AICPA Town Hall – November 20, 2025: Audit Practice Evolution & Addictive Leadership

Episode Overview

This episode of the AICPA Town Hall focuses on the rapid evolution within the accounting profession, particularly audit practice transformation, current legislative and regulatory updates impacting accountants, and a compelling discussion on "addictive leadership"—drawing insightful parallels between recovery principles and self-leadership. The show features updates from Capitol Hill, IRS and technical regulation summaries, best practices for audit modernization, and a deep dive into leadership challenges during times of stress.

Key Segments and Timestamps

• [03:10] – Washington, D.C. Update (Rachel)
• [12:00] – Technical Update (Melanie)
• [25:44] – Audit Practice Transformation Discussion (Emily Remington & Michael Brand)
• [38:12] – Addictive Leadership Conversation (Aaron Hartman & Michael Brody Waite)
• [51:09] – Open Forum Q&A

D.C. Legislative & Regulatory Update ([03:10] – [12:00])

Speaker: Rachel

Appropriations & Shutdown Aftermath

• Government shutdown has ended; a continuing resolution (CR) funds the government through January 30th, 2026 at current spending levels.
• Key appropriations bills (Treasury, IRS, SEC) not yet passed—critical for the accounting profession as another shutdown could directly impact services and the tax season.
• Some appropriations (“minibus”) passed for Agriculture, Veterans Affairs, and Legislative affairs—these agencies will have funding regardless.
• Reversal of agency staff reductions included in the deal.

Key Quote:
"It was historic. It was 43 days... I don't know if this is something you want to brag to your grandkids one day that you lived through this, but nonetheless, you did." – Rachel [08:15]

Upcoming Legislative Focus:

• Remaining 9 appropriations bills to be addressed before Jan. 30.
• National Defense Authorization Act (NDAA) is a vehicle to watch for amendments; potential for digital assets regulations and tax provisions to hitch a ride.
• Ongoing White House discussion on a possible second budget reconciliation bill encompassing health care and tariffs—another avenue for tax measures.
• Senate backlog on nominations also a high priority.

Technical Update and Tax Practitioner Hot Topics ([12:00] – [25:44])

Speaker: Melanie

IRS & Disaster Relief

• Disaster-related IRS tax relief provided for impacted taxpayers in Alaska, North Carolina, and South Carolina (check IRS site for specific deadlines extended into 2026).
• IRS issued new safe harbor guidance for investment trusts regarding digital assets, requiring timely amendments to trust instruments (14-part test, nine months compliance window beginning Nov. 2025).

Digital Assets & Legislative Developments

• Early bipartisan exploration in Congress about "digital assets" regulation; AICPA digital assets task force is drafting guidance.

IRS Structural and Operational Points

• Proposed OPR (Office of Professional Responsibility) and RPO (Return Preparer Office) merger:
  • AICPA opposes, asserting divergent missions and effectiveness.
• IRS resuming normal operations post-shutdown (Taxpayer Assistance Centers reopen).
• Concerns raised by TIGTA about workforce cuts not impacting 2025, but possibly impairing 2026 tax season processing and refunds.

National Tax Conference Highlights

• Sessions highlighted IRS workforce and service delivery strains.
• Former IRS Commissioner: “This is the toughest environment that IRS employees have ever faced.” [~15:20]
• AI-driven tech seen as future, but human intervention remains crucial.
• National Taxpayer Advocate Erin Collins announced automatic first-time abate for late penalties (over 1 million previously eligible but unaware).

Key Changes:

• New eForm911 will soon be available online.
• Congress to receive a new “Where’s My TAS Case?” portal by winter, potential public access thereafter.

Independence Standards and Notices

• Exposure draft for Code of Professional Conduct—guidance for maintaining independence while providing tax services to attest clients.
• IRS notice correction for CP161 and CP504B; erroneous notices resolved.
• Modernized e-file system blackout after Dec. 26th, 2025, until next filing season.

Audit Practice Evolution – Technology & Transformation ([25:44] – [37:29])

Speakers: Emily Remington (CPA.com) & Michael Brand (BMSS)

Technology as Audit Catalyst

• Firms across sizes are adopting tech as a “catalyst for practice transformation,” focusing on:
  • Technology stack analysis (purpose-built, comprehensive platforms, client communication tools)
  • Embracing AI (agentic and generative) for streamlining workflows
• Practitioners urged to be intentional—balance tech-driven efficiency and audit quality.

Emily Remington:
"Technology is really shaping how we're doing audits, how we're thinking about audits and the audit experience... The most advanced firms are seeing efficiency not just as speed, but as a way to really free up capacity and provide deeper analysis." [27:20]

Transformational Efficiency

• Efficiency now equals freeing staff for analysis and insight, not just speed.
• Reuse of data, automation, and cloud platforms are elevating both process and deliverable quality.

Michael Brand’s Practitioner Perspective

• Champions of tech within firms drive purposeful adoption.
• All-in-one platforms improved efficiency and freed up time for value-added client consulting.
• Quality management standards (SAS142, implementation by Dec. 15th, 2025) are a “working document”:
  • New tools (e.g., QM Core) enable ongoing, real-time monitoring and adjustment.
  • Firms must abandon “set it and forget it” mentality; system must evolve as risks, mandates, or audit environment shift.

Key Quote:
“When I started, where the audit is now, you talk about a transformation... Technology is enabling us to give our clients more than just the audit report.” – Michael Brand [31:06]

Survey Teaser:

• Early findings reveal most firms lack a formal audit transformation plan; largest client satisfaction comes from insights outside the traditional audit report.

Addictive Leadership: Recovery Principles for Accountants ([38:12] – [50:06])

Speakers: Aaron Hartman (PCPS) & Michael Brody Waite (Founder, Addictive Leadership)

Michael Brody Waite’s Story

• Former addict turned CEO, leveraging recovery's principles as a self-leadership system.
• Core realization: Every act of avoidance is a leadership challenge—parallels between addiction recovery and the leadership needed under accounting stress.

The Three Principles of Addictive Leadership:

1. Practice Rigorous Authenticity:
   • Face and list every difficult conversation you’re avoiding, especially under stress.
2. Surrender the Outcome:
   • Accept that you can't control reactions; focus on actions within your control.
   • Quantify fears and share for reality check.
3. Do Uncomfortable Work:
   • Distinguish between hard and uncomfortable work; the latter is what leads to breakthroughs.
   • Start tough conversations by honestly expressing your anxieties—disarms others and fosters trust.

Notable Quotes:

• “The first step to solving a problem is admitting there is one. In the profession, instead of blaming clients or busy seasons, we do a searching and fearless inventory of ourselves…” – Michael Brody Waite [40:50]
• “How many times have you seen someone doing eight hours of hard work because they were avoiding five minutes of uncomfortable work?” – Michael Brody Waite [41:12]

Practical Application for Accountants

• Most common internal avoidance: Giving constructive feedback.
• Most common external avoidance: Scope creep with clients.
• Approach: Write down avoided conversations, quantify fear, have someone else check your logic, then act—leading with transparency about your fears.

Key Insight:
"I believe we are all addicted to something else: our comfort zones... In the world where there’s so much we can’t control, [having difficult conversations] is 100% within our control." – Michael Brody Waite [48:54]

Open Forum Q&A ([51:09] – [56:57])

Selected Questions and Answers:

• Will funding or shutdown deadlines move again?
  • “We’ll get indications in December on ease of appropriations bills... in D.C. things often fall apart before they come together.” – Rachel [51:09]
• Proposals to eliminate government shutdowns?
  • General support exists but procedural hurdles remain due to filibuster. [53:00]
• Quality management tech platform (QM Core):
  • A cloud-based system, customizable for internal protocols, supporting both in-platform and AICPA checklist workflows. [54:12]

Resource Highlights and Upcoming Events

• National MAP Survey Executive Summary – now available for benchmarking firm operations.
• Upcoming AICPA Webcasts:
  • Competing for Talent: Dec. 2
  • Navigating Digital Transformation: Dec. 5
• Next Town Hall:
  • Live from Digital CPA, Tuesday, Dec. 9th, 4pm ET

Memorable Quotes Recap

• "You lived through 43 days of historic government shutdown... I don't know if this is something you want to brag to your grandkids one day, but nonetheless, you did." – Rachel [08:15]
• "Technology is really shaping how we're doing audits... efficiency is now about providing deeper analysis and better audit quality." – Emily Remington [27:20]
• "When I started, where the audit is now... technology is enabling us to deliver more than just the audit report." – Michael Brand [31:06]
• "How many times have you seen someone doing eight hours of hard work because they were avoiding five minutes of uncomfortable work?" – Michael Brody Waite [41:12]
• "I believe we are all addicted to our comfort zones." – Michael Brody Waite [47:29]

Tone and Approach

Throughout the episode, panelists maintained the AICPA Town Hall’s trademark mix of rigorous, practical guidance and a warm, solutions-focused outlook. Leadership principles were shared with candor and humility; technical updates were digestible yet comprehensive; and the conversation on audit innovation was constructive, direct, and encouraging.

This summary covers key topics and insights from the “AICPA Town Hall – Audit Practice Evolution and Addictive Leadership” episode on November 20, 2025, with attention to actionable advice, significant regulatory developments, and progressive leadership strategies for the accounting profession.