Compliance
IIA CEO: Internal Audit and CFO Should Jointly Address AI Disruptive Risks
New technologies, cyber threats, and new SEC regulations have intensified the risk environment for CFOs. Anthony Pugliese, CEO of the IIA, suggests that CFOs should establish strategic partnerships with internal audit teams to jointly identify and mitigate risks from disruptive technologies like AI, but should avoid direct reporting relationships to preserve audit independence.
FASB Issues Long-Awaited New Rules on Income Statement Expense Presentation
The Financial Accounting Standards Board (FASB) issued new rules on Monday requiring public companies to disclose specific expense items in more detail in tabular format in the notes to financial statements. The rule is the final formal step in the multi-year project "Disaggregation of Income Statement Expenses" (DISE) and will be effective for annual reporting periods after December 15, 2026.
EY Layoffs Highlight Multitasking and Professional Training Dilemma
Recently, Ernst & Young (EY) dismissed dozens of U.S. employees for concurrently attending multiple online training sessions, deemed a 'violation of ethics.' This incident reveals the time and ethical pressures accountants face between client work and continuous professional training. Experts point out that staff shortages and training requirements exacerbate the issue, and EY had previously been fined $100 million by the SEC over a similar scandal.
Jury Pursues Environmental Justice: ExxonMobil's $816 Million Verdict Becomes Latest Landmark Case
In September, a Philadelphia Court of Common Pleas increased the verdict against ExxonMobil for benzene exposure causing cancer to $816 million, becoming the latest case in the trend of corporate environmental responsibility litigation. The case stemmed from a gas station mechanic's cancer claim, with the jury finding that ExxonMobil failed to adequately warn of benzene risks. The court denied appeals and added delay damages, emphasizing corporate accountability for neglecting public health. This verdict, alongside green lawsuits against Lululemon and Tyson Foods, shows growing public accountability for corporate environmental impact.
EY survey: Most finance executives believe companies will struggle to meet sustainability goals on time
The latest EY survey found that most chief financial officers and other finance executives expect companies in their industry to fall short of sustainability goals, and only 47% of respondents believe their own companies can achieve targets like net zero emissions on schedule. Institutional investors are relatively more optimistic, with 53% saying companies are progressing as planned. The survey covered 2,000 finance executives and 815 institutional investors.
AICPA Urges IRS to Issue New Tax Guidance on Cannabis Rescheduling
The American Institute of CPAs (AICPA) sent a letter on October 21 to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, requesting new tax guidance regarding the upcoming rescheduling of cannabis from Schedule I to Schedule III. The AICPA noted that cannabis businesses currently face a conflict between federal illegality and state legality, and that rescheduling will affect the deduction rules under Section 280E. It recommends that the IRS clarify key issues such as the applicability of deductions for the full year and consistency across states.
SEC settles with four companies, accusing them of downplaying the impact of the SolarWinds hack
The SEC disclosed settlements with four companies on Tuesday, accusing them of downplaying the impact of cyberattacks in the 2020 SolarWinds hack and making misleading disclosures. The companies involved—Unisys, Avaya Holdings, Check Point Software Technologies, and Mimecast—all agreed to pay civil penalties.
FASB Advances Credit Loss Accounting Simplification for Private Companies
The Financial Accounting Standards Board (FASB) agreed at its October 16 meeting to advance a standard update aimed at simplifying credit loss accounting for private companies and not-for-profit organizations, proposing a 'practical expedient' to exempt forward-looking economic forecasting requirements and setting a 45-day comment period. Some board members supported studying the extension of relief to public companies.
RSM Survey: Most Mid-Sized Companies in 'Wait-and-See' Mode on ESG Compliance
A survey released Monday by consulting firm RSM shows that while most mid-sized companies have made progress in ESG regulatory preparation, many are waiting to see the outcome of the U.S. election before deciding their next steps.