Is It Time for Firms to Transform Their Business Model?

A recent article in the Journal of Accountancy, written by Miti Ampoma, quotes Lisa Simpson, CPA, CGMA, vice president–Firm Services and head of the Private Companies Practice Section (PCPS) at AICPA & CIMA, as saying "it's important to acknowledge the effects of the past few years. “Many practitioners in public accounting are feeling burned out. They have been in crisis mode instead of being strategic about where they are going, Simpson said. This was necessary to help clients get through the pandemic, but now firms need to recognize how changes caused by COVID-19 — most notably the technology-fueled explosion of remote work and a talent shortage in many firms — have transformed the workforce and firm-client interactions.”

Read more
New International Foundation for Ethics and Audits Strengthens Independence of the Standard-Setting System

In a press release dated March 27, 2023, the Board of Trustees of the International Foundation for Ethics and Audit (IFEA, or the Foundation) celebrates the launch of the Foundation, which implements a key recommendation contemplated in the Monitoring Group’s July 2020 Recommendations, Strengthening the International Audit and Ethics Standard-Setting System.

According to the press release, the objective in establishing the Foundation is to move the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) to a new entity that is independent of the International Federation of Accountants (IFAC).

Read more
TIL EY Has Commoditized Space

A recent article in goingconcern, written by Adrienne Gonzalez, asks if there is any limit to the robust and ever-growing suite of services offered by professional services firms? “Apparently not” she says. “As we’ll learn, not even the sky is the limit.”

She notes that it was less than a year ago that EY put $3 million Aussie bucks into a space business in partnership with Swinburne University of Technology that “will solve big business problems by utilizing space-derived data and services for terrestrial benefit,” per its lead partner Anthony Jones.

Read more
What Private Equity Means for Accounting Firms: Thought Leaders Explore Pros and Cons

Private equity firms have been increasing their investments in accounting firms, says Isaac O’Bannon in a March 15, 2023, article in the CPA Practice Advisor. What does this mean for the future of the profession?

“The recent push by private equity firms towards investment and ownership of professional accounting practices is a sign, at least, that they see the potential to make profit in this area. This can either mean that they believe this market is intrinsically positioned to grow, or that these practices are missing blatant opportunities for revenue expansion. In many cases, the answer is likely a combination of the two,” wrote O’Bannon.

Read more
Responsibilities of Lead Auditors to Conduct High-Quality Audits When Involving Other Auditors

An SEC Statement, released by Paul Munter, Chief Accountant, March 17, 2023, says that, “In this statement, we (1) discuss the auditor’s responsibilities with respect to audits involving other auditors, including members of their own network firms; (2) highlight how the auditor’s responsibilities are incorporated currently in the PCAOB standards, including the PCAOB’s quality control standards; and (3) provide reminders on good practices for audit committees and issuers.”

Read more
Future of Outsourcing IT for Accountants

A March 20, 2023 article in Accounting Insight News says that “the accounting sector is subject to profound change as the digital transformation of the entire financial industry continues to power on. Accounting technology and IT support will have a big impact on how companies operate, with technology solutions set to support and not replace accountants.”

Read more
Microsoft Announces Copilot: The AI-powered Future of Office Documents

An article posted by Tom Warren on The Verge webpage mid-March announces that Microsoft has released a new AI-powered Copilot for its Microsoft 365 apps and services, designed to assist people with generating documents, emails, presentation and much more. The Copilot, powered by GPT-4 from OpenAI, will sit alongside Microsoft 365 apps much like an assistant, appearing in the sidebar as a chatbot that allows Office users to summon it to generate text in documents, create PowerPoint presentations based on Word documents, or even help use features like PivotTables in Excel.

Read more
Women in Business 2023: The Push for Parity

Grant Thornton’s International Business Report (IBR) has been casting a light on the issue of gender diversity in senior management at mid-market businesses for 19 years, exposing barriers and identifying facilitators of change.

While progress on the overall number of women in senior leadership continues, this year’s research shows it is concerningly slow. On a global level, 32.4% of senior management positions in mid-market businesses are now held by women, an increase of just half a percentage point (pp) since 2022 and only 13pp since our research was first undertaken in 2004. At this rate just 34% of senior leadership positions will be held by women in 2025. According to the World Economic Forum’s (WEF) Global Gender Gap report, it will take another 132 years to address the global gender gap.

Read more
CFO Cybersecurity Strategies: How to Protect Against the Rising Storm

A recent article in CFO, written by Joe Oleksak, advises that, with cyberattacks becoming more frequent, now is the time for CFOs to shore up their cybersecurity programs and strategies.

“Business leaders are coming up against the precipice of what might be the most significant challenge they face in 2023 and beyond: increasingly frequent and sophisticated cyberattacks devastating to business,” Oleksak writes.

“Every business is now a potential target from the smallest to the largest,” he adds. “Therefore, it’s a critical time for CFOs to engage with every department to strategically invest in cybersecurity across the business as your current strategy is likely no longer adequate. As hackers and technologies evolve, so too must your engagement with how cybersecurity is delivered across your organization. “

Read more
What ChatGPT Could Mean for Your Business

A March 2, 2023 article, written by Jessica Salerno-Shumaker and posted on the Ohio Society of CPAs’ webpage ChatGPT’s launch last November brought a flurry of news coverage and left many business owners scratching their heads about its capabilities.  

“I think one of the important things to do with ChatGPT right now for anybody is simply to try it and see what it's capable of doing,” said Jeff Cobb, managing director of Tagoras.  

Read more

CPA Founding Partner

Chartered Professional Accountants of Canada (CPA Canada), one of the largest national accounting organizations in the world, has chosen to become a founding partner of ThinkTwenty20.