Friday Footnotes: IRS Issues Another ERC Warning; Non-Big 4 Firms Face Criticism; Should We Be Excited About AI? | July 26, 2024

“Footnotes: A Weekly Collection of Stories from the Accounting Profession”

The accounting world is abuzz with the latest stories from around the profession, and Footnotes has curated the top stories for your reading pleasure. From tax evasion tactics used by the super-rich to innovative mentorship programs at EY, there’s something for everyone in this week’s roundup.

In the Tax section, an undercover investigation revealed how the super-rich are being advised to use offshore pension schemes to avoid taxes. Meanwhile, the IRS issued warnings about incorrect claims for the Employee Retention Credit, urging businesses to resolve any errors to avoid penalties.

In the Workplace, EY is tapping into the wisdom of younger workers through a program called “reverse mentoring,” aimed at bridging the generational skills gap. Additionally, EY and Visa are offering programs to attract athletes and ex-Olympians, recognizing their valuable skills in the workplace.

The AI section highlights the need for accountants to receive training on how to effectively use AI tools. Many firms are optimistic about the potential of generative artificial intelligence (GenAI), but adoption is still in the early stages for most.

In the Audit section, a B.C. accounting regulator is under fire for anonymizing member misconduct, while the Institute of Certified Public Accountants of Kenya is calling out banks for undermining small audit firms.

Lastly, in the Sustainability and ESG section, Deloitte reports that sustainability reporting and ESG management roles are on the rise, with CFOs playing a crucial role in meeting corporate ESG goals.

With a diverse range of stories from the accounting world, this week’s Footnotes is a must-read for anyone in the profession. Don’t miss out on the latest news and insights – subscribe to the newsletter and stay informed every Tuesday and Friday.