Friday Footnotes: Auditors Can Prevent Fraud With Fibbing; AI Rollup Accounting Firms Are So Hot Right Now | 6.20.25

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Audit

Auditors can prevent fraud just by tipping their hand [Phys.org]
University of Alabama Assistant Professor of Accounting Chez Sealy is co-author of a research study published in Contemporary Accounting Research that revealed auditors may be able to prevent financial fraud simply by signaling how they plan to conduct a strategic audit—without the need for extra costly procedures. The research explored how different audit strategies influence managers’ decisions to commit or conceal fraud.

DOD Will Pass Audit by 2028, Comptroller Confirms [US Department of Defense]
The Marine Corps has already passed a financial audit, and the Defense Department has until 2028 to do the same, the department’s comptroller said today during a hearing before the Senate Armed Services Committee in Washington.

Max 60 tax audits per partner likely: ICAI [The Economic Times]
A partner of an accounting firm will be allowed to take up a maximum of 60 tax audits in a year from FY27, Institute of Chartered Accountants of India (ICAI) president Charanjot Singh Nanda said. This would discourage a concentration of audit assignments with only a few senior partners at accounting firms and curb any anti-competitive conduct, he indicated.

Technology

Multiplier, founded by ex-Stripe exec, nabs $27.5M to fuel AI-powered accounting roll-ups [TechCrunch]
Multiplier is part of a growing trend: startups acquiring existing service businesses and scaling them with AI. The PE-style roll-up strategy has recently gained popularity among VCs, with investors such as General Catalyst, Elad Gil, Thrive, and Khosla Ventures backing startups that develop AI solutions and integrate them into existing people-focused companies. “Until AI existed, none of this was possible,” Lightspeed partner Justin Overdorff said.

The finance department need not fear AI. In fact, it can help it truly scale [Retail Banker International]
Writes Jorge Lluch:
The narrative around whether certain functions could simply be replaced by AI is omnipresent. But what I don’t believe is that the finance department will be consigned to that fate. In fact, I believe AI presents a huge opportunity for finance teams to scale and significantly increase their capabilities.

Funding granted for new research project on AI in Accounting education [Jönköping University]
This project explores how artificial intelligence (AI) is transforming accounting education by examining and comparing how universities in Mexico and Sweden are adapting their curricula, teaching methods, and skill development strategies. The aim is to identify best practices and address educational gaps to ensure that future accountants are well-equipped for an AI-driven profession. The findings will contribute to the modernization of business education and support universities and policymakers in aligning academic outcomes with the rapidly changing demands of the accounting industry.

Execs say workers have to adapt to AI, but workers are resisting [Morning Brew]
There’s a huge disconnect between the executives spamming your LinkedIn feeds with promises to go all-in on AI and the company leaders still fighting with the seventh-floor printer. Meanwhile, their employees are kinda just…doing whatever they want.

Practice

Accounting Firms Saw Gains in Profits and Clients Over the Past Year [CPA Practice Advisor]
Accounting firms in the U.S. have had a profitable last 12 months, due to adding new clients, technology, and service offerings, according to a new report from Xero. The U.S. State of the Industry report, which was released on June 9, includes the results of a survey in which 250 accountants and bookkeepers working in practices across the U.S. were polled. The results found that nearly three-quarters of accounting practices increased revenue (74%) and profits (73%) in the past year, and more than half (56%) added new clients as a result of enhanced operational efficiency and expanded service offerings.

People

Alumni Profile: Fred Sitzberger: From Fired to Flourishing – A Journey of Resilience and Generosity [University of Wisconsin – Milwaukee]
This guy sounds cool.
Fred Sitzberger’s story is anything but ordinary. A Lubar College of Business alumnus (’78, BBA, Accounting) and the president of Bultman Investment Management, Sitzberger has built a remarkable career by combining grit, humility, and a deep belief in human connection. Today, his success as a business leader and philanthropist reflects both his early challenges and his unwavering optimism. “I never wanted to be poor,” he says. “So what I am is a successful failure. I just never gave up.” Sitzberger’s path wasn’t linear. He flunked out of engineering, served in the Army, and eventually turned to accounting—because, in his words, “it was the hardest.” Along the way, he got fired five times in corporate roles. “I realized I needed to create my own position if I didn’t want to get fired again,” he says.

RSM names new Pittsburgh office managing partner [Pittsburgh Business Times]
Accounting giant appoints new managing partner for downtown Pittsburgh office that opened in 2021.

Private Equity

Private equity sits on $1 trillion amid uncertainties, M&A stalls, PwC says [Reuters]
Private equity firms are holding about $1 trillion in unsold assets, PricewaterhouseCoopers (PwC) said on Wednesday — capital that, in a typical market environment, would have been returned to investors. High interest rates in the United States, President Donald Trump’s on-again, off-again approach to tariff policy, and geopolitical uncertainties have eroded company valuations and contributed to firms holding onto portfolio firms far longer than expected. “Patience is wearing a little bit thin” among limited partners (LP), said Kevin Desai, PwC U.S. deal platform leader.

Gen Z

Top EY Researcher Says These 3 Things Are Missing For Gen Z Workforce [Forbes]
The new EY Global Generations Report 2025, based on a survey of over 22,000 individuals across 22 countries, offers critical insights into the evolving ambitions and workplace expectations of Gen Z (those born between 1997-2007).

Talent Shortage

Tax, audit and accounting firms face tech push and talent shortages [The Slovak Spectator]
Who knew there’s an accountant shortage in Slovakia. It’s almost as if firms everywhere want an excuse to automate and outsource rather than increase salaries.
Unpredictable and frequent legislative changes, a lack of qualified professionals, brain drain, and pressure to integrate advanced technologies like AI, automation and cloud-based platforms are the main challenges facing tax advisory, auditing and accounting companies in Slovakia. These challenges are paired with a growing demand from clients for consultancy and strategic advisory services, reshaping firms’ roles towards more value-added, strategic partnership models. “We live in times when the only certainty is uncertainty, but it is precisely this that can teach us to be more agile,” said Valéria Morťaniková, a partner at Deloitte Slovensko’s Tax Advisory Department, adding that the standard form of consulting is on the decline.