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Firm Watch
Aprio to acquire RSM US LLP’s Professional Services+ Practice [Aprio]
Aprio and RSM US LLP, have entered into an agreement for Aprio to acquire RSM’s Professional Services+ (“PS+”) practice operating in the U.S. and Canada. The transaction is expected to close on April 30, 2025, pending satisfaction of customary conditions. Effective May 1, 2025, the PS+ practice will operate as part of Aprio. Dean Sengstock, current leader of the PS+ practice, will continue to serve as the leader of the practice and will join Aprio as a partner along with four other partners and more than 30 team members.
Andersen Global partners MMCA & Associates [International Accounting Bulletin]
Andersen Global has broadened its presence in Canada through a collaboration agreement with MMCA & Associates, a full-service accounting firm. MMCA & Associates is headquartered in Calgary, with offices in Edmonton and Banff.
Clients Are the Worst
Missed red flag: Accounting firm’s bill for audit help was way over budget [Vero News]
What, exactly, were the 26 City of Vero Beach Finance Department employees doing while state deadlines to file the city’s 2022-23 audit flew by, causing a loss of state revenue, the holding back of pension funds and leaving more than $32 million in grants in limbo? There has, to this point, been no explanation for why the audit – previously completed and filed annually with no apparent problem – was not completed on time a year ago, and still has not been finished. But one thing that now seems apparent is that national accounting firm Cherry Bekaert – which has long helped Vero Beach produce this audit each year – was not missing in action this past year when the audit was not filed.
Talent
We interrupt this Friday Footnotes to give you Accountingfly’s top remote accounting candidates of the week. These are handpicked accounting, tax, and audit professionals for hire ready to hit the ground running at your firm. If these don’t tickle your fancy you can sign up for Always-On Recruiting to get a fresh batch in your inbox every week. It’s free!
Tax
AI agents: Transforming the tax experience [PwC]
Our hybrid AI-human tax teams, for example, will be able to produce K1s in a day, something that used to take nearly two weeks.
Do IRS cuts mean you can make mistakes on your taxes in 2025? Some taxpayers think so. [USA Today]
In a March survey by Intuit Credit Karma, roughly one-quarter of taxpayers said they are less worried about errors on their returns this year because of the IRS cuts. Nearly half of those surveyed said they lack confidence in the agency’s ability to enforce compliance with the tax laws. A few taxpayers said they were considering not filing taxes at all. Among those citizens who have already filed tax returns and expect a refund, the survey found, nearly half worry the check will arrive late. The survey reached 1,003 Americans.
Related:
International
Romania’s accounting industry surpasses €1 billion [Business Review]
Romania’s accounting services industry exceeded the €1 billion threshold in 2023, marking an annual growth of 17%.
We Give Up Too
Just a few years into joining the world of work, 4 in 10 Gen Zers are ready to quit and survive on unemployment benefits instead [Fortune]
After dipping their toes into the working world and spending a handful of years on the job, many Gen Zers are ready to ditch climbing the ladder in favor of staying home and living off unemployment benefits. At least, that’s according to a new PwC report. The Big Four accountancy firm’s latest study warns that almost four in 10 young workers are considering exactly that, adding that 18 to 24 year olds are in danger of permanently drifting out of the jobs market. In comparison, just 10% of the general working population are actively planning on quitting their jobs for good.
Big 4
PwC delays payouts for departing partners in Hong Kong and China [Financial Times]
PwC has delayed payouts to recently retired partners in Hong Kong and mainland China as it navigates the financial fallout from its role auditing failed Chinese property developer Evergrande. Several equity partners who retired in recent months have yet to be repaid any of the capital they contributed when they joined the partnership, said four people with knowledge of the matter.
EY merges regions and announces new leaders in restructure, shows leaked memo [Financial News]
EY has created 10 geographical “super regions” worldwide and chosen senior staff to lead the new groupings. EY has now told partners what the 10 so-called super regions consist of and who they will be led by, according to a memo seen by FN.
Earlier:
SEC
Trump’s SEC nominee faces scrutiny on potential conflicts of interest [CFO Dive]
Sen. Elizabeth Warren, D-Mass., while questioning Atkins, noted that as SEC chair he “will be in a prime spot to deliver for all those clients who have been paying you millions of dollars for years.” She referred to Patomak Global Partners, a consulting firm founded by Atkins that has served financial institutions including digital-asset firms. Decrying “breathtaking” potential conflicts, Warren called on Atkins to “commit to a higher standard of government ethics.”
SEC, Watchdog Must Rethink Their Approach to US Audit Standards [Bloomberg Tax]
Allison Henry of PICPA writes:
The auditing profession has come under immense scrutiny in recent years, as the Public Company Accounting Oversight Board has dramatically increased enforcement fines, set an aggressive standard-setting agenda, and created a opaque audit inspection framework. This trajectory has created an environment where auditors focus more on satisfying regulatory checklists than exercising professional judgment. Worse yet, firms continue to leave the auditing sector—a look at annual market share analysis of audit engagements of SEC registrants shows that 19 firms left between 2023 and 2024.