KEY ACCOUNTING INDUSTRY AND INSIGHTS UPDATES - OCTOBER 2022

1. IRS Sending Extra Refunds to 1.6 Million Americans in 2022

Many Americans may receive an extra refund this fall from the Internal Revenue Service. Those who were assessed a late penalty on their 2019 or 2020 tax returns will receive an automatic refund if they have paid those fees, or a credit if they filed and haven’t yet paid, the agency said. In total, about $1.2 billion will be refunded or credited. The agency says the goal is to provided relief to both individuals and businesses impacted by the pandemic, and also allow the IRS to focus its resources on processing backlogged tax returns and taxpayer correspondence to help return to normal operations for the 2023 filing season. Read more

2. PCAOB, China sign agreement opening door for inspections

PCAOB, China sign agreement opening door for inspections. The PCAOB on Friday took a significant step toward achieving its goal of holding public companies in China and Hong Kong that trade on the U.S. capital markets to the standards already enforced in other countries. The PCAOB announced it has signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the People's Republic of China. Read more

3. Employers added 315K jobs in August, including 1,700 in accounting

The economy gained 315,000 jobs last month, the U.S. Bureau of Labor Statistics reported Friday, although the unemployment rate inched up two-tenths of a point to 3.7%. One of the big winners was professional and business services, which gained 68,000 jobs in August, including 1,700 in accounting and bookkeeping services. Over the past year, the professional and business services sector has added 1.1 million jobs. Read more 

4. Tech News: Bloomberg launches Inflation Reduction Act resource

Bloomberg Tax launches an info page for the Inflation Reduction Act; SAP names a new CFO; and other news from the world of accounting technology. Partnerships and integrations CPACharge, which makes payments software designed for accountants, has entered a partnership with the Colorado Society for CPAs that includes 1,500-CPE course offerings, member networking, course offerings and on-demand e-learning selections. It also provides society members access to CPACharge. … ProNovos, an analytics and software firm aimed at construction subcontractors, and Somerset CPAs and Advisors announced an analytics partnership. Read more

5. CIOT calls on next PM to make ‘vital’ improvements to tax system

The president of the Chartered Institute of Taxation, Susan Ball, has written to both Rishi Sunak and Liz Truss setting out the institute’s views on what should be the new prime minister’s priorities for the tax system. In the letter, Ball sets out that given the “pressing public interest” in a better working tax system, the Chartered Institute of Taxation has identified three linked priorities which it believes are “widely supported” and that the new prime minister “must act upon”. Read more
 

6. AICPA Recognizes Innovative Accounting Educators
 

AICPA News is a round-up of recent announcements from the American Institute of CPAs and the Association of International CPAs. The AICPA has named the award recipients for the 2022 Effective Learning Strategies (ELS) Awards, given each year to college and university educators who develop unique and effective teaching tools for introductory, upper-division, and graduate courses. Read more

7. Proposed revisions to the AICPA tax standards

The AICPA released proposed revisions to the Statements on Standards for Tax Services (SSTSs) for public comment on Monday. The combined document includes revisions to the existing standards, three new standards, and an invitation to comment on the subject of quality management in tax. The SSTSs are the enforceable tax ethical standards that CPAs abide by and apply to all members providing tax services regardless of the jurisdictions in which they practice. Many state boards of accountancy also incorporate the SSTSs as part of their professional rules of conduct for CPAs. Read more 
 

8. Florida man pleads guilty to $100M crypto Ponzi scheme
 

The Department of Justice announced that Joshua Nicholas, a 28-year-old Florida man who acted as head trader for ostensible cryptocurrency platform EmpiresX, pleaded guilty to taking part in a Ponzi scheme that ultimately scammed $100 million from its victims. Nicholas admitted that, with several unnamed co-conspirators, his company claimed that it used an AI-powered trading bot that would maximize profits. In truth, however, if anyone ever did make money from the scheme, it came from the deposits of later investors, which is pretty much the definition of a Ponzi scheme. Read more 

9. Atlanta Firm Brown, Nelms Merges into Carr, Riggs & Ingram

Carr, Riggs & Ingram (CRI) will increase its investment in the Greater Atlanta area with the merging of Peachtree City-based firm Brown, Nelms & Co., P.C. Top 25 nationally ranked accounting and advisory firm Carr, Riggs & Ingram (CRI) will increase its investment in the Greater Atlanta area with the merging of Peachtree City-based firm Brown, Nelms & Co., P.C. “Brown Nelms and CRI share a strong commitment to serving the greater Atlanta area, extensive histories of exceptional client service, employee-focused cultures, and a dedication to forging growth in our profession,” stated Bill Carr, CRI’s managing partner and chairman. Read more 

10. FRC reveals new signatories to UK Stewardship Code
 

Signatories include the likes of Allianz Global Investors, Cohen and Steers UK Limited, J.P. Morgan Asset Management, NatWest Group Pension Fund, and Northern Trust Asset Management The Financial Reporting Council (FRC) has revealed the list of signatories to the UK Stewardship Code following its Spring 2022 assessment. It is reported that after the extensive review process which considered organisations’ investment styles, sizes and types, 43 new signatories were added, taking the total number of signatories to 236, with assets under management (AUM) of £40.7tn, an increase from £33.3tn. Read more 

11. SEC chair seeks increased regulation of cryptoassets
 

SEC chair Gary Gensler is calling on cryptoasset entities to register with the agency under current securities laws while referencing the possibility of new legislation. "Nothing about the crypto markets is incompatible with the securities laws," Gensler said. "Investor protection is just as relevant, regardless of underlying technologies." Gensler made the remarks as a part of The SEC Speaks in 2022, an annual event hosted by the Practising Law Institute. Read more

12. FASAB issues updates to technical releases
 

The Accounting and Auditing Policy Committee (AAPC) of the Federal Accounting Standards Advisory Board (FASAB) issued technical releases on Tuesday, including one on implementation guidance for leases. The issuance of Federal Financial Accounting Technical Release (TR) 21, Omnibus Technical Release Amendments 2022: Conforming Amendments, provides conforming amendments to four previous technical releases. Read more 

13. U.S. to start review of Chinese audit documents next week, Gensler says
 

U.S. watchdogs will review the audit documents of Chinese businesses that trade in New York starting next week, according to Securities and Exchange Commission Chair Gary Gensler. The inspections, which will take place in Hong Kong under a preliminary agreement reached between American and Chinese regulators, are a first step to avoiding the delisting of about 200 firms from U.S. markets. Their possible removal stems from Beijing's longstanding refusal to let the Public Company Accounting Oversight Board review the audit work papers of firms based in China and Hong Kong. Read more

14. Paychex Launches Voice-Activated Payroll Solution
 

Paychex, Inc., a provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, has announced an enhanced user experience to Paychex Flex, the company’s SaaS-based HR software solution, a new conversational artificial intelligence (AI) feature called Paychex Voice Assist. Paychex Voice Assist enables payroll admins to run payroll through any Google Assistant-compatible device for a hands-free experience, simplifying and automating the payroll process with the sound of a verified user’s voice. Read more 

15. Deloitte reports ‘record’ revenues of $59bn in FY22
 

Deloitte has welcomed record global revenues of $59.3bn (£50.8bn) for the fiscal year in FY22, a 19.6% increase in local currency against the prior year. In a seven-year period, Deloitte has seen its revenue grow by $24bn (£20.5bn), or 69%, in USD terms. Among its businesses, Consulting revenue grew fastest at 24.4% in USD, followed by Financial Advisory, which grew 22.1%. Meanwhile, Technology, Media and Telecommunications (TMT) was the fastest growing industry, followed by Financial Services. Read more 

16. Sage to acquire Lockstep
 

The acquisition does not affect Sage’s previously communicated financial guidance and is expected to close by the end of September. Accounting software company, Sage, has agreed to acquire Lockstep, a provider of cloud native technology that automates accounting workflows between companies. The acquisition of Lockstep is said to accelerate Sage’s strategy for growth by broadening its value proposition for small and medium businesses (SMBs) and by expanding Sage’s digital network. Read more 

17. Forvis acquires ProBank Austin
 

Forvis, a Top 10 Firm created by the merger in June of BKD and Dixon Hughes Goodman, made its first acquisition Monday, adding ProBank Austin, a firm that provides education, loan review, regulatory compliance, asset/liability and interest rate risk management, and capital advisory services to financial institutions, effective Oct. 1. ProBan Austin has offices in Nashville, Tennessee; Louisville, Kentucky; and Toledo, Ohio, and annual revenue of approximately $20 million. More than 50 professionals, including two managing directors, will join Forvis as part of the merger. Read more

18. IRS wins order for SFOX customer data in crypto tax push
 

M.Y. Safra Bank must produce information to the Internal Revenue Service about customers who may have failed to pay taxes on cryptocurrency transactions through prime dealer SFOX Inc., a U.S. judge ruled Thursday. The IRS requested the information to determine if taxpayers are reporting crypto profits and losses on their tax returns, according to a statement from Damian Williams, the U.S. attorney for the Southern District of New York.  Read more 

19. Boeing Will Outsource Finance and Accounting Jobs to India with Layoffs Coming
 

About 150 jobs nationwide will be cut in the first batch of layoffs, with more to come next year and thereafter. By Dominic Gates, The Seattle Times (TNS). Boeing told nonunion corporate staff in an all-hands virtual meeting this month that it will begin outsourcing finance and accounting jobs to Tata Consultancy Services of India. Boeing said Tuesday that about 150 jobs nationwide will be cut in the first batch of layoffs, with more to come next year and thereafter. The first layoff notices will go out in October. Read more 

20. Deloitte to hire over 6,000 new auditor & assurance professionals
 

Deloitte UK will invest more than £125m in the firm’s audit product and quality improvements, as well as on learning and development for the audit and assurance teams. Deloitte has announced it is set to hire more than 6,000 new people into the firm’s UK audit and assurance practice over the next five years. The news means that the firm will hire at least 1,200 new auditors and assurance professionals every year between now and 2027. Read more

21. Accounting and Finance Salaries Increasing, Says Report

The study found that demand for these roles is most acute in California, Texas, New York, Florida, Illinois, North Carolina, Ohio, and Georgia. According to a new report from Randstad USA, finance and accounting professionals remain in the driver’s seat of the labor market, with demand rising for roles like financial analysts and staff accountants. Other positions requiring similar skills that are especially in demand include accounting managers, controllers, and payroll coordinators/clerks. Read more

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