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Law & Order
Whittlesey On The Hook? Court Says Fired CEO Can Sue For $1.2M Over Accounting Advice [CU Today]
A Connecticut trial court judge has ruled that Whittlesey PC—the state’s largest accounting firm—must face a lawsuit brought by the former CEO of Sound Federal Credit Union, who claims he was fired for following the firm’s accounting advice regarding a $1.2 million property sale, Law360 reported.
NW Kansas CPA admits to multimillion dollar fraud scheme [Hays Post]
A Northwest Kansas businessman pleaded guilty to various charges related to defrauding clients of his accounting firm by falsely claiming money he had stolen was being used to pay business expenses. He wrote multiple checks and initiated wire transfers totaling approximately $409,710 to Middle Finger Ranch under the guise of being payments for farm operations. Middle Finger Ranch is a fictitious business name that Flanagin connected to his personal bank account. Flanagin actually used the illegally obtained funds to pay for the construction on his new home.
AI (and”AI”)
PwC is training junior accountants to be like managers, because AI is going to be doing the entry-level work [Business Insider]
We all know what “AI” actually means.
New hires at PwC will be doing the roles that managers are doing within three years, because they will be overseeing AI performing routine, repetitive audit tasks, Jenn Kosar, AI assurance leader at PwC, told Business Insider in an interview. “People are going to walk in the door almost instantaneously becoming reviewers and supervisors,” she said. “Three years from now, we will feel like the first years are functioning more like fourth years,” she said. “We will look back and say, ‘Okay, these young people feel more like the managers of my day.'”
AI Boosts Chances White-Collar Jobs Are Eligible for Overtime [Bloomberg Law]
AI’s rapid adoption to automate routine job tasks almost doubled over the past two years, with the highest users in sectors like technology, professional services, and finance, a recent Gallup survey found. But use of the technology for functions that traditionally require human discretion or independent judgment could knock those workers outside the Fair Labor Standards Act’s exclusions from overtime pay, wage-and-hour attorneys said. The 1938 law has one carveout for executive, administrative, and professional workers that’s based, in part, on their duties.
Professionals worry their organisations could fall behind in AI [FM]
Corporate reporting professionals who said they are confident in their organisation’s ability to use AI were roughly twice as likely to say their company had high-quality data (39% vs. 21%), AI governance and security policies (37% vs. 23%), and role-specific training (36% vs. 18%). Those challenges are affecting professionals using AI in daily workflows, the report added, with almost half concerned about the reliability of AI outputs (49%) and security or legal risks (45%) from AI use.
Taxpayers cannot risk automation without clear rules of the road [The Hill Opinion]
Former U.S. congressman from Pennsylvania Ryan Costello writes:
For certified public accountants, AI is a powerful tool with great potential to enhance efficiency; however, its implementation requires a thoughtful approach. For taxpayers, AI presents many compelling use cases but raises unsettling questions about accuracy and privacy. Ultimately, overreliance on AI, particularly in areas requiring professional expertise and judgment, poses risks for both CPAs and the taxpayer. This emerging technology in the accounting field requires careful use, but there are still no clear rules of the road for CPAs.
Mergers & Acquisitions
Aprio Adds New Jersey-Based DeFalco & Co, CPA, Strengthening Tri-State Market Reach [PR Newswire]
Founded in 1971 by Louis DeFalco, DeFalco & Co, CPA offers a full suite of services including tax planning and preparation, business accounting and advisory, estate and trust consulting, and litigation support. As of August 1, 2025, the firm officially joined Aprio, adding Managing Partner Philip A DeFalco, CPA, along with Nick Visaggio, CPA, and Walter Fitzsimmons, who joined as partners, as well as a team of 11 professionals.
Big 4
Deloitte Wins $115M Contract to Train DoD Cyber Defenders [Clearance Jobs]
Deloitte Consulting LLP, Arlington, Virginia, was awarded a ceiling $115,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity contract for the Department of Defense (DOD) Cyber Crime Center Cyber Training Academy follow-on. This contract provides for cyber training to Air Force and other DOD entities and personnel whose duties include defending DOD information systems from illegal, unauthorized, or counter-intelligence activities.
EY promotes Adam Blaylock to head of San Jose office [Consulting.us]
Blaylock, who has been at EY for 24 years, succeeds Donoghue Clarke, who led the San Jose office since 2022 and is transitioning to a different role at the Big Four accountancy. Blaylock will lead a team of 1,000 professionals in San Jose.
EY beats BDO to win lucrative Revolut audit contract [Financial Times]
BDO warned in 2023 that it had been unable to fully verify Revolut’s 2021 revenues because of issues relating to the company’s internal controls, a move that contributed to a three-year wrangle between the fintech and UK regulators as it attempted to secure a banking licence. Some of the company’s accounts were also published late as it strained to provide the information required by auditors to sign off on the accounts.
Talent
Attention, firms! If you’re hiring, you’ll want to check out Accountingfly’s top remote accounting candidates of the week. Your next spreadsheet genius might be right here:
Local News
Florida CFO accuses some local governments of scrubbing records before DOGE audits [WUSF]
Speaking to reporters on the steps of Jacksonville City Hall, state CFO Blaise Ingoglia alleged, without presenting evidence, that “multiple sources” told his office that local officials are digitally eliminating key words and phrases to make it more difficult for DOGE auditors to locate documents on city and county programs.
Audit: Ex-Henry County park superintendent altered invoices to Walmart and Amazon [WRTV (Indiana)]
The altered invoices indicated purchases of lights, equipment and vehicle repair parts but auditors found the money was actually used for food, clothing, Apple AirPods, PlayStation 5 Games, toys, a coffee table, a cookware set, decorations and gift cards.
Employee fraud and negligent data entry cost NC town $210,000, auditor finds [The News & Observer (North Carolina)]
A wide-ranging investigation into the Town of Mount Olive by the office of State Auditor Dave Boliek found that hundreds of water cutoff fees issued to people who failed to pay their utility bills on time last year were improperly voided, leaving water service intact — including for two employees at the town’s water department and a sitting town commissioner.