Pentagon deploys agentic AI to tackle Big 4 audit problems
KPMG audit issues ripple across Big 4 firms while Pentagon turns to agentic AI to address audit challenges in federal contracting oversight.
The Wire — Page 2
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FRC investigates PwC's £30M WH Smith audit overstatement
UK Financial Reporting Council opens formal investigation into PwC's 2024 audit of WH Smith for missing a £30 million overstatement, signaling potential enforcement action.
AICPA, CIMA map accounting's future with Rise2040 report
AICPA and CIMA's Rise2040 report outlines major changes ahead for the accounting profession, likely including automation and AI adoption—but lacks specific details on agentic AI or concrete technol...
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AI tools for tax work face stricter IRS oversight, demanding new firm policies
Tax professionals leverage AI to boost efficiency, but a smaller, more automated IRS requires firms to implement stronger due diligence policies to avoid compliance risks.
Researchers tackle silent scope omission in policy-following AI agents
Academic paper proposes deontic trees to help AI agents correctly parse nested exceptions in regulations, addressing failures where systems appear compliant but miss critical edge cases in tax, aud...
Finance Leaders Face Hidden Governance Risks as AI Embeds into Workflows
MindBridge warns that AI is quietly integrating into financial reporting, approvals, and reconciliations—often unrecognized by organizations—creating governance and compliance blind spots for finan...
AICPA 2025 valuation update demands reality check over theoretical precision
AICPA's 2025 update pushes valuators to align models with actual market behavior rather than relying on theoretical precision, signaling a shift toward practical accountability in private company v...
Runtime framework enables continuous LLM compliance monitoring for EU AI Act
Research proposes 'governance from metrics' approach treating LLM compliance as continuous runtime signal rather than binary audit verdict, addressing EU AI Act requirements for ongoing oversight a...
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Ontological Knowledge Blocks Enable Executable Compliance for AI Systems
Researchers propose Ontological Knowledge Blocks (OKBs), a programmable framework that automates AI governance verification and compliance auditing beyond static checklists, targeting transparency ...
Study reveals LLM governance gaps in regulated financial workflows
Researchers identify principal-agent failures in LLMs used for regulated financial decisions, where models appear compliant while violating governance at the rationale level; propose five metrics t...
Researchers warn 'human in the loop' AI oversight often masks deeper safety r...
Academic paper critiques overuse of 'human in the loop' framing in AI systems as false safety assurance, raising concerns about bias, accountability, and transparency in deployed decision-making sy...
Agentic AI design must balance autonomy and agency in regulated sectors
arXiv research proposes architectural tactics for deploying agentic AI in regulated contexts like accounting, emphasizing how autonomy and agency must be coupled to maintain compliance and human ov...
IMA launches AI in Finance micro-credential for accountants
Institute of Management Accountants introduces new AI in Finance micro-credential as part of broader competency certification rollout for finance and accounting professionals.
Finance teams restrict AI autonomy due to lack of trust framework
Webinar explores why 80% of finance professionals limit AI use and how structured governance can unlock productivity in financial operations.
SEC Eyes Semiannual Reporting; OpenAI Enters Accounting Consulting
Accounting podcast covers SEC push for optional semiannual reporting, OpenAI's consulting arm competing with Big Four, and AI outperforming physicians in diagnosis—with implications for accountants...
AICPA updates confirmation standards for modern audit evidence
AICPA's Auditing Standards Board modernizes external confirmation procedures to reflect evolving audit evidence practices, though specific AI/automation implications remain unclear.
HMRC deploys British AI firm tech to detect tax fraud and filing errors
UK tax authority HMRC will use AI from a British tech company to identify fraud and errors in tax returns, signaling regulatory adoption of AI for compliance and revenue protection.
Snowflake: Semantic layers critical as AI agents handle financial risk
Snowflake explains how semantic layers—shared meaning of data—are essential for AI risk models and agents making autonomous decisions in financial services without understanding underlying data con...
Internal audit teams must lead AI governance to close oversight gap
AuditBoard argues GRC and internal audit teams are critical to mitigating AI risks and ensuring regulatory compliance as enterprises deploy AI systems.
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AuditBoard publishes AI vendor vetting checklist for compliance teams
AuditBoard outlines essential questions auditors should ask AI vendors, covering governance, risk, and security—relevant for audit teams evaluating AI tools but lacks accounting-specific guidance.