Accounting Fraud Indicator Signals Economic Trouble

The M-Score is warning that the chance of fraud is the highest in over 40 years; Did KPMG fail to issue a critical audit matter for Silicon Valley Bank?; The spreadsheet apocalypse, revisited; Former startup founder charged by prosecutors for defrauding JPMorgan Chase; EY split fails; watch out for AI voice cloning scams; and more! Sponsors

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Chapters

(00:00) - Preview: Incentives to allow fraudulent users

(01:17) - Introduction and welcome to the show

(04:16) - WSJ reports fraud indicator "M" score is up

(10:30) - Should KPMG have issued a critical audit matter for SVB?

(17:51) - EY no longer to split off auditing

(20:14) - JPMorgan defrauded for $175 million by startup founder

(25:00) - CPA in Bakersfield stole $355,000 from investors

(26:10) - Block accused of allowing fake accounts to boost their user growth numbers

(29:27) - Square is changing their refund policy to not refund processing fees

(30:42) - A few new Intuit announcements

(33:45) - Security risks with AI and voice cloning is happening in real life

(37:32) - Microsoft Loop

(42:13) - Nicholas asks for recs for CPAs who want to start their own small firm

(48:29) - Michael's email about barriers to CPA

(50:01) - Corey from Minnesota CPA Society shares message and website with resources

(51:06) - Will AI attract or detract more people to the accounting profession?

(59:29) - Blake co-wrote an article for CPA Practice Advisor

(01:04:10) - Wrap up and where to reach us

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Show Notes Intuit QuickBooks Launches Rest-of-World App Store - CPA Practice Advisor https://www.cpapracticeadvisor.com/2023/04/11/intuit-quickbooks-launches-rest-of-world-app-store/78582/   EY’s leaders missed a brewing revolt at the firm’s biggest operation. Soon, their deal was scuttled https://www.wsj.com/articles/ey-breakup-plan-doomed-by-miscalculations-and-powerful-opponents-61b7e02d   ‘I’ve got your daughter’: Scottsdale mom warns of close call with AI voice cloning scam https://www.azfamily.com/2023/04/10/ive-got-your-daughter-scottsdale-mom-warns-close-encounter-with-ai-voice-cloning-scam/   Bond losses such as those at Silicon Valley Bank could have been raised as “critical audit matters”—a measure designed to help investors decode risks and uncertainties buried in financial statements https://www.wsj.com/articles/auditors-didnt-flag-risks-building-up-in-banks-6506585c   Former Start-Up Founder Charged by Prosecutors for Defrauding JPMorgan Chase https://www.nytimes.com/2023/04/04/business/charlie-javice-jpmorgan-fraud.html   The Spreadsheet Apocalypse, Revisited [Chart] https://twitter.com/johnnosta/status/1641586085640695810?s=12   The M-Score is warning that the chance of fraud at major companies is the highest in over 40 years, writes Numbers columnist @JoshZumbrun https://www.wsj.com/articles/accounting-fraud-indicator-signals-coming-economic-trouble-506568a0   New Microsoft Loop app is built for co-creation | Microsoft 365 Blog https://www.microsoft.com/en-us/microsoft-365/blog/2023/03/22/new-microsoft-loop-app-is-built-for-modern-co-creation/   Shares of the payments company formerly known as Square fell more than 20% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics https://www.wsj.com/articles/short-seller-hindenburg-says-jack-dorseys-payments-company-inflates-user-numbers-f3216466   Startup CEO charged in $175 million fraud case         https://abcnews.go.com/Business/startup-ceo-charged-175-million-fraud-case/story?id=98363900   Our Obsession with Hours Is Destroying the Accounting Profession https://www.cpapracticeadvisor.com/2023/04/12/our-obsession-with-hours-is-destroying-the-accounting-profession/78643/   Accounting firm EY calls off 'Project Everest' to break up firm https://www.bbc.com/news/65247525   Intuit QuickBooks Launches Rest-of-World App Store https://www.cpapracticeadvisor.com/2023/04/11/intuit-quickbooks-launches-rest-of-world-app-store/78582/   Intuit Mailchimp Launches Email Content Generator https://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=158086   Mailchimp’s new GPT-powered AI tool can write marketing emails https://www.fastcompany.com/90877547/mailchimp-gpt-powered-tool-can-write-marketing-emails

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