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The PCAOB has reported notable improvements in deficiency rates among the six largest global auditing firms in its 2024 inspection results. The aggregate Part I.A deficiency rate for all inspected firms decreased to 39%, down from 46% in 2023. Erica Williams, PCAOB chair, said: "We challenged the audit profession to do better for America's investors, and these significant improvements demonstrate real progress in protecting investors." The Big Four firms saw their deficiency rate drop to 20% from 26%. While progress is evident, Williams emphasized the need for continued efforts to enhance audit quality, urging firms to build on this momentum. The PCAOB's initiatives include increasing transparency and providing resources to improve audit practices.

 

Accounting Today

Capri Holdings finance chief Thomas Edwards is set to leave the company to become the chief financial officer at Macy's, succeeding Adrian Mitchell. Mr Edwards will remain with Capri until June 20th, after which his role will be assumed on an interim basis by Rajal Mehta, CFO of Michael Kors. The move comes months after Macy's  completed a material investigation into "erroneous accounting accrual entries" that were determined to have hidden about $151m in delivery expenses in a period from the fourth quarter of 2021 through the fiscal quarter ended November 2nd 2024. In December, the company said a completed investigation into the matter determined that there was “no material impact to financial results for any historical annual or interim period.”

 

CFO Dive

Reuters

Institutional Shareholder Services (ISS) has recommended that Goldman Sachs investors reject the board's decision to grant $160m in stock awards to chief executive David Solomon and chief operating officer John Waldron. The awards, intended to retain top executives amid fierce competition, were unveiled in January but lacked "rigorous, pre-set performance-vesting criteria," raising concerns about their "magnitude and structure," according to ISS's report. Glass Lewis, another proxy adviser, has also advised against the pay packages. Goldman Sachs has defended the awards, saying they are crucial for maintaining leadership stability and a strong succession plan.

 

Reuters

The House of Representatives passed four bipartisan bills on Tuesday aimed at improving tax administration and the IRS. Melanie Lauridsen, AICPA's vice president of tax policy and advocacy, commented: "We are pleased to work closely with each of these Representatives on common-sense reforms that will benefit taxpayers." The bills are part of a broader Senate discussion draft focused on enhancing IRS operations. Additionally, two other tax-related bills were passed that were not endorsed by AICPA. Ways and Means Committee Chairman Jason Smith (R-MO) praised the bipartisan effort, adding that it "makes improvements to tax administration that will make it easier for the American people to file their taxes. Those who are rebuilding after a natural disaster particularly need help filing taxes, which is why this set of bills lightens the load for taxpayers in communities struck by a hurricane, tornado or some other disaster." Meanwhile, Senate Republicans are moving ahead with a budget framework that will leave decisions on how to pay for tax cuts until a later date. “Obviously we are hopeful this week we can get a budget resolution on the floor that will unlock the process,” said Senate Majority Leader John Thune (R-SD). “And so we are continuing to move forward with that.”

 

AP News

Accounting Today

CPA Practice Advisor

Goldman Sachs Asset Management has published its 14th Annual Global Insurance Survey, revealing that 52% of insurers now view inflation as their primary macroeconomic risk, up from 42% in 2024. The survey, which included responses from 405 Chief Investment Officers and Chief Financial Officers managing over $14trn in assets, indicates a shift towards private assets despite economic challenges. Notably, 58% of insurers plan to increase investments in private credit over the next year, highlighting a strong appetite for alternatives. The survey also notes that 90% of insurers are considering or implementing AI solutions to enhance operational efficiency.

 

Reinsurance News

U.S. construction spending increased more than expected in February as a decline in mortgage rates boosted single-family homebuilding, though rising economic uncertainty because of tariffs on imports could slow momentum. Spending rose 0.7%, according to the Commerce Department's Census Bureau, well ahead of the 0.3% expected among economists polled by Reuters. On an annual basis, construction spending was up 2.9%. Spending on private construction projects rose 0.9% and was up 1.3% for residential construction and 1% for new single-family projects. Spending on public construction projects gained 0.2%. State and local government spending increased 0.4%, while outlays on federal government projects declined 1.6%.

 

Reuters

The number of job openings in the U.S. were effectively flat in February, the Labor Department reported on Tuesday. The Job Openings and Labor Turnover Survey (JOLTS) found that new job postings slipped to 7.57m,  from 7.76m in January. Economists expected job openings to drop to 7.625m, according to FactSet. The hiring rate was unchanged at 3.4% in February, near the lowest since the onset of the pandemic. The quits rate, which measures the percentage of people voluntarily leaving their jobs each month, was also unchanged at 2%. The number of vacancies per unemployed worker, a ratio the Fed watches closely as a proxy of the balance between labor demand and supply, remained at 1.1.

 

CNN

Bloomberg

Market Watch

Reuters

The Trump administration is offering coal-fired power plants and other industrial polluters exemptions from requirements to reduce emissions of toxic chemicals such as mercury, arsenic, and benzene. The Environmental Protection Agency has set up an electronic mailbox to allow regulated companies to request a presidential exemption under the Clean Air Act to a host of Biden-era rules. Companies were asked to send an email seeking permission from President Donald Trump to bypass the new restrictions. The Clean Air Act enables the president to temporarily exempt industrial sites from new rules if the technology required to meet them is not widely available and if the continued activity is in the interest of national security. Environmental groups denounced the administration's offer, calling the email address a "polluters' portal" that could allow hundreds of companies to evade laws meant to protect the environment and public health. 

 

Fast Company

Bloomberg reports that Amazon is to resume screening employees leaving its warehouses, after dropping the theft-prevention measure during the pandemic. In addition to bringing back metal detection devices, the company is asking workers to register their personal phones so security personnel know they aren’t stolen. Employees will share the last six digits of the serial number on their phones and receive a sticker to place on the device, letting security personnel know it belongs to the worker and accelerating the screening process. “We’re always working to make our facilities more safe and secure for our employees and for companies of all sizes that put their trust in us to store their inventory,” an Amazon spokesperson explained. “As one part of that, we’ve made the decision to restore some practices that we had suspended to support social distancing during the pandemic.”

 

Bloomberg

Aprio and RSM US have entered into an agreement for Aprio to acquire RSM’s Professional Services+ practice operating in the U.S. and Canada. The transaction is expected to close on 30 April 2025, pending satisfaction of customary conditions. The practice serves almost 80 firms across the U.S. and Canada and provides resources and advisory services related to strategy and leadership, talent development, business processes and operations, and access to group buying solutions.

 

Accountancy Today

President Donald Trump is set to meet with White House officials today to discuss a proposal that could secure TikTok's future in the U.S., ahead of an April 5th deadline to keep the app running in the country. Private equity firm Blackstone is discussing joining TikTok owner ByteDance's existing non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for the business. 

 

NBC News

New York Times

South China Morning Post

Shipowners and charterers are modifying leasing contracts in response to anticipated multimillion-dollar port fees for Chinese-built vessels, as indicated by industry insiders. The U.S. Trade Representative (USTR) has yet to finalize proposals, but discussions are underway to ensure that charterers will bear the costs of any new taxes. The USTR is considering fees that could reach $1m per ship per port visit, potentially totaling $3.5m for certain vessels. Moritz Fuhrmann, co-chief executive of MPC Container Ships ASA, noted that the proposed tax "is an adjustable figure that will be basically passed on to the consumer or the customers." The shipping industry, which has faced various challenges, is concerned about how these fees could disrupt global supply chains and impact businesses, particularly those dealing with lower-value goods.

 

Accounting Today

McDonald's has officially regained its status as the world's most valuable restaurant brand, taking the top spot from Starbucks, according to a new report from Brand Finance. The fast-food chain's brand value is reported to have risen by 7% over the past year to $40.5bn, earning a perfect score in 'familiarity', along with high marks for 'consideration' and 'preference'. Additionally, the brand's consistent focus on speed, value and quality has kept it well ahead of shifting consumer trends. Starbucks, which had been the top restaurant brand for eight consecutive years, has seen its value drop by 36% to $38.8bn. 

 

International Business Times