The Donald Trump administration has opened new opportunities for traditional financial institutions to embrace digital assets. Among them is PwC, which is trying to "lean in" to cryptocurrency after taking a rather cautious approach for years, the firm's U.S. senior partner and CEO, Paul Griggs, recently told Financial Times. PricewaterhouseCoopers, or PwC, is a British multinational professional services network. It is counted among the world's Big Four accounting firms, along with Deloitte, EY, and KP ...

Core Insights - CohnReznick has acquired Smith Schafer & Associates, enhancing its presence in Minnesota and expanding its service offerings [1][4] - The financial details of the acquisition remain undisclosed, but it signifies CohnReznick's strategy of organic growth and selective mergers [1][3] - Smith Schafer, with three offices, 12 partners, and 89 employees, specializes in professional services across various sectors including construction and manufacturing [1][2] Company Strategy - CohnReznick aims to leverage its advisory, assurance, and tax capabilities to support clients in Minnesota, particularly in real estate, financial services, technology, and consumer manufacturing [2][3] - The acquisition aligns with CohnReznick's recent expansion efforts, which include new offices in San Francisco, Tampa, Tallahassee, and Richmond [3] - The partnership with Apax Funds has facilitated CohnReznick's growth strategy through both organic means and strategic acquisitions [3] Leadership Perspective - Michael Malugani, managing principal of Smith Schafer, expressed enthusiasm about the partnership, highlighting the potential for enhanced client value and career opportunities [2] - CohnReznick Advisory CEO David Kessler emphasized the complementary nature of Smith Schafer's local expertise with CohnReznick's national reach [3][4] - The collaboration is expected to provide clients with valuable insights to optimize performance and manage risk effectively [4]

Accounting and advisory practice Nichols Cauley is set to merge with insurance brokerage Partners Risk Services and transaction advisory company JGH Consulting. The merger will establish a new platform bringing together accounting, insurance and transaction advisory offerings for privately held small and mid-sized businesses, self-made entrepreneurs and family-owned companies. Madison Dearborn Partners (MDP), a private equity investment firm headquartered in Chicago, is providing growth investment for t ...

This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. Since its inception, blockchain technology’s regulatory uncertainty has kept it largely in the domain of IT teams, outside most CFO control frameworks, balance sheets and capital allocation decisions. But that posture is beginning to shift among the world’s largest accounting firms. PwC is expanding its digital asset business as U.S. regulation becomes clearer, a shift U.S. C ...

BKL, the UK-based accounting, tax, and advisory practice, has appointed Kate Gott as corporate tax partner. Gott will lead the corporation tax team. She has around 20 years’ experience in advising businesses on UK and international tax issues, particularly those with audit necessities. Gott joined Wilson Wright in 2016, which merged with BKL in 2024. Gott said: “I am delighted to be starting a new year as BKL’s newest partner. Taking pride in all the clients who trust us to support their goals, and al ...

Core Viewpoint - The announcement of an investigation by the China Securities Regulatory Commission (CSRC) has plunged Zhongxing Cai Guanghua Accounting Firm into an unprecedented crisis, following its involvement with Lifang Shuke, which has been penalized for financial misconduct [1][5][6]. Group 1: Impact on Zhongxing Cai Guanghua - From November 28 to December 30, 52 companies in the A-share market terminated their contracts with Zhongxing Cai Guanghua, with a total of 61 companies having done so since October [1][9]. - Approximately 70% of Zhongxing Cai Guanghua's listed company clients have terminated their contracts since October, which is considered a "fatal blow" for any accounting firm [1][10]. - The firm has lost significant business, with its client base dropping from 89 listed companies to a much-reduced number due to the ongoing crisis [9][10]. Group 2: Reasons for Client Termination - Cloud Ding Technology cited internal resource optimization and personnel changes as reasons for its termination of services with Zhongxing Cai Guanghua [2]. - A notable trend is the "change of firm without changing the auditor," where many companies have switched firms but retained the same signing auditors [2][21]. - The firm has faced multiple administrative penalties in the past three years, indicating a pattern of regulatory scrutiny and issues with audit quality [6][7]. Group 3: Broader Market Trends - In the New Third Board, 91 companies have also terminated their contracts with Zhongxing Cai Guanghua since November, indicating a broader trend beyond the A-share market [12][13]. - The firm has historically had long-term relationships with many clients, with some partnerships lasting up to 12 years, making the current wave of terminations particularly impactful [13]. - The firm has seen a significant reduction in its registered capital, dropping from 38.5 million to 16.3 million, a decrease of 57.7% [14]. Group 4: Future Outlook - The firm is still listed in the CSRC's registry for securities service providers, indicating that it has not yet been completely sidelined from the market [20]. - Despite the current crisis, some companies continue to employ Zhongxing Cai Guanghua, suggesting that not all clients have lost confidence in the firm [19].

Group 1: Merger of Teck Resources and Anglo American - The Canadian federal government has approved the merger between Teck Resources Limited and Anglo American, forming a new company called Anglo Teck [1] - The merger was agreed upon by both companies on December 9, and Anglo Teck will focus on becoming a global player in critical minerals [1] - Anglo Teck has committed to invest $4.5 billion in Canada over the next five years [1] Group 2: MNP's Expansion in Quebec - Professional services firm MNP is expanding in the Lanaudière region of Quebec by merging with Boisvert et Chartrand, a chartered professional accounting firm [2] - The merger will be effective from January 1, and will increase MNP's presence to 36 offices in the province [2] - Following the expansion, MNP will have a total of 234 partners and over 1,500 team members in Quebec [2]

Group 1 - Capstone Accounting and Tax has acquired North Star Tax & Accounting, although financial details of the deal have not been disclosed [1] - The acquisition aligns with Capstone's strategy to expand its geographic footprint by partnering with trusted local firms [2] - North Star will integrate its operations under the Capstone brand while maintaining local service for clients [2] Group 2 - North Star Tax and Accounting, founded in 2008, provides a full suite of tax and accounting services to the Snohomish and Lynden communities [1] - North Star leaders David Romano and Sheena Frenzel will continue their practices as partners within Capstone [2] - Capstone has previously expanded its presence in the US by acquiring Keller & Mendoza CPAs in Colorado and integrating Sargent CPA in Oregon [3][4]

Core Viewpoint - Hong Kong-based accounting firms are planning to expand their workforce in 2026 while increasing the use of artificial intelligence (AI) to support staff and attract new talent to the profession [1] Group 1: Workforce Expansion and AI Integration - KPMG China emphasizes that AI is not a replacement for human workers, and there has been no reduction in hiring; the firm plans to continue hiring in the future [2] - AI is seen as complementary to human staff, improving quality and efficiency while aiding in talent attraction and retention [2] - Deloitte China plans to hire approximately 1,000 people in Hong Kong and invest HK$500 million (approximately $64 million) over the next four years to enhance capabilities in fintech, capital markets operations, and AI [4] Group 2: Talent Attraction and Job Role Evolution - EY's senior partner highlights that young professionals are interested in careers in debt restructuring and liquidation, expecting employers to provide AI tools to enhance efficiency [5] - EY plans to expand its team from 80 to 130 by 2026, anticipating increased demand for debt restructuring and liquidations due to a weak economy [5] - AI is enabling accountants to take on new job roles, which aligns with the interests of younger professionals [3] Group 3: Efficiency and Document Management - AI is effective in analyzing large data sets, detecting anomalies, and summarizing documents, significantly improving efficiency in restructuring and liquidation processes [6] - The use of AI has accelerated paperwork analysis by over 10 times, making these roles more appealing to young talent [7] - Companies are increasingly open to preventive restructuring to adapt to uncertainties such as geopolitical tensions and tariffs [6]

Core Viewpoint - US accounting firms anticipate a reduction in audit inspections as the SEC plans to reform its oversight of the accounting industry, focusing more on internal quality and control systems rather than minor audit issues [1][4]. Group 1: Audit Inspections Overview - The PCAOB, under SEC oversight, conducts audit inspections and reviews numerous audits from large firms annually, with 63 or 64 audits reviewed last year compared to 53 or 54 two years prior [2]. - The PCAOB's deficiency rate, a measure of audit quality, increased sharply post-Covid but has decreased over the last two years, with firms arguing that earlier increases were due to inspectors emphasizing minor issues [3]. Group 2: Regulatory Changes and Perspectives - The PCAOB was established over 20 years ago to set audit standards and monitor compliance, with Congress mandating inspections but not specifying a minimum number [4]. - The acting chair of the PCAOB, George Botic, emphasized the need for careful updates to the inspection program and the importance of consulting stakeholders, warning against limiting the publication of inspection findings [5]. - Christina Ho, a PCAOB board member, indicated that the overall number of audit inspections is expected to decline under the SEC's revised approach [6].