October 28, 2021

Friday Footnotes: New CPA Exam Rolls Along; (More) Big 4 Lawsuits; Meanwhile, on the Dark Web | 7.9.21

Content for redesigned CPA Exam takes shape [Journal of Accountancy] The AICPA released Wednesday a survey seeking feedback on the preliminary content proposed for the redesigned CPA Exam, which would be assessed in three sections that will comprise the Core of the Exam, plus material that would assess candidates’ knowledge in one of three Disciplines they choose under the new CPA Evolution licensure model. Stakeholders will be able to share their thoughts on the content that might be assessed in the Core and Disciplines.

What Tech Races Are Ahead for Accountants? [AccountingWEB] “[E]xpect social robots to become more sophisticated and prevalent in the next few years. The field seems to have reached a tipping point, with bots having greater interactive capabilities and performing more useful tasks than ever before,” says the World Economic Forum in pointing out that worldwide sales of consumer robots is expected to grow to $19 billion by the end of 2025, with more than 65 million robots sold per year.

KPMG denies alleged breaches, negligence after reported 1MDB lawsuit [Reuters] Audit firm KPMG PLT denied on Friday allegations of breaches and negligence in relation to state fund 1Malaysia Development Berhad (1MDB) and pledged to “vigorously” contest a reported $5.64 billion lawsuit filed against 44 current and former partners.
The suit filed by the Malaysian government, 1MDB and several subsidiaries alleged breaches of contract and negligence in KPMG’s audit and certification of 1MDB’s financial statements for the years 2010 to 2012, financial daily The Edge reported, citing a 148-page statement of claim.

Feds agree to pay $6.1M to create database for Capitol riot prosecutions [POLITICO] To take on the daunting task, the federal government has turned to Deloitte Financial Advisory Services, a firm prosecutors called “a litigation support vendor with extensive experience providing complex litigation technology services.”

Mattel execs, PwC hit with derivative suit over $109 mln tax error [Reuters] A Mattel Inc shareholder accused the toy maker’s executives and tax auditor PricewaterhouseCoopers LLP of making false statements in Mattel’s financial filings to cover up a $109 million tax error, according to a new derivative suit filed in Delaware Chancery Court.

GAO focused on upskilling workforce to handle ‘audits of tomorrow’ [Federal News Network] Emerging challenges include flagging improper payments amid the trillions of dollars in COVID-19 aid approved by Congress, as well as GAO having the capability to audit another agency’s AI algorithms and oversee increasingly large sets of agency data.

Swindler Sentenced to Federal Prison for $6.8M Securities Fraud Scheme [DoJ] A federal judge sentenced 45-year-old Christopher Matthew Meredith of Shawnee, Kansas to 14 years in federal prison today for his scheme to defraud investors of more than $6.8 million.

SEC Brings Insider Trading Charges Against Dark Web User ‘The Bull’ [Yahoo Finance] The Securities and Exchange Commission (SEC) has charged a 30-year-old Greek man with securities fraud and money laundering for allegedly selling insider trading tips on various Dark Web marketplaces. Between December 2016 and this February, the SEC says Apostolos Trovias, who used the screen name “The Bull,” claimed to be “an actual office clerk working in a trading branch” and sold stock tips to buyers through monthly and weekly subscriptions as well as one-off sales. Trovias also occasionally sold unpublished earnings reports for public companies.

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