Big Four partner fined for AI misuse
Plus: IRS claps back over ICE data sharing | AI in auditing
This week’s edition challenges you to reimagine your firm's culture, including new ways to prevent DEI from going extinct in the industry and using both people and processes to strengthen internal controls.
And find out what happens when a Big Four partner uses AI to cheat on an exam (spoiler alert: it’s expensive) and which state is the latest to pass a new pathway to becoming a CPA.
But before jumping in, check out this new client niche idea: rethink the creator economy as a growing business category rather than a simple side hustle.
Pipeline problems: Devolving DEI environments could hurt accounting talent pools, but firm-level interventions can help
Enforcement needed: How creating a culture of internal controls can strengthen your compliance efforts
Hiring scoop: Expectations of new accounting hires are shifting, including the ability to take ownership and work on lean teams
Knock, knock: Open the door to opportunity with spiral growth development for your star employees
Glow up: Plan a 1040 tax prep transformation for your firm
Love the ones you're with
High turnover rates is seen as the status quo in the accounting industry, but what if this weren’t the case? Instead of focusing on “volume hiring,” firms should instead address the real issues contributing to employee turnover. In addition to salary, common reasons cited for leaving include burnout, lack of career clarity and transparency issues.
Why this matters: Replacement costs and productivity losses have a huge impact on firms. Prioritizing employee retention can improve revenue per FTE as well as team morale. (Inside Public Accounting)
The mental capabilities AI can't replace
While there’s constant chatter about the routine tasks AI will replace in the accounting world, Amy Vetter, CPA, CGMA, warns about the uniquely human skills that may be lost because of employee burnout. She argues that capabilities like building trust, using sound judgment and reading a room are important traits accountants need to help clients. But it’s up to firm leaders to ensure staff have the capacity for strategic thinking.
Why this matters: Vetter argues that firms with sustainable workloads increase both profitability and productivity. (CPA Practice Advisor)
11%
Increase in average tax refund for 2025 returns. (CBS News)
- AI cheating scandal costs Big Four partner $7,000
- CPA pathways bill passes in Wisconsin, enabling third path to certification
- IRS claps back in federal appeals court on ICE data sharing mistake
- “Boomcession” illustrates gap between economic growth and the average American’s financial struggles
AI in your audit? Start with the right safeguards
A new study shows that AI use in the audit field is increasingly common, with 66% of respondents saying it’s already used in their firm. But 64% of accounting professionals also believe that validation must be used when making AI-backed audit conclusions. In other words, human judgment is still a vital part of the process.
Why this matters: AI systems can be a helpful tool in any accounting practice, but quality controls and governance are a must-have. (Yahoo! Finance)
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The Net Gains is curated and written by Lauren Ward and edited by Bianca Prieto.