New fraud standards emerge, tax laws expand deductions, and firms focus on future readiness

Welcome to our weekly digest—a space to reflect on where the accounting profession is headed and how it’s evolving in real time. Each week, we bring you a curated roundup of recent headlines, ideas, and innovations shaping the future of the industry.

From emerging technologies and shifting talent pipelines to strategic mergers and evolving client expectations, the profession is in motion. Our goal is to surface stories that matter—whether you’re leading a firm, advising clients, or just ruminating about what comes next.

In last week's issue, we tracked AI agents automating workflows, private equity pushback, and expanded competency frameworks positioning accountants as strategic partners. This week, we're exploring new fraud detection standards from the AICPA, major tax law changes under the One Big Beautiful Bill, and practical strategies for building future-ready firms through technology investments and talent development in uncertain times.

Let’s dive in.

🔍 Top headlines

One Big Beautiful Bill extends TCJA provisions and adds new deductions

The newly signed One Big Beautiful Bill permanently extends key Tax Cuts and Jobs Act provisions and introduces new deductions, effective for tax year 2025. Most notably, the SALT deduction cap rises from $10,000 to $40,000 for taxpayers earning up to $500,000, offering potential relief in high-tax states.

New above-the-line deductions include tip income up to $25,000 and overtime pay up to $12,500 for certain workers, both phasing out above $150,000. Seniors gain an enhanced deduction up to $6,000, and interest on qualified auto loans for personal-use vehicles assembled in the US becomes deductible up to $10,000. 

Energy efficiency credits for EVs and home improvements expire after 2025, and personal exemptions remain eliminated. The 20% Qualified Business Income deduction is now permanent, with higher income thresholds. Most changes apply to 2025 returns filed in 2026, and tax software will be updated accordingly.

ASB proposes updated standard on auditor fraud responsibilities

The AICPA Auditing Standards Board has issued an exposure draft that would replace existing fraud guidance under SAS No. 122 (AU-C Section 240), with public comments due by October 3. The proposed standard doesn’t shift the auditor’s core objectives, but aims to strengthen how those responsibilities are carried out when fraud—or suspected fraud—is identified.

As AICPA Chief Auditor Jennifer Burns put it, the update is about execution: “What it does is strengthen and clarify the auditor’s specific role in these circumstances.” The proposal highlights areas where current guidance can be sharpened and brings US standards closer in line with international guidance (ISA 240 Revised).

The ASB expects the new standard to encourage deeper professional skepticism during audit planning and performance, helping auditors respond more effectively to fraud risk, while reinforcing the shared responsibility of management, governance, and auditors in creating an environment where fraud is less likely to thrive.

Ignition and Karbon enhance integration to automate entire client lifecycle

Ignition and Karbon have rebuilt their integration on Karbon's latest API to create seamless automation from signed agreements through work delivery. The enhanced platform automatically syncs clients and creates work items in Karbon once proposals are signed, eliminating manual setup and reducing onboarding time for firms of all sizes.

The two-way data sync addresses a common friction point that CEO Greg Strickland describes as firms being "bogged down negotiating agreements, chasing signatures and payments, then manually onboarding clients before real work begins." Dark Horse CPAs, an early adopter, reports the automation has delivered "massive efficiency gains" and become a "game-changer for growth."

For firms looking to scale operations, this integration represents a practical solution to streamline the entire front-end process while improving cash flow timing. The combination positions firms to start billable work sooner while reducing administrative overhead that typically slows client onboarding.

💻Technology & innovation

Armanino uses AI to develop data warehouse service for smaller organizations

Top 25 firm Armanino is launching a data warehouse-as-a-service offering later this year, targeting smaller organizations that lack the resources for sophisticated data infrastructure. The service will centralize client financial data on Armanino's hosted platform, accessible through a built-in chatbot for reporting and KPI analysis.

While not responsible for developing the idea, AI did play a critical role in accelerating the service development process. Partner Carmel Wynkoop used Google Deep Research, ChatGPT, and Claude for market research, business planning, and strategy validation, compressing what typically takes months into just two weeks. The firm leveraged existing ERP implementation expertise to build the technical foundation, while AI handled competitive analysis and go-to-market strategy development. The service is currently in beta testing.

Half of managers use AI to determine promotions and terminations, survey finds

A new ResumeBuilder.com survey of 1,342 US managers reveals widespread AI use in high-stakes employment decisions: 78% use it for raises, 77% for promotions, and 66% for layoffs. Alarmingly, more than 20% often let AI make final calls without human oversight, despite two-thirds receiving no formal training on ethical AI use.

While not accounting-specific, the findings are highly relevant as firms adopt AI for performance reviews, client assignments, and staffing. In a profession built on trust, the absence of training protocols poses significant risks. Notably, 46% of managers have evaluated AI replacement for direct reports, and 43% have acted on it, highlighting the urgent need for clear AI ethics frameworks before deployment, not after.

🧠 Practice management

CAS practice leaders share strategies for building successful advisory services

Client advisory services (CAS) is the fastest-growing service area for CPA firms, with CAS-related revenue projected to double over the next three years. For firms seeking to unlock this growth, advice from experts as shared in the Journal of Accountancy, can help guide the path forward. 

Key recommendations include selecting specific industry verticals to build specialized expertise, identifying ideal clients who value strategic partnerships over transactional services, and investing in technology stacks tailored to each vertical's specific needs. Experts emphasize hiring from industry—bringing in former controllers and CFOs—rather than solely promoting from traditional audit and tax roles. For smaller firms, the advice is to start with one client and build organically while thinking strategically about technology adoption, like larger competitors.

Robert Half executive outlines four strategies for building future-ready CPA firms

Steve Saah, executive director of finance and accounting permanent placement at Robert Half, argues that maintaining the status quo during uncertain times carries greater risk than strategic advancement. With firms facing client pressure amid market volatility while struggling with talent attraction, Saah recommends four key strategies for building resilience:

1. Prioritizing AI-powered technology investments that act as "force multipliers."
2. Emphasizing soft skills such as emotional intelligence during hiring.
3. Building talent pipelines through meaningful career conversations and flexible staffing models.
4. Authentic brand-building that aligns internal culture with external promises.

The guidance focuses on creating workplaces where people want to be and clients want to bring business, positioning firms to emerge stronger from current turbulence rather than simply weathering it.

🏢 Firms news and mergers

UHY adds Ohio firm with Flynn & Company acquisition

Top 100 firm UHY has acquired Cincinnati-based Flynn & Company, expanding its footprint into Ohio and deepening its presence in the Great Lakes region. The deal follows UHY's December 2024 private equity investment from Summit Partners and establishes its first Cincinnati office, serving one of the region's fastest-growing markets.

Founded in 1994, Flynn & Company brings tax, assurance, and advisory services along with managing partner Richard Flynn, who emphasized the cultural alignment between the firms. With Cincinnati boasting nearly $200 billion in GDP, the acquisition allows UHY to tap into what the firm's leadership describes as significant demand for comprehensive accounting services in a thriving economic hub with strong entrepreneurial activity.

Sorren welcomes Williams Overman Pierce to expand Southeast presence

Idaho-based Sorren has added Raleigh, North Carolina-based Williams Overman Pierce to its growing network, strengthening the firm's Southeast footprint while maintaining its focus on personalized, local service. The move brings more than 50 years of experience across accounting, attest, tax, and consulting services through offices in Greensboro, Raleigh, and Wilmington.

Williams Overman Pierce has been recognized by the Triangle Business Journal as one of the top 20 accounting and consulting firms in the region, known for strong client relationships across diverse industries. President Josh Tyree emphasized the strategic importance of the North Carolina market, and managing partner George Lambert highlighted gaining access to expanded resources while preserving the high-touch service model that has defined the firm's approach to client relationships.

🏅 Featured accountants and firms

Grant Thornton partner Sean Denham transitions to CFO role at SEI

After decades as a senior partner at Grant Thornton, Sean Denham made an unexpected career pivot to become CFO of financial services firm SEI in March 2024, adding COO responsibilities in February 2025.

The transition highlights how accounting professionals can leverage their advisory experience into operational leadership roles. Denham credits his client service experience and working with diverse companies across industries as preparation for understanding what operational strategies succeed or fail. Though he admits the shift from private to public took nearly a year to feel comfortable, his move reflects broader opportunities for experienced accountants to transition from service provider roles into executive positions.

📅 Events, podcasts & webinars

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🗣️ Quote of the week

The future of accounting is unfolding every day, and it’s being shaped by professionals like you who are exploring new ideas, testing what works, and finding better ways to support clients. Whether you’re growing your skill set, expanding your services, or simply staying curious about what’s next, we hope this issue gives you a few useful sparks.

We’ll be back next week with more insights, trends, and tools to help you keep moving forward—one step, one win, and one update at a time.