Good morning, capital markets servants. It has now been two years since I jokingly remarked Big 4 firms would be swapping in rainbow logos over the weekend only to find no rainbows come Monday and, in some cases, no rainbows at all for the entire month of June. Will this year be the third year in a row firms quietly eschew Pride celebrations? Was it ever more than a token gesture? Does anyone actually care? Reminisce below.
In this news brief
Can I Interest You In a Technical Committee or Two
Fresh from Journal of Accountancy comes a little AICPA committee news:
Two AICPA senior technical committees issued proposed strategic plans for 2027–2030.
The Peer Review Board (PRB) and the Professional Ethics Executive Committee (PEEC) are accepting comments on their plans through Aug. 31.
If that’s your sort of thing, swing over to JofA and get informed.
“NASBA Sucks!”
A friend of mine reminded me last night via text message that I need to write up the stuff that’s happening with Blake Oliver and NASBA. If you’re not in the loop, check out his blog post: NASBA Told Me to Stop Criticizing Them. So I’m Writing This Blog Post.
See, this is why we’ve always liked him.
Blake thinks “the traditional model of CPE course development is backward” and has said as much, specifically at the AICPA Learning and Development Symposium. NASBA took issue with this and threatened to pull Earmark’s CPE sponsorship via snippy demand letter.
He writes:
NASBA’s director of compliance pointed to a clause in the sponsor agreement requiring sponsors to act in a manner that is “professional, appropriate,” and “reflects favorably on NASBA.”
On that basis, they’re asking me to “immediately cease making any unfavorable, unprofessional, or inappropriate comments” about them — or lose Earmark’s sponsorship.
NASBA hasn’t defined any of those terms. In practice, that means NASBA gets to decide which speech from CPE sponsors is acceptable.
Here’s the discussion on The Accounting Podcast, timestamped:
My friend’s 2 cents:
Comments are closed on the news brief by default but if you have comments about this you can email or text.
It Really Is Merger Mania These Days
The state societies are merging now. The boards and members of the state CPA societies in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont have approved a merger to form one regional organization: the New England Society of CPAs, effective July 1, 2026.
MassCPAs explains why they did it:
This member-first decision is made from a position of strength, focused on fulfilling a shared mission and serving members. While each of our societies is strong on its own, together, we can have a greater impact on members, communities and the profession we serve.
This merger will:
- Amplify our collective voice in advocacy through increased membership;
- Expand your peer network;
- Increase educational options;
- Strengthen pipeline efforts with the ability to reach more students and future CPAs;
- Enhance support, tools and your community while maintaining local connections you value; and
- Ensure long-term stability, relevance and sustainability.
As our profession confronts significant pressure that brings both challenges and opportunities, we believe we are better positioned to support our members by coming together. This is about defining our future, not reacting to it.
Additionally, merger and acquisition activity in the accounting profession has increased approximately 15% over the past two years. Data from the association sector reveals that close to half of associations are contemplating a merger in the next two to five years.
Current MassCPAs President and CEO Zach Donah, CAE will lead the New England Society of CPAs as President and CEO.
How Changing CPA Pathways Impact the Class of 2026
On the topic of rapid changes in the field, CFO Dive did something interesting about how changing CPA pathways rules are impacting people on the ground: CPA pathways: Class of 2026 weighs in
Like this ambitious student who felt it was too late to pivot:
Alexa Keating was a junior at the University of Richmond last year when Virginia passed the state’s new CPA education requirements. She vividly remembers her auditing professor starting each class by updating the students about the status of the CPA state legislation.
“He’d say, ‘Is anybody interested in this state?’ and if not he’d move on, and if they were he would cover it,” Keating said in an interview. “It was great.”
However, the rule change was a little late for Keating. She was already well on her way to completing the plan she drew up with her adviser for a rigorous course load enabling her to earn a bachelor’s degree and obtain all 150 hours of credit needed for the CPA credential in four years. Had the law changed earlier, she might have graduated in three years and used her fourth year to get a master’s. Instead, she stayed the course.
Korean CPA Bottleneck Builds Up
On the other side of the world in South Korea, fresh graduates are left twiddling their thumbs as they can’t find jobs:
Mr. A, who passed the Certified Public Accountant (CPA) exam last year, is currently spending his time studying English and how to use artificial intelligence (AI), among other subjects. This is because he failed to secure a position at an accounting firm where he could undergo practical training.
Under current law, even if one passes the CPA exam, they must complete at least one year of practical training before they can work as a full-fledged accountant. However, as accounting firms have reduced their hiring, a large number of individuals like Mr. A, who are unable to find training positions, have emerged as “unassigned CPAs.”
Mr. A said, “Due to AI advancements, the future for accountants is already uncertain, but after passing the exam, there isn’t even a place to accept me for training, leaving me in a situation like a duck egg on the Nakdong River.”
In Korea, the Financial Services Commission sets a yearly quota for new licenses. At the end of last year, 443 of the 1,200 candidates who passed the CPA exam hadn’t been able to find an apprenticeship. The Big 4 take on about 800 of them each year.
Florida Man Haunted By COVID Fraud
A Florida man previously convicted of 14 counts of COVID relief fraud found himself in a courtroom again and is headed to prison for two years, reports WFTV:
According to court records, Levelle Joseph Harris carried out a separate scheme between February 2022 and January 2023 to avoid paying his criminal forfeiture in the COVID relief fraud case.
Prosecutors said Harris obtained a mortgage through false representations, then used the proceeds to purchase the residential property and pay his criminal forfeiture.
Through the mortgage fraud scheme, Harris fraudulently obtained $640,911.85, according to prosecutors.
And that’s that for this news brief. As always, email or text if you have a tip or story, comment or complaint. Now go out there and have a lovely week, you.
