AICPA Town Hall Podcast Summary (Nov 21, 2024)

Episode Title: Navigating Change, BOI Updates and Audit Transformation
Hosts & Guests:

• Eric Asgeirsson (President & CEO, CPA.com)
• Lisa Simpson (AICPA)
• Rachel Dressen (AICPA DC Rep)
• Hannah Pryor (Workplace Performance Expert)
• Emily Remington (CPA.com)
• Sarah Fleishel (AAFC-PAS Director of Audit Transformation and Training)

Episode Overview

This episode provides critical updates on regulatory changes, tax policy, and audit transformation, contextualized by the broader landscape of industry disruption. The hosts discuss the profession’s response to rapid change, new legislation, and practical strategies for firms, including the push for a one-year delay to Beneficial Ownership Information (BOI) reporting. Highlights include expert insight into neutral thinking for navigating stressful transitions and a deep dive into the evolving world of audit practice transformation.

Key Discussion Points & Insights

1. Profession and DC Update: Legislative Landscape

With Rachel Dressen (07:08–18:05)

• Lame Duck Session:
  Congress faces pressing deadlines on government funding as the continuing resolution (CR) is set to expire December 12th–20th. Options under debate include a short-term extension (potentially to enable more influence by President-Elect Trump) or passage of an omnibus/minibus package to fund the government through the year.

  • “We understand the issues that could potentially create for practitioners if there were a potential government shutdown in the middle of filing season.” (07:50, Rachel)

• Disaster Relief:
  Bipartisan support grows for a new package that may include disaster-related tax provisions. The AICPA advocates for legislation allowing IRS to pre-authorize deadline extensions based on a governor’s emergency declaration, not waiting for the disaster’s aftermath.

  • “It would allow the IRS to make those extensions prior to a disaster … once a governor makes a state declaration.” (13:52, Rachel)

• BOI Reporting Delay:
  AICPA strongly urges a one-year delay, highlighting low awareness among affected filers and complexity in some cases. Multiple efforts are underway—via Congress and direct outreach to FinCEN and Treasury.

  • “80% of those who need to make this filing have not done so as of yet.” (15:35, Rachel)
  • “Our hope is … the amendment for a one-year delay will be included in the final NDAA bill that passes in December.” (15:48, Rachel)

2. Navigating Change & Influence Techniques

With Hannah Pryor (19:53–27:30)

• Modern Trust Crisis:
  Significant concurrent change (political, regulatory, technological, cultural) is creating a “trust crisis”—people increasingly question information and require robust due diligence.

• Neutral Thinking as Coping Strategy:
  Hannah introduces "neutral thinking," a mindset tactic championed by Russell Wilson and his mental conditioning coach, Trevor Moad. This involves focusing on objective facts without assigning positive or negative value—useful for leaders and teams facing uncertainty.

  • “We can’t choose our first thought, but we can choose the second.” (25:05, Hannah)
  • “Resistance is actually what keeps us unproductive; neutral thinking allows us to stay hyper-present and productive—even during major disruption.” (24:56, Hannah)

• Modern Influence:
  Influence techniques in accounting must adapt as people, teams, and clients are profoundly different than they were even five years ago. Trust is built and maintained differently; key is meeting people where they are, with clarity and transparency.

3. Technical Update with Lisa Simpson

Key Sections: 27:36–40:28

• BOI Reporting Advocacies and Challenges:

  • AICPA’s push for delay due to confusion and lack of awareness, even as some argue the process can be simple in straightforward cases.
  • “It might be a 10 minute filing, but there are also some very complicated ownership situations.” (27:54, Lisa)
  • Resources for both CPAs and non-tax section members are available, including sample client communications and engagement letter language.

• ERC (Employee Retention Credit) Processing Issues:

  • About 400,000 claims worth over $10B still pending; disallowance letters are being sent at a high volume. IRS may have over one million claims pending by year-end.
  • Upcoming deadlines: PTIN renewals due end of year; IRS e-file system for individuals shuts down Nov 30.

• End-of-Year Compliance:

  • Reminder on importance of engagement letters for liability protection.
  • Tax compliance resources and practice management guides updated for 2024.

4. Audit Transformation Deep Dive

With Emily Remington and Sarah Fleishel (40:34–55:17)

• Key Drivers:
  Unprecedented pace of audit practice change driven by new tech (AI, data analytics, cloud), evolving standards, and new skill requirements.

  • “I have heard more about audit transformation in the last 18 months than in the last 18 years combined.” (40:54, Emily)

• Transformation v. Change:

  • Change is incremental (e.g., software updates), transformation is fundamental (e.g., moving to data-driven audit methodology).
  • “Change is doing things differently and transformation is doing different things.” (49:23, Sarah quoting Tom Hood)

• Practical Implementation Tips:

  • Dedicating non-billable staff to transformation enables focus and creativity.
  • Adoption means shifting time/spend: more up-front planning, less time in fieldwork/wrap-up.
  • Expect data ingestion hurdles—better client data upfront is critical.
  • Outsource strategically to fill skill/expertise gaps, especially in tech.

• Peer Communities Help:

  • Audit Transformation Community Group available for US-based firms to share learning.

  • “Getting started is the hardest part, but you have to start somewhere.” (51:45, Sarah)

  • “The best and highest use of your time—outsource to someone who has the skillset you need.” (52:41, Sarah)

Notable Quotes & Memorable Moments

• “We are going to be entering a period of significant change again where we're going to be having to monitor developments on a regular basis. But we're here to help.” (01:52, Lisa)
• “Change is doing things differently and transformation is doing different things.” (49:23, Sarah)
• “We can’t choose our first thought, but we can choose the second.” (25:05, Hannah)
• “The majority of circumstances it might be a 10 minute filing, but there are also some very complicated ownership situations ... there are also so many small business owners who still have no awareness of this requirement.” (27:54, Lisa)
• “I have heard more about audit transformation in the last 18 months than in the last 18 years combined.” (40:54, Emily)
• “Getting started is the hardest part, but you have to start somewhere, so don’t be scared to just start.” (51:45, Sarah)

Timestamps for Major Segments

• 00:00–07:08 — Welcome, Context, and Industry Landscape
• 07:08–18:05 — DC/Profession Update & BOI Advocacy (Rachel Dressen)
• 19:53–27:30 — Navigating Change & Influence (Hannah Pryor)
• 27:36–40:28 — Technical Update: BOI, ERC, Compliance (Lisa Simpson)
• 40:34–55:17 — Audit Transformation Deep Dive (Emily Remington & Sarah Fleishel)
• 55:17–58:17 — Talent, Engagement, and Open Forum Q&A
• 58:17 to end — Announcements, Closing remarks

Resources & Next Steps

• AICPA BOI Resources: Sample client communications, engagement letter language, FAQs, FinCEN guides
• Audit Transformation Community: Peer sharings and best practices for firms beginning transformation journeys
• Upcoming Rebroadcasts & Webinars: December 4 — BOI updates; Digital CPA Summit in December
• Action Calls:
  • Reach out to legislators to support a BOI delay
  • Review and update engagement letters
  • Prepare for year-end compliance changes and deadlines

Final Thoughts

This AICPA Town Hall episode is a must-listen for anyone navigating a time of complex change in accounting and audit. The combination of regulatory advocacy, mindset coaching, and real-world transformation success stories delivers both practical value and a sense of optimism. The message: embrace the change, leverage available resources, connect with peers, and adopt a mindset that makes room for both challenge and opportunity.