Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you’re here, subscribe to our newsletter to get the week’s top stories in your inbox every Tuesday and Friday.
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AI
Americans trust AI more than a CPA to do their taxes, according to new research [Fortune]
Only 2 in 5 Americans are confident about their tax filing game, according to a new survey from Invoice Home. The accounting software company surveyed 2,000 U.S. adults, and is sharing their research exclusively with Fortune. Nearly 43% of respondents say they would trust artificial intelligence for help more than tax professionals like CPAs.
EY: 35% of companies intend recruitment reduction due to use of AI [Warsaw Business Journal]
Polish companies are increasingly adopting AI to automate repetitive tasks, with 35% reducing hiring for junior positions—a 10 percentage point increase from the previous year, according to an EY study. While 36% of employees see AI adoption as inevitable, 21% remain skeptical, 19% fear job loss, and 13% express enthusiasm.
News
EY to relocate 1,200 employees to new city office [City AM]
Professional services giant EY has revealed plans to relocate 1,200 employees in Birmingham to a new office. The move, scheduled for 2026, will see staff switch from One Colmore Square to Three Chamberlain Square, which is part of the Paradise Birmingham development. EY has been based at its office at One Colmore Square for the last 20 years. The firm’s new office will be located on the top three floors of the 10-storey building, occupying 70,000 sq ft.
Office of Personnel Management CFO, who manages more than $1 trillion in funds, pushed out of role [CNN]
The Office of Personnel Management’s chief financial officer, who manages more than $1 trillion in funds, was pushed out this week, two sources with knowledge of the situation told CNN. Her departure is the latest in a series of top career officials who have been removed from their jobs atop federal agencies by President Donald Trump’s political appointees working in coordination with Elon Musk’s Department of Government Efficiency effort.
PwC Canada Launches Tariffs and Trade Policy Resource Centre [NewsWire]
“A high level of uncertainty remains, regardless of the momentary pause on tariff implementation. As a country, we must act now to remove intra-provincial trade barriers, accelerate the adoption of AI and other disruptive technologies, and overall, make Canada a more investment friendly country,” said Nicolas Marcoux, CEO of PwC Canada. “As for Canadian business leaders, this is a crucial time to assess impacts of the potential tariffs on their businesses, develop mitigation strategies and collaborate with each other.”
Talent
India’s talent shortage paradox – and how your company can mitigate it [PwC]
Hold up, what?
It’s ironic. Worldwide, one of the biggest challenges faced by enterprise leaders today is the shortage of skilled labor. Despite India producing a large number of highly qualified professionals each year, employability remains a significant issue in the country. The irony in the experienced skill availability space in India is the coexistence of numerous open roles across industries and a significant bench or underutilisation. As a result, the Indian market shows a skill inventory mismatch that is directly contributing to the erosion of operating margins for many industries. For instance, in the professional services industry, where employee costs constitute a significant portion of the profit and loss (P&L) statement, adjusted utilisation often falls short of the targeted levels. Consequently, enterprises in the professional services sector maintain a large bench while simultaneously seeking to fill numerous hiring requirements. Around the world, the demand for certain skills fluctuates and workforce resilience and agility are indispensable for business viability.
Opportunity to Attract and Retain Highly Motivated Working Parents via Enhanced Flexibility, Stronger Support Systems [KPMG]
76% of working parents say having children made them more motivated at work; Over half (53%) of working parents report struggling with ongoing childcare arrangements; 49% say their companies do not offer onsite or back-up care.
Consulting
BCG and PwC predict boost from dealmaking rebound [Financial Times]
PwC and Boston Consulting Group expect “pent-up demand” for mergers and acquisitions to boost their advisory revenues this year, as an expected surge in dealmaking spurs hopes that the industry can break free from its post-pandemic slump. Mohamed Kande, global chair of PwC, said optimism among chief executives was “high” and that businesses were “looking at ways to transform for success, and in many cases reinventing their business model altogether”. The deal slump contributed to a sharp slowdown across the consulting sector, particularly at the Big Four of Deloitte, EY, KPMG and PwC.
PwC’s advisory chief has an optimistic outlook for the firm’s finances [Financial Review]
Demand for advice on how to grow sales and cut costs is driving a long-awaited rebound in the consulting sector after several bleak years, the head of PwC Australia’s new-look advisory business says. An optimistic Rohit (Ro) Antao also said that the two other parts of the advisory business he runs have seen an uptick in demand over the past two months. Retiring business founders were increasingly asking the firm’s private client advisors about passing on their wealth, while PwC’s deals partners were seeing an uptick in mergers and acquisitions activity.
Ankura buys strategic communications firm Red Flag Global [Consulting.us]
Founded in 2013, Red Flag has offerings across digital campaigns, communications, government relations, reputation management, and research and data, among others. The firm works with large organizations across the globe. Red Flag has 40+ employees listed on LinkedIn and offices in Dublin, Brussels, London, Cape Town, and Washington, DC.
Audit
The Alleged Theft of More Than $532K from a Pa. Township Shows the Limits of Routine Audits [Explore Jefferson]
Last summer, officials in a small Centre County township revealed that more than half a million public dollars appeared to be missing. State Police eventually charged the township’s now-former secretary and treasurer for the alleged theft, laying out an alleged five-year scheme that ballooned from a few small purchases into a slush fund for sports betting. Gregg Township faced difficult questions about how such a large sum of taxpayer funds went unaccounted for so long, including by auditors who annually examine the township’s financial picture. “I think there’s a huge misconception between what an audit is versus what a forensic audit is,” forensic fraud examiner Scott Koman told Spotlight PA in a December interview.
PCAOB warns auditors of risks from lax oversight of specialists [CFO Dive]
The Public Company Accounting Oversight Board warned auditors of risks from weak oversight of specialists who determine fair value, assess physical assets and provide other estimates that require focused expertise. “The specialist’s work is highly technical in nature and often is not entirely transparent to the auditor, who may not have complete access to the specialist’s work or the same level of knowledge and skill,” the PCAOB said.
Audit the Fed [MacIver Institute]
Ah shit, here we go again.
Well Groundhog Day has come and gone, and that means—time loops being what they are—it’s time for a libertarian to once again introduce a bill to audit the Federal Reserve. As he usually does, U.S. Rep. Thomas Massie (R-Kentucky) has stepped up to the plate and reintroduced, for the umpteenth time, a measure to do just that. “The American public deserves more insight into the practices of the Federal Reserve,” Massie said in introducing the bill. “Behind closed doors, the Fed crafts monetary policies that devalue our currency, slow economic growth, and make life harder for the poor and middle class. The American people benefit when we work to increase government transparency.”
CFO Jimmy Patronis urges Elon Musk to back DOGE audit of university censorship grants [Florida’s Voice]
Florida Chief Financial Officer Jimmy Patronis sent an official letter to Elon Musk, urging him to recommend a U.S. Department of Government Efficiency, or DOGE, audit of federal grants provided to universities for censorship-related funding. In particular, Patronis called for scrutiny of grants from the U.S. Department of Defense and other government agencies partnering with the U.S. Agency for International Development, or USAID, including the National Science Foundation.
Dr. Appelbaum Publishes Groundbreaking Study on ESG Audits in Top Accounting Journal [Montclair State University]
A key focus of the paper is the development of an audit approach incorporating a double materiality lens, integrating financial data, ESG indices, and external datasets for more robust assurance. The authors propose an audit roadmap that aligns financial audits with ESG assurance, emphasizing the use of analytics, scenario modeling, and expert consultation. They discuss the growing demand for ESG transparency among investors and regulators, outlining the need for enhanced methodologies in risk assessment, internal controls, and data verification. The research suggests that auditors should leverage advanced technologies, including machine learning and predictive analytics, to process vast amounts of ESG-related information effectively.
Tax
Trump lays out tax priorities to House GOP [Axios]
Administration officials informed the Republican leaders that they were stressing Trump’s “no tax on tips” proposal as well as ending taxes on Social Security benefits and on overtime pay. Trump is also pushing to renew his 2017 tax cut bill, adjust the SALT cap and to implement tax cuts for goods made in the U.S.
Wall Street Prepares to Defend Carried Interest, a Favored Tax Break, Again [DealBook]
President Trump has outlined his tax priorities to Republican lawmakers. Among them was a surprise: the so-called carried interest “loophole.” That could mean Wall Street will have to brace for a big fight to keep one of its most cherished tax breaks. Carried interest was one of several items Trump mentioned yesterday, according to Karoline Leavitt, the White House press secretary. He reiterated ideas he promoted on the campaign trail, including ending taxes on tips, overtime and Social Security payouts, as well as expanding deductions for state and local taxes. But his call to end the carried interest exemption — and tax breaks for “billionaire sports-team owners” (many of whom supported Trump) — wasn’t on many observers’ bingo cards.
Ohtani’s ex-interpreter sentenced to nearly 5 years for bank and tax fraud [AP via PBS]
The former interpreter for baseball star Shohei Ohtani was sentenced Thursday to nearly five years in prison for bank and tax fraud after he stole nearly $17 million from the Los Angeles Dodgers player’s bank account. Ippei Mizuhara, who was supposed to bridge the gap between the Japanese athlete and his English-speaking teammates and fans, was sentenced in federal court in Santa Ana to four years and nine months after pleading guilty last year.
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