Compliance
Court approves forensic review of ex-Flex CFO candidate’s personal devices
A U.S. district judge on Monday approved an agreement allowing a forensic vendor to review the personal devices of Alex Anderson, a former CFO candidate at payment company Flexible Finance, to copy and preserve any company confidential information he may hold. This stems from a civil lawsuit filed by Flex, alleging that Anderson misappropriated trade secrets during interviews and transmitted them to his current employer, competitor Split Pay.
Former acting IRS head warns of tax compliance ‘race to the bottom’
Douglas O’Donnell, former Acting Commissioner of the U.S. Internal Revenue Service (IRS), recently stated that as the IRS's annual discretionary budget drops from over $12 billion in fiscal year 2025 to $11.2 billion in fiscal year 2026, with a proposed budget of only $9.8 billion for fiscal year 2027, if enforcement staffing continues to shrink, audit numbers will decline, potentially prompting some taxpayers to underreport income and creating a 'race to the bottom' in tax compliance. He reminded businesses to reassess their tax risk frameworks and noted that the IRS's audit statute of limitations for tax year 2026 filings can extend to 2030, meaning future policy shifts could expose current aggressive strategies to risk.
SEC launches new enforcement unit aimed at accounting fraud
The U.S. Securities and Exchange Commission (SEC) announced on Wednesday the creation of a new enforcement division dedicated to handling cases of financial reporting and accounting fraud. The division will be housed within the Division of Enforcement and will be composed of lawyers and accountants with expertise in financial reporting, accounting, and auditing.
Flex sues former CFO candidate, accusing him of stealing 'core strategic assets'
Flexible Finance (operator of Flex payment services) filed a lawsuit in Manhattan court on Monday, accusing its former CFO candidate Alex Anderson of misappropriating trade secrets and using that information to help his current employer, competitor Split Pay, expand its business. The complaint alleges that Anderson violated a confidentiality agreement during the interview process, stole core confidential information such as Flex's financial models and strategic plans, and assisted Split Pay in shifting to a B2B model highly similar to Flex's. Flex requests the court to order the return of all trade secrets and to award damages.
Resilience Cyber Report: 85% of Cyber Insurance Losses Stem from Human Error
Resilience's latest analysis shows that in the first half of 2026, 85.3% of incurred losses in its insurance portfolio resulted from cyberattacks exploiting human error, a significant increase from 17.7% two years ago. AI technology has made phishing and payment transfer fraud more deceptive, and the report recommends that companies strengthen multi-layered verification and overall risk management.
FASB Advances Goodwill Accounting Improvement Project, Proposes Eliminating Annual Impairment Test
The Financial Accounting Standards Board (FASB) voted on Wednesday to advance a "targeted improvements" project for goodwill accounting, proposing to eliminate the annual impairment test and shift the testing level from reporting units to operating segments to simplify the model and reduce costs.
Grant Thornton Advisors and CBIZ Reach $5 Billion Merger Agreement
Grant Thornton Advisors and CBIZ announced a $5 billion all-cash merger agreement, expected to close in the fourth quarter. The combined company will operate in more than 20 countries and regions, with annual revenue of nearly $7.5 billion and over 34,500 employees, becoming the fifth-largest professional services, tax, and consulting firm in the United States.
U.S. Department of Justice Accelerates Merger Review Process, Returning to Targeted Investigation Model
The Antitrust Division of the U.S. Department of Justice announced that it will restore the targeted 'second request' investigation model for merger transactions to reduce corporate burdens and expedite the review process. This move is seen as the latest initiative by the Trump administration to reshape merger enforcement and shift toward policies more favorable to transacting parties.
US imposes tariffs on forced labor grounds before temporary global tariffs expire
The US will impose new tariffs on imports from 60 trading partners starting Friday, replacing the temporary global tariffs that are about to expire. This move is based on Section 301 investigations, involving China, the EU, and Mexico, with tariff rates of 10% or 12.5% respectively.
Deloitte Survey: Over Half of Corporate Boards Lack AI Usage Guidelines
A Deloitte survey found that 51% of corporate boards lack AI usage rules and guidelines, 47% have not introduced AI into their work, and only 8% use company-approved AI tools. An out-of-control incident during OpenAI system testing highlights the importance of AI governance. Experts note that the pace of AI deployment and governance is imbalanced, putting CFOs under dual pressure.