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News
CPA Canada split from Ontario, Quebec groups becomes official [Financial Post]
The organizations representing chartered professional accountants in Quebec and Ontario are officially split from Chartered Professional Accountants (CPA) Canada as of Friday.
Earlier:
China introduces new rule to tighten scrutiny on foreign accounting firms’ domestic operations [Reuters]
This is in direct response to that whole Evergrande thing.
China issued rules on Thursday to tighten scrutiny of foreign accounting firms’ domestic operations as Beijing seeks to rein in accounting failures and fraud. According to the new rules, which came into effect immediately, foreign accounting organisations are subject to “supervision and management” by the authorities including the finance ministry and public securities bureau. Foreign accounting firms’ units in China are also required to report to authorities their annual business planning and annual reports.
Technology
A bad experience with an accounting firm spurred this founder to start Aiwyn [TechCrunch]
This is basically an ad but it has an interesting figure about the accounting tech market:
According to Verified Market Research, the sector for accounting practice management software was worth $1.29 billion in 2024 and could reach $2.36 billion by 2031. Ninety-three percent of accountants believe that accounting firms making more use of tech are more likely to survive periods of high inflation and interest rates, per one poll.
Basis Secures $34M to Deploy AI Agents for Accounting Firms [Maginative]
“AI is kicking off a new industrial revolution that will transform every sector,” Basis wrote in a blog post announcing the funding. “We believe accounting is among the most important and foundational—and might happen the fastest.”
Audit
AICPA asks SEC to reject PCAOB rules that pose ‘significant challenges’ [Journal of Accountancy]
We don’t trust the AICPA so draw your own conclusions as to why they’re really against this.
An AICPA comment letter sent Thursday asked the SEC to not approve PCAOB final rules related to firm and engagement metrics and firm reporting. “We believe the recently adopted PCAOB rules will pose significant challenges for accounting firms, especially mid-sized and smaller firms, and may not achieve the intended benefits of improved oversight and audit quality,” Sue Coffey, CPA, CGMA, the AICPA’s CEO–Public Accounting, wrote in the comment letter. “Therefore, we respectfully urge the SEC to refrain from approving these rules. Instead, alternative approaches that better balance transparency, cost, and the needs of audit committees, while continuing to support the quality of audit services and choice of audit providers available to perform public company audits and serve the public interest should be pursued, rather than introducing potentially detrimental unproven regulations.”
Audit planning: Evolving peer review practices and insights [Thomson Reuters]
With the new Statements on Quality Management Standards (SQMS) effective December 15, 2025, audit firms must adopt a risk-based approach and enhance their systems of quality management. Early preparation is crucial to avoid compliance risks, operational disruptions, reputational damage, and financial losses. SQMS broadens “resources” to include human, technological, and intellectual resources. Firms must invest in training, technology, and methodological tools to maintain audit quality. Firms may utilize service providers when obtaining resources. However, many firms are unprepared, believing they have time. This underestimates the effort needed for risk identification, policy updates, and training. Delaying your firm’s preparation can result in peer review deficiencies, operational inefficiencies, and reputational damage.
Talent
Attention, firms! This is our weekly reminder to check out Accountingfly’s top remote accounting candidates of the week. Who knows, maybe your next great hire is among them?
What CFOs have the ‘best profile’? Those with both accounting and operational experience, says search expert [Fortune]
The debate over whether it’s more valuable to have a CPA or an MBA when aiming for a CFO position continues. Meanwhile, there is a high demand for CFOs who have finance or even investment banking backgrounds, coupled with experience in operations, leadership, and strategy. But that doesn’t mean companies aren’t seeking “reporting CFOs.”
Opinion
CPAs Deliberate on the Decline of Accounting [WSJ Opinion]
Some hilarious quotes here.
“Accountants can work investment-banking hours and enjoy the prestige of human resources. At least people are afraid of HR.”
Firm Watch
Seattle accounting firm Moss Adams makes acquisition [Puget Sound Business Journal]
Seattle-based accounting and consulting firm Moss Adams on Tuesday acquired New York City-based tech consulting firm Yurgosky Consulting.
Global accounting firm opens Fort Lauderdale office [South Florida Business Journal]
An accounting firm with offices in India and the eastern U.S. just opened its first Fort Lauderdale location in the 200 E. Las Olas Blvd. building. PKF O’ Connor Davies opened a 5,000-square-foot office in downtown Fort Lauderdale on Dec. 2 due to an expansion of business in South Florida, said executive chairman Kevin J. Keane.
Big 4
KPMG’s people team created a game to connect employees with their company’s culture [HR Brew]
From employee nicknames to flexible ways of working, people leaders are often tasked with coming up with new ways of creating culture, and connecting their workforce to it. At consultancy KPMG, the people team has a platform that aims to connect its 36,000 US employees to company culture efforts, according to Sandy Torchia, the firm’s vice chair of talent and culture. Called the Culture Champions Network (CCN), it was created in 2019 and is actively used by about 9,300 employees, or 25% of the company’s workforce. “It brings together people that raise their hand…and [are] really committed to leading the way as it relates to culture, and being an ambassador, and a role model for culture,” Torchia said.
Ernst & Young Accused of Helping Brooge Defraud SPAC Investors [Bloomberg Law]
Ernst & Young LLP helped Brooge Petroleum and Gas Investment Company FZE fraudulently entice investors into taking part in a merger transaction, a lawsuit filed in federal court says. EY played a “pivotal role” in Brooge’s scheme to defraud the investors in a 2019 special purpose acquisition company merger, the complaint filed Tuesday in the US District Court for the Southern District of New York says. A SPAC is a “publicly-traded shell corporation created to raise capital through an initial public offering (“IPO”) with the sole purpose of acquiring or merging with a private company,” the complaint says. Brooge is an oil-storage leasing company in the United Arab Emirates, the complaint says.
Meet the former R.I. lawmaker taking on Deloitte after the RIBridges cybersecurity attack [Boston Globe]
Peter Wasylyk has built a nice career out of filing class-action lawsuits. The former state representative from Providence has been the lead attorney on some of the most high-profile class-action suits in the state, including Blue Cross Blue Shield, where he helped clients win a $17.5 million settlement in 2005. He also helped thousands of drivers in Providence secure small refunds on their speed camera tickets in 2018. Now Wasylyk, who held office from 1985 until he lost a Democratic primary to current Representative Ray Hull in 2010, is at the center of another high-profile class-action lawsuit. He’s working with consumers to sue Deloitte Consulting following the cyberattack on the state’s public benefits system that Governor Dan McKee disclosed last week.
How Did RI End Up With Deloitte and a Failed Tech Infrastructure? [GoLocalProv]
For more than a decade, Rhode Island’s technology infrastructure for much of its human services and health systems has depended on one company — Deloitte. Over the years, the program, first called UHIP and then rebranded RI Bridges, has been marred by errors, lawsuits, and investigations. On Friday night, Governor Dan McKee held an unprecedented press conference in which he unveiled that the personal data of about 400,000 Rhode Islanders had been hacked. GoLocal spoke to one top cyber security expert, Rob Fitzgerald, early Saturday morning, who said, “It’s the worst possible time for an event like this to happen.” He said it may be one of the largest state government hacks in America.
