KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – JUNE 2023

1. PCAOB sanctions firm over QC:

The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order(PDF) sanctioning Israel-based Barzily & Co. Certified Public Accountants (“Barzily & Co.” or the “firm”) for violations of various PCAOB rules and standards. Read More

2. Biden wants to keep global freeze on digital services taxes:

The Biden administration is proposing to allies that they extend a coordinated freeze on new digital services taxes beyond its planned expiration at the end of this year, in a bid to avert a trade war among friends and keep alive a foundering global tax deal. Read More

3. Penalty for underpayment of estimated corporate AMT waived for 2023:

The IRS on Wednesday issued Notice 2023-42, which grants penalty relief for corporations that did not pay estimated tax in connection with the new corporate alternative minimum tax (CAMT), saying the move is "in the interest of sound tax administration." Read More

4. AICPA Expresses Strong Support for Bicameral Disaster Tax Relief Legislation:

The American Institute of CPAs (AICPA) is expressing strong support of bipartisan legislation introduced in both the House and the Senate which would modify the rules for postponing certain deadlines in the event of a disaster. Read More

5. A New Approach to Make Next Tax Season Go More Smoothly:

The accounting profession has been facing a staffing crunch brought on by fewer college graduates entering the profession and experienced tax practitioners transitioning to different careers in accounting. Due to the increasing demand for bookkeeping, taxes, compliance, consulting, and audits, especially with more people and businesses in the United States, tax season becomes increasingly difficult for short-staffed firms across the U.S. However, with the rapid evolution of technology, navigating the high-density workloads brought in annually by tax season can improve. Read More

6. EY works to retain young talent after failed split:

Ernst & Young has been trying to recruit more young people to join the accounting profession, but the recent cancellation of high-profile plans for splitting the consulting and audit sides of the global network has left the firm trying to quell uncertainty and resentment. Read More

7. AI in accounting: Promises and reality on the new frontier:

Artificial intelligence has dominated the spotlight for the past several months with its headline-grabbing abilities to generate text and images — and disrupt markets. Read More

8. Employers add 339K jobs in May, with 10.8K in accounting:

Employment climbed by 339,000 in May, beating analyst expectations of about 190,000 jobs, but the unemployment rate nevertheless rose by 0.3 percentage point to 3.7%, the U.S. Bureau of Labor Statistics reported Friday. Read More

9. House Ways and Means Set to Put GOP Tax Priorities Up for Vote Next Week:

The House Ways and Means Committee is preparing to consider a package of tax breaks for individuals and businesses next week, laying out GOP priorities ahead of potential bipartisan tax talks later this year. Read More

10. Corporations Get a Reprieve From the IRS on New CAMT:

The IRS and the Treasury Department said on June 7 that it will provide penalty relief for corporations that failed to pay their estimated tax liability under the new corporate alternative minimum tax (CAMT), which was created last year by the Inflation Reduction Act. Read More

11. IRS Proposes Rules on Energy Projects for Low-Income Areas:

The IRS and the Treasury Department issued proposed regulations on May 31 for applicants investing in certain solar- and wind-powered electricity generation facilities. Read More

12. AuditClub Announces New Quality Management Subscription:

AuditClub, the Audit Service Center and creator of the auditors-as-a-service model, has announced new solutions to help accounting firms succeed in navigating and implementing the AICPA’s new quality management standards. Led by AuditClub chief auditors, AuditClub Compass is a customized three-phase subscription journey built on a risk-based and scalable approach to quality. Read More

13. Wealth Management Firm Buys BerganKDV in ‘First of Its Kind’ Deal:

A wealth management firm, which had more than $210 billion in combined assets under management and advisement as of Dec. 31, 2022, went shopping recently and bought itself one of the 100 largest accounting firms in the U.S. Read More

14. FASAB committee proposes changes to guidance on leases:

The Accounting and Auditing Policy Committee (AAPC) of the Federal Accounting Standards Advisory Board (FASAB) released proposed updates to a technical release on leases. Read More

15. Public companies reining in costs, according to audit partners:

More public companies are reducing headcount capacity, and fewer are increasing employee compensation and benefits, according to a recent survey of audit partners conducted by the Center for Audit Quality (CAQ). Read More

Company Overview:

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