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The SEC has appointed George Botic as the acting chair of the PCAOB, effective July 23rd, following Erica Williams' resignation. Mr. Botic, a CPA with extensive experience, previously directed the PCAOB's Division of Registration and Inspections. Experts like Steve Soter and Richard Chambers noted that the PCAOB's regulatory approach may shift under the new leadership, potentially leading to less aggressive oversight compared to Ms. Williams' tenure. Mr. Chambers remarked: "If you look back at the Sarbanes-Oxley Act, the governance structure over the PCAOB sort of ensured this kind of connection over the long term between the regulatory philosophy and the SEC."

 

Accounting Today

The Accountant Online

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PwC has hired the former executive director of national cyber security at the National Security Agency (NSA) as a partner and leader in its newly created Cyber, Data & Technology Risk division. Morgan Adamski has joined the Big Four firm as a partner and leader in the division after more than 15 years of federal service, most of which were spent in the National Security Agency (NSA). She leaves as the highest-ranking civilian and third in command at U.S. Cyber Command (USCYBERCOM).

 

Yahoo Finance

McKinsey is changing the way it picks its leaders for the first time in years in an effort to circumvent the internal tensions and infighting that marked its past two elections. Its global managing partner will now be elected to a single six-year term, with a confirmation vote at the four-year mark on whether the leader should complete the full term. At present, the company's 750 senior partners vote to elect a firmwide leader every three years, and that person can stand for two terms. “This will strengthen the process for how my successor and hopefully future ones” are elected, explained current leader Bob Sternfels. “It’s a nod toward continuity and sets up a process where we have less of the big elections and more continuous leadership over a six-year period.” He added that the McKinsey board will be reduced from 30 members to 12.

 

Wall Street Journal

KPMG has named Phil Isom, previously head of the Big Four firm's global M&A practice and corporate finance practice, as chief strategy officer. He succeeds Talley Lambert. KPMG has also announced a raft of national managing partners and principals.

 

Consulting

Avalara has filed for a U.S. IPO, indicating plans to trade on public markets again three years after being taken over by Vista Equity Partners in a deal valuing it at $8.4bn. Founded in 2004, Avalara runs a cloud-based software platform that helps companies with tax compliance. Its clients include Adidas, Crocs, and Reebok.

 

Reuters

President Donald Trump's new tax and spending law is projected to increase U.S. deficits by $3.4tn over the next decade, leaving millions without health care coverage, according to a report published Monday by the Congressional Budget Office (CBO). The law, signed on July 4th, permanently extends Mr. Trump's 2017 income-tax cuts and includes various tax breaks for businesses. The CBO's analysis indicates a $4.5tn drop in revenues and a $1.1tn reduction in spending through 2034. The law is expected to result in 10m Americans losing health insurance by 2034, with new Medicaid work requirements set to begin by the end of 2026. As inflation rises, low-income families may face increased economic hardship, exacerbated by the law's provisions. The Trump administration cites record tariff collections as a potential offset to the deficit.

 

The Columbian

NBC News

Politico

A report released by the Conference Board on Monday showed its reading on leading U.S. economic indicators fell by slightly more than expected in the month of June. Its Leading Economic Index declined 0.3% to 98.8 in June, a stronger fall than the 0.2% expected by a consensus of economists polled by the Wall Street Journal. The coincident economic index rose 0.3%, while the lagging economic index was unchanged. "For a second month in a row, the stock price rally was the main support of the LEI," said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. "But this was not enough to offset still very low consumer expectations, weak new orders in manufacturing, and a third consecutive month of rising initial claims for unemployment insurance."

 

RTT News

Wall Street Journal

A U.S. appeals court has temporarily blocked a lower court's order that allowed Federal Trade Commissioner Rebecca Slaughter to return to her position, following her removal by the Trump administration. The Justice Department argued that the reinstatement violated the president's executive powers, and the appeals court has requested further court papers by July 29th to consider the administration's request. The case highlights ongoing tensions between the Trump administration and Democratic officials regarding the autonomy of federal agencies.

 

Reuters

The Office of Personnel Management (OPM) is set to lose approximately one-third of its workforce by year-end, primarily through voluntary departures. Scott Kupor, the newly appointed OPM director, said that the agency is providing options for employees to leave voluntarily rather than resorting to mass firings. While 129 jobs were cut through reductions in force, 940 employees opted for deferred resignations, early retirements, or buyouts. Kupor emphasized the importance of treating departing employees with "respect and humility," acknowledging the impact on families. OPM anticipates a staff reduction from 3,110 to about 2,000 by the end of the year. Meanwhile, Kupor has said he wants to “institutionalize” the pursuit of “operational efficiency” by the so-called Department of Government Efficiency (Doge), while distancing himself from Elon Musk’s controversial approach to cutting spending. "I have zero personal relationship with Elon Musk. I have talked to Elon Musk once on the phone in my life," Kupor told reporters, adding “What [Doge] did was catalyse the start of a process . . . Now, we have to actually institutionalize those things” and pursue “operational efficiency.”

 

Financial Times

U.S. News

Washington Post

According to a survey by the Harris Poll for AICPA, 32% of Americans have not taken any financial steps to prepare for a natural disaster. The survey revealed that 66% of respondents believe a natural disaster would significantly impact their finances. Common preparations include evaluating insurance needs (31%) and inventorying assets (30%), while only 19% have updated their estate plans. Eva Simpson, AICPA vice president, commented: "Many Americans don't think about their finances when it comes to preparation for a natural disaster." Additionally, 63% of business owners expressed concern about potential financial hardships due to natural disasters, with top worries being loss of revenue (33%) and damage to property (26%). Recent disasters have heightened the urgency for financial preparedness.

 

Accounting Today

CPA Practice Advisor

Journal of Accountancy

The Accountant Online

SEC chair Paul Atkins has told CNBC the agency is prepared to work with the Labor Department to establish "good guardrails" for investors if they gain greater access to private markets in retirement plans. "We need to make it so that individual investors are relying on fiduciaries to help them put these sorts of products, if they wish, into their long-term savings and retirement plans," Mr. Atkins said. His comment followed a Wall Street Journal report last week that Trump is expected to sign an order directing the two agencies to lay out guidelines on expanding mainstream retirement savers’ access to private market assets. 

 

PitchBook

Reuters

Microsoft is to cease using China-based engineers to provide technical assistance to the U.S. military following a media report which prompted Senator Tom Cotton, an Arkansas Republican who chairs the chamber's intelligence committee and also serves on its armed services committee, to send a letter to Defense Secretary Pete Hegseth about the company's reported practices. The investigative journalism outlet ProPublica detailed Microsoft's use of Chinese engineers to work on U.S. military cloud computing systems under the supervision of U.S. "digital escorts" hired through subcontractors who have security clearances but often lacked the technical skills to assess whether the work of the Chinese engineers posed a cybersecurity threat, Reuters reports. Hegseth has  ordered a two-week review of Pentagon cloud deals. 

 

Reuters

The U.K. tax office, His Majesty's Revenue & Customs (HMRC), has announced a new roadmap aimed at modernizing and automating the tax and customs system, while abandoning the Making Tax Digital (MTD) initiative for corporations. HMRC said: “HMRC will modernise services for Corporation Tax (CT), beginning with a renewal of internal systems for CT to provide the foundation for future improvements.” The shift is designed to better accommodate the diverse needs of the corporate sector, moving away from the previous MTD requirements that mandated digital record-keeping and quarterly submissions.

 

Bloomberg Tax

San Francisco-based Marathon Fusion, a start-up focused on using nuclear fusion to generate power, says the process could be used to produce gold from mercury. It suggests that a future fusion plant could produce up to 5,000kg of gold each year. However, some of the gold may be slightly radioactive, needing up to 18 years in storage before it’s safe for jewelry. 

 

OilPrice.com

Financial Times

Proactive Investors

Proactive Investors