AICPA Town Hall – February 19, 2026

Episode Title: State Advocacy and Cyber Considerations in the AI Era

Podcast: AICPA Town Hall
Hosts/Speakers:

• Michael Cerami (Host)
• Mark Koziel (Co-host, AICPA/CIMA leadership)
• Mark Peterson (AICPA/DC)
• James (State Advocacy Lead)
• Melanie Lawrenson (Taxation Expert)
• Avni Desai (CEO, Shellman; Cybersecurity Expert)

Overview

This AICPA Town Hall episode centers on the evolving challenges and opportunities facing the accounting profession, especially in light of rapid technological change (notably AI), complex regulatory landscapes, and increasing cyber threats. Experts break down federal and state advocacy efforts, tax updates, and practical cyber risk guidance. The conversation emphasizes the importance of trust, reskilling, and proactive adaptation for CPAs.

Key Discussion Points & Insights

1. Current Accounting Landscape and Top-of-Mind Issues

(Timestamps: 00:10 – 09:52)

• Tax Season in Full Swing: CPAs are navigating client questions and compliance challenges amid ongoing legislative and regulatory uncertainty.
• Partial Government Shutdown: Impact on certain agencies; profession must adapt to operational delays.
• Geopolitical Instability and Market Ambiguity: Accountants must be adaptable in uncertain economic conditions.
• The Paradigm Shift of AI: Accelerated tech change is changing work, controls, and professional relevance.

“We’re in the midst of an enormous paradigm shift driven by technology and specifically AI.” — Michael Cerami (01:05)

2. Federal Advocacy, Regulation, and Policy Outlook

(Timestamps: 10:37 – 22:18)

• Election and Legislative Environment:

  • Upcoming primaries and shifting committee margins will shape potential policy changes.
  • Shutdown affects specific departments but critical agencies for CPAs (SEC, IRS, GAO) remain funded.

• Department of Education Rulemaking:

  • Proposed changes to professional classifications; AICPA is coordinating responses to ensure CPAs’ interests are heard.
  • Collaboration across professional associations is key.

“We are working very closely with our partners in the state societies directly to make sure that comments come in.” — Mark Peterson (15:04)

• SEC Focus:

  • New PCAOB board, rebalance of audit oversight towards quality control, less punitive appointments.
  • Strong focus on capital formation and global competitiveness; risk of losing ground to foreign exchanges.

• Supreme Court Watch:

  • Pending ruling on use of emergency powers for tariffs; impact “as soon as tomorrow” (17:17).
  • Ongoing trade negotiations highlighted (e.g., new US-India deal).

• AI Policy Development:

  • White House focus on competition and innovation, not regulation-heavy.
  • Federal concern over a fragmented, state-by-state patchwork of AI legislation.

“There is bipartisan discussion around tax credits for upskilling and training for businesses.” — Mark Peterson (21:08)

3. State Advocacy: Pathways, Mobility, and Deregulation

(Timestamps: 22:25 – 34:21)

• AI Legislation Surge:
  • Over 1300 AI-related bills in state legislatures this year; impact extends beyond deepfakes/chatbots to professional assurance services.
• New CPA Licensure Pathways:
  • Widespread adoption of educational pathway alternatives; half of states already on board.
• Mobility at Stake:
  • Cross-border CPA practice privileges hinge on uniform adoption; state-specific exams threaten national mobility.
• Deregulation Threat Spectrum:
  • Ranges from minor board structure tweaks to potential elimination of CPA boards.
  • Importance of advocacy, “nothing more impactful than a CPA working with their state society...” (31:45)

4. Tax and Compliance Updates

(Timestamps: 34:45 – 40:56)

• IRS Practitioner Account Updates:
  • New linkage of centralized file and business EIN for better flexibility.
• Employee Retention Credit (ERC) Review:
  • GAO finds trade-off between timely support and increased improper payments; IRS communication shortcomings noted.
• Kwong and Fleischer Cases:
  • Ambiguity around deadline extensions and penalty relief during COVID-19; practitioners advised to consider protective claims with clients.
  • Ongoing risk of legal reversals—“everything can be overturned.” — Melanie Lawrenson (36:44)
• Disaster Relief and Interim Guidance:
  • Tax relief in Montana and Louisiana; watch for more state-initiated disaster relief.
• “Trump Accounts”:
  • New IRA variant, creating planning opportunities; resources available for practitioners.

5. Cybersecurity and AI Risks: Expert Insights

(Timestamps: 41:08 – 59:06)

The State of Cyber in the AI Era

• AI-Driven Threat Industrialization:
  • Attackers now mimic startups: well-funded, automated, with “AI copilots,” highly convincing phishing and social engineering.

“AI has lowered the barrier to attack dramatically... You can’t distinguish them from legitimate client communications.” — Avni Desai (42:45)

• Uncontrolled AI Use as Top Risk:

  • Staff pasting sensitive data into public AI tools, often innocently, resulting in uncontrolled data exposure.

• Deepfake-Enabled Fraud:

  • Voice cloning and synthetic media attacks can bypass traditional verification.

• Erosion of Trust:

  • Clients demand transparency on firms’ AI usage and governance; reputation damage possible from AI mishaps.

“The risk isn’t just security anymore, it’s credibility.” — Avni Desai (47:16)

• AI Assurance & Compliance:
  • New standards like ISO 42001 for AI trust/governance now being sought for internal tools.

Practical Defenses and Trust Building

• Formalize AI Usage Policies:
  • Short, readable frameworks specifying approved tools, data boundaries, human review.
• Scenario-Based Team Training:
  • Use realistic examples; move beyond generic “AI is dangerous” warnings.
• Data Classification is Essential:
  • Firms must distinguish between public, internal, confidential, and restricted data—muscle memory for staff.
• Make AI Governance a Client Conversation:
  • Proactively share controls and frameworks to build client confidence.

“Turn compliance into a client trust conversation... It becomes something you lead with.” — Avni Desai (52:58)

Addressing Misconceptions and Leadership Challenges

• Dangerous Myths:
  • “AI is not just a productivity tool or IT problem — it’s an enterprise governance issue.”
  • Risk hiding in “shadow AI” usage when access is strictly blocked.

“Invisible risk is always worse than regular risk that’s out there.” — Avni Desai (55:24)

• Managerial Approach:
  • Balance “freedom inside a fence”: easy tools, simple rules, normalized disclosure of AI use (56:12).
  • Aim for “operationalized, responsible governance” as the cultural foundation.

Notable Quotes & Moments

• “We want a more effective audit... Having a QC focus to the audit and the inspection process could... be a real positive outcome.” — Mark Koziel, on PCAOB shifts (07:31)
• “Affordability around commodities, groceries, health care... will be a significant debate during the elections.” — Mark Peterson, previewing State of the Union/policy themes (20:17)
• “...now an attacker can run hundreds of variations of a scam in a day. The threat environment looks less like hackers…and more like growth teams.” — Avni Desai (44:07)
• “The goal is not perfection... The firms that win... operationalize and responsibly build governance into their culture and then turn that governance into client trust.” — Avni Desai (58:23)

Timestamps for Segment Highlights

| Topic | Speaker | Timestamp | |-------|---------|-----------| | Opening Themes and Pressures | Michael Cerami, Mark Koziel | 00:10 – 09:52 | | Federal Policy and Political Climate | Mark Peterson | 10:37 – 22:18 | | State AI & Mobility Issues | James, Mark Koziel | 22:25 – 34:21 | | Tax Updates: Kwong/Fleischer, ERC, CARES/PPP | Melanie Lawrenson | 34:45 – 40:56 | | Cybersecurity and AI Risks | Avni Desai | 41:08 – 59:06 | | Practical AI/Client Trust Strategies | Avni Desai | 50:56 – 58:23 |

Conclusion & Resources

The episode closed with actionable reminders:

• Member satisfaction survey deadline (Feb 22)
• Resources for “Trump Accounts,” AI readiness, and a plug for CPA.com toolkits
• Next Town Hall scheduled for March 5, featuring insights from Accounting Today

“Credibility still matters. The firms that win are not the ones that avoid AI…they’re the ones that operationalize it and responsibly build governance into their culture and then turn that governance into client trust.” — Avni Desai (58:23)

For more resources and updates, visit cpa.com/townhall.

This summary covers only substantive content from the February 19, 2026 AICPA Town Hall episode and omits advertisements, introductions, and disclaimers.