KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – JANUARY 2023

1. PCAOB proposes new quality control standards

The PCAOB has issued proposed new standards for quality control (QC) systems and opened the 394-page document for public comment. Comments on the proposal will be accepted through Feb. 1, 2023. "Quality control systems set the foundation for how firms perform their audits, so making sure those systems are effective in today's economy is essential to protecting investors," PCAOB chair Erica Y. Williams said in a news release. Read More

2. Decimal acquires KPMG Spark

Decimal, a fintech company that handles bookkeeping and accounting operations for small and midsized businesses, has acquired the KPMG Spark cloud-based bookkeeping service and related assets from KPMG LLP. The acquisition expands Decimal's services and products for small businesses while adding key talent to its team. Through the acquisition, Decimal will be able to provide a more innovative bookkeeping platform to a broader set of small business owners. Read More

3. PCAOB chair promises renewed vigilance

Auditing firms can expect enhanced inspections and strengthened enforcement from the Public Company Accounting Oversight Board, warned Chair Erica Williams. "The board is approaching enforcement with renewed vigilance," she told attendees of the 17th Annual Audit Conference, held Tuesday by Baruch College's Zicklin School of Business. "Those who break the rules should know we won't be constrained by the types of cases the PCAOB has pursued in the past.” Read More

4. Florida Institute of CPAs Holds Disaster Recovery Event in Fort Myers

To continue supporting Florida residents who were affected by Hurricane Ian, the Florida Institute of CPAs (FICPA) held a Disaster Recovery Event on Monday, Nov. 28. The event took place from 10 a.m.-3 p.m. at FICPA member firm Stroemer and Company in Fort Myers. “During the past few weeks, our thoughts and prayers have been our everyone who is recovering from Hurricane Ian,” FICPA President & CEO Shelly Weir said.” Read More

5. SEC accepting Professional Accounting Fellow applications

The SEC's Office of the Chief Accountant (OCA) is accepting applications for Professional Accounting Fellow (PAF) positions that will begin in the summer of 2023. OCA is seeking candidates who can draw upon their significant experience in auditing the financial statements of, consulting with, or working for public companies as further described in its announcement. The announcement, which includes information about candidate eligibility and the application requirements for these positions, is available on OCA's homepage on the SEC's website at sec.gov. Read More

6. Crypto exchange Binance hires Mazars to verify reserves

Digital-asset exchange Binance Holdings Ltd. has appointed accounting giant Mazars to verify its token reserves, as the meltdown of its former rival FTX triggered increased demand for more transparency from cryptocurrency exchanges. A Binance spokesperson confirmed the appointment, which was first reported by The Wall Street Journal, adding that the company "is working with Mazars to conduct a third-party financial verification as part of the proof of reserves updates." Read More

7. Fannie Mae, Freddie Mac will back mortgages of more than $1 million in 2023

The federal government will be backing mortgages of more than $1 million for the first-time next year. In 2023, mortgage giants Fannie Mae and Freddie Mac will be able to purchase mortgages up to $1,089,300 in certain high-cost areas in the United States and up to $726,200 in the rest of the country, the Federal Housing Finance Agency announced Tuesday. Read More

8. Sikich to acquire Vonya Global

Sikich, a Top 50 Firm based in Chicago, has signed an agreement to acquire Vonya Global LLC, a consulting firm also based in the Windy City that specializes in corporate governance and internal auditing, with the deal expected to close Jan. 1, 2023. This move will enable Sikich to expand its offerings in its hometown, which is a priority market for the firm. The acquisition comes shortly after two other recent M&A deals in Chicago for Sikich, which announced plans last month to acquire O'Malley & Kwit, which specializes in taxes, and Accelerated Growth, an accounting, finance and technology consulting firm. Read More

9. Intuit rolls out new features for QBOA

During its QuickBooks Connect event, accounting and business software provider Intuit announced several new features for QuickBooks Online Accountant. Intuit also plans to eventually add a feature for custom roles with different permissions for different teams. Users will be able to choose from popular role types such as "Sales manager," "Payroll manager," or "Admin," or modify roles to meet the unique needs of their firms. Read More

10. PCAOB report analyzes reporting of critical audit matters

The PCAOB released a report Wednesday analyzing the impact of a 2017 standard requiring the identification and reporting of critical audit matters (CAMs) in audit reports. The interim analysis report, focused on auditors of non-large accelerated fliers (non-LAFs) and their implementation of PCAOB Auditing Standard 3101, found that the average number of CAMs per audit report has declined over time. Read More

11. $200 Billion Gone Due to FTX Collapse

After a year of experiencing the bear market with multiple dips and recoveries, we had expected to at least wrap up 2022’s bloody crypto year with stability and consolidation. This changed however, with the FTX collapse catalyzing the downward trend. But apparently, that was not the case. FTX, one of the largest centralized cryptocurrency exchanges, has filed for bankruptcy. We can predict that the impact will be devastating for the crypto market. Read More

12. Build It or Buy It: The Future of Technology in Accounting

Years ago, a Top 100 firm wanted to replace their existing document management system. After evaluating the available options on the market, firm leaders decided none of the off-the-shelf solutions quite fit their needs. So why not build their own? The firm invested over $1 million into building an internal document management system, and for the first few years, the investment paid off. After all, it was custom-built to the firm’s exact specifications. But as the years went on, the firm grew. Read More

13. Cherry Bekaert expands in Boston, Chicago

Cherry Bekaert has acquired growth and innovation firm Treacy & Co., expanding the North Carolina-based Top 25 Firm's presence in the Midwest and the Northeast. T&Co. has offices in Boston and Chicago, and consults with clients in a wide range of industries on growth strategies, drawing on founder Michael Treacy's three decades of research on business performance. Read More

14. New Jersey Society of CPAs Surpasses $35,000 in Donations for Annual Food Drive
The New Jersey Society of Certified Public Accountants (NJCPA) collected $35,627.50 in online monetary donations. The New Jersey Society of Certified Public Accountants (NJCPA) collected $35,627.50 in online monetary donations — its second highest — and 2,727 pounds of nonperishable items and canned goods for its thirteenth annual food drive this fall to benefit the Community FoodBank of New Jersey. Read More

15. PCAOB gains ‘complete access’ to audit firms in China

The PCAOB announced Thursday it has secured "complete access" for the first time to inspect and investigate audit firms in China, consistent with the access granted by other jurisdictions around the world. In August, the PCAOB and the China Securities Regulatory Commission and the Ministry of Finance of the People's Republic of China signed a Statement of Protocol to that effect. Read More

16. Forrestbrown launches new consulting services to support business innovation

Research and development (R&D) tax firm, ForrestBrown is extending the range of services it offers under its FB Consulting arm. The R&D tax specialist already offers end-to-end claim preparation for clients accessing the SME and RDEC tax incentives. FB Consulting builds on experience developed supporting R&D claims since ForrestBrown was founded in 2013. Led by ForrestBrown Director, James Dudbridge (pictured above), the team draws on the expertise of chartered tax advisers, accountants, lawyers and sector specialists with industry experience in R&D-intensive fields such as software, engineering and manufacturing. Read More

17. The Year Ahead: Top challenges for 2023

Given how long the war for talent in the accounting profession has been going on, it will come as no surprise that the majority of a panel of managing partners, thought leaders, consultants and other experts surveyed by Accounting Today as part of our annual "Year Ahead" program predicted that staffing will be the biggest challenge for accountants in 2023, and by a large margin. Read More

18. FASB defers sunset date of reference rate reform guidance

FASB extended the period of time preparers can use the reference rate reform relief guidance by two years on Wednesday, issuing Accounting Standards Update No. 2022-06, Reference Rate Reform (Topic 848), Deferral of the Sunset Date of Topic 848. The guidance in Topic 848 is expected to provide relief during the temporary transition period, so FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. Read More

19. 2023 brings lots of new to the IRS while keeping one problem: backlogs

The new year promises many changes for the IRS, including a new commissioner (nominated, at least) and billions of dollars to spend with just two months left to develop a plan for spending it. And one big and old problem: a backlog of mail and a backed-up phone system that leaves taxpayers and practitioners on hold and frequently drops the call even after a long wait. Read More

20. The SEC’s Crypto Crackdown Is Just Getting Started After FTX Blowup

SEC Chair Gary Gensler said in an interview on Thursday that the agency’s patience is wearing thin for digital-asset exchanges and other firms that shirk its regulations. Just hours earlier, the watchdog - which had already filed a lawsuit against FTX co-founder Sam Bankman-Fried — sued two more prominent crypto executives for their alleged roles in the collapse of the digital-asset exchange. Read More

21. Thousands of PwC staff to get 9% pay rise to offset cost of living

Thousands of PwC staff are to get a 9% pay rise in response to rising living costs and a competitive recruitment market, the accountancy giant has said. The company said half of its more than 20,000 employees in the UK would get an increase of at least 9%, while 70% would get a rise of 7% or more. With vacancies at a record high, many firms are offering pay rises to attract and retain staff. But ministers have warned big salary rises could further fuel price rises.  Read More

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