There has been much interest in this post since we redacted the contents of an allegedly leaked BDO email. We decided against the publication of several comments following both the original post and the subsequent redaction (NB the publication of all comments posted on this site are subject to compliance with our rules and extended rules). As mentioned below, we decided to temporarily redact the allegedly leaked BDO email following direct correspondence from BDO Chairman Tony Schiffman in which he stated that it was a fabrication.
The word of the Australian Chairman of a major accounting firm obviously commands more respect than that of an anonymous spy, but we wanted to test Mr Schiffman’s statement further. Accordingly, since the redaction, we have pointedly emailed Mr Schiffman on three separate occasions asking:
- whether BDO has lost R&D work from Hutchison (an allegation, levelled by our original tipster, which was precipitated by the exodus of several big names from the firm); and
- the number of significant people who have left the firm this year (we didn’t define the term “significant”).
Despite our numerous emails, Mr Schiffman has so far declined to respond to us. That being so, we have still declined to republish the relevant email.
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[ED: we have been in contact with BDO Chairman Tony Schiffman who has denied the authenticity of the allegedly leaked email we previously published. We are waiting for an official comment from BDO about the state of its R&D offering and firm more generally. We will publish more when we know more. In the meantime, have a great Easter!]
Things are going from bad to worse at embattled mid-tier accounting firm BDO. In addition to news that former partner Tracey Murray is suing the firm for allegedly discriminating against her in its distribution of profits is the rumour today that the firm is struggling to hang onto work from key clients.
We received the following email from an anonymous BDO spy on Friday (NB we are unable to confirm the accuracy of the statements in it). The anonymous tipster offered the following context to the leaked email:
[Redacted]
Yes David, FOCUS ON THE BIG ONES!
Send the Firm Spy your news and views!
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This is like a car wreck (in so many ways)… I know I shouldn’t look but I simply can’t help it!! Almost as interesting as my new Jean M. Auel novel.
Looking forward to the next installment!
From the start, I would like to identify our company as a former client of BDO’s. We do not however wish to identify ourselves, as we don’t want to be associated with the fallout and unprofessionalism clearly plaguing the firm following the ‘departure’ of Tracey.
While I acknowledge that Partners come and go in professional services firms, if it is true and BDO sacked Tracey, they should take some time to reflect on how poorly this has been handled from a client perspective. For instance, why did I find out that Tracey had left BDO from an EY partner, who called me to let me know BDO didn’t have any R&D partners left and that he would be happy to assist us with out future R&D needs? I then got a phone call a week later from a BDO tax partner, informing me of Tracey’s departure and letting me know that BDO had it covered. He arrogantly assured me that because he had dealt with R&D at Deloitte, he would be able to manage the R&D needs of our business. What he didn’t seem to appreciate during our conversation is that we don’t want light weight R&D advice. BDO did our work because it had an expertise that we couldn’t find elsewhere. With that expertise gone, so are our dealings with BDO.
If it is true that BDO terminated Tracey after a lengthy transition period and Tracey’s departure had been planned for some time, why didn’t BDO’s senior people have.a plan to manage the retention of clients? Hearing this type of information from another firm is an appalling way to treat clients. Having a partner overstate their expertise to try and keep our work is, in my opinion, bordering on unethical.
There is no doubt that BDO has lost a good operator in Tracey. Whilst she had strong technical skllls, it was her ability to connect with people at all levels and her ability to gain the respect of our technical people that kept us with BDO for so many years. What is worse for BDO is, not only have they lost a good operator ( for reasons i am still unclear of), they have also lost their right to call themselves a ‘professional services firm’ due to the unprofessional manner in which this situation has been handled.
While I wish BDO good luck in the future, I think BDO will need more than luck to regain my respect.
Hi FS
Love your work as always.
If professional services firms act silly you should call them on it, however I am not sure if you should mention client/company names (i.e. hutchinson and wagners). They dont deserved to be dragged into BDO’s mess. Maybe you could considering blanking them out next time???
Keep up the good work!
Wow, what a train wreck BDO has been this year! Loving the self-destructive behaviour of this MID tier firm.
BDO were right to sack Murray – she was just generally an oxygen thief. good riddance.
I am amazed at Dave Wilson’s comment that he is too busy with GST to bother about R&D! As the PIC, isn’t he responsible for all of tax? Imagine my appraisal if Big W gave me some work and I hold him I was too busy with other work!!! Does not meet expectations!
Hey Dave… you’re paid to deliver results, not to simply work 8:30am to 5pm (probably a lot less when you factor in “business meetings” at Merlos!).
Excuse me – if you committed to a huge tender knowing you a) did not have the man power or b) did not have the experience, you’re going to get caned. Over promising and under delivering – you heard of that before? The damage done if you stuff up a massive account reverberates to other companies and damages reputation. PS This is a gossip site, the fact you’re actually attributing any credibility to it shows you’re clearly a dumb ass.
Question – how can a site legally function when it is as defamatory as this?
things published on this site tend not to qualify as defamatory because it is all rumour and gossip.
Excuse me Random…. My company engages BDO to do its R&D claim. Are you saying they do not have the expertise?!?!?
Does this smell funny to anyone else? The PIC spelling tracey wrong? And admitting dropping the ball to the managing partner? Also, matthew plowman (also spelled incorrectly) started with ey mid last year. And I assume he left bdo before that? Mythbusted?
this item does not ring true since logically only two people could have leaked it to FS.
while they are communicating about the email, maybe you can ask them why everyone’s comment has -69 votes (except one pro-bdo comment which has +69)
nice algorithm, but it’s getting a little tired.
Come on FS, where’s the follow up? I’m bored and may need to do chargeables if I’ve got nothing new to read!!!
Good to see T. Murray is keeping herself busy by creating multiple accounts on a site of unproven reliability in order to make it sound like she is/was important too somebody other than herself.
Good work TM
Its probably all a ploy. I bet this years client work wouldn’t have been done in time for April lodgement… due to limited resources in team. Probably realised this, and thought kicking up a stink would be the best way out.
The Chairman’s could well be lying in his communication to FS, couldnt he? We all know very very very senior people lie to protect their asses…
I am a client, and my 2010 work hasnt been completed yet.