Earn Free CPE: AI, Fake SOC 2 Reports, and What's at Stake for the Profession
David and I dug into this and a lot more on episode 480 of The Accounting Podcast. And now you can earn free CPE credit just for listening.
Your firm isn't a factory. Stop running it like one.
In the early 1900s, accounting firms took cost accounting theory — built to manage factories and railroads — and applied it to themselves. Over a century later, we're still running on it, and AI is about to expose exactly how broken it is.
Why Cost Accounting is the Wrong Way to Value Artificial Intelligence
AI can prepare a tax return. But is tax prep the bottleneck in your firm? If AI speeds up tax prep while the partner review queue moves at the same pace, your throughput remains the same. That’s the problem with applying cost accounting to the ROI of artificial intelligence.
SOC 2 as a Service or a Scam
A compliance startup allegedly sold hundreds of companies fake SOC 2 reports. If the allegations hold up, it's one of the most brazen examples of assurance fraud I've seen in years—and it raises serious questions about how we've built the trust infrastructure around these certifications.
PwC vs. EY: The Big Four Make Opposing Bets on AI
Anthropic’s AI Exposure Index actually tells a more nuanced story than the headlines suggest. Yes, business and finance has near-ceiling theoretical exposure. But the observed exposure — what's actually being automated today — is still low. There's a gap.
Audit enforcement basically fell off a cliff last year
The PCAOB and SEC brought just 39 enforcement actions against auditors in 2025, down 33% from 2024. Monetary sanctions dropped even harder, falling 66% to $17.9 million from $52.2 million.
“Go Clean Your Room” and Other Ways to Get a Straight Answer from AI
Accounting systems need to be deterministic. There is no "probably correct" in a general ledger. You can't have a system running autonomous best-guess operations against books that a client is going to stake business decisions on — and that you're staking your reputation on.
Women Are Getting the Title of Partner But Not the Biggest Clients
The number of female partners in accounting has skyrocketed from 4% in 1989 to 39% today. On the surface, it's a massive win for the profession. But when you look closer, there's still a long way to go.
Baby, Where the Hell Is My Audit?
The Massachusetts State Auditor walked into a St. Patrick's Day breakfast and sang karaoke for the legislature. The song: “Baby, Where The Hell Is My Audit?”
Can AI Help Your Firm Close Faster Without Giving Up Control?
Join me & Sasha Orloff (CEO of Puzzle) to see what "AI-powered, human-led" accounting looks like in practice. Learn to scale capacity, maintain control, and earn free CPE!