, I know this stuff, and I remember how to do it.

The feeling is quickly accompanied by the counter-thought, "agh, I know this stuff and remember doing it... and I have to do it again".

Those two thoughts - one gleeful, the other bitter and angry - can pop up simulteanously. The concern, of course, is which side of the fence you'll land on? The dreary storm of despair, or the sunny, happy Audit Wonderland?

Several factors kick in at that point, ranging from how good a lunch you packed and whether you're well rested, to the simple question of how well managed your job is. These and other things all contribute to the Cynicism Cycle - or, to describe it in more neutral terms, let's call it the Emotional Rollercoaster of Auditing.

I may have inadvertently stumbled on something - despite the prejudice I've developed courtesy of some influential first-year economics professors against the fields of psychology and sociology ("What? Dennis majored in those two fields? Way to thank people for lavishing you with attention, Krupo!").

Meta-commentary on my possibly inadvertent faux pas aside, there really is something to consider: is it possible that the stereotypical dry, boring accountants and auditors of this world are living human beings with feelings?

How often do people think of them in those terms?

Does anyone consider the emotional factors behind how audits are conducted? Of course, everything is handled on some subconscious level, but has anyone done some proper studies on this topic? How much does the Emotional Rollercoaster of Auditing affect the quality of an audit? Can it be attributed to situations where poor audit work is uncovered and used as an excuse? Mental health would once again gain yet another point of importance.

This may prove to be a rich vein of gold for writing and analysis purposes in the coming days.

But before I get deeper into that, my next post will deal with a slightly different topic: I intend to eviscerate a lame article about hotelling. It's both funny and sad when you can spot a poorly written article masquerading as quality work. But that's something that will have to wait for another posting. The wiki article I've linked to isn't the article I have in mind though - that will be discussed soon, though.
Posted: Jan 27 2007, 03:38 AM by Krupo | with 2 comment(s)
Filed under:
New computer time, er, the risks of writing when you should be working
I've been insanely busy yet productive lately. The side effect of this has been a steady accumulation of longer, more 'interesting' or 'amusing' stories to share but not enough time to do so.

Fortunately the audit job I'm on is winding down rapidly which should give me more time to write. And, more importantly, I'm scheduled for a laptop upgrade this morning - which will mean I can do everything faster, giving me even more time to write. And work.

I was going to rave a little more about my new gear, but there'll be time for that once I have it in my hands - first, the whole thing about writing reminded me of an article in the current issue of CA Magazine: a small featurette on people who were fired for blogging about work - the usual reason was that they were doing it while on work time.

One guy was silly enough to brag about the fact he was being paid to sit around and do that instead of his real job.

And that's just stupid - he admitted to fraud - stealing time/money from his employer. A direct link to the fired writers featurette is here.

Professionals at least have the same advantage as taxi drivers: you can go 'off the clock', so to speak, when you're not doing 'productive' "work work", i.e., taking a break to run errands or type your personal online journal or whatever. People who keep 'regular hours' on the other hand don't have that luxury.

I wouldn't say that the CA Magazine article smugly puts down the unfortunate souls who had to go job hunting again because of their mistakes - although saying that someone had an audience of roughly 10 people before he was fired does sound a bit haughty.

Sidenote: welcome, Dennis, to the list of sites on that handy bar to the right.
Oh geez, I've just written a small essay
It's just under 800 words - now I just need a proper thesis, introduction and conclusion and I'm set.

That is, I would be if I could submit this as a paper on the Legal Environment of Online Communities or something along those lines.

I really should be getting sleep instead of staying up late to type that up, or type up this commentary in response to it.

I'm definitely getting wired on caffeine tomorrow morning!
Posted: Jan 23 2007, 03:22 AM by Krupo | with 5 comment(s)
Filed under:
Well crafted parodies
A little while ago a newbie posted something silly and obnoxious to a popular internet forum, and was admonished for... posting something silly and obnoxious.

The funny thing, in retrospect, is the newbie's defense: "it was meant to be a parody".

Yeah, sure it was.

The thing about parodies, anyone trying to be funny should remember, is that they take a lot of work and effort to be good.

The thought hit me when I was going through some old papers and I saw some of my college newspaper's April Fool's editions.

Assuming you even know what a parody is, and have some reasonable sense of humour, it's not too hard to do.

Of course, "knowing what a parody is" can be a big problem on its own. I had one horrible writer who was unable to craft a normal news article, except when I asked for a parody for that issue: she gave me what read like a dry "normal" news article that one time.

Gah!

In a world where many people have been living less years than the Simpsons have been on air, you'd think that "knowing what a parody is" might not be an unreasonable expectation.

Sadly, it's not.

Even worse, even if you do know, there's too many people who well try and fudge their way through in a half-assed manner.
In Soviet Russia, job hunts YOU!
Yesterday was an unsettling day. I heard from three recruiters.

Three! Before the clock even hit 1 p.m.!

If I was in desperate need of a job that would, of course, be wonderful rather than unsettling - but I'm quite gainfully not to mention happily employed.

That they called wasn't in itself a surprise - I have a voicemail that hit my cell phone last week (someone got a leaked copy of our phone list!), so this all seemed to 'jive' appropriately.

My first caller was in last August and I have no idea how he got my number. After that came an e-mail last month - someone must've started to piece together contact info from the results of last year's exams.

Those first contacts were one thing - the calls all went to voicemail, and e-mail isn't especially unsettling to begin with.

And then live voices hit - uh, hello, I'm trying to do some work!

And that, I gathered from personal observation and discussion with much more experienced people, is one of the big problems: getting unsolicited phone calls offering work can simply be stressful because it's throws you off your concentration and it makes you, to some extent, have to question yourself: am I happy where I am?

The answer, I'm glad to say, is "of course I am", but while self-examination is a worthwhile habit to pursue, it's really best if you do it on your own time, and not have it thrust upon you.

Hence the Yakov Smirnoff headline joke.

Having vented about the emotional yo-yo effect of recruiters - you're obviously pleased to know you're a 'hot commodity', but you realize that 'a piece of meat' is also a commodity - it's interesting to consider the different approaches I've encountered so far:
  1. Man who calls clearly identifying the Big Four firm he's recruiting on behalf of (a firm you could've sworn had fallen on hard times - and yet they're hiring while they're firing?).
  2. Sweet-voiced lady who sounds like an old friend... who then makes you feel like a commodity.
  3. Smarmy Scottish guy who also makes you feel like a commodity, skipping the old friend step.
  4. "I make you feel special by asking you all about your job so I can update my contact database" guy. At least he could take a joke when I explained why I'm not particularly interested in working for a bank. 
  5. The clever character who just sends an e-mail with BRIGHT, RED, FORMATTING.
Don't even get me started on the recruiter hiring for a company that looks like one of your clients.

A client you've sworn to yourself you'll never be caught dead working for yourself.

Good luck with that.
Posted: Jan 16 2007, 10:11 PM by Krupo | with 5 comment(s)
Filed under:
Harming the poor


"Buy this car to drive to work. Drive to work to pay for this car."
Hand$hake$ - Metric

Ever feel shocked at how many corrupt governments around the world exploit or hurt the poor?

If so, remember that even supposedly 'pure' governments and political parties - even in Canada - hurt the poor.

Example?

Minimum wage laws.

In principle, it sounds like a good idea: make sure everyone is paid at least enough money to survive.

Minimum wages vary from country-to-country, but say it's $8 an hour. If you're working a 40 hour week, that means you're earning $320 a week, or $16,640 a year.

I've ignored tax deductions and vacation bonuses, but the point remains valid: even if the government legislates a minimum wage, you're pretty much screwed if you're going to rely on it.

If you expect people to be able to survive on something close to the per capita wage, which is about $30k in first world countries like Canada, the minimum wage would have to be about $14.42.

The most 'progressive' countries in the world usually have rates that hover around $10 an hour, except for Japan, where it's the equivalent of roughly $40 an hour, according to Wikipedia. Oh wait, that's $40 a day, never mind. Luxembourg has one of the highest rates in Europe - but it only works out to a little over $10 an hour too.

Not surprisingly, the previous site mentions that 18% of the workers in Luxembourg receive the minimum wage. A similarily high percentage of French workers get the minimum wage too.

So what's with the whole "hurting the poor" angle I posited earlier?

Anyone who doesn't understand the basic principles of economics might say, "hey, as long as you make sure everyone earns at least X dollars an hour, everything will be okay". In response to the fact that everyone's "not okay" right now, they may argue that's just because the minimum wage isn't high enough.

Sadly, that's not the case.Increase the minimum wage, and more people will want to work.

But less employers will want to hire people!

Net effect? Increased unemployment for the poorest members of society.

So every political party which claims to care for the poor but at the same time wants to raise minimum wages is, effectively, harming the poor.

I'm careful not to say "left wing" or "right wing" because this isn't an issue of political views - it's an issue of simple economic fact.

Way back in the day, my first year economics professor concluded his sobering explanation of why minimum wages don't help everyone - yes, people who have jobs have a benefit, but everyone who loses their job or doesn't get one in the first place because there's less of them available - by saying that all is not lost.

If you want to help the poor - and that's certainly a Good Thing - but there are better ways. The Earned Income Tax Credit already exists in several countries and has the benefit of being in some ways compaitble with the current tax system. The Negative Income Tax is another option, but it would essentially mean a complete overhaul of the entire tax code in any country that has an existing system, so it's unlikely to ever happen.

Either of those two options would introduce new costs for the government but would simultaneously be designed to reduce or eliminate other welfare programs.

And most importantly, they would direct help to people who actually need it - the poor, rather than spoiled kids from rich suburban families who are just making some extra scratch to pay off their unnecessary car or fancy clothes.
Posted: Jan 14 2007, 04:36 PM by Krupo | with 5 comment(s)
Filed under:
A few things worth reading
Vacation's over, a full week has passed and my spare time has been cut down severely. I barely have enough time to read about what's going on in the world, let alone what other people are writing about online.

The distinction between "what's going on in the world" and "what other people are writing about online" is a fine one, but pretty self-evident, I suppose. Something akin to the difference between "news" and "opinion" articles, although it's often interesting to see them overlap, and that they do with decent frequency in the 'everyone's a publisher' environment that even this post is shared in.

Neil pointed out an example of two things: people who can't accept that we call it "Sox", not "Sarbox", and that people like to complain about things. The article's about how Jim Clark quit his company - he owns a big chunk of it - because it no longer had a focus on invention, but just on producing things. But before going he wanted to say how much he hates Sox. He was upset for various reasons, though they all boiled down to the fact that if you own a big chunk of the company, there's a risk that you could try and manipulate its financial reporting for your own benefit - he of course didn't see it that way. He saw it as The Man trying to keep him down.

Good luck with that.

More interesting, Google reports that it wants to make it easier to find out share prices. I never really understood why stock exchanges had their results "delayed by 15 minutes". I guess the Google folk never did either, so they're working on getting legal clearance to avoid that issue.

Good for them.

Finally, another amusing article that has some spillover into the Day Job which talks about new hires. It continues to amuse me how many satirical parallels you can find between legal and accounting firms. In this case, some of the golden remarks are about the complacency of second year versus first year staff - how the latter are eager to make their mark, and the former get used to the routine and realize the highs and lows that come with what is, essentially, the realization that you have job security.

I don't know what makes you realize it first - going through your performance reviews the second time around - assuming things are going well - or receiving phone calls from recruiters?

That's a story for another day, though.

Note: because of the nuance of the electronic publishing system running this site, I've had to hack the code a little to make HTML links to other sites stand out more easily - hopefully it worked out today. Step two wil be to go back to writing more interesting headlines for my posts - I gave up today because this post, although intended to be interesting as always, is a hodge podge of various things.
Posted: Jan 13 2007, 04:03 PM by Krupo | with 1 comment(s)
Filed under:
Skating party!
It's fun to go skating, especially in the middle of the workday. Some people haven't done that since elementary or high school - others simply have never skated in their lives.

And that was the scene today at Nathan Phillips Square, where about a dozen of us found ourselves lacing up old skates and doing some laps in front of City Hall. To prepare, e-mails were sent - naturally, and lunch was eaten at my desk a half hour before noon.

After we finished skating we wandered back to the office, most people taking the PATH, while four of us braved the elements and walked quickly along the street instead - it's always faster on the street, since the PATH is a winding underground labrynth, no doubt designed to maximize the number of stores you encounter as you make your way back to the office.

The afternoon was much more enjoyable than the morning - since I was actually fully awake! The crisp January air - we finally have something resembling winter weather! - really smacks you in the head if you're drowsy, as does the blood rush from skating during your lunch hour.

It's also nice to see skates sitting next to peoples' desks in the office - it makes a 'professional looking' environment so much more inviting.

Of course, it didn't look, or smell - thank goodness, like a locker room, since only the experienced skaters brought their gear - the newbies had to rent. I suppose skates you own are in much better condition than the banged-up rentals.

As usual, I took a bunch of photos and some may end up being used by our HR people in future recruiting events.

I can see the spin now - work here, and it'll be so enjoyable, you can go skating with your co-workers every now and then! The cool thing, of course, is that it's true. Life continues to be good.

I'm going to start a two-month loan for one of our over-worked departments next week, though, which will probably severely cut down on daytime extracurriculars, but I'm sure I'll find at least a little time to unwind with some kind of winter sports!

Writing may, however, once again fall a bit by the wayside. Unlike Scott Adams, I can't spend two hours doing nothing but writing every day - but this doesn't take too much time, so I'll still be around to some extent.

When I go on my big month-long vacation though, that's when you can expect things to get quiet around ACS. But more on that later, there's a few more months of hard work ahead before I get to relax again.
Accounting Pirates!
Sometimes it feels like work really is like this.



At least you wish it was - it would certainly make things much interesting and amusing. I guess that's why we have computer games.

That video is a clip from Monthy Python's Meaning of Life - per the Videosift description:

'In the bleak days of 1983, the Crimson Permanent Assurance, an accountancy staffed by elderly workers much like a slave ship, has been taken over by efficiency-minded corporate types. When they sack an employee, there's an uprising, and the building is unleashed from its moorings to sail across the (dry) ocean and take on the financial centers of the world, starting with an all-out attack on the large skyscraper housing The Very Big Corporation of America, complete with filing-cabinet cannons, ceiling-fan broadswords, and paper-spindle short-swords.'

Enjoy.
Posted: Jan 06 2007, 02:18 AM by Krupo | with no comments
Filed under: ,
It's good to be an auditor with a journalism background
Malcolm Gladwell, of Tipping Point and Blink fame, recently wrote on his blog about how it's funny that journalists - and not auditors or other financial types - were the ones who broke the Enron scandal.

The amusing thing is that the 'experts' let things ride, while the supposedly 'non-specialist' journalists were the ones who uncovered the truth.

It was certainly a shining member for journalists, but perhaps Gladwell overstates his case? Business journalists aren't complete slackers - they need to know what they're talking about. And in reality, all this business jargon doesn't require that you be an especially brilliant person - just clever enough to cut through some terminology and concepts. It's something I figure I could do.

Which wouldn't be a stretch of the imagination, considering I spent about a decade of my life as a student journalist before going into auditing.

His whole column made me think: will the ultimate effect of all the time spent learning the way of the journalist ultimately help me function as a better auditor? Or perhaps give me an alternate career option down the road?

Freelance writing definitely sounds like fun, if you have a day job to back you up when things are slow.
Posted: Jan 04 2007, 05:30 PM by Krupo | with 2 comment(s)
Filed under:
Compared to the laywers, auditors are used to dealing with attrition
I like to read Opinionistas regularly, finding it interesting to see the differences between young pups in the worlds of audit versus law.

There are some real similarities, especially in the sense that you're both working for businesses structured as partnerships. Each take on a pyramid shape, with a ton of young kids supervised by more experienced staff and managers, who are in turn experienced by progressively more experienced senior managers and partners.

The news from New York says that there's apparently an unprecedently large exodus of the mid-level staff/managers at the big law firms. The big firms are scrambling to fill the gaps, leading to senior partner-types doing the work that would've normally delegated to the now-missing mid-tier staff.

Audit firms are used to this phenomenon - of the "best companies to work for", they'll usually have some of the highest turnover statistics. They just keep things running in a fashion that keeps the company healthy while people come and go.

Plus, the more progressive firms are embracing measures to make work more enjoyable - encouraging positive work-life balance, flex hours, and the ilk. It can be wonderful if you know how to take advantage of it in a positive way.

Wonder how long until the law firms come around to that style? Heck, for people working in less 'humane' accounting firms, they must be wondering when their own offices are going to come around.

Glad I've started the New Year on a happy note, enjoying work. Then again, I've started 2007 still on vacation, so it would be rather disturbing if I wasn't in a good mood.
Posted: Jan 03 2007, 02:58 AM by Krupo | with no comments
Filed under:
December 2006 Spam Total: 2436
Just like the ever-increasing average global temperature and the rising body count in Iraq, another thing you can expect to keep going up is the amount of spam received over any period of time.

Last month was no exception, like November, which featured a total of 1921 pieces of junk mail, there was even more trash in December, 2436 pieces of it, a 27% increase rise.

Will this flood ever abate? I doubt it, but it would be nice if it did, just so we would know that the speed of internet communications would then be increased, since less spam messages would be clogging up the infamous ‘tubes’.
Posted: Jan 02 2007, 11:03 PM by Krupo | with 5 comment(s)
Filed under: