What happens when AI starts doing the audit work itself? Blake and David dig into KPMG’s prediction that routine audit testing could soon happen with almost no human auditors directly involved. They also cover the IRS’s unfinished AI projects, the end of Direct File, new tax-on-tips rules, and why firms investing more in marketing are growing faster. Press play to hear what these shifts could mean for accountants, firms, and clients.

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• (00:00) - Audits Without Humans

Show Notes

How Tax Day Turned Into Party Night at the Post Office

https://www.history.com/articles/tax-day-parties

Americans to Spend 11.6 Billion Hours Completing Federal Compliance Forms

https://www.cpapracticeadvisor.com/2026/03/16/americans-to-spend-11-6-billion-hours-completing-federal-compliance-forms/179866/

IRS Publishes List of Jobs That Qualify for 'No Tax on Tips' Provision

https://www.cnbc.com/2026/04/13/irs-tax-on-tips-big-beautiful-bill.html

IRS AI Projects Fall by the Wayside Due to Staff Cuts

https://www.accountingtoday.com/news/irs-ai-projects-fall-by-the-wayside-due-to-staff-cuts

IRS Inflated Direct File Costs by $45 Million in 2025

https://www.cpapracticeadvisor.com/2026/03/25/irs-inflated-direct-file-costs-by-45-million-in-2025/180237/

Xero OS: Your Operating System for the Future of Autonomous Finance

https://blog.xero.com/news-events/xero-os-ai-native-operating-system/

Tidwell — MCP Accounting Server (Reddit reference)

https://www.tidwell.com

Warehouse Worker Charged in $500M Arson Attack at Kimberly-Clark Distribution Center

https://abc7.com/post/employee-arrested-arson-kimberly-clark-distribition-center-destroyed-massive-fire-ontario/18851549/

New Jersey Tax Preparer Sentenced in Largest COVID-19 Tax Relief Fraud Case

https://www.justice.gov/usao-nj/pr/new-jersey-man-sentenced-prison-largest-covid-19-tax-relief-fraud-scheme-country

Pennsylvania Tax Preparer Jessica Cordero Faces Federal Charges in New Fraud Scheme

https://www.justice.gov/usao-edpa/pr/allentown-woman-and-two-others-charged-federal-court-wire-fraud-and-aggravated-identity

In This Critical Part of Audits, the Accountant's Role Is Shrinking Fast

https://www.wsj.com/finance/accounting/auditors-ai-kpmg-pwc-ey-7f07d3a5

KPMG Plans to Cut Up to 440 Audit Jobs in UK

https://www.bloomberg.com/news/articles/2026-03-27/kpmg-set-to-shed-hundreds-of-auditors-as-attrition-remains-low

EY Requiring U.S. Tax Staff to Work In-Person 12 Days a Month

https://www.accountingtoday.com/news/ey-requiring-us-tax-staff-to-work-in-person-12-days-a-month

AI Is Changing How EY Recruits, Develops and Promotes Employees

https://www.businessinsider.com/ey-ai-talent-career-paths-accounting-2026

High-Growth Accounting Firms Spend Twice as Much on Marketing

https://hingemarketing.com/blog/story/marketing-financial-services-the-2025-forecast

Evergrande Liquidators and PwC Head to Court

https://www.accountingtoday.com/news/evergrande-liquidators-and-pwc-head-to-court

Ontario Securities Commission Accuses KPMG of Botching Audits for Bridging Finance

https://www.accountingtoday.com/news/ontario-securities-commission-accuses-kpmg-of-botching-audits-for-bridging-finance

Juno Raises $12M Seed to Scale AI Tax Preparation Platform

https://www.cpapracticeadvisor.com/2026/04/13/juno-raises-12m-seed-to-scale-ai-tax-preparation-platform-that-automates-90-of-busy-work/181502/

AI Slop Survey: A Third of Workers Rarely Check AI Output Before Using It

https://www.cpapracticeadvisor.com/2026/04/08/ai-slop-survey-a-third-of-workers-rarely-check-ai-output-before-using-it/181191/

Agentic AI Frameworks and Artifact's Omni Platform Launch

https://www.artifact.build

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