Audit and Accounting - Recent Threads

PCAOB to Seek Public Input on Standard-Setting Agenda for First Time

Neil Vicente — Mon, 18 May 2026 12:29:14 GMT

The Public Company Accounting Oversight Board (PCAOB) will, for the first time, issue a public consultation document to seek input on its standard-setting agenda. It is expected to be released in June, when the board publishes its strategic goals, which are currently exposed for public comment, new Chairman Demetrios Logothetis said.

“This consultation seeks input on more than just priorities for standard-setting projects. It will seek recommendations to improve the overall standard-setting process, including how to effectively collaborate with and engage international standard-setters,” Logothetis said on May 6, 2026, at the meeting of the Standards and Emerging Issues Advisory Group in Washington. “Your feedback is important and will help us prioritize our work. I encourage you to please be candid about what you are seeing and what requires our attention.”

To dig deeper, visit the original article on the Thomson Reuters blog.

AI’s Latest Accounting Problem: Getting a Laugh

Neil Vicente — Mon, 18 May 2026 12:25:28 GMT

Artificial intelligence is pushing deeper into accounting, taking on work once reserved for junior staff, technical specialists and corporate reporting teams.

But at least one part of the profession is proving harder to automate: the jokes.

Former Financial Accounting Standards Board member Marc Siegel tested that limit on May 7, 2026, telling accountants in Manhattan that he had asked AI to help him prepare jokes as he took over as chair of Baruch College’s annual financial reporting conference.

The result, he suggested, should reassure anyone worried that machines are about to replace the profession’s human touch.

To dig deeper, visit the original article on the Thomson Reuters blog.

What Is the Status of the ACA’s Insured Health Plan Nondiscrimination Requirements?

Nageshwaran Gopal — Mon, 11 May 2026 16:31:38 GMT

QUESTION: We recall that the Affordable Care Act (ACA) requires insured group health plans to satisfy nondiscrimination rules similar to those that apply to self-insured plans under Code § 105(h) (the eligibility and benefit tests). What is the status of those rules? Are employers that sponsor insured plans required to comply with them, and if so, when?

ANSWER: Under the ACA, insured group health plans generally must satisfy the nondiscrimination rules of Code § 105(h)(2), including “rules similar to” those in Code § 105(h) regarding nondiscriminatory eligibility, nondiscriminatory benefits, and controlled groups. The Code § 105(h) rules pre-date the ACA, prohibit certain discrimination in favor of highly compensated individuals, and apply only to self-insured health plans. The ACA applied similar requirements to insured plans, other than those that provide only excepted benefits or qualify for grandfathered status.

To dig deeper, visit the original article on the Thomson Reuters blog.

Mid-year audit tech reality check: Is your technology delivering on its promises?

Nageshwaran Gopal — Mon, 11 May 2026 16:12:22 GMT

Before the 2027 busy season pressure mounts, use this mid-year moment to honestly assess whether your audit technology is delivering efficiency and quality, or just adding complexity.

Highlights

Mid-year audit technology assessment helps identify gaps before the 2027 busy season.
Key evaluation areas include workflow efficiency, staff productivity, compliance, and integration.
Strategic technology adoption drives audit quality, staff satisfaction, and competitive advantage.

To dig deeper, visit the original article on the Thomson Reuters blog.

Accounting for AI and automation: How to elevate your tax tech stack today

Nageshwaran Gopal — Mon, 11 May 2026 16:07:56 GMT

You'll discover:

Where most firms are already falling behind. Fewer than one in four tax and accounting firms use AI — and the gap is compounding fast.
What "watch and wait" is really costing you. Delayed adoption isn't playing it safe. It’s a slow bleed.
How to shift from compliance to advisory and get paid for it. Automation frees your team to deliver the year-round services clients are demanding — and willing to pay a premium for.
Why your tech stack is now a talent strategy. The next generation expects modern tools on day one. Your technology investments can be powerful recruiting and retention advantages.

To dig deeper, visit the original article on the Thomson Reuters blog.

Temporary Dyed Fuel Refund Regs Issued, IRS Seeks Comments

Nageshwaran Gopal — Mon, 11 May 2026 16:00:02 GMT

Background

The federal excise tax under IRC § 4081 is imposed on the removal of taxable fuel from a terminal. In some industry situations, previously taxed clear fuel is returned to the bulk transfer/terminal system and then removed a second time. While a refund mechanism has long existed for fuel that was taxed twice for taxable uses, there was previously no method for a taxpayer to recover the first tax if the fuel was later dyed and removed for a nontaxable purpose.

To address this, the One Big Beautiful Bill Act (OBBB) added IRC § 6435. This provision establishes a statutory refund mechanism for fuel removed on or after December 31, 2025. After the law’s passage, the IRS issued Ann. 2026-1, which requested that taxpayers hold any claims under the new law until formal guidance could be developed and released. This new set of regs provides that anticipated guidance.

To dig deeper, visit the original article on the Thomson Reuters blog.

How agentic AI and new tax and audit research tools will shape 2026

Neil Vicente — Mon, 04 May 2026 12:48:25 GMT

For centuries, tax and accounting professionals have shared a fundamental challenge: efficiently finding, evaluating, and applying the right information to support defensible professional judgment. While our profession has evolved dramatically — from handwritten ledgers to cloud-based platforms — that core pursuit remains constant.

The history of tax and accounting work closely mirrors the broader evolution of search itself. From early classification systems to today’s AI-driven, context-aware tools, we’ve moved beyond simply retrieving information. The most advanced systems now help professionals work more strategically.

Understanding this parallel evolution reveals why tax and accounting firms are approaching another critical inflection point in 2026, where search no longer sits beside our work but becomes integrated into how professional judgment gets executed.

To dig deeper, visit the original article on the Thomson Reuters blog.

In Accounting, Tough Review Is Part of the Job. But How Tough Is Too Tough?

Neil Vicente — Mon, 04 May 2026 12:45:26 GMT

Shayne Kuhaneck still remembers the review that could have ended his accounting career before it really started.

Nearly 20 years ago, Kuhaneck was a junior staffer at the Financial Accounting Standards Board, trying to prove he belonged among some of the sharpest technical accountants in the country. Then his first big technical memo came back from an International Accounting Standards Board director with a line brutal enough to stop a career cold.

“Halfway through reading this memo I lost the will to live,” the director told him.

Then came the kicker: “I think it needs some work.”

Kuhaneck, now chief accounting officer at Rippling, recently shared the story on LinkedIn. His verdict today: the comment was harsh—but not wrong.

“That was rough,” he wrote. “But he was right.”

To dig deeper, visit the original article on the Thomson Reuters blog.

PCAOB Chairman Logothetis Plans Overhaul of Audit Inspections to Protect Investors

Neil Vicente — Mon, 04 May 2026 12:40:25 GMT

Emphasizing that the audit inspection program is the most important aspect of the Public Company Accounting Oversight Board (PCAOB), new Chairman Demetrios Logothetis stated that the board will revise and modernize its inspections process to better protect investors.

During his first public appearance before the PCAOB’s Investor Advisory Group at board headquarters in Washington, D.C., on April 29, 2026, Logothetis said that his efforts are guided by one central question: Why does the PCAOB exist?

The board was created by Congress to prevent another accounting scandal like those that toppled companies such as Enron and Worldcom, causing investors to suffer massive losses more than two decades ago. Among other regulatory activities, the PCAOB’s audit inspection program has been credited with improving audit quality over the years.

To dig deeper, visit the original article on the Thomson Reuters blog.

Acronyms Help Accountants Work Faster. But Are There Too Many?

Nageshwaran Gopal — Mon, 27 Apr 2026 12:21:25 GMT

Inside the profession, those terms are standard shorthand—efficient, precise and familiar to anyone trained to read them. Outside it, they can sound more like code than communication.

That gap matters as the profession tries to attract students and reassure business audiences that accounting is not only essential, but understandable. Long before newcomers master revenue recognition, lease accounting or stock compensation, they often have to learn a dense vocabulary of acronyms, abbreviations and common words repurposed into technical terms.

Ray Pfeiffer, professor of accounting in the School of Management at Simmons University, said that shorthand exists for a reason. Acronyms and abbreviations, he said, “provide efficient means of communication among experts in a field.”

The problem is that efficiency for insiders can create friction for everyone else.

To dig deeper, visit the original article on the Thomson Reuters blog.

Accounting firm succession: Building value with advisory services

Nageshwaran Gopal — Mon, 27 Apr 2026 12:12:46 GMT

Highlights

Expanding into advisory services increases firm value, succession options, and staff engagement for accounting professionals.
Modern tax advisory technology enables gradual, scalable service expansion without disrupting client relationships or firm operations.
Building advisory capabilities creates a transferable legacy, attracting successors and supporting long-term firm growth.

To dig deeper, visit the original article on the Thomson Reuters blog.

West Virginia Enacts Defined Audit Disclosure Rules, Replacing General Rule

Nageshwaran Gopal — Mon, 20 Apr 2026 14:55:48 GMT

List of Protected Materials

Under the new statute, the Division cannot be required to disclose:

audit manuals (for internal bench audits and external field audits), audit and examination guidelines, and audit procedures, guidelines and algorithms;
personnel training manuals and training materials,
scoring and risk assessment models used in audit selection;
audit selection criteria, fraud check materials, thresholds, procedures and methodologies;
internal policy manuals related to audit and enforcement procedures;
data analytics models and methodologies used in compliance evaluation;
procedural workflow documents or other nonpublic resources used by audit personnel; and
applications for licensure, licenses and other information relating to telemarketer registration.

To dig deeper, visit the original article on the Thomson Reuters blog.

Are Further Tax Changes Possible in Reconciliation 2.0?

Nageshwaran Gopal — Mon, 20 Apr 2026 14:22:28 GMT

The likelihood of further Republican-backed tax law changes is in flux as GOP leaders pursue a second reconciliation bill — however, the primary aim of that bill is funding the Department of Homeland Security (DHS).

The possibility of passing further tax legislation as a follow-up to last year’s One Big Beautiful Bill Act (OBBB) has gone from nearly zero to being “in the equation,” PwC’s Rohit Kumar said during an April 8 briefing. He explained that a dispute over Department of Homeland Security funding has prompted Republican leadership to pursue a budget reconciliation bill, but “there’s a real question mark about whether or not tax is going to be a component.”

Just a few weeks ago, the consensus view was that 2026 would be a “pretty slow year for tax,” said Kumar. Following a major tax bill in 2025, many assumed the Tax Code was likely to remain stable for the foreseeable future, he explained.

Now, said Kumar, “Congress is having an honest-to-goodness conversation about another reconciliation, which seems extremely likely to happen in one form or another.” But whether tax will find its way into the effort — and if so, what specific tax issues will be addressed — remains unclear.

To dig deeper, visit the original article on the Thomson Reuters blog.

Final Rule on Tips Deduction Released

Nageshwaran Gopal — Mon, 20 Apr 2026 14:19:44 GMT

Tips Deduction

The OBBB provides a temporary, new deduction for “qualified tips,” defined as “cash tips” received by individuals in an occupation that “customarily and regularly” received tips as of December 31, 2024. The deduction, set forth under IRC § 224, is limited to $25,000 per tax year and phases out for higher-income taxpayers. It is available for the 2025–2028 tax years.

To qualify for the deduction, the taxpayer must have received tips that were paid voluntarily. In addition, the deduction is not available for taxpayers who receive tips in the course of a specified service trade or business, as defined in IRC § 199A(d)(2).

The final rule largely tracks a September 2025 proposed rule (REG-110032-25), with clarifications and limited additions.

To dig deeper, visit the original article on the Thomson Reuters blog.

Small accounting firm tech adoption: The secret superpower that large practices can’t match

Neil Vicente — Mon, 13 Apr 2026 12:33:24 GMT

Small accounting firms operate with a fundamental advantage that no amount of capital can replicate: organizational cohesiveness. While large and mid-sized firms struggle with siloed departments, bureaucratic approval chains, and resistance from entrenched stakeholders, small firms can pivot on a dime. Everyone knows everyone, communication flows freely, and decisions that might take months at a Big Four firm can happen over a lunch meeting.

That cohesion translates directly into successful small accounting firm tech adoption. When a managing partner at a 5-person firm decides to implement a new automation solution, they don’t have to navigate through layers of regional managers, technology committees, and change management consultants. They’re talking directly to hands-on users, gathering real-time feedback, and making adjustments as needed.

To dig deeper, visit the original article on the Thomson Reuters blog.

Cities and States May Have to Spell Out Risks Tied to Aging Roads, Bridges and Water Systems

Neil Vicente — Mon, 13 Apr 2026 12:31:48 GMT

A new accounting proposal would require the nation’s cities and states to provide a clearer picture of the age of their roads, bridges and water systems—and whether bigger repair costs may be looming than taxpayers realize.

The proposal, released April 8, 2026, by the Governmental Accounting Standards Board, would push state and local governments to break out infrastructure details by network—including roads, bridges, water, sewer, lighting and communication towers—and flag assets that are nearing or have already hit the end of their estimated useful lives.

Simply put: governments could have a much harder time hiding aging public works inside giant asset totals that mean little to the average taxpayer.

To dig deeper, visit the original article on the Thomson Reuters blog.

Three nonprofit-focused firms modernize audits with CoCounsel and Audit Intelligence

Neil Vicente — Mon, 13 Apr 2026 12:30:02 GMT

Located in Troy, Ohio, Sam Brown CPA, Inc. serves hundreds of nonprofits and HUD properties. In Columbus, Ohio, Wells CPA, LLC focuses exclusively on nonprofit audits and attest services. Down in Jacksonville, Florida, The Forde Firm specializes in nonprofit accounting and assurance. Each firm adopted a mix of Thomson Reuters AI solutions, including CoCounsel Audit and Audit Intelligence to address staffing constraints, thin margins, and rising audit quality expectations. The firms use Analyze to automate population-level analysis and risk-focused sampling, and CoCounsel Audit to accelerate research and document analysis with authoritative support. Collectively, they report shorter cycle times on sampling and documentation, stronger linkage to risks, and better knowledge transfer to junior staff and peer-review-ready workpapers — while maintaining or improving margins through efficiency gains.

To dig deeper, visit the original article on the Thomson Reuters blog.

Navigating tax challenges for 2026 and beyond: Upcoming compliance hurdles for accounting firms

Neil Vicente — Mon, 06 Apr 2026 12:55:39 GMT

In a profession built on routine and expertise, regulatory changes can present a major headache for tax professionals. From sweeping federal tax legislation to proposals to further regulate the digital asset landscape, firms are projected to experience an uptick in tax return complexity in the immediate future. Here are some of the top tax challenges for 2026 and tips on how your team can navigate them.

Some of the most significant 2026 tax challenges are expected to sprout from the recently passed One Big Beautiful Bill Act (OBBBA). In addition to solidifying several provisions from the Tax Cuts and Jobs Act, this landmark legislation creates new reporting requirements and provisions that tax pros need to know to effectively guide their clients.

To dig deeper, visit the original article on the Thomson Reuters blog.

PCAOB Requests Feedback on 5-Year Strategic Plan Amid Leadership Changes and Regulatory Shift

Neil Vicente — Mon, 06 Apr 2026 12:32:38 GMT

The Public Company Accounting Oversight Board (PCAOB) on March 31, 2026, voted unanimously to seek public comment on its 2026-2030 strategic plan.

The request for comment document focuses on seven broad questions:

What should the PCAOB focus on as its strategic priorities in registration, inspections, and enforcement over the next two to five years to further its statutory mission?
What changes should the PCAOB make to its inspections program including, but not limited to, changes in light of its new quality control standard (QC 1000)?
What inspection information would be most useful to stakeholders, and how could inspection reporting be enhanced under a quality control-focused inspection program?
What standard-setting projects should the PCAOB pursue?
How can the PCAOB achieve greater alignment of its auditing standards with international auditing standards?
In what ways should the PCAOB consider deploying technology, including AI, to help further its investor-protection mission?
How can the PCAOB enhance transparency with its stakeholders?

To dig deeper, visit the original article on the Thomson Reuters blog.

What to know about the new PCAOB auditing standards

Nageshwaran Gopal — Mon, 30 Mar 2026 15:01:27 GMT

Implementing 2026 standards and amendments

Highlights

New PCAOB standards QC 1000, AS 2901, and others take effect December 15, 2026.
QC 1000 requires firms to implement comprehensive risk-based quality control systems.
AS 2901 introduces a framework for responding to engagement deficiencies after report issuance.
Other standards with updates include AS 1215, AS 1220, AS 2101, and AS 2110.

To dig deeper, visit the original article on the Thomson Reuters blog.

Some Charities Can Trigger Tougher GAAP Rules by Tapping Public Debt

Nageshwaran Gopal — Mon, 30 Mar 2026 14:44:36 GMT

A trip to the bond market can come with an accounting surprise for some charities.

Advisers told the Financial Accounting Standards Board on March 19, 2026, that nonprofits issuing certain public debt can find themselves swept into public-entity reporting rules under U.S. GAAP, triggering earlier adoption dates, broader disclosures and added compliance costs.

“I would agree that there is some confusion out there,” said Sheryl Madden, deputy CFO and controller of The Kresge Foundation, at a meeting of FASB’s Not-for-Profit Advisory Committee.

To dig deeper, visit the original article on the Thomson Reuters blog.

Companies Are Selling Their Tariff Refund Rights. Accountants Say Not So Fast

Neil Vicente — Mon, 23 Mar 2026 12:19:59 GMT

Some companies hoping to claw back money from disputed tariffs aren’t waiting around for Washington.

Instead, they’re selling their rights to possible future refunds to outside investors — often at a steep discount — in a risky new twist that accountants say opens up a messy set of financial reporting questions.

Joseph Cascio, chief accountant at RSM US LLP, said some importers that may be entitled to refunds tied to tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, have been approached by investors willing to make a bet on whether the government will ever actually pay up.

To dig deeper, visit the original article on the Thomson Reuters blog.

Treasury, IRS Officials Preview OBBB Guidance Roadmap

Nageshwaran Gopal — Tue, 17 Mar 2026 11:56:31 GMT

Forthcoming Domestic Guidance

On the domestic front, officials confirmed that a number of high-priority projects are moving toward proposed or final regulations. According to Julie Bolton, associate chief counsel for Income Tax & Accounting, and Philip Lindenmuth, executive counsel to the Chief Counsel, practitioners can expect a comprehensive package of regulations for the Corporate Alternative Minimum Tax (CAMT) around the end of the year.

This package will incorporate interim guidance from previous notices and address public comments on compliance burdens and fair value issues. For research and development expenditures under IRC § 174, teams are actively working through comments on software development and contract research definitions.

To dig deeper, visit the original article on the Thomson Reuters blog.

Downsized IRS to Shift Towards ‘Fewer’ but ‘Deeper’ Audits, Former Officials Say

Nageshwaran Gopal — Tue, 17 Mar 2026 11:30:13 GMT

Impact of Workforce Cuts

A prolonged hiring freeze and subsequent workforce reductions have created deep operational challenges for the IRS. Former IRS Commissioner Chuck Rettig explained that a hiring freeze from 2011 to 2018, where the agency could only hire one person for every four who left, was devastating. The agency’s workforce has shrunk by about 25% from its peak of 102,000 employees to approximately 77,000 today, creating what Rettig described as lost generation of agents and a void of mid-career experience.

The personnel shortages are most severe in key operational divisions, according to panel moderator Larry Campagna, chairman emeritus at Chamberlain, Hrdlicka, White, Williams & Aughtry. The Small Business/Self-Employed (SB/SE) division has seen its workforce shrink by 35%, while Appeals is down 28%. Carolyn Schenck, a former national fraud counsel at the IRS, explained that these cuts have tangible consequences, manifesting in delayed case handling and a critical erosion of expertise.

To dig deeper, visit the original article on the Thomson Reuters blog.

CFOs Break the Silence: First Broad Survey in Decades Shows How Private Firms Really Report

Nageshwaran Gopal — Tue, 17 Mar 2026 11:29:00 GMT

GAAP is Common — but Not Always “Pure”

The research team emailed more than 42,000 CFOs and ended up with 542 usable responses, mostly from small and mid-sized businesses.

When asked how they prepare financial statements:

68% said U.S. GAAP
25% said GAAP with exceptions (translation: “GAAP… mostly,” with carve-outs)
22% said tax- or cash-basis accounting
Less than 1% said they don’t prepare financial statements at all

To dig deeper, visit the original article on the Thomson Reuters blog.