Last week, the SEC approved a new audit standard first proposed by the PCAOB in 2022. It’ll go into effect on December 15, 2025.

The standard, officially titled Quality Control (QC) Standard 1000, A Firm’s System of Quality Control, requires audit firms to identify risks to their practices and implement procedures to address these risks. Firms must report on their QC systems to the PCAOB on a yearly basis, and two firm officers must sign off on the reports.

“Simply designing elaborate processes on paper won’t be enough,” Chair Erica Williams said about the standard, the Wall Street Journal reported. “Firm leadership will have a personal stake in delivering results and additional incentives to fix problems quickly.”

Firms that perform audits for 100 or more companies a year will need to obtain an independent evaluation of their QC procedures. They’ll also be required to start programs to monitor confidential complaints and to ensure their investments won’t create conflicts of interest.

QC 1000 is part of a broader modernization effort on the part of the PCAOB. The standards it updates have been little changed since they were implemented by the AICPA nearly 30 years ago, before Sarbanes-Oxley was passed or the PCAOB was created. The new standards are meant to address changes in the audit profession since that time, such as new technologies, the growing importance of firm networks, and the increasing role of third parties in audits.

For more on what QC 1000 means, click here.—CV

Nasdaq’s goal is clear: Build a future that advances economic progress for all. They’re getting there by asking the right questions and challenging the status quo. It’s all part of their efforts to question today and rewrite tomorrow.

So, how exactly is Nasdaq paving the way for a brighter tomorrow? Well, as part of their commitment to modernize the markets, Nasdaq continues to harness the power of emerging technologies—yes, including AI—to enhance the efficiency and performance of their exchange.

Take Nasdaq’s Dynamic M-ELO, the first exchange AI-powered order type. It intelligently adjusts trading execution holding periods based on current market conditions, optimizing execution quality and enhancing liquidity.

Dive into Nasdaq’s world.

Stop us if you’ve heard this before (and we know you have, because we’ve said it about a bajillion times): AI is the future of finance. That’s certainly true for Oracle NetSuite; the company announced last week that it was embedding a raft of Gen AI tools into its suite of products, including new financial exception detection, data analytics, and planning capabilities.

To understand how NetSuite is incorporating AI into its product line, how finance and accounting professionals might use it, and what the future of AI in finance and accounting tools could look like, CFO Brew spoke with Evan Goldberg, the company’s co-founder and EVP, the day after he announced the launch of the AI integration at the Oracle Netsuite SuiteWorld conference in Las Vegas.

This interview has been lightly edited for length and clarity.

It feels like we’re still in GenAI’s infancy. How do you see this impacting finance and accounting professions over the next five to 10 years?

I think it’s going to make it more accurate, and I think it’s going to make it more efficient. I think it’s going to allow everybody to uplevel their job, be more strategic in their role, and get more done. Everybody has their urgent list and their important list, and then their “could if I had time” list. And I think AI is going to let a lot of people get to the “could if I had time” list. That’s going to be great.

Click here to continue reading.—DA

It’s going to be a gloomy October for some 1,800 PwC employees. The Big Four firm has announced it’ll be laying off around 2.5% of its US unit’s workforce next month, the Wall Street Journal reported.

About half of the job cuts will take place offshore. The cuts will occur mainly in PwC’s US advisory, products, and technology operations functions.

This is the first “formal” round of layoffs PwC has conducted since 2009, though in 2017, it offered some staff a choice between taking new jobs following a restructuring, or leaving the firm.

The layoffs come on the heels of a “structural overhaul” at PwC, the WSJ said. In 2021, the firm consolidated its tax reporting and accounting services under a single “trust solutions” banner. After Paul Griggs took over as US leader this May, he separated those back out into separate business lines. Consulting is PwC’s third main business.

“Execution of our strategy requires tough decisions, including those that impact our workforce,” Griggs wrote in a memo to staff Bloomberg Tax obtained. “We are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities.”

Click here for more on the potential PwC layoffs.—CV

Future-ready. From growing workloads and complex tasks to hiring/retaining top talent, finance is changing—and it’s keeping accountants busy. FloQast and the University of Georgia teamed up to help leaders manage the new normal in Embracing Financial Transformation. This e-book analyzes data from accounting pros on finance’s transformation, AI, + more. Read here.