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Technology
Here’s What PwC’s New AI Head Thinks About AI at Work [AP via Inc.]
As artificial intelligence continues to grow at a rapid pace, more and more businesses are grappling with how to adapt both quickly and responsibly. Dan Priest is the new Chief AI Officer at PwC, one of the world’s largest consulting firms, where he works with companies across industries as they adopt this burgeoning technology both into their day-to-day operations and future business models. He says 2024 was all about proving what AI brings to the table—and expects 2025 will shift more into scaling it.
Bench to be acquired after abruptly shutting down [TechCrunch]
Bench, the VC-backed accounting startup that left thousands of customers locked out of their accounts after it suddenly shut down last week, will be acquired by Employer.com for an undisclosed price in a last-minute deal, TechCrunch has exclusively learned. The San Francisco-based HR tech company Employer.com focuses on payroll and onboarding, in contrast to Bench, which specializes in accounting and tax. Employer.com’s chief marketing officer Matt Charney told TechCrunch the company will revive Bench’s platform and provide instructions for customers to log in and obtain their data. Customers will be given the choice to port their data or keep their service under new ownership, Charney told TechCrunch. Bench’s previous recommendation to file for a six-month extension with the Internal Revenue Service to look for a new bookkeeper is no longer needed if customers decide to stay on, Employer.com confirmed.
The skills you need to thrive at work in 2025 [Financial Review]
PwC chief people officer Karen Lonergan said professionals would need to be curious and optimistic about AI to get the most out of it. She recommended they carve out time each week to think about how they can use AI tools to become more efficient.
M&A
Aprio Expands into Midwest with Acquisitions of KRD, Ltd. and Burkett & Beattie, Inc. [PR Newswire]
Aprio, the 25th largest business advisory and accounting firm in the U.S., announces the strategic acquisitions of two leading accounting firms, KRD, Ltd. and Burkett & Beattie, Inc. (B&B), both located in Chicago.
Grant Thornton in the US and Ireland close transformational transaction; create global multidisciplinary platform [Business Wire]
Grant Thornton Advisors LLC in the US (Grant Thornton Advisors) and Grant Thornton Ireland have closed their previously announced transaction to create a global multidisciplinary platform providing audit, advisory and tax services to a growing international client base. The new platform of roughly 12,000 professionals will include a united Trans-Atlantic advisory and tax practice, as well as independent audit practices. Its more than 50 global offices will span the US, Ireland and other territories. The new organization will continue to be part of the Grant Thornton International Limited network, which provides access to more than 150 markets globally.
Talent
Using podcasting to attract accounting talent [Journal of Accountancy]
Two Boise State University accounting professors created a podcast series to attract new talent by taking students on professional journeys. The series is called Journeys of Accountancy and features accountants who, for example, work for a CPA firm specializing in the legalized cannabis industry in California, an accounting software company that serves the funeral industry, and a company that provides compliance services to the gaming industry. Then there is the accountant who used to be an Air Force fighter pilot, and another guest who played in the National Football League before starting a career in accounting.
How return-to-office mandates could change in 2025, according to top HR leaders from PwC, EY, and Canva [Fortune]
“It’s no secret that being together in person fosters greater connection, collaboration, creativity, and development. While we’re increasingly seeing the pendulum swing back to being in the office five-days a week, we believe that hybrid will continue to be the norm in 2025. Reports have shown that hybrid workers demonstrate the highest levels of satisfaction, and hybrid schedules can allow for more purposeful engagements,” said Yolanda Seals-Coffield, chief people officer at PwC.
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Punishment Corner
PwC completes TPB-ordered punishment [Accounting Times]
PwC has completed its Tax Practitioners Board-ordered punishment after handing in its final compliance report to the regulator, marking the end of a two-year oversight process in the wake of the tax leaks scandal. The report, dated December 2024, said 1,084 partners and staff had completed online training courses on tax and ethics, including the recent TASA determination. PwC said it also took steps to “maintain and to refresh” its central confidentiality agreements register, mandated by the TPB to prevent a repeat of the actions of former partner Peter Collins.
Practice Management
Vision, Mission and Values: The Missing Links in Most Firms’ Strategic Planning [INSIDE Public Accounting]
Small firms aren’t doing it. Larger firms are more likely to do it, but many times they are combining why they exist as a firm with what they do and / or how they do it. That’s creating a vision statement, which describes where the firm is going, and a mission or ‘why’ statement that explains why the team gets out of bed on Monday morning excited to get to work. The last piece is a values statement that outlines how people behave within the firm and with clients. The Growth Partnership’s Charles Hylan advocates for firms to go through a formal process to define the firm’s vision, mission and value statements because they should guide every decision made by everyone from entry-level staff to partners and C-suite professionals, he said. It’s that important.
Data Breaches
Stolen info from RIBridges hack being posted to the dark web. What to know. [The Providence Journal]
As feared, the hackers who breached Rhode Island’s expansive, Deloitte-run public benefits computer system RIBridges have released “at least some” files to a site on the dark web, the governor’s office disclosed on Monday. “Right now, IT teams are working diligently to analyze the released files,” the governor’s office reported in a news release that went out at 11:52 a.m. “The state is working with Deloitte to generate the list of impacted individuals. Once we have that information, we will send letters to those individuals with instructions on how to access free credit monitoring,” the statement said.
Wonder CPA Firm Announces Data Breach Affecting an Unknown Number of Clients [JD Supra]
On December 12, 2024, Wonder CPA Firm PC (“Wonder CPA”) filed a notice of data breach with the Attorney General of Maine after discovering that an unauthorized party was able to access its computer network. In this notice, Wonder CPA explains that the incident resulted in an unauthorized party being able to access consumers’ sensitive information, which includes their names, Social Security numbers, dates of birth, and addresses. Upon completing its investigation, Wonder CPA began sending out data breach notification letters to all individuals whose information was affected by the recent data security incident.
To Be Continued…
Oh do we have things to say about this.
— Going Concern (@going_concern) January 3, 2025
Audit
Auditor Suits Threaten to Hobble Regulator’s Enforcement Powers [Bloomberg Tax]
Three lawsuits working their way through federal courts threaten to disarm the US audit board of its powers to police auditors responsible for vetting the financial accounts of US companies worth trillions in market value. Two anonymous accountants and an unnamed accounting firm have challenged the Public Company Accounting Oversight Board’s enforcement authority. They contend the board’s confidential disciplinary proceedings violate plaintiffs’ constitutional rights to a jury trial and due process. The challengers argue in part that the Supreme Court’s logic in its Jarkesy v. SEC ruling should apply to the PCAOB.
Public audits are falling behind throughout central Maine [Portland Press Herald]
Across central Maine, government agencies regularly seek the services of audit firms, which inspect financial records to ensure they are accurate and ensure financial procedures are being followed. But in recent months, local governments have been waiting longer and paying more for required financial statements. Without an up-to-date audit, as required by law, municipalities and school districts lose an important tool for keeping their budgets in line. This raises the question: If an audit is required by the state, but no one is available to complete it, what happens? “We don’t know,” Matthew Dunlap, Maine’s state auditor, said. Local entities, however, are starting to see the consequences as school and municipal audits are in some cases years behind.
Challenges and changes within the audit industry [Thomson Reuters]
Approaching 2025 and beyond requires a renewed commitment to evolution and innovation. Audit firms face a unique set of challenges. The addition of policies such as environmental, social, and governance (ESG) create new areas of interest for stakeholders and investors, the shrinking talent pool has firms looking to improve workflow by automating processes, and an increasing focus on compliance measures are affecting both auditors and clients alike. Not only do audit firms have to navigate these concerns internally; but they also must address them in their client work. Amidst these challenges, one constant remains for auditors: the importance of identifying risk.
SEC reinstates sanctioned accountant who botched an audit [Westfair Business Journal]
The U.S. Securities and Exchange Commission has reinstated an accountant who botched an audit that contributed to the 2019 demise of the College of New Rochelle. Now certified public accountant Christopher L. Stanley, 48, of Tarrytown, may prepare or review financial statements that are filed with the commission, according to a Dec. 20 order, but may not appear as a member of an audit committee or as an independent accountant.
Statement on SEC Approval of PCAOB Rule Amendment To Enhance the Usefulness of Audit Firm Registration Information [PCAOB]
PCAOB Chair Erica Y. Williams issued the following statement following the SEC approval of a PCAOB rule amendment enabling the Board to address situations in which a registered firm has ceased to exist, is nonoperational, or no longer wishes to remain registered, as demonstrated by its failures to file annual reports (via PCAOB Form 2) and pay annual fees for at least two consecutive reporting years. “We thank our SEC colleagues for their review and approval of this PCAOB rule amendment. The amendment approved today will not only make PCAOB registration information more useful for investors, audit committees, and other stakeholders, it will also help our organization use its staff time and resources more efficiently and effectively.”
