Compliance
Survey: 92% of CFOs and Senior Finance Professionals Feel Pressure to Prove AI Investment Returns
An Avalara survey of 1,505 CFOs and senior finance executives found that 92% of respondents feel pressure to prove AI investment returns, but only 7% of organizations prioritize AI governance over adoption speed. 44% of respondents have only partial confidence in explaining AI agent behavior to auditors or regulators, and 76% say they lack internal expertise to understand how AI operates. The survey also shows that 30% of organizations have not updated internal controls within a year, 50% say AI agents bring only limited measurable returns, and 23% believe accountability for AI errors is unclear.
EY Faces Proposed Class Action: Alleged Failure to Protect Client Sensitive Data
Ernst & Young (EY) is facing a proposed class action lawsuit over a cybersecurity incident earlier this year that resulted in the exposure of sensitive client data. The lawsuit, filed on Monday in the U.S. District Court for the Southern District of New York, alleges that the Big Four accounting firm failed to protect sensitive data, including financial and tax information, putting affected individuals at risk of identity theft and tax fraud. Plaintiffs seek class certification and monetary damages.
Washington, D.C. CPA Bill Passes Council, Sent to Mayor for Signature
The Council of the District of Columbia voted unanimously on Tuesday to advance a bill (26-494) that would create an alternative pathway to CPA licensure, aiming to lower barriers to entry and address the industry's talent decline. This pathway replaces the 150 college credit hour requirement with an additional year of professional experience, and similar reforms have already been implemented in about 44 states and Puerto Rico nationwide. The bill's next step is review by Mayor Muriel Bowser and Congress.
Missouri Governor Signs CPA Licensure Bill, Effective Next Month
Missouri Governor Mike Kehoe signed Senate Bill 1233 on Monday, providing an alternative licensure pathway for Certified Public Accountant (CPA) candidates. The new rules, effective August 28, allow candidates to obtain certification with a bachelor's degree plus two years of work experience and passing the CPA exam, without completing 150 college credit hours. This move makes Missouri one of over 40 states that have relaxed educational requirements, aiming to alleviate the talent shortage in the accounting industry.
S&P: US corporate bankruptcies hover near 16-year high
A Monday report from S&P Global showed that as of June, total large US corporate bankruptcy filings rose to 372, slightly exceeding the 371 filings from the same period last year, continuing to hover near the highest level since 2010. The industrial, consumer discretionary, and healthcare sectors led in bankruptcy counts. Small business bankruptcy filings surged 50% year-over-year in the first half, primarily due to sustained financial pressures on households and businesses. Despite the surge in bankruptcies, credit market concerns over default risk for speculative-grade companies have not risen significantly.
ExxonMobil CFO Supports Semiannual Reporting Option: Five Key Points Explained
ExxonMobil Chief Financial Officer Neil Hansen, in an 11-page signed letter to the U.S. Securities and Exchange Commission (SEC), explicitly supported a proposal to allow listed companies to submit financial reports every six months. He argued that the modern information disclosure ecosystem has moved beyond Form 10-Q and proposed five implementation suggestions, including ensuring the option is voluntary and simplifying the reporting format for the first and third quarters.
SEC Semi-Annual Reporting Proposal Faces Strong Opposition
The U.S. Securities and Exchange Commission (SEC) proposal to allow listed companies to opt for semi-annual financial reporting drew substantial opposition during the 60-day comment period ending July 3. According to tracking data maintained by Tzachi Zach, an accounting professor at Ohio State University, 99% of the 8,011 comment letters came from individuals and authors opposing the plan, with only 34 in support and 52 taking a "conditional" stance. Opponents include the retail investor community and a former Netflix CFO, raising questions about whether the SEC can smoothly advance the final rule.
Kyndryl appoints new CFO and general counsel, management reshuffle after accounting风波
Kyndryl Holdings announced on Monday the appointment of Ellen Johnson as Chief Financial Officer and Andrew Bonzani as General Counsel and Corporate Secretary, about five months after the company's former CFO and general counsel departed due to an accounting review. Johnson will assume her role on July 20, while Bonzani will start immediately. Both come from Interpublic Group, which has been acquired by Omnicom.
As the World Cup approaches, payment security agencies warn of fraud and chargebacks
As the 2026 FIFA World Cup kicks off in North America, payment security agencies such as ACI Worldwide and Bluefin Payment Systems have issued warnings that fraudsters are exploiting the surge in online ticketing and spending brought by the event to launch attacks. Based on an analysis of 24.5 million transactions from 61 past events, ACI found that fraud attempts spike just before the event. Both agencies advise merchants to strengthen defenses, be wary of tactics such as fake ticketing websites and phishing attacks, and note the amplifying effect of AI technology on fraudulent activities.
Robinhood CFO Hands Over Chief Accounting Officer Duties
Robinhood CFO Shiv Verma has handed over the chief accounting officer duties to newly appointed Chief Accounting Officer Dara Bazzano, effective June 25. Bazzano, who previously served as chief accounting officer at T-Mobile US and Gap, will report to Verma.