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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 Exclusive: Top Elon Musk aide arrives at IRS to scrutinize operations, sources say<\/strong> [Reuters<\/a>] Former Government Officials Offer Job Assistance To Law Students, Lawyers Hit By Trump\u2019s Hiring Freeze<\/strong> [Above the Law<\/a>] Spoke to an IRS agent today and he told me that a lot of his coworkers are taking the buyout deal!<\/p>\n \u2014 CPAGuy (@Taxguy33962) February 13, 2025<\/a><\/p><\/blockquote>\n IRS employees accept OPM federal worker buyout; How the 2025 tax season may be affected<\/strong> [USA Today<\/a>] Aprio Launches Aprio Legal, LLC and Enters into Exclusive Letter of Intent with Radix Law to Debut in Arizona Market<\/strong> [Aprio<\/a>] Private Equity Will Fail to Alter the Basic Nature of the Accounting Profession<\/strong> [EIN Newswire<\/a>] Accounting Firms Hire Growth Leaders as Dealmaking Shakes Up Industry<\/strong> [Wall Street Journal<\/a>] EY GDS opens first office in Coimbatore, India<\/strong> [International Accounting Bulletin<\/a>] Businesses will pay the price for poor auditing practices, says think-tank director<\/strong> [Raconteur<\/a>] What Happens To Audit Partners Who Issue Negative Internal Control Opinions?<\/strong> [Forbes<\/a>] We really need to pay closer attention to r\/CPA, some of these posts are fire#CPAexam<\/a> pic.twitter.com\/DePWSm8uxE<\/a><\/p>\n \u2014 Going Concern (@going_concern) February 12, 2025<\/a><\/p><\/blockquote>\n AICPA and NASBA Advance Public Protection-Focused and Market-Responsive Model Licensure Legislation<\/strong> [AICPA<\/a>] We can\u2019t get you a date for Valentine\u2019s Day but what we can do is share Accountingfly\u2019s top remote accounting candidates of the week! This is the cream of the crop, accountants and auditors with a variety of backgrounds and certifications ready to hire.<\/em><\/p>\n Check out this week\u2019s candidates below and sign up for Always-On Recruiting<\/a> to get a fresh batch in your inbox every week. It\u2019s free!<\/em><\/p>\n Perspectives from the Profession: How Managed Services Can Alleviate CPA Shortage Pressure<\/strong> [INSIDE Public Accounting<\/a>] Over 80% of Senior Leaders Report Burnout\u2014Deloitte and SHRM Data Signal Urgent Need for Action<\/strong> [EIN Newswire<\/a>] Job cuts loom at EY as firm reconsiders stand-alone legal practice<\/strong> [Financial Review<\/a>] Matt Miner Named General Counsel of KPMG LLP<\/strong> [KPMG<\/a>]Government<\/h2>\n
Gavin Kliger, one of the top staffers working with Elon Musk in his efforts to overhaul the federal government, arrived at the Internal Revenue Service on Thursday to examine the agency\u2019s operations, according to two people familiar with the matter. Senior executives at the IRS were told that the General Services Administration (GSA), which manages most government contracts, is demanding they review consulting contracts under their purview and determine whether they can be justified. The GSA deems a contract non-essential if it \u201cmerely generates a report, research, coaching, or an artifact,\u201d the email says.<\/p>\n
President Donald Trump\u2019s government hiring freeze continues to tank budding lawyers\u2019 career prospects. Not only have third-year law students\u2019 permanent job offers been revoked and summer internship programs been canceled, but government agencies have also pulled out of law school recruitment events for future legal roles. However, thanks to a group of ex-officials from the Treasury and the Justice Department\u2019s Tax Division, things are looking a bit brighter. As noted by Bloomberg Law, the group \u2014 composed of lawyer representing law firms, accounting firms, nonprofits, and private companies \u2014 has stepped in to assist attorneys and law students find jobs.<\/p>\n\n
As of Wednesday, approximately 40,000 federal employees accepted the buyout offer, which is about 2% of the federal workforce, says Accounting Today. Employees that have chosen to accept the offer and resign will still get paid through September. As for the Internal Revenue Service (IRS), employees who accepted the buyout offer have been told that they are expected to stay on the job through May 15, due to the agency deeming their work as essential to this year\u2019s tax season.<\/p>\nIndustry Trends and Other Bullshit<\/h2>\n
Aprio and Radix Law, a full-service business law firm based in Arizona, announced today they have entered into an exclusive letter of intent to join together as Aprio Legal, LLC, a full-service, Alternative Business Service (ABS) law firm ready to serve entrepreneurs and business leaders with a holistic approach. The combination is expected to be finalized in late spring.<\/p>\n
This press release is the shillingest thing you\u2019ll read all month. Maybe the entire first quarter of 2025.<\/em>
Barry Melancon, the longest-serving CEO in AICPA history, tells CPA Trendlines that it\u2019s just as likely the accounting profession will alter private equity.<\/p>\n
Forty-nine of the 100 largest U.S. accounting firms employed at least one growth executive at the end of 2024, roughly double that of 2019, according to employment-data provider Live Data Technologies. The bulk of the appointments in recent years have occurred outside of the top 20 firms, which largely have had these roles for years. \u201cFounders and managing partners are getting tired of waiting to be bought out or find an ideal successor, so they come to us and say their goal is to identify somebody who can make them visible in the right circles,\u201d said Ash Athawale, senior vice president of executive search at Robert Half.<\/p>\n
EY Global Delivery Services (GDS), a division of EY, has increased its footprint in the Indian state of Tamil Nadu by opening its first office in Coimbatore. The new office at the KCT Tech Park is the company\u2019s third in the state and covers an area of 22,000ft\u00b2. It will serve as a hub for AI, data analytics, cloud services, cybersecurity, digital and quality engineering, ERP systems, and financial services platforms.<\/p>\nAudit<\/h2>\n
Adam Leaver is an accounting professor at The University of Sheffield and director of the Audit Reform Lab think-tank. \u201cShoddy audit practices can wreak havoc on the economy,\u201d he says. \u201cThey lead to fragile businesses, job losses and expensive government bailouts.\u201d<\/p>\n
Joseph Brazel, Jenkins Professor of Accounting at NC State University, writes for Forbes:<\/em>
In a study titled \u201cWhat Happens to Partners Who Issue Adverse Internal Control Opinions?\u201d researchers examined 10,979 audit opinions on companies\u2019 internal controls between 2017 and 2023. Roughly 6% of the opinions examined in the study involved partners who issued an adverse opinion for at least one publicly traded client that year.<\/p>\nCPA Exam<\/h2>\n
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LOL they totally caved on alternate pathways.<\/em>
AICPA and NASBA are advancing model legislative language that enables an additional path to CPA licensure. The optional path maintains the license\u2019s integrity and protects the public while providing flexibility in response to stakeholder demand. The organizations asked the joint Uniform Accountancy Act (UAA) committee to draft proposed model law language in two key areas: A bachelor\u2019s degree plus two (2) years of experience pathway to licensure that incorporates a broad role for experience, to be determined at the state level and Individual-Based Practice Privilege that incorporates a CPA\u2019s ability to practice across state lines.<\/p>\nTalent<\/h2>\n
\u201cAccountant shortage\u201d my ass.<\/em>
Instead of recruiting accountants to work full-time, a company could outsource the hiring and management process to a third party. Doing so is significantly cheaper because of the difference in wages and the risk transfers from the company to the outsourcing partner. In other countries such as Trinidad, India or the Philippines there is a litany of talented, English-speaking certified CPAs, Chartered Accountants, and accounting graduates, who do fantastic work and cost significantly less than their U.S. counterparts. And that price gap has only risen due to the accounting shortages in the U.S., making the offshore and nearshore options much more attractive for companies looking to stay within their budget and avoid disruptions in their daily operations.<\/p>\n
Emerging evidence from top-tier reports reveals that senior leaders are under unprecedented strain. According to Deloitte Canada\u2019s \u201cWell\u2010being and Resilience of Senior Leaders\u201d report, over 80% of executives experience exhaustion at levels typical of burnout risk, and nearly half are contemplating exit strategies to alleviate overwhelming work pressures.<\/p>\n
EY intends to restructure its regional law practice in a move that is expected to lead to significant job cuts at the major consulting and advisory firm. The firm has asked the staff for feedback on the proposed restructure, with EY Oceania chief executive David Larocca warning the changes \u201cmay necessitate a reduction\u201d in size of the law team.<\/p>\n
Mr. Miner joins KPMG from the position of Executive Vice President, Global Chief Ethics and Compliance Officer and Special Counsel at Walmart.\u202fOver the course of his career, he has had diverse experiences in corporate investigations, crisis management, governance and public policy across the public, private and governmental sectors.<\/p>\nRelated<\/em><\/h3>\n<\/p><\/div>\n