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A new EY survey finds that many chief financial officers are not playing a central role in major investment, technology, and value-creation decisions, potentially limiting companies’ growth prospects. Although 60% of CFOs believe they should help shape value creation, only 25% lead major investment decisions, and just 26% lead discussions on value drivers. The survey of more than 1,600 finance leaders across 28 countries also found that many CFOs believe traditional performance metrics do not properly capture the value of technology, data, new roles, or long-term investments. Nearly half cited proving return on investment upfront as a major barrier, and 68% said performance metrics need to be redefined. The report urges CFOs to take greater ownership of investment decisions, modernize value measurement, strengthen data and AI skills, and build finance teams that are more adaptable, collaborative, and confident with new technologies.

 

International Accounting Bulletin

Expense Fraud Is Evolving Beyond Traditional Audits

Finance teams are under growing pressure to reduce risk, improve efficiency, and do more with fewer resources, all while financial activity becomes harder to monitor across fragmented systems and rising transaction volumes. At the same time, expense fraud is becoming more sophisticated through AI-generated receipts, subtle policy abuse, and tactics designed to evade traditional audits.

Join Oversight’s Resolution Services team to learn why manual reviews and rules-based approaches are no longer enough and how leading organizations are using AI-powered Finance Risk Intelligence to identify risky transactions earlier, prioritize true risk, and strengthen controls through continuous operational intelligence.

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Missouri, Georgia, and Florida are set to forgo at least $57.8m in tax revenue after granting FIFA exemptions on World Cup ticket sales to secure hosting rights for 2026 tournament matches, according to analysis by The Athletic. The figure is likely conservative, as it excludes hospitality packages and resale transactions, which could significantly increase the total. The three states passed legislation in 2022 waiving state and local sales taxes on World Cup tickets for matches in Kansas City, Atlanta, and Miami. While state officials projected lower revenue losses at the time, actual ticket prices have far exceeded assumptions based on previous World Cups, resulting in substantially larger tax concessions than originally estimated. The Athletic estimates Georgia will forgo approximately $27.2m in tax revenue, Missouri $15.7m, and Florida $14.9m, with Florida’s total rising to $17.3m when local surcharges are included. In both Missouri and Florida, the projected losses are more than double the states’ original estimates. The findings underscore the growing cost of incentives offered to attract major sporting events, with host cities and states competing aggressively for the economic opportunities associated with the FIFA World Cup.

 

New York Times

The U.S. budget deficit narrowed 7% to $293bn in May, although on an adjusted basis it increased 32% year-over-year, as customs revenue turned negative following refunds of tariffs previously imposed under President Donald Trump’s emergency trade measures. The Treasury Department reported that $21.97bn of customs duty refunds slightly exceeded $21.93bn of gross customs collections during the month, resulting in a net customs outflow of $42m. The refunds follow a U.S. Supreme Court ruling that deemed the tariffs illegal, prompting the repayment of duties collected under the International Emergency Economic Powers Act. Total May receipts fell 10% to $336bn, while outlays declined 9% to $628bn. Government spending was partly driven by a 44% increase in interest payments on federal debt to a record $133bn, reflecting higher debt levels outstanding. For the first eight months of fiscal 2026, the budget deficit totaled $1.246tn, down 9% on an unadjusted basis.

 

Arkansas Democrat-Gazette

Reuters

U.S. consumer prices rose 4.2% year over year in May, the highest inflation rate in three years, as a sharp increase in energy costs pushed overall prices higher, according to data from the Bureau of Labor Statistics. The Consumer Price Index (CPI) increased 0.5% during the month and 4.2% annually, matching market expectations. Energy prices were the main driver, rising 3.9% in May and 23.5% over the past year. Food prices increased a more modest 0.2%, while shelter costs rose 0.3% for the month and 3.4% annually. Core inflation, which excludes food and energy, rose 0.2% in May and 2.9% from a year earlier. The monthly increase was lower than economists had expected, suggesting that broader inflation pressures remain relatively contained despite higher fuel costs. Core goods prices declined 0.1%, while transportation services fell 0.6%. Economists noted that while consumers continue to face higher costs for essentials such as gasoline, food, electricity, and healthcare, underlying inflation trends remain more moderate than the headline figure suggests.

 

CNBC

NPR

Reuters

Washington Post

The Financial Stability Board (FSB) has said it “strongly” encourages boards to consider implementing safeguards to mitigate risks from AI, including from “agentic” AI - systems that are capable of planning, reasoning and executing tasks with limited human oversight. The ​FSB said autonomous AI introduces risks that can “materialise at great ‌speed”, ⁠ and “AI agents pose a distinct challenge for human oversight.” In a report, the global standard setter detailed proposed “sound practices”, and called on ​financial firms to define clear boundaries on AI ​use and ⁠embed safeguards. Firms can consider adapting HR controls and processes to AI agents in a ​way that treats them as "synthetic employees," the FSB said.

 

Reuters

Uber has sued New York City to ‌prevent enforcement of new legislation that it said would unconstitutionally force it to retain drivers it does not want on its platform. The ride-hailing firm said the law against "wrongful deactivations" would improperly protect drivers who ​engage in dangerous, threatening or other inappropriate behavior, thus threatening public safety and causing "immediate and irreparable harm" by ​undermining Uber's reputation and goodwill.

 

Reuters

Baker Tilly has agreed to acquire Anchin, Block & Anchin LLP, significantly expanding its presence in New York and establishing New York City as the firm's new headquarters. Financial terms were not disclosed, and the transaction is expected to close later this summer. Founded in 1923, Anchin employs approximately 600 professionals across offices in New York, Florida, and India, and serves privately held businesses, investment funds, and high-net-worth clients with expertise in sectors including real estate, financial services, consumer products, professional services, and construction-related industries. The acquisition strengthens Baker Tilly’s position in the middle market, expands its footprint in key growth markets such as South Florida, and enhances its capabilities across major financial and business centers. Following completion of the deal, Russell Shinsky, Anchin’s managing partner, will become Baker Tilly’s New York managing principal, leading the firm’s growth strategy in the region.

 

Bloomberg

Accounting Today

City Biz

International Accounting Bulletin

Target shareholders have rejected a proposal to separate the roles of board chair and executive leadership, allowing former chief executive Brian Cornell to remain as executive chair despite investor calls for a more independent governance structure. At the retailer’s annual meeting, shareholders also voted down proposals seeking additional reporting on pesticide use in private-label products and efforts to reduce microfiber emissions. The vote comes as Target works to revive sales and profitability amid intense competition from Walmart and Costco, with new CEO Michael Fiddelke leading initiatives to improve pricing and inventory management.

 

Reuters

U.S. small-business confidence declined in May, with the National Federation of Independent Business optimism index falling 0.6 points to 95.3, below both economists’ expectations and its long-term average of 98.0. Higher fuel prices weighed on margins, while uncertainty remained elevated. More businesses reported raising prices, with 36% increasing average selling prices, the highest level since March 2023, and 34% planning further price increases, the highest reading since July 2022. Hiring plans also weakened, with a net 9% of owners planning to add jobs over the next three months, the lowest level since May 2020. NFIB said small firms are struggling to absorb unpredictable cost increases, particularly as they have less ability than larger competitors to pass higher fuel costs on to customers.

 

Quartz

Reuters

Wall Street Journal

According to the CNBC and SurveyMonkey American Dream Pulse Survey, over half (51%) of Americans believe the “American Dream” is currently unattainable for most. The survey, which included 4,130 U.S. adults, found that 45% think the “American Dream” - once defined as the “dream of a better, richer and happier life for all our citizens of every rank” - is achievable only for some, while 6% feel it is out of reach for anyone. Elizabeth Suhay, professor of government at American University, said Americans today are “less likely to believe the American economy is meritocratic, that it is fair, that it delivers economic success to a typical hardworking person, [and] that lower-income people can work their way up” than people in previous decades.

 

CNBC

PCAOB Chair Demetrios Logothetis has outlined plans to modernize the regulator’s inspection program, shifting its focus from reviewing individual audit engagements toward assessing firms’ overall quality control systems. He has also backed revisions to the PCAOB’s QC 1000 quality control standard, which is due to take effect in December 2026. The proposed changes would simplify compliance requirements, provide greater flexibility in assigning quality control responsibilities, remove the requirement for large firms to maintain an External QC Function, shorten documentation retention periods from seven to five years, and reduce certain reporting and evaluation obligations. The review comes amid significant changes in the accounting profession, including growing private equity investment in audit firms and rapid technological advances. Logothetis said the PCAOB must better understand how alternative ownership structures and evolving business models affect audit quality and independence.

 

Accounting Today

President Trump’s Office of the U.S. Trade Representative (USTR) is proposing new tariffs of up to 12.5% on 59 countries and the European Union based on an investigation into forced labor under Section 301 of the Trade Act of 1974. The USTR claims there has been widespread failure to restrict the importation of goods produced by forced labor, a practice that affects an estimated 27.6m men, women, and children victims of the practice daily, and which generates $236bn in illegal profits annually. Legal experts say the unilateral imposition of tariffs against 60 economies at once is unprecedented, and CNBC reports that trade and labor authorities say the USTR's investigation was executed in short order, and is likely to meet significant legal challenges - including that the U.S. has itself struggled like most countries to crack down on the pervasive issue.

 

CNBC

A Milan court judge has upheld a decision to place the Italian unit of U.S. builder Caddell Construction under ‌judicial control, as it faces a probe into alleged worker abuse at the Italian city's new U.S. consulate site. The judge said that, based on available evidence, the Italian arm of ⁠the U.S. firm had recruited workers in India through an intermediary and put them to work "on ​exhausting shifts, underpaid, without safety protections and under the constant threat of dismissal." Reuters observes that the judge's ruling is the latest indication of a broader crackdown ​on labor exploitation over the past three years.

 

Reuters