FINANCIAL RESULTS
BDO Seidman revenue down

BDO Seidman has reported revenue of
$620 million in the year to 30 June 2009, a decline of 6 percent on
last year’s results. The US firm noted that its tax service line
had grown 6 percent but assurance (-9 percent) and consulting (-15
percent) declined.

“After several years of strong revenue
growth, BDO Seidman – like most businesses – was negatively
impacted by the protracted economic recession in fiscal 2009,” BDO
Seidman chief executive Jack Weisbaum said. “Fortunately, the
firm’s billable hours remained comparable to the previous fiscal
year. As we continue to work with our clients in helping them
through this difficult time, we believe we are well positioned for
a return to revenue growth as the economy recovers.”

MERGERS AND ACQUISITIONS
Canadian BDO member acquires

BDO Dunwoody has acquired Canadian
firms Hudson in Calgary and McMane Dunkel Kingston and Stranz
(MDKS) in Waterloo. Hudson was established in 1973, has 10 partners
and was a former member of Nexia International. BDO’s presence in
Calgary has increased to 150 staff, including 18 partners.

MDKS added four partners and 29
employees to the firm’s Waterloo presence, which now stands at 90
staff and ten partners. BDO Waterloo region managing partner Jim
Harper said the MDKS addition would significantly increase its tax,
IT solutions and health care practices. BDO Dunwoody is the
sixth-highest fee earning firm in Canada according to
International Accounting Bulletin data.

OVERSIGHT
Grant Thornton US comes under PCAOB microscope

Deficiencies in testing asset values
and fair value have been highlighted by the US Public Company
Accounting Oversight Board (PCAOB) in its annual inspection of
Grant Thornton US. The deficiencies in its testing of assets held
by the issuers’ pension plans were noted in five audits. In four
audits, the firm failed to test the existence and valuation of
assets held in the issuer’s defined-benefit pension plans. In
another audit the watchdog said the firm failed to test the
valuation of real estate and hedge fund investments and a
guaranteed investment held by the issuer’s defined-benefit pension
plan. The watchdog inspected 17 of the firm’s 51 offices. Grant
Thornton said the findings did not impact on its conclusions or
previously issued reports.