IESBA sustainability guidance, higher starting salaries, and the SEC-IFRS climate clash

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 covered crypto audit guidance, a rebound in business confidence, and PwC’s caregiving ROI. This week, we cover IESBA’s new sustainability assurance guidance, rising accounting salaries for new hires, and a warning from the SEC over International Financial Reporting Standards (IFRS) sustainability and climate focus. Plus, we look at a startup leveraging AI to reshape audit and tax, Deloitte’s new AI infrastructure hub, and how outsourcing and risk oversight are evolving in practice.

Let's dive in.

🔍 Top headlines

IESBA issues guidance on external experts and sustainability assurance

The International Ethics Standards Board for Accountants (IESBA) has released two staff publications to help firms implement recently issued ethics standards set to take effect in December 2026 on the use of external experts and sustainability assurance. 

The first, a Q&A guide, addresses how to evaluate whether to rely on external experts, assess their objectivity and competence, and identify potential threats in audit and sustainability engagements. The second, focused on proportionality, explains how the International Ethics Standards for Sustainability Assurance (IESSA) provides a scalable baseline for entities of all sizes, with special emphasis on small- and mid-sized practices. 

For firms, the guidance offers a practical roadmap to integrating sustainability assurance into engagements while reinforcing independence standards, an area of growing importance as clients face more scrutiny over nonfinancial reporting.

Starting salaries climb as firms compete for talent

Public accounting firms are raising pay in response to a shrinking pipeline of accounting grads. The AICPA’s Management of an Accounting Practice Survey found median starting salaries for new hires with bachelor’s degrees rose 11% since 2023, reaching $60,834, while those with master’s degrees jumped 17% to $67,750. Partner compensation also rose 10% to a median $202,521, with profit per partner up 12%. 

Revenue grew more modestly, with a median increase of 6.7% in FY 2024, down from the surge seen in the years following the pandemic. Larger firms ($10M+ revenue) reported the strongest growth at 9.1%. Still, questions remain over whether higher pay will be enough to lure students away from other fields such as finance. The findings highlight ongoing pressure for firms to stay competitive both compensation and workplace experience as the profession grapples with talent shortages and uneven adoption of automation.

SEC warns IFRS over sustainability focus

SEC chair Paul Atkins has warned that overseas companies may lose the ability to use International Financial Reporting Standards (IFRS) in US markets if the IFRS Foundation continues pushing sustainability and climate-related disclosure rules. Speaking at an Organisation for Economic Co-operation and Development roundtable, Atkins argued that weaving such principles into IFRS, “could undermine [its] integrity” and create incompatibility with US GAAP.

The SEC has permitted IFRS for nearly two decades, allowing foreign companies to avoid costly reconciliations with US standards, a practice now at risk if the regulator moves to revoke access. The tension reflects a broader rollback under Atkins, who has reversed climate disclosure and crypto policies set before his time. For global firms and US firms advising multinational clients, the standoff raises questions about compliance costs, cross-border reporting burdens, and the balance between financial reporting standards and evolving sustainability expectations.

💻Technology & innovation

AI startup Accordance raises $13M to tackle accountant shortage

Accordance, a Y Combinator–backed startup, has raised $13 million in seed funding from firms, including Khosla Ventures, Sequoia, and Anthropic, to scale its AI software for accountants. Founded by David Yue and Finsam Samson, the company is targeting the profession’s notable talent gap. Accordance’s platform is trained on tax code, court rulings, and client data, helping firms reduce costs and boost expertise. Companies such as Figma and Quora have already used the software for complex tax issues, with one client reportedly saving $50,000 per month. The startup is also partnering with universities, including the University of San Francisco, to embed the tool in tax courses, preparing the next generation of accountants to integrate AI into practice.

Study finds auditors are less likely to flag fraud with inherited tech tools

A new study from the Journal of Accounting Research highlights a risk in how auditors use audit data analytic tests (ADAs). According to the findings, when auditors developed their own ADA, 54% pursued follow-up on fraud “red flags.” But when using an inherited ADA, only 26% did so. The drop in professional skepticism suggests auditors may overlook key risks when relying on tools they didn’t design. Researchers also found a solution: Providing a memo explaining how an ADA was developed raised follow-up rates to 34%. With ADAs becoming more common in audit work, the findings point to a simple, low-cost intervention with documentation and context that can strengthen skepticism and fraud detection across teams.

Deloitte launches global AI Infrastructure Center of Excellence

Deloitte has unveiled a Global AI Infrastructure Center of Excellence (CoE) to help clients design, build, and operate specialized AI data centers. The CoE is part of Deloitte’s Silicon2Service “AI factory-as-a-service” model aimed at accelerating enterprise-scale adoption of AI with speed, governance, and security. Services will span strategy, implementation, and operations, including cost optimization, cybersecurity, compliance, and use of digital twin technology for real-time data center simulation. The firm says the initiative responds to surging demand for scalable AI infrastructure, and reflects significant investment in talent, technical capabilities, and next-generation hardware.

ERP accounting: A comprehensive guide for accountants

A new guide from Intuit breaks down how enterprise resource planning systems (ERP) transform finance by integrating accounting with every part of the business, from inventory to payroll. The resource explains how ERP tools eliminate double data entry, deliver real-time reporting, and streamline workflows, while also outlining pitfalls and implementation best practices. For accountants, the key takeaway is how ERP positions firms to move beyond compliance toward strategic advisory, helping clients scale operations with automation, AI-driven insights, and integrated financial visibility.

🧠Practice management

Outsourcing as a growth strategy in a tight talent market

With more than 300,000 accountants leaving the profession in the past two years and new graduates on the decline, many firms are turning to outsourced accounting as a practical way to scale. Outsourcing can ease burnout, cut overhead, and free up in-house teams for higher-value advisory work. Flexible service models let firms offload payroll, reconciliations, and reporting while still retaining client relationships. For firms looking to grow, outsourcing can also extend service lines without the burden of hiring internally.

Editor’s note: If you’re seeking new business alongside operational support, Intuit’s Client Referral Program provides another lever, helping connect firms to prospective clients while they focus on delivering strategic, sustainable services.

Proposed HIRE Act could upend offshoring models

Even as firms lean on outsourcing to fill talent gaps, lawmakers are eyeing new restrictions that could complicate the model. Ohio Senator Bernie Moreno has introduced the Halting International Relocation of Employment (HIRE) Act, which would slap a 25% tax on outsourcing payments and prohibit deductions. While headlines have focused on the impact this bill would have on India’s IT sector, accounting could be squarely in the crosshairs, with estimates suggesting that many firms offshore anywhere from 30–60% of work already. Even with the surcharge, offshore salaries remain cheaper than US hires, but the bill adds cost, complexity, and plenty of compliance headaches to the mix. It also creates a Domestic Workforce Fund and raises penalties sharply, signaling mounting political pressure on firms to rethink offshoring altogether.

Most companies are still underusing risk management strategically

The 16th annual State of Risk Oversight report from North Carolina State University’s ERM Initiative and the AICPA highlights a persistent gap between risk awareness and risk strategy. While nearly half of senior leaders say their organizations factor risks into new initiatives, only 11% view their risk management processes as a source of competitive advantage. Just 32% rated their overall oversight as “mature” or “robust,” despite 61% acknowledging that risks have grown more complex and widespread in the past five years. Adoption of formal ERM remains uneven: 63% of $1B+ revenue organizations report complete processes, compared to only 24% of smaller firms.

🏢 Firm news & mergers

Five firms unite under the Richey May brand

Richey May & Co. has merged with four other firms—WSRP, MKA, Sobul, Primes & Schenkel, and United States X Advisors (formerly The Doty Group)—to form a national platform under the Richey May name. The combined firm now spans five states, with more than 350 professionals and deep expertise in tax, assurance, advisory, and outsourced services. Backed by investment from F3 Partners, the structure separates attest services under Richey, May & Co. LLP from advisory under RM Advisory LLC. Leaders describe the merger as an amplification of existing strengths, expanding regional reach while preserving client relationships. Industry observers say the deal positions Richey May as a top 50 CPA firm with ambitions to climb higher.

Haynie & Company merges with Simple Numbers

Salt Lake City–based Haynie & Company has merged with Simple Numbers, expanding its consulting and ERP service offerings. The deal strengthens Haynie’s advisory portfolio with capabilities in financial reporting, product economics, and operational excellence, alongside budgeting and forecasting support. The IPA 100 firm says the move underscores its commitment to helping businesses scale efficiently while deepening its consulting reach.

🏅 Featured accountants & firms

From CPA to sousaphone: Kent Broussard marches into LSU history

At age 66, retired accountant Kent Broussard has become the oldest member of LSU’s famed Tiger Marching Band. After decades in the profession and two prior degrees, he returned to campus as a full-time student with one goal: to finally take the field with a sousaphone in hand. Broussard trained rigorously to prepare for LSU’s demanding marching style, from jogging 25 miles a week to practicing with a weighted vest. His story is more than a personal milestone; it’s a testament to discipline, persistence, and joy well beyond the profession. For many in accounting, his late-career encore is a nice reminder that it’s never too late to follow a passion.

📅 Events, podcasts & webinars

WATCH

In the Know: Payroll Agent

This episode of In the Know spotlights QuickBooks’ new Payroll Agent, an AI assistant that automates the collection of hours, tips, reimbursements, and time off via SMS or the workforce app. ProAdvisors get a look at how it streamlines payroll prep while keeping admins in control, with demos showing anomaly detection, consent flows, and status updates.

LISTEN

On the Books: Let’s talk about private equity … and other growth options

In this episode of On the Books, hosts Ted Callahan and Jessica McCracken sit down with Jacob Schroeder, CEO of Ascend Consulting, to unpack private equity’s growing role in accounting. The conversation explores whether PE is a lasting model or just a phase, and what other growth paths firms can consider. This is a timely listen for leaders weighing funding, innovation, and long-term strategy.

REGISTER

Intuit Connect 2025

From October 27–29, accountants and firm leaders will gather at Intuit Connect in Las Vegas to explore new technologies, earn up to 14 CPE credits, and connect with peers. The three-day premier event will feature keynotes from Brené Brown, Queen Latifah, and Intuit CEO Sasan Goodarzi, plus breakout sessions on AI, advisory services, M&A, and firm growth. Join us to foster connection, learn new tech, and power your growth.

🗣️ 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.