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U.S. Securities and Exchange Commission Chairman Paul Atkins has told the Financial Times that the regulator will give businesses notice of technical violations before "bashing down their door," in a shift away from aggressive enforcement actions. "I think a lot of people rightly criticized the SEC," said Atkins. "Especially in more recent years it was not grounded in precedent or predictability. It would shoot first and then ask questions later," Atkins told the newspaper, adding "What I am trying to address is a market perception that there was a lack of due process, a lack of notice, a lack of rule of law." He condemned the billions of dollars in fines that his predecessor, Gary Gensler, slapped on banks and brokers for record-keeping violations.

 

Financial Times

Reuters

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Recent findings from the 2025 National Management of an Accounting Practice (MAP) Survey reveal that CPA firms are enhancing their competitive edge by significantly increasing starting salaries. New hires with master's degrees now earn a median salary of $67,750, a 17% increase from 2023, while those with bachelor's degrees see an 11% rise to $60,834. Lisa Simpson, CPA, CGMA, noted: “Higher starting salaries and more competitive pay across the board will definitely help accounting firms attract and retain more talent.” Despite these salary increases, firm revenue growth has slowed, with median year-over-year increases in net client fees (NCF) across various revenue bands. The survey also highlights a cautious approach to adopting AI and automation, with only 13% of firms successfully implementing these technologies.

 

Journal of Accountancy

Eli Lilly's appeal against a $183.7m judgment has been dismissed by the 7th U.S. Circuit Court of Appeals. The court found that a jury had sufficient evidence to conclude that Lilly knowingly concealed price increases on certain drugs, failing to rebate Medicaid accordingly. Circuit Judge Joshua Kolar said that Lilly acted "without qualification" unreasonably by reporting only original prices, which deprived the government of over $60m. The case, U.S. ex rel Streck v Eli Lilly and Co, highlights the implications of the False Claims Act, allowing whistleblowers to sue on behalf of the government.

 

Bloomberg Law

Reuters

The University of Michigan reported Friday that U.S. consumer sentiment fell in September to the lowest since May, with long-term inflation expectations rising for the second straight month. The university's preliminary sentiment index declined to 55.4, from 58.2 in August, and well below the 58 expected among economists polled by Reuters. The survey's measure of consumer expectations for inflation over the next year was unchanged at 4.8%, but rose to 3.9% for the next five years, from 3.5% last month. "Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Joanne Hsu, the director of the Surveys of Consumers, said in a statement. "Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month."

 

Bloomberg

Reuters

The IRS has issued new guidance affecting wind and solar projects, particularly regarding the definition of the beginning of construction (BOC) for tax credits under Sections 48E and 45Y. Companies must now determine their eligibility and potentially adjust their construction timelines. The guidance introduces significant changes, including the elimination of the 5% cost safe harbor for projects over 1.5 megawatts. Ian Boccaccio, a principal at Ryan LLC, emphasizes the importance of understanding these changes, saying: "We would advise builders to move up their construction timeline if possible." The IRS is expected to provide further clarification soon, as uncertainties remain regarding other tax incentives.

 

Bloomberg Tax

Bloomberg Tax & Accounting has released its annual report projecting U.S. tax rate brackets, standard deduction amounts, and alternative minimum tax exemption amounts for the year ahead. The report also accounts for several new adjustments made under the One Big Beautiful Bill Act of 2025 that affect tax planning for taxpayers in 2026 and beyond. For corporate taxpayers, they include modified phaseout amounts for the alternative minimum tax imposed under Section 55 of the Tax Code.

 

Accounting Today

The Hershey Co. is intensifying efforts to meet new income tax disclosure requirements set by the FASB. Jonathan Gregory, Hershey's global controller, emphasized the importance of "dry runs and cross-team communication" as the company prepares to provide more detailed information on its tax obligations. Historically, companies have reported only aggregate tax figures, but the new FASB rules, finalized in 2023, demand greater transparency, responding to investor calls for clarity. The accounting and tax teams are under pressure to comply by year-end.

 

Bloomberg Tax

U.S. Senator Ron Wyden has urged the Federal Trade Commission (FTC) to investigate Microsoft for what he describes as "gross cybersecurity negligence," as he linked the company's practices to a series of ransomware attacks on critical infrastructure, including healthcare organizations. In a letter to FTC Chairman Andrew Ferguson, Wyden likened Microsoft to "an arsonist selling firefighting services to their victims," highlighting the risks posed by default configurations in Windows that have facilitated these cyber incidents. A notable example cited was the May 2024 attack on Ascension, a hospital operator, which compromised the data of nearly 5.6m individuals. Wyden asserts that Microsoft's outdated security measures contributed to the breach.

 

Reuters

The White House Office of Management and Budget (OMB)'s Cost Accounting Standards Board is proposing to eliminate over 60 accounting requirements for federal contractors deemed "unnecessary and redundant." The OMB aims to finalize these changes by early next year, addressing the outdated rules that have persisted for over 50 years. Dr Kevin Rhodes, senior advisor to OMB director Russell Vought, said: "Holding contractors responsible for properly and transparently accounting for their costs is good stewardship, but forcing contractors to maintain overlapping books and records is wasteful." The proposed updates will align federal cost accounting standards with Generally Accepted Accounting Principles (GAAP), reducing the burden on contractors and enhancing efficiency in the procurement process.

 

Accounting Today

The U.S. Consumer Financial Protection Bureau (CFPB) may need to reduce its workforce due to new funding limits imposed by Congress. An internal email revealed that staff should ensure their resumes are up to date in preparation for potential layoffs. The CFPB's funding comes from the Federal Reserve, rather than taxpayer funds. However, Congress this summer reduced the maximum the CFPB may request to 6.5% of the Fed's expenses, rather than 12%, reducing the maximum available to the agency by hundreds of millions of dollars.

 

Reuters

The PCAOB has published a new staff document titled "Broker-Dealer Audit Focus: Review Engagements Regarding Exemption Reports," targeting auditors of broker-dealers. The publication addresses ongoing deficiencies in review procedures mandated by Attestation Standard No. 2, which has been in effect since 2013. The standard outlines the requirements for auditors reviewing exemption reports prepared under SEC rules. Auditors must plan their review engagements in conjunction with financial statement audits, ensuring moderate assurance through diligent inquiries. The PCAOB aims to identify any conditions that may lead to misstatements in broker-dealer assertions. This document is part of a broader initiative to enhance audit practices for SEC-registered broker-dealers, following the PCAOB's expanded authority under the Dodd-Frank Act of 2010.

 

Accounting Today

CPA Practice Advisor

The Accountant Online

Finance chiefs are still largely viewed among their executive team partners as “Department of No” leaders, according to the results of a new survey from Datarails. Ninety-seven percent of executives responding to the poll said they believe the finance department’s main focus is limiting spending, as many CFOs are pushing to be viewed as collaborative business partners. Eighteen percent of business partners said they strongly feel the finance department has their strategic needs in mind when making decisions. IT executives had the best relationship with the CFO’s office, registering a 66% satisfaction level, Datarails found. The second most satisfied were sales executives at 63%. The report noted: “This makes sense, given that finance typically regards Sales as a profit center rather than a cost center, and may therefore make a more concerted effort to collaborate effectively."

 

CFO Dive

In a bipartisan effort, U.S. Congress members from both parties are advocating for the extension of expiring Obamacare health tax credits to ensure government funding beyond September 30th. The initiative aims to provide Senate Democrats with a notable achievement while helping Republicans avoid a potential backlash from voters due to rising healthcare costs. “Families getting notice in about six weeks that their healthcare premiums are going to go up at the end of the year is not the right direction,” stated Rep. Jen Kiggans (R-VA.) If Congress does not act, premiums in the ACA marketplace could increase by an average of 18% next year, according to KFF. Advocacy groups are urging Congress to act swiftly, as the estimated cost of the program is $380bn. Sen. Tammy Baldwin (D-WI) emphasized the urgency, stating, “We need to extend these tax breaks as soon as possible.”

 

US News and World Report

AI tools which sought to mimic the thought processes of an equities analyst make too many mistakes, lack predictive power and tend to miss the big picture, according to Bernstein Research.

 

Financial Times