Good morning and welcome back after what I hope was a restful Labor Day. Now you can have a little news as a treat to get you back into work mode on this short week.
Consulting and auditing major Deloitte has rolled out a tough new rule for its senior leadership under which partners and executive directors who skip their annual health check-ups will now face steep penalties. According to a report by Livemint, this move underscores the growing focus of India Inc on employee health and well-being.
According to the report, at a meeting called by its Partners Matters team (which handles HR issues) on Friday evening, Deloitte told its top 1,000 leaders that health compliance is no longer optional. Partners who fail to undergo their annual medical check-up will be fined ₹1 lakh ($1,100 USD) , while executive directors will pay ₹50,000 ($567 USD).
More buyout shops could soon enter the audit sector as firms and investors line up talks with regulators to discuss potential takeovers.
An audit firm approached the Financial Reporting Council in June about potentially changing its capital structure, according to data provided to Financial News in response to a Freedom of Information Act request. An investor approached the FRC in July about a similar change, the data also shows. At least six such moves have been made over the past two years.
Financial Reporting Council = their PCAOB. So all deals are getting run through the regulators before anything’s official, I guess?
A newly released report from RSM Australia is urging companies to pay attention to governance blind spots to catch early warning signs commonly linked to fraud, ethical lapses and other compliance risks.
Based on the findings, the five main signs of a workplace culture at high risk of fraud, corruption or misconduct included a lack of regularly updated fraud and corruption risk assessments, absence of a fraud and corruption control policy, inadequate enforcement of unacceptable conduct, no assigned ownership of fraud and corruption risks, and an ineffective whistleblower program.
“Toxic and dysfunctional workplaces are bad for business and there is a strong link between weak organisational culture and misconduct, fraud and compliance failures,” said Dan Hutchens, a partner in risk advisory.
CFOs are overwhelmingly coming from inside the house, an abrupt shift from last year, reports Fortune:
There’s a dramatic swing toward internal promotions for CFOs, with external hiring of finance chiefs down almost 50%. Data from executive search firm Crist Kolder Associates’s summer 2025 Volatility Report, shared with CFO Daily, which covers data from 667 Fortune 500 and S&P 500 companies, highlights this trend.
Through July 31, only 28% of CFOs were hired externally—a stark contrast to last year’s 10-year high, when 47% of CFO turnovers were filled by candidates from outside the organization.
Illinois has finally released its audited Annual Comprehensive Financial Report (ACFR).
The bad news: It’s for the fiscal year that ended June 30, 2023.
According to the Government Finance Officers Association (GFOA), states should release these reports within 180 days of the fiscal year’s end. Illinois blew past that deadline—releasing its 2023 report a staggering 774 days late, setting a new national record.
The delayed release of Illinois’ 2023 Annual Comprehensive Financial Report (ACFR) left lawmakers and taxpayers without critical financial insights during key budgeting decisions. For instance, without access to audited financial data from the previous two years, Illinois still approved a record $55.2 billion budget for 2026, a $2 billion increase from the prior year. This lack of information risks overlooking hidden liabilities and revenue shortfalls.
Who’s gonna break that record next?
Virginia EMS should be getting better after an audit discovered things were pretty bad, reports local WRIC:
Nearly a year after an internal audit uncovered millions of dollars in fraud and mismanagement at Virginia’s Office of Emergency Medical Services (EMS), state health officials say the issues have been resolved, debts have been paid and new controls are now in place.
The 2024 audit revealed $33 million in unpaid debts and $4 million in fraudulent charges within the EMS office, including funds meant for local rescue squads and trauma hospitals.
Since the audit, the Virginia Department of Health (VDH) has overhauled leadership, implemented stricter procurement rules and restored critical funding to local EMS providers.
See, this is why government audits are a very important part of the social fabric.
Dr. Hickey, who recently retired as a Captain in the U.S. Coast Guard, most recently served as vice provost for academic administration and formerly served as dean of the School of Leadership and Management at the U.S. Coast Guard Academy.
Dr. Hickey has taught courses in financial accounting, managerial accounting, intermediate accounting, cost accounting, and federal budgeting. She is affiliated with the Association of Government Accountants and previously served as a reviewer for the Journal of Accounting Education.
Her research interests are in governmental financial reporting and accounting education.
Dr. Hickey has an MBA with a specialty in finance from Florida Atlantic University, and received her PhD in accounting from West Virginia University. Really makes you feel a bit lazy, doesn’t it?
This guy got promoted at his firm in Indiana and got a whole news story about it and everything. I really love these hyper-local stories, imagine how proud someone’s grandma is to see their baby’s career achievement in the paper? If that sounds like sarcasm I assure you it is not.
CLH, CPAs & Consultants has announced that Wyatt Stacy has been promoted to Senior Accountant in the firm. Wyatt initiated his career with CLH in 2022 as a staff accountant following his graduation from Valparaiso University, where he earned a bachelor’s degree in accounting.
Yeah, we knew. I may or may not have dabbled a bit in Vampire: the Masquerade in high school myself. Congrats, Wyatt!
The Treasury Department has given Axios a first look at the list of 68 jobs that qualify for a new tax deduction under the “no tax on tips” pledge in President Trump’s “big, beautiful bill.” You’re not on it, but you don’t make overtime anyway so it doesn’t matter.
And that’s it for this news brief. If you have a tip, have seen a story we should know about, or just want to talk you are always welcome to email or text with whatever it is, day or night. Why so many of you guys choose weekends to blow up my phone I’ll never know but it’s all good.
Political Heavy Hitters Take on College Bowls [NYT] Playoff PAC gets the Times treatment, “They are not just producing attack ad ng after the bowls’ finances. In complaints to the Internal Revenue Service, they have raised questions involving three of the four bowls that make up the five-game Bowl Championship Series about interest-free loans, high salaries, lobbying payments and lavish perks for some bowl executives. They have also made accusations about illegal campaign contributions.”
Lehman’s Repo-105 Auditors in U.K. Lose Shield From U.S. Accounting Probe [Bloomberg]
U.S. inspectors blocked from examining whether British auditors of Lehman Brothers Holdings Inc. improperly cleared questionable accounting will get access to the books under an agreement set to be announced today. Authorities in the U.S. and U.K. have settled a jurisdictional dispute that since 2008 has prevented the U.S. Public Company Accounting Oversight Board from reviewing British auditors of U.S. companies, according to a person familiar with the agreement and documents obtained by Bloomberg News.
Verizon Finally Lands the iPhone [WSJ]
The largest U.S. wireless carrier will make the long-awaited announcement at an event Tuesday in New York City, people familiar with the matter said. The phone will make its way to Verizon Wireless stores around the end of January, a person familiar with the matter said. The move will for the first time let U.S. consumers choose the network that carries their iPhone and perhaps give them additional pricing options that could affect their monthly bills.
PTINs a Pain for Some CPAs [JofA]
All paid tax return preparers, including CPAs, now must use a PTIN when signing all tax returns, forms or claims for refund (except for certain specified returns and forms—see Notice 2011-6), and must have obtained or renewed an existing PTIN to prepare returns after Dec. 31, 2010. In addition, persons who exercise discretion or independent judgment to prepare all or substantially all of a tax return, form or claim for refund (again, apart from certain specified ones) must likewise obtain or renew a PTIN, whether or not they sign the return, form or claim for refund. The PTIN requirement is part of the IRS’ broader effort to establish minimum standards for all paid tax preparers that will eventually include, for preparers who are not CPAs, attorneys or enrolled agents, testing and continuing education.
Gulbis confirms Johnson relationship [Fox Sports]
Sorry, guys.
Clifton Gunderson buys N.M. accounting firm [MJS]
Seventh merger for CG since May 2010.
China may launch first-ever property tax in Q1 [Reuters]
China is set to further clamp down on the country’s buoyant housing market by imposing a long-debated property tax for the first time in the southwestern city of Chongqing, domestic media reported on Monday. Chongqing has “in principle” won approval from the Ministry of Finance and may introduce the property tax as early as this quarter, the China Securities Journal cited the city’s government as saying.
Accountant accused of stealing from Libertyville Boys Club [LCNS]
Nots-so-pro-bono.
Hot job for the next decade? Try ‘accountant’ [CPA Success]
Great. More MSM articles about accounting being a hot career. Bright side: more GC readers!
My Top 10 Priorities for Improving Internal Auditing [IIA/Marks on Governance]
Aka: internal audit resolutions.
Public Offering Said to Be Unlikely for Zynga This Year [DealBook]
The company that brought you Farmville will remain focused on have people spend their investing dollars on their games rather than their stock. For now.
Playboy Agrees to Hefner’s Offer to Go Private at $6.15 a Share [Bloomberg]
Playboy Enterprises Inc., the owner of the namesake adult magazine and online properties, said it agreed to be taken private by founder Hugh M. Hefner for $6.15 per share. Hefner’s offer to buy the Class A stock and Class B shares he doesn’t own represents an 18 percent premium over the Class B closing price of $5.20 a share on Jan. 7, the company said in a statement today. Hefner said in July he would pay $5.50 a share in cash for the stock he doesn’t already own.
Corporate audit fees up? Beware of trouble ahead [Reuters]
A high or rising audit fee can indicate one of two things, experts say. Either the auditor is charging a risk premium, aiming to cover future legal costs to them of something going awry, or they may just be doing more work on the audit, digging into areas where results are uncertain. The studies’ findings come at a moment when regulators are considering requiring auditors to give out even more information. A proposal under consideration by the U.S. Public Company Accounting Oversight Board might have auditors disclosing more than the current minimal thumbs up or down. seem to be telling a valuable story.
U.S. Corporate Profit Rebound Loses Steam [Bloomberg]
Earnings per share for the Standard & Poor’s 500, excluding financial companies, rose 14 percent in the third quarter, the smallest gain since the end of 2009, analysts’ estimates compiled by Bloomberg show. That compares with 19 percent in the second quarter and 20 percent in the first. Analysts have begun reducing forecasts for the current quarter and beyond. S&P 500 futures rose today, indicating the index will extend last week’s rally.
Judge puts brakes on SEC’s Deloitte case [Reuters]
A federal judge on Friday put the brakes on the government’s attempt to quickly get documents related to possible accounting fraud at Chinese companies listed on U.S. stock exchanges. U.S. Magistrate Judge Deborah Robinson questioned whether she could force a Chinese unit of accounting firm Deloitte & Touche to hand over records to the U.S. Securities and Exchange Commission. In September the SEC asked the court to enforce a subpoena it sent to Deloitte seeking information about its Chinese unit’s audits of Longtop Financial Technologies Ltd, a Chinese company under investigation by the SEC.
Qwikster Is Gonester: Netflix Kills Its DVD-Only Business Before Launch [ATD]
While Netflix had to use some strained logic to explain its decision last month, this one is straightforward: It’s not going to force customers to use two different services to rent DVDs and streaming video, because customers hated that idea.
Surrey accountant completes two-thirds of run across US [BBC]
A Surrey accountant aiming to run 3,080 miles (4,957km) across the US to raise £10,000 for Help for Heroes is about two-thirds of the way into his route. Chris Finill, 52, of Cranleigh, has been running about 40 miles (64km) a day since he left San Francisco with athlete Steve Pope on 17 August. The pair, who plan to get to New York by 6 November for the city’s marathon, have just run through Iowa. They said gravel surfaces made recent runs a “nightmare” in a Twitter post.
Accountants Outpace CPAs in Job Listings [CPA Trendlines]
This doesn’t mean you can stop studying for the CPA.
Consistency in Accounting and Legal Discourses: The Overtime Cases [GOA]
Grumpies: “For several years battles have raged in several courtrooms concerning whether accounting firms have a legal obligation to pay junior accountants overtime. We are sympathetic to the position of the accounting firms, but worry about the soundness of their legal reasoning and conclusions. Do accounting firms have to be consistent in different domains? For example, does the logic in legal briefs and oral arguments have to be congruent with ethical principles and auditing standards?”
Practitioners Raise Concerns About Fingerprinting Proposal at IRS Hearing [JofA]
“We have serious concerns regarding the level of burden that the user fee regulations will place on CPA firms, particularly small and medium-size CPA firms,” AICPA Tax Executive Committee Chair Patricia Thompson, CPA, told the IRS panel. According to IRS estimates, 70% to 80% of those affected by the fees are operating as or employed by small entities. Thompson’s testimony focused on the fingerprinting requirement for nonsigning staff working under the supervision of a CPA, and she said the IRS should consider an alternative that would allow CPA firms to use a consumer reporting agency instead. Under that scenario, the costs per applicant would be significantly below what the IRS is likely to charge, and less burdensome to implement ,Thompson said.
Cain’s ‘9-9-9’ tax reform plan under fire from both left and right [OTM/The Hill]
Cain’s so-called “9-9-9” plan has liberals and tax analysts worried that the plan would not take in enough revenue, and that it would cause lower- and middle-income families to pay more. But conservatives have a different concern – that Cain’s plan to install a 9 percent national sales tax, paired with income and corporate taxes at that same rate, would give Democrats a brand new tax stream to try to squeeze out more revenue.
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Political Heavy Hitters Take on College Bowls [