KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – FEBRUARY 2023

Jacob Scott, CPA     Feb 06, 2023     1225
KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – FEBRUARY 2023

KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – FEBRUARY 2023

1. PCAOB proposes new auditing standard

The PCAOB issued a proposed new standard Tuesday designed to strengthen and modernize the requirements for the auditor's use of confirmation. Comments on the proposal will be accepted through Feb. 20, 2023. Read More

2. U.S. House committee releases Trump tax returns he sought to keep secret

Democrats in Congress released six years of Donald Trump's tax records to the public on Friday, disclosing documents the former president long sought to keep secret and dealing another setback as he again seeks the White House in 2024. A Democratic-controlled U.S. House of Representatives committee released Trump's redacted returns for 2015 through 2020, capping a multi-year battle between the Republican former president and Democratic lawmakers that was settled only last month by the U.S. Supreme Court. Read More

3. KPMG’s 2022 Global Revenue Topped Out at $34.6 Billion

KPMG said on Dec. 13 that its global revenue for the financial year ending Sept. 30 was $34.6 billion, up from $32.1 billion in 2021. FY 22 has been a strong year. KPMG firms’ financial performance validates an unwavering commitment to deliver services of the highest quality, through a multidisciplinary approach that helps us to provide solutions to clients’ most difficult challenges and the stability and resilience to invest, even in hard times,” KPMG Global Chairman and CEO Bill Thomas said in a written statement. Read More

4. Bookkeeper embezzles $29M from prominent Texas family

A Texas woman admitted embezzling more than $29 million over the past decade from the prominent Dallas family that employed her as a bookkeeper, according to the Department of Justice. Barbara Chalmers, 74, pleaded guilty Thursday to using her position with a charitable foundation and multiple companies run by the family of Jim Collins, a businessman and Republican congressman who died in 1989, to fraudulently write herself at least 175 personal checks. Read More

5. M&A roundup: CLA, Withum, Marcum and GBQ expand

CliftonLarsonAllen, a Top 10 Firm, has expanded in the Midwest by acquiring Gilmore Jasion Mahler Ltd., a firm in Toledo and Findlay, Ohio, effective Jan. 1, 2023. GJM provides assurance, business and transaction advisory, outsourced accounting, risk advisory and tax services in various industries, including construction and real estate, health care, manufacturing and distribution, nonprofit, private equity, and utilities. Read More

6. KPMG buys strategy consultancy The Arnold Group

KPMG US has acquired The Arnold Group, a Seattle-based strategy consulting firm focusing on B2B technology clients. Founded 20 years ago, The Arnold Group specializes in go-to-market strategy development for B2B technology firms – advising on growth acceleration, commercial transitions, and simplifying customer experience. The firm’s areas of expertise include product strategy, monetization and pricing, customer and partner marketing, sales organization/process design, channel strategy and programs, and service and lifecycle management. Read More

7. Economists place 70% chance for US recession in 2023

Economists say there is a 7-in-10 likelihood that the US economy will sink into a recession next year, slashing demand forecasts and trimming inflation projections in the wake of massive interest-rate hikes by the Federal Reserve. The probability of a downturn in 2023 climbed from 65 per cent odds in November and is more than double what it was six months ago, according to the latest Bloomberg monthly survey of economists. The poll was conducted December 12-16, with 38 economists responding about the chance of a recession. Read More

8. Newly released IRS Data Book numbers confirm decline in audit rates

On May 26, 2022, the IRS released its Data Book, 2021 (Publication 55-B). The Data Book, published annually since 1863, contains statistical tables describing a full range of IRS activities, including returns, collections, refunds, enforcement, and the IRS workforce. The recent report covers the fiscal year ending Sept. 30, 2021. This is the first full tax year affected by COVID-19. Read more

9. Trump Companies Fined $1.6 Million for Tax Fraud Conviction

Two Trump Organization entities were slapped with $1.6 million in fines Friday—the price of committing years of tax fraud. The Trump Corporation and Trump Payroll Corporation were sentenced to pay the hefty sum in Manhattan Supreme Court. The companies were found guilty of tax fraud, scheming to defraud, and other related charges on Dec. 6. “We all know that even the maximum fines constitute a tiny portion of the overall revenue of the Trump Organization,” Assistant District Attorney Joshua Steinglass said. Read More

10. EY announces global CFO appointment

EY recently announced the appointment of Jamie Miller as global CFO, and CFO of its proposed new public entity. The selection of Miller is another step in the separation process outlined last year, according to EY. “EY is moving forward in a thoughtful and deliberate manner, making strong progress on the path to partner votes,” EY said in a statement. “This bold move to separate the organisation will enable EY to embrace the changing landscape, build businesses that redefine the future of the profession, create exciting new opportunities, and deliver greater long-term value for EY people, clients and communities. Read More

11. AICPA Says It Was Not Hacked, Refutes Report

The AICPA said on Thursday that it was not the victim of a cyberattack, days after an article surfaced online stating that threat actors had bragged on an online forum that they compromised an AICPA database with more than 140,000 emails and corresponding passwords. The website Cybernews wrote on Tuesday that cyberthieves had attached samples of the data on the online forum as proof of legitimacy. Read More

12. Paul Munter Becomes SEC Chief Accountant

Paul Munter, who has served as the Securities and Exchange Commission (SEC)’s acting chief accountant since January 2021, has been appointed to the job permanently, the SEC announced. He will continue to lead the Office of the Chief Accountant (OCA) and serve as the principal adviser to the SEC on accounting and auditing matters. He also will be responsible for assisting the SEC in overseeing the Financial Accounting Standards Board (FASB) and the Public Company Accounting Oversight Board (PCAOB). Read More

13. House GOP kicks off majority with vote to slash $71 bn IRS funding

House Republicans began their tenure in the majority Monday by passing a bill that would rescind nearly USD 71 billion that Congress had provided the IRS, fulfilling a campaign promise even though the legislation is unlikely to advance further. Democrats had beefed up the IRS over the next decade to help offset the cost of top health and environmental priorities they passed last year and to replenish an agency struggling to provide basic services to taxpayers and ensure fairness in tax compliance. Read More

14. Business Leaders Optimistic for 2023, But Inflation and Staffing Worries Linger

According to a new survey, 70% of business leaders said they anticipate their revenue to increase year-over-year. However, they reported that the challenges of the past three years have contributed to ongoing stress. The 2023 findings of the fifth-annual Priorities for Business Leaders survey, commissioned by Paychex, Inc., reflect the sentiments of 450 businesses employing between five and 500 employees across the U.S., and highlight the issues top of mind for leaders in today’s complicated economic, regulatory, and labor environments. Read More

15. On the move: Brown Graham & Co. names next president

Amarillo TX – The Texas-based accounting and advisory firm Brown Graham & Company, P.C. (Brown Graham) has named Danny Woods, CPA, as its new president. Woods succeeds Greggory Morgan, CPA, CVA, CFF, who has served as the firm’s president since 2016. “Having spent my entire career with Brown Graham, it is truly an honor to be voted into the role of president—a responsibility that I don’t take lightly. It means a great deal to me that my peers, the shareholders of the firm, put their trust in me. Read More

16. U.S. accounting watchdog faces lawsuit over its 'secretive' disciplinary process

The U.S. accounting watchdog is facing a lawsuit over claims the regulator's process of handling disciplinary matters behind closed doors is unconstitutional. The lawsuit, filed Thursday in federal court in Texas by the conservative Washington-based New Civil Liberties Alliance, accuses the Public Company Accounting Oversight Board (PCAOB) of bringing a "secret prosecution" without due legal process against an accountant working for a firm in Colombia. Read More

17. Evergrande says PwC resigns after 2021 audit disagreements

CHINA Evergrande Group said PwC resigned as its auditor on Monday (Jan 16), adding to the pressure on the developer at the epicentre of China’s property crisis. Evergrande’s board recommended the resignation of PwC after the two firms couldn’t “agree on the timetable and the scope of work in respect of the assessment on the group’s going concern basis,” as well as the “procedures required for the assets impairment assessment”, according to a regulatory filing. Read More

18. IRS to Use ‘Digital Assets’ Instead of ‘Virtual Currency’ on 2022 Forms 1040

The IRS sent out a reminder on the second day of the 2023 filing season that all digital asset-related income must be reported when taxpayers file their 2022 federal income tax returns. One change of note on forms 1040 this year is the IRS has replaced the term “virtual currency” with “digital assets,” a term that covers more than just cryptocurrencies but also stablecoins and nonfungible tokens.“A digital asset is a digital representation of value which is recorded on a cryptographically secured, distributed ledger,” the IRS said on Jan. 24. Read More

19. Thomson Reuters Completes Acquisition of SurePrep, LLC

Thomson Reuters Corporation (“Thomson Reuters”) (NYSE / TSX: TRI) announced today it has closed on its previously announced acquisition of SurePrep, LLC (“SurePrep”), a US-based leader in 1040 tax automation software and services. On November 11, 2022, Thomson Reuters announced that it had reached a definitive agreement to acquire SurePrep for $500 million in cash. SurePrep is a California-based company that helps accounting firms increase productivity and profitability. With a consumer-grade mobile friendly design, SurePrep leverages artificial intelligence to automate the collection of digital documents directly from clients and the processing of those documents. Read More

20 Deloitte taps former Pfizer finance chief as CFO-in-residence

Deloitte is building its outreach to CFOs, appointing Frank D'Amelio, the former executive vice president and CFO at the pharmaceutical giant Pfizer, as its CFO-in-residence. He is becoming an independent senior advisor to Deloitte's CFO Program, where he will provide strategic guidance on the finance function to clients, senior leadership and teams at the firm, about the evolving role of the CFO. D'Amelio brings tons of experience to the firm. He led Pfizer's finance side from 2007 to 2022 and was also responsible for business development and certain business operations, including information technology, procurement and real estate. Read More

 

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About The Author

Jacob Scott, CPA

Member, Advisory Board

Jacob Scott is a CPA with over 20 years of experience in the area of accounting & finance and has worked as a Senior Audit Associate at EY. Jacob drives the financial planning of the company by analyzing its performance and risks. He retains constant awareness of the company’s financial position and acts to prevent problems. He also sets up and oversees the company’s finance IT system as well as sets targets for and supervise all accounting and finance personnel (management accountants, internal auditors, etc.) Besides overseeing all audit and internal control operations, Jacob develops the corporate fundraising strategy and manage relationships with partners and investors. His roles also include preparing timely and detailed reports on financial performance on a quarterly and annual basis and conducting analysis to make forecasts and report to upper executives. He ensures adherence to financial laws and guidelines.  He has a keen interest in activities and societies, industry tours, educational seminars, cultural activities, sports, and most importantly attending conferences.

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