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Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you\u2019re here, subscribe to our newsletter<\/a> to get the week\u2019s top stories in your inbox every Tuesday and Friday.<\/em><\/p>\n Comments are closed on Friday Footnotes<\/a> and the Monday Morning Accounting News Brief<\/a> by default. If you have something to say about any stories linked here you are welcome to email the editor<\/a>, text us<\/a> at 202-505-8885, or hit us up on Twitter @going_concern<\/a>. See ya.<\/em><\/p>\n Lets tax outsourced labor!<\/p>\n \u2014 Mike Sylvester, CPA (@FortWayneCPA) May 2, 2025<\/a><\/p><\/blockquote>\n Bill that broadens CPA certification pathways approved in CT House<\/strong> [Hartford Business Journal<\/a>] PwC under fire over \u2018pointless\u2019 rebrand amid job cuts<\/strong> [The Telegraph<\/a>] PwC employees on social media platform Reddit questioned why the accountancy had decided to launch a rebrand at a time when profits were squeezed. One said: \u201cI can\u2019t understand why so much money is being spent on rebranding. The \u2018old\u2019 logo was beautiful. Instead, savings are being made on staff.\u201d Another said the new logo \u201cperfectly represents all the business areas they\u2019ve cut\u201d.<\/p>\n Deloitte Commits to Massive Swath of Prime Manhattan Office Space<\/strong> [WSJ<\/a>] Lutz Announces Ryan Cook as New Managing Shareholder<\/strong> [Lutz<\/a>] Dembo Jones to join CLA on May 1<\/strong> [CLA<\/a>] Aprio acquires SND Partners<\/strong> [International Accounting Bulletin<\/a>] Is your firm hiring? Check out this week\u2019s top remote accounting candidates<\/a> and get your pick of the litter for your next hire.<\/em><\/p>\n Audit Quality: The Beneficial Impact of Market Competition<\/strong> [CPA Journal<\/a>] Evaluating fraud risks related to revenue recognition<\/strong> [Journal of Accountancy<\/a>] TIL Internal Audit Month is a thing:<\/em><\/p>\n Celebrate #InternalAuditMonth<\/a> with us TODAY! Promote your profession by sharing this post, or download ready-made posts at the link. https:\/\/t.co\/YPgFLhF15S<\/a> #InternalAudit<\/a> #TheIIA<\/a> pic.twitter.com\/yWAOdrug8k<\/a><\/p>\n \u2014 TheIIA (@TheIIA) May 2, 2025<\/a><\/p><\/blockquote>\n WWU and fired internal auditor settle appeal, bringing end to six-year saga<\/strong> [Cascadia Daily News<\/a> (Washington)] KPMG resigns as auditor of P&O Ferries<\/strong> [The Times<\/a>] ACCA presses audit regulator to drive proportionate SME audit requirements<\/strong> [Scottish Financial News<\/a>]Crazy Idea of the Week<\/h2>\n
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CPA Exam<\/h2>\n
It\u2019s not common to have legislation proposed that no one speaks against. That\u2019s the case, however, for House Bill 7020, which would offer more flexibility for state residents to become certified public accountants. More than 70 people submitted testimony in advance of public hearing on the bill, all of them supporting the legislation. Following the public hearing, the bill was unanimously voted out of the General Law Committee.<\/p>\nFirm Watch<\/h2>\n
Deloitte has committed to move its North American headquarters to Hudson Yards, the sprawling master-planned development on Manhattan\u2019s West Side, according to people familiar with the matter. The firm will occupy 800,000 square feet of the 1.1 million-square-foot tower known as 70 Hudson Yards.<\/p>\n
Lutz, a Nebraska-based business solutions firm, proudly announces Ryan Cook\u2019s appointment as Managing Shareholder, effective May 1, 2025. His selection was first announced two years ago, ensuring a seamless transition of roles and responsibilities. This represents a pivotal moment in Lutz\u2019s history, as Ryan becomes only the third Managing Shareholder in more than 30 years.<\/p>\n
Dembo Jones, which will transition to the CLA brand as of May 1, has provided businesses, government agencies, organizations, and individuals with thoughtful, accurate, and diligent accounting, auditing, tax, and consulting services for more than 70 years. With offices in Bethesda, and Columbia, MD, Dembo Jones has more than 80 team members in roles ranging from accounting to professional services serving the U.S. Capital region.<\/p>\n
SND Partners specialises in affordable housing tax credit and housing and urban development audits.<\/p>\nTalent<\/h2>\n
Audit<\/h2>\n
Michael Kraten, PhD, CPA writes:<\/em>
In his recent The CPA Journal editorial \u201cPrivate Equity and the Ethics of a Profession<\/a>,\u201d Richard Kravitz addressed the recent diminishment in audit quality and the inability of the PCAOB to reverse this trend. Even though the entity has spent the past two decades overseeing the professional practice standards of the assurance function, audit deficiencies continue to rise to disturbingly high levels. But why is it necessary to rely on the PCAOB? Why can\u2019t the accounting profession regulate itself? Years ago, during the era of the Big Eight accounting firms, Arthur Andersen once marketed itself as \u201cthe gold standard\u201d of the auditing profession. Although the circumstances of the firm\u2019s demise belied this moniker, why doesn\u2019t any other public accounting firm attempt to differentiate itself on the basis of audit quality?<\/p>\n
Identifying and assessing the risks of material misstatement due to fraud are among the most challenging aspects of auditing in recent years, according to outreach conducted by the AICPA Auditing Standards Board (ASB).Potential reasons include difficult economic and industry conditions during the post-pandemic era; changes in the workforce, including labor shortages (i.e., fewer employees doing more work); challenges associated with extensive remote-work arrangements for employees at organizations, including less oversight of employees; and disruptions to global supply chains and associated inflationary pressures.<\/p>\n\n
Antonia Allen was fired from Western in November 2019 after investigating and reporting to federal and state authorities that staff and faculty in the university\u2019s Woodring College of Education had granted false academic credentials to students. She filed a lawsuit in 2020, and in May 2024, a jury awarded Allen $2,999,406, including back pay, front pay and $1.5 million for emotional harm.<\/p>\n
KPMG resigned as the auditor for P&O Ferries because it felt it would have been unable to complete its work to the \u201crequired standard\u201d, new filings show. \u201cThe reason connected with our ceasing to hold office is that in our professional judgment it is not possible to complete an audit of the 2023 accounts to the required standard within management\u2019s desired timetable,\u201d KPMG said.<\/p>\n
Responding to a consultation from the UK corporate governance regulator the Financial Reporting Council (FRC) Small and medium-sized enterprises market study, ACCA said the focus of the rules should be on the complexity of an entity rather than on size.<\/p>\n<\/p><\/div>\n