KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – JANUARY 2024

1. AuditClub rebrands as CPAClub

AuditClub has added tax and advisory services and has rebranded as CPAClub. The Irvine, California-based company, now known as CPA Club Inc., made the announcement Wednesday and is now offering outsourced tax and advisory professionals to help firms that need extra talent. Read More

2. SEC approves PCAOB audit confirmation standard

The Securities and Exchange Commission voted to approve a new standard for audit confirmations from the Public Company Accounting Oversight Board that updates a decades-old existing standard to recognize the use of technology for electronic confirmations. Read More

3. Eide Bailly to merge in High Plains Technology

The deal will add four partners and 14 staff to Eide Bailly's Sioux Falls and Fargo offices. Financial terms were not disclosed. Eide Bailly ranked No. 19 on Accounting Today's 2023 list of the Top 100 Firms. The firm earned revenue of $617 million over the past year and has over 3,300 staff members and more than 350 partners. Read More

4. McMillan Consulting acquires Paul Rafanello’s CPA practice

McMillan Consulting LLC, a firm in Warwick, New York, has acquired the practice of Paul Rafanello, whose CPA practice is also located there. The acquisition will provide clients of both firms access to counsel from McMillan Consulting president and CEO Patricia McMillan, a CPA for more than 39 years. Read More

5. PwC cuts 2% of Canadian workforce

Big Four firm PricewaterhouseCoopers has cut its workforce in Canada by 2% as sustained high interest rates push that nation's economy toward a recession. A spokeswoman for PwC confirmed the reduction, reported earlier by the Globe and Mail newspaper, without giving further details of the layoffs. With the company's website saying it employs about 7,700 people in Canada, the cut would amount to about 150 people. Read More

6. KPMG U.K. freezes pay, cuts bonuses

KPMG has frozen pay for thousands of its U.K. staff and cut bonuses despite stubbornly high inflation. A spokesperson for the audit firm said that due to soft market demand, raises would be prioritized for staff who have been promoted. Workers eligible for a bonus will receive one that's lower than in previous years. Read More

7. Hunter Biden indicted in tax case

President Joe Biden's son Hunter was indicted on nine federal tax charges in a development that will become a political headache for the White House and Democrats as the 2024 campaign ramps up. Read More

8. IRS Appeals sets priorities for next year

The Internal Revenue Service's Independent Office of Appeals hopes to improve both taxpayer service and the experience of its workforce next year. The Appeals office posted a focus guide Friday laying its main priorities for fiscal year 2024. The Taxpayer First Act of 2019 renamed the IRS Office of Appeals as the Independent Office of Appeals, but it has nevertheless remained mostly controlled by the IRS. Read More

9. Swiss bank to pay $123M in U.S. tax case

Banque Pictet & Cie SA, the Swiss private bank and asset manager, agreed to pay $123 million to resolve a U.S. investigation into how it helped Americans hide more than $5.6 billion in secret bank accounts. Read More

10. PwC announces strategic alliance with Engine by Starling

PwC announced a strategic alliance with Engine by Starling, the software-as-a-service (SaaS) subsidiary of Starling Bank, a leading UK digital bank. Engine brings modern banking technology to banks around the world. Read More

11. EY cutting U.S. jobs, delaying start dates

Ernst & Young LLP is cutting jobs and delaying start dates for some new hires across the U.S., the latest moves by a consulting giant to deal with an industrywide slowdown in demand for its services. Read More

12. SEC approves bigger PCAOB budget

The Securities and Exchange Commission approved the 2024 budget of the Public Company Accounting Oversight Board, totaling $384.7 million, with an accounting support fee totaling $358.8 million. Read More

13. Trump is denied instant win in N.Y. civil fraud case

The New York judge in Donald Trump's civil fraud trial denied the former president's request for an immediate verdict in his favor, criticizing his defense and suggesting his star witness was motivated by money. Read More

14. IRS grants $1B in penalty relief

The IRS has granted about $1 billion in penalty relief to some 4.7 million individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. Read More

15. Aprio expands in Texas

Aprio, LLP, the fastest-growing business advisory and accounting firm, proudly announces its strategic expansion to Texas through its merger with Ridout Barrett & Co. CPAs & Advisors (RBC), a powerhouse accounting firm with broad experience in construction and real estate. Read More

16. UK rate cut speculation swells as inflation falls by more than anticipated to 2-year low of 3.9%

Inflation in the U.K. as measured by the consumer prices index eased back to its lowest level in more than two years, official figures showed Wednesday, in a development that stoked speculation that the Bank of England may start cutting interest rates sooner than expected. Read More

17. PwC cleared by watchdog after probe into audit of collapsed property firm Intu

The accounting watchdog has dropped an investigation into PwC’s audit of property group Intu today and cleared the partners in charge after a year long probe into the Big Four firm’s work on the firm. Read More

18. IRS extends due dates for qualified intermediaries

The Internal Revenue Service has extended some of the deadlines for qualified intermediaries, withholding foreign partnerships and withholding foreign trusts. The rules for these entities mainly relate to foreign financial institutions, such as those required to comply with the Foreign Account Tax Compliance Act, or FATCA, part of the HIRE Act of 2010, under which overseas banks report and withhold taxes on the holdings of U.S. taxpayers. Read More

19. IIA approves revised global internal audit standards

The Institute of Internal Auditors (The IIA) – the internal audit profession's leader in standards, certifications, education, research, and technical guidance worldwide – today announced that the International Internal Audit Standards Board (IIASB) voted to approve the new Global Internal Audit Standards, paving the way for their release in January. Read More

20.Sikich to acquire CLA's federal gov't practice

Sikich Expands Federal Government Capabilities with Acquisition of CLA's Federal Government Practice. Dec. 14, 2023, Sikich announced today that it has entered into a definitive agreement to acquire the federal government practice of professional services firm CLA (CliftonLarsonAllen LLP). Read More

Entigrity™ is a trusted offshore staffing partner for 725+ accountants, CPAs, and tax firms across the US and Canada. With a flexible and transparent hiring model, the company empowers firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a firm 'run by accountants, for the accountants,' Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management, minimizing concerns about compliance, payroll taxes, overheads, or benefits. Entigrity is a proud independent member of the BDO Alliance USA. We have collaborated with IMA to train and upskill 5,000 Professionals in India. We were also recognized as one of the "Dream Companies to Work For" and won the "Great Place to Work® Certified™" in the accounting offshoring industry. 

Christopher Rivera

Director, Client Relations

Christopher Rivera, Chris serves as a Director of Client Relations and Business Development at Entigrity. He is an expert at leading and managing teams actively from the front. His expertise in sales, training, coaching, mentoring and influencing combined with his competitive nature makes him a strong leader.  Chris has traveled through the length and width of the country and has spoken with more than five thousand CPAs, understanding their challenges and limitations. On the grounds of that, he can now easily provide opinions and solutions that can be immensely helpful to the professionals. He has also represented Entigrity at a number of major accounting conferences and networking events.