Business Frame Weekly - New Guidance for Quality Control Remediation / U.S. Recession Odds Down to 25% / AI Enhancements to TurboTax Live

A new staff report by the PCAOB offers advice to help audit firms remedy quality control criticisms cited in the inspection process.

Goldman Sachs reported that it now sees a 25% probability of the U.S. entering a recession in the next 12 months, down from a previous 35% forecast.

Intuit will now be releasing artificial intelligence (AI) enhancements for its Virtual Expert Platform across its TurboTax Live products in order to drive highly-personalized experiences and reduce tax filing time.

In this newsletter:

• More EVs Will Qualify for Tax Credits After U.S. Reverses Course
• PCAOB Offers New Guidance for Quality Control Remediation
• Intuit Supercharges Virtual Expert Platform with AI Enhancements to Streamline Expert-Assisted Tax Filing
• Goldman Sachs Cuts U.S. Recession Odds to 25% on Strong Labor Market
• GASB Proposes New Guidance for Subscription-Based IT Services

February 7, 2023

PCAOB Offers New Guidance for Quality Control Remediation

The PCAOB released a new staff report designed to help audit firms remedy quality control issues cited in inspections. The report features advice for firms facing remediation following findings of quality control criticisms (QCCs) in the inspection process. Firms have 12 months to respond to QCCs. If a firm falls short in the remediation process, the PCAOB publicly discloses its quality control deficiencies.

Goldman Sachs Cuts U.S. Recession Odds to 25% on Strong Labor Market

Goldman Sachs said on Monday it now sees a 25% probability of the United States entering a recession in the next 12 months, down from a previous 35% forecast. “Continued strength in the labor market and early signs of improvement in the business surveys suggest that the risk of a near-term slump has diminished notably," the bank said in a research note.

Intuit Supercharges Virtual Expert Platform with AI Enhancements to Streamline Expert-Assisted Tax Filing

Intuit has introduced artificial intelligence (AI) enhancements for its Virtual Expert Platform to drive highly-personalized experiences, connecting consumers with experts and reducing tax filing time with its portfolio of TurboTax Live products. For the 2022 tax season, a combination of AI automation and augmentation is benefiting taxpayers and tax professionals alike. Now, with TurboTax Live Full Service, customers can be matched immediately to a tax expert from Intuit’s nationwide network to complete tax preparation from start to finish in a single session, rather than over the course of a few days.

GASB Proposes New Guidance for Subscription-Based IT Services

The Governmental Accounting Standards Board (GASB) has issued proposed implementation guidance that is intended to clarify, explain, or elaborate on existing guidance on subscription-based information technology arrangements (SBITAs). The Exposure Draft, Additional Proposal for Implementation Guidance Update—2023, addresses the single issue of whether a cloud computing arrangement meets the definition of a SBITA as defined in GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

More EVs Will Qualify for Tax Credits After U.S. Reverses Course

The Biden administration will allow more crossover SUVs to qualify for the newly-revamped electric vehicle tax credit following lobbying by automakers such as General Motors Co. and Stellantis NV. The change announced Friday by the Treasury Department effectively expands the number of buyers who can take advantage of a lucrative $7,500 consumer tax credit by broadening the definition of how a sport-utility vehicle is defined.

Random Ramblings

• Solving accounting's real pipeline issue.
• The number of CFOs who are women hits an all-time high.
• How can APIs help modernize accounting firm technology?
• How corporate boards can forge healthy relationships with managers.
• A practical roadmap for introducing agility to Certified Public Accounting firms.