Audit Committees Face Rising Tax , AI , Regulatory Challenges in 2024

Audit committees face a more challenging range of risks in 2024 than last year , including rising geopolitical turmoil , increasing cyberattacks , tax changes , a tight labor market , extreme weather , tougher regulation , a “ cost-of-living crisis ,” and disruptive , two-edged technologies such as artificial intelligence , according to a new report from EY .

Rather than stay on the sidelines , corporate boards should help C-suites in risk management , EY said in a report ., adding that audit committees should help “ identify and capitalize on changes in the business environment before they materialize into significant risks .”

The report cited that 54 percent of the respondents anticipate some instability and a moderate risk of global catastrophes , while an additional 27 percent expect greater turbulence and 3 percent expect global catastrophic risks to materialize in the short term . Only 16 percent expect a stable or calm outlook in the next two years .

Check out the full report at ey . com / en _ us / board-matters / priorities-for-audit-committees .

The Internal Revenue Service Advisory Council named Annette Nellen its 2024 chair . Nellen is a professor of accounting and taxation and Master of Science in Taxation program director at San Jose State University , as well as a CalCPA faculty member … Gov . Gavin Newsom has reappointed Patricia R . Batchelor , CPA to the California Board of Accountancy and will serve as vice chair of the CBA Legislative Committee .

FIRM ANNOUNCEMENTS

Lavine , Lofgren , Morris & Engelberg , LLP in San Diego named Brian Surratt as managing partner .

MEMBERS IN THE NEWS

AICPA Insights quoted Johanna Sweaney Salt and Dalton Sweaney in a Nov . 1 article about cutting

busy season hours without cutting profits … Accounting Today quoted Gian Pazzia in a Nov . 10 article about preparing for smooth sailing during tax season … Financial Advisor quoted Larry Pon in a Dec . 4 article withdrawing Employee Retention Tax Credit claims … AICPA Insight quoted David Cieslak in a Dec . 5 article on generative AI … Accounting Today quoted David Cieslak , Denise LeDuc Froemming , Okorie Ramsey , Chris Vanover and Geni Whitehouse in a Dec . 12 article on talent and relevancy in the accounting profession … The

January 2024 CalCPA Council Highlights

From exploring hot topics in the profession — like AI , ESG and pipeline — to a glimpse of the profession from young and emerging professionals , our recent Council meeting with chock-full of insights about shaping the profession today — and for the future . Here ’ s a quick recap .

membermilestones

Wall Street Journal quoted Larry Pon in a Jan . 4 article about retirement income . Pon also was quoted in a Jan . 13 Yahoo Finance article about the IRS waiving penalties for taxpayers with tax bills from 2020 and 2021 … CPA Practice Advisor quoted Geni Whitehouse in a Jan . 19 article on CAS for accounting firms … Financial Advisor quoted Larry Pon and Brian Stoner in Jan . 22 article on weather wealthy clients should file taxes early … U . S . News & World Report quoted Mary Kay Foss in a Jan . 22 article about 2024 tax deadlines … Yahoo Finance quoted Rob Seltzer in a Jan . 23 article on what to expect for the 2024 tax filing season .

8 CALIFORNIA CPA MARCH / APRIL 2024 www . calcpa . org