Compliance
EY and PwC Express Cautious Support for 120-Credit CPA Practice Alternative Path
EY and PwC recently issued separate statements expressing cautious support for an alternative practice path that allows CPA candidates to substitute professional experience for 30 college credit hours. This move is seen as a convergence of positions among the Big Four accounting firms on this issue, but aside from KPMG, the other three firms have left room for maneuver in their statements.
RTX agrees to pay over $950 million to settle bribery and fraud charges
The U.S. Department of Justice said RTX has agreed to pay over $950 million in fines to settle charges of bribing officials linked to the Qatari royal family and defrauding the U.S. Department of Defense in procurement contracts. The settlement involves legacy conduct by RTX's predecessor Raytheon before 2020, including pricing fraud in federal contracts, violations of export controls, and anti-bribery laws.
ACCA survey: Most accountants believe professional ethics challenges are intensifying
The Association of Chartered Certified Accountants (ACCA) released a global survey showing that most accountants believe professional ethics challenges are intensifying with technology-driven business expansion, exposing regional legal and cultural differences. 24% of respondents have faced pressure to engage in unethical behavior, and 55% of finance executives have witnessed unethical conduct in their careers. The survey also found that corporate leadership and cultural weaknesses, sustainability pressures, and AI applications have become major sources of ethical challenges.
Deloitte supports new CPA licensure path substituting work experience for 30 college credits
Deloitte has expressed support for substituting work experience for the 30 college credits required for a CPA license, becoming the second Big Four firm, after KPMG, to publicly endorse the proposal. The American Institute of Certified Public Accountants (AICPA) shifted last month to support increasing flexibility in licensure pathways.
Hurricane Claims Guide: Five Key Steps for Corporate Financial Officers
Hurricanes Helene and Milton have caused severe losses to businesses across multiple U.S. states, making insurance claims a top priority. Experts note that corporate financial officers should, after ensuring personnel safety, immediately notify insurance companies, comprehensively document all types of losses, thoroughly inspect buildings and equipment, record pre- and post-disaster videos, and strive to submit claims within 48 hours to expedite the payout process.
U.S. SEC Accuses Moog India Subsidiary of Bribery and Accounting Violations, Imposes $1.1 Million Fine
On October 11, the SEC issued an order charging Moog Inc. with violating the Foreign Corrupt Practices Act (FCPA) because its Indian subsidiary, Moog Motion Controls, bribed officials through third-party agents between 2020 and 2022, involving a contract valued at over $1.3 million. Moog agreed to pay a $1.1 million penalty and approximately $600,000 in disgorgement and interest, and has taken remedial measures.
AICPA Proposes Amendments to Financial Statement Preparation Standards to Clarify Applicability of External Client Advisory Services
The American Institute of Certified Public Accountants (AICPA) is soliciting public comments on proposed amendments to standards for financial statement preparation, aiming to eliminate uncertainty regarding the applicability of standards when external CPAs prepare financial statements in client advisory services. The draft amendment clarifies that when financial statements are merely a byproduct of client advisory services (such as outsourced CFO services), practitioners are not required to mandatorily apply AR-C Section 70. This move is expected to unify practical operations and reduce additional compliance burdens on practitioners.
Technology Empowering CFOs: Four Paths to Navigating the Complex ESG Regulatory Landscape
As global sustainability disclosure regulations tighten, the pressure on companies to collect, calculate, and report greenhouse gas (GHG) data is increasing. Based on the views of Emily Pierce, Global Head of Policy at Persefoni, this article analyzes regulatory developments such as the SEC climate disclosure rules, California climate legislation, and the EU CSRD directive, pointing out that CFOs need to integrate GHG data into financial planning and leverage software automation and artificial intelligence technologies to enhance efficiency and compliance capabilities across four dimensions: carbon footprint accounting, internal control verification, Scope 3 reporting, and trend analysis.
Average CFO Compensation at IPO Companies Reaches $1.2 Million in Past Two Years, Incentive Pay Accounts for 71%
The latest report from Alvarez & Marsal shows that CFOs at companies that went public in the past two years earned an average compensation of about $1.2 million, with annual and long-term incentives accounting for 71%; CEOs averaged about $2.6 million, with incentives making up 80%. Meanwhile, EY data indicates that IPO fundraising reached $27.3 billion in the first nine months of this year, up 40% year-over-year, but the market still faces multiple headwinds.
AICPA and NASBA Release New Model CPA Licensure Rules for State Consideration
The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) jointly released a draft amendment to the Uniform Accountancy Act this week, aiming to provide an alternative pathway to CPA licensure without requiring additional college credits. The draft suggests that candidates with a bachelor's degree could meet licensure requirements through two years of relevant work experience, to alleviate the talent shortage in the accounting profession. The public comment period ends on December 30. Susan Coffey, CEO of Public Accounting at AICPA, expressed hope that all 55 jurisdictions would adopt the model, emphasizing that uniformity is crucial for maintaining cross-state licensure mobility.