The flood of material weaknesses related to tax reflects a lack of expertise — and the evolution of an art into a science.
Kris Frieswick, CFO Magazine
November 7, 2005
I have been a tax accountant pur sang by profession for 13 years now and I am running a dedicated worldwide tax accounting practice (IAS12 and FAS109). What you describe in the article is exactly how I experienece it. In pre-SOX, tax accounting was at the very bottom of the priority list. More even than in the USA, I see large European multinationals are now faced with difficulties to prepare their IFRS-IAS12 tax provisions. Simply because experienced tax accountants are scarce in the market. On the other hand I see the Big Four tapping into the tax accounting market. They have large problems to set up competent tax accounting departments. After having reviewed many different tax accounting services provided by Big Four firms, I came accross many errors and omissions in their client brochures and work performance. And in addition, those tax accounting specialists that they claim to have available, in general have hardly any tax accounting experience. Though they market their tax accounting services as premium services. And despite the various strict rules on auditor independence. Tax accounting is it's own little island! We believe there should be three different independent disciplines: tax consultants, tax accounting specialists and auditors. Tax accounting is bridging the Gaaps in between tax and audit. That is why I am happy to see an article like yours that makes CFO's aware of need for experienced tax accounting specialist firms, rather than using tax consultants or auditors pur sang. Harm J Oortwijn MBA +31 622 434 737 www.ea-taacs.com email@example.com
Posted by Harm Oortwijn | December 11, 2005 02:34 pm© CFO Publishing Corporation 2009. All rights reserved.