Comments are closed on Friday Footnotes and the Monday Morning Accounting News Brief by default. If you have something to say about any stories linked here you are welcome to email the editor, text us at 202-505-8885, or hit us up on Twitter @going_concern. See ya.
Law & Order
Former EY employee sues firm over dismissal after viral Israel speech [Financial Times]
Cecilia Culver, who was hired as an assistant economist by EY last year, claims her dismissal following her address last May breached her civil rights. Culver had used the speech at her George Washington University graduation ceremony to call on the school to disclose its financial investments and divest from companies she said were profiting from “genocide” in Gaza. An intense reaction online, with commentators variously praising her eloquence and bravery or dubbing her antisemitic, quickly drew attention to her five-month-old job at EY, which she landed after an internship the previous summer.
AI
AI-Focused Accounting Is Hindered by State CPA Licensing Laws [Bloomberg Tax]
Jack Castonguay writes:
The US’ antiquated licensure laws, which vary by state, haven’t kept pace with the changing nature of the profession. Take the state I am licensed in—New York. To be a licensed CPA in New York, you need 33 semesters hours of collegiate accounting credit, 18 of which must be in upper-level classes, and another 36 hours in business credits. So, a firm could hire a brilliant AI engineer or computer scientist with a master’s degree in their field, train them to become an expert in US generally accepted accounting principles, and yet that person would never be able to sign an audit opinion because they wouldn’t be CPA-eligible.
Firm Watch
Grant Thornton sale rounds the finish line [Financial Review]
It’s down to the short strokes for the sale of Grant Thornton Australia, Australia’s eighth-largest accounting firm by revenue, as 182 partners hold their breath. Street Talk reported in March that the firm’s American counterpart, Grant Thornton US, had begun active due diligence to acquire the Australian operation. Grant Thornton US is partly owned by New York’s $US60 billion ($85.3 billion) New Mountain Capital.
CBIZ names former Marcum exec chief information officer [Crain’s Cleveland Business]
A longtime Marcum executive who joined CBIZ Inc. through an acquisition has been named as the accounting giant’s new chief information officer. CBIZ announced it has promoted Peter Scavuzzo to the role of senior vice president, chief information and technology officer, effective May 1. He will succeed current CIO John Fleischer, who is retiring.
PwC partner income rises to $814,000 due to AI adoption, fewer staff [Financial Review]
PwC Australia increased average partner income to $814,000 in 2025, up 6 per cent on the previous year despite the accounting firm’s profit dipping 2 per cent to $608 million, as the rollout of artificial intelligence capability boosted efficiency. The result, the second consecutive year of pay growth for partners amid falling earnings, reflects a shift in the firm’s operating model as increased use of AI and a reduced partner and staff headcount help increase margins.
BDO to reduce senior partners clearing path for younger staff [Consulting.uk]
While the firm is still looking to push ahead with its own technological innovation programme, it is also planning to cut around 6% of its total partner headcount. As reported by the Financial Times, the firm is set to cut 31 partners – many of them senior members, who were expected to retire soon, or were hires from rivals – as it looks to make room for younger staff.
Audit
Martinsville ex-city manager used taxpayer funds for lavish travel, meals [ABC13 (Virginia)]
Martinsville’s government is facing renewed scrutiny after a forensic audit found the former city manager used taxpayer money on what auditors described as lavish hotels, dinners and transportation — including high-dollar meals and hotel stays that lacked clear justification. The audit by Brown Edwards reviewed 307 purchases made by former city manager Aretha Ferrell Benavides using the city’s purchasing card. Auditors found 22 percent of those purchases had no review by anyone other than Benavides.
SEC Chief Enforcement Accountant Confirms SEC to Staff New Enforcement Group Targeting Auditors and SOX Compliance [JD Supra]
The SEC has announced the creation of a new enforcement team focused on auditing-related misconduct, signaling heightened scrutiny of auditors and potential SOX violations. The new unit—referred to as the “SOX Group”—will sit within the SEC’s Enforcement Division and is intended to investigate and litigate violations of SOX auditing standards and related provisions. The SEC has begun openly recruiting enforcement personnel for the group, signaling that this initiative is intended to play a sustained and meaningful role in the Commission’s enforcement program. Speaking on a Practicing Law Institute (PLI) panel titled “Audit Committees, Special Committees, and Internal Investigations 2026,” Ryan Wolfe, chief accountant, Division of Enforcement, noted that the SOX Group was seeking to hire accountants and attorneys with specialized knowledge of auditing standards and other relevant securities laws.
PCAOB changes could reshape accounting malpractice risk [Reuters]
QC 1000 is likely to have significant implications for auditor malpractice claims, but it is not yet in force.
Tax
IRS Builds Awareness to Encourage Whistleblower Reports [Tax Notes]
The Internal Revenue Service today issued a Whistleblower Alert highlighting an area of concern about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses, and urged the public to provide information. “Whistleblower Alerts are a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of noncompliance,” said IRS Chief Executive Officer Frank J. Bisignano. “We are expanding how we identify potential fraud, and these alerts will help connect us with individuals who can provide credible, timely information.”
IRS launches online tool to help taxpayers manage tax debt [Journal of Accountancy]
The Tax Debt Help tool debuted Thursday, the day after the end of the filing season. It’s designed to provide businesses and individuals with an easy way to research payment options and find what they should do next, the IRS said in a news release. The tool “shows the transformation underway at the IRS and the progress the agency has already made to deliver more user-friendly, digital-first services to taxpayers,” IRS CEO Frank Bisignano said in the release.
IRS Releases Rules for Enrolled Agent Exam Fee Reduction [Bloomberg Tax]
The Treasury Department and IRS released an interim final rule and proposed rule related to reduced fees for the special enrollment examinations for enrolled agents. The fee per part is dropping from $99 to $66, according to the rules.