KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES — NOVEMBER 2023
EY refunds Santander £15m for poor service
The pitfalls of outsourcing critical financial crime projects to consultants have been exposed by EY’s failure to help Santander satisfy anti-money laundering regulatory demands, with the Big Four firm forced to hand back £15m.
Whiteman announces Cipfa departure
Rob Whiteman is to retire as chief executive of the Chartered Institute of Public Finance & Accountancy next summer, after more than ten years in the role. In a letter to the Cipfa board earlier today Mr Whiteman said he will leave the organisation at the end of June 2024, “very content with the progress made to create a modern and successful organisation that is financially secure with a strong voice”.
TC Group progresses M&A strategy with Baker Chapman & Bussey deal
Accountancy and tax advisory firm TC Group has expanded through a merger with Essex-based accountancy practice, Baker Chapman & Bussey, whose clients will be managed from TC’s office in Colchester. Read MoreDeloitte partners paid over £1M despite slowdown
Partners at the U.K. arm of Deloitte LLP will earn more than £1 million ($1.2 million) again this year despite a recent slowdown in demand.
UK and NZ audit bodies agree mutual recognition of audit qualification.
The MOURA will provide a process for auditors who have obtained professional audit qualifications in either the UK or New Zealand to apply for recognition of their qualification and audit rights in the other nation.
IPSASB proposes five-year strategy
The International Public Sector Accounting Standards Board released its proposed consultation paper for its strategy and work program over the next five years. Read MorePE-backed DJH Mitten Clarke completes two acquisitions
DJH Mitten Clarke, headquartered in Stoke-on-Trent, has been a portfolio company of European tech investment firm Tenzing since October 2022 and has now acquired Huddersfield firm Revell Ward, the Nantwich practice of Lyon Griffiths, and Haines Watts’ Altrincham office.
IRS makes progress on implementing the IRA
The law has 36 tax provisions affecting individual and business taxpayers and two more provisions related to IRS funding. It also includes 20 tax provisions that required the IRS to implement changes related to tax return processing for this year.
Taxpayer interest in IRS direct filing may be ‘overstated.’
Taxpayers’ eagerness to use free software provided by the Internal Revenue Service to file their taxes may be exaggerated because of how a survey was designed, according to a new report.
Trump complains he can’t hear accountant during fraud trial
Trump, accused of inflating the value of his assets by billions of dollars a year to dupe banks and insurers, isn’t required to attend the trial. But after unexpectedly showing up the first two and a half days, he decided to fly back to Florida, according to a person familiar with his plans.
Aprio to Merge in CPA Firm Antares Group
Top 30 accounting firm Aprio has struck a deal with fellow Georgia-based CPA firm Antares Group to merge on Nov. 1. Financial terms of the deal were not disclosed, but Atlanta-based Aprio will gain 100-plus team members and partners from Antares Group, as well as new offices in Conyers, GA, and Dedham, MA, as part of the deal.
Social Security to rise 3.2% next year
Monthly checks for the more than 71 million people receiving retirement or disability benefits in the U.S. will get a 3.2% increase next year, the smallest gain since 2021, reflecting a significant cooling in the rate of inflation.
IRS looks to shrink $688B ‘tax gap’ through increased enforcement hiring
The IRS is seeing a growing disparity between the taxes it’s supposed to receive each year, and the amount it actually collects — but expects increased hiring will reverse that trend in the coming years.
White House Blames Trump Tax Cuts for Helping 2023 Deficit Surge
The White House has blamed President Donald Trump’s tax cuts for contributing to a surge in the US budget deficit this year, laying down political battle lines as Republicans call for sweeping spending cuts to reduce government borrowing.
Microsoft plans to contest $28.9B in back taxes
Microsoft Corp. will appeal a decision by the Internal Revenue Service that the software maker owes at least $28.9 billion in taxes related to how it allocated income and expenses among global subsidiaries from 2004 to 2013. Read MoreEx-PwC Partner at Heart of Australia Scandal Gets Eight-Year Ban
Former PwC Australia partner Peter Collins was banned by Australia’s markets regulator from providing financial services for eight years. Collins is “not a fit and proper person to provide financial services” and it is in the public interest for him to be barred from working in the sector, the Australian Securities and Investments Commission said in a stats.
Deloitte Launches Innovative ‘DARTbot’ Internal Chatbot
Deloitte today announced its development and deployment of “DARTbot,” an internal chatbot powered by cutting-edge Generative Artificial Intelligence. DARTbot is capable of generating intelligent responses and providing valuable insights to support nearly 18,000 of Deloitte’s U.S. Audit & Assurance professionals in their daily tasks and decision-making processes.
FRC to strengthen auditor reporting on material misstatement risk
The Financial Reporting Council (FRC) has launched a consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators. Read MorePwC partners with ChatGPT-maker, to use AI chatbot for consultation
PwC partners with ChatGPT-maker, to use AI chatbot for consultation. PwC has partnered with OpenAI to offer AI-generated advice to clients, using the AI chatbot ChatGPT. The collaboration will allow PwC to provide consultation on complex issues such as tax, legal, and human resources.
KPMG to lay off around 6% of deal advisory employees
The layoffs is said to impact around 6 per cent of the 1,700-strong KPMG deal advisory team in the UK, the report said. The decision has been attributed to lower client demand. Accounting firm KPMG is planning to cut about 100 jobs in its deal advisory business in the UK, Reuters quoted a source as saying.
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