All articles tagged with #audits
Experts question the idea that President Trump could be immune from IRS audits, warning that such a notion would undermine trust in the tax system and raise concerns about the IRS's independence and accountability, even as the discussion highlights broader political implications for tax enforcement.
Under a DOJ settlement with Donald Trump over leaked tax returns, a one‑page addendum permanently bars the IRS from pursuing audits of Trump, his family, and their businesses for filings made before May 19, 2026, and the DOJ says it applies only to existing audits, not future ones; critics say the move illegally interferes with IRS investigations, while the deal also creates a $1.776 billion Anti-Weaponization Fund that has drawn political backlash.
Texas Attorney General Ken Paxton said his office has informed more than 130 Texas cities they can’t raise property taxes because they allegedly failed to comply with Senate Bill 1851, which ties tax increases to annual financial audits and statements. The move targets largely smaller cities as part of an ongoing effort to curb unduly high taxes; larger cities like Houston, Dallas, Fort Worth and Corpus Christi were not on the initial list, and Odessa was also not included as the investigation continues and cities respond with audit documentation.
Audits have historically affected less than 1% of filers (about 0.3% in 2021). The IRS has seen staffing losses and funding cuts, even as it modernizes with AI to better target high‑risk noncompliant returns. AI could make audits more efficient and reduce no‑change audits, but might increase correspondence audits if qualified staff are available to handle inquiries. The overall impact on audit odds remains uncertain and will depend on AI reliability, staffing, and responsible use in coming years, with the usual statute of limitations (generally 3 years, longer if fraud is suspected).
The Internal Revenue Service (IRS) is set to crack down on corporate jet owners who abuse the tax code by claiming millions of dollars in deductions on airplanes used for personal travel, using new data analytics tools developed with funds from the Inflation Reduction Act of 2022. This initiative comes as the agency faces pressure to demonstrate effective use of its $80 billion in funds and aims to address the estimated $700 billion per year tax gap through increased audits of companies and wealthy individuals.
More than a quarter of Tennessee's public K-12 schools could face corrective action and audits after receiving Ds or Fs under a new grading system. The controversial letter grading system, which advocates argue provides transparency for parents, has been criticized for favoring standardized test proficiency over overall academic growth. Schools that receive low grades may be required to follow a corrective plan or face academic and financial audits starting in the 2024-25 school year. Nearly half of the schools that received Fs are within the Memphis-Shelby County Schools district. Critics argue that the system stigmatizes public schools and fails to capture the complexity of school performance.
Google is introducing a new badge system in the Google Play Store to help Android users find more trustworthy VPN apps. The badges will indicate that the apps have undergone independent security audits. VPN apps are the first to receive this special treatment due to the sensitive data they handle and their popularity as targets for subversion. The badges will be displayed prominently on the Google Play page of audited apps, providing users with more transparency and building trust in the apps' security.
The US Public Company Accounting Oversight Board (PCAOB) has found that audits of Chinese companies by KPMG and PwC were full of holes, with the firms failing to obtain sufficient evidence to support their opinions on the companies' financial statements. The findings come as China raids the offices of a global consulting firm on allegations of national security risk.
The US Public Company Accounting Oversight Board (PCAOB) found unacceptable deficiencies in audits of dozens of US-listed Chinese companies performed by KPMG in China and PricewaterhouseCoopers in Hong Kong. The deficiencies were so great that auditors failed to obtain enough evidence to substantiate companies' financial statements. The PCAOB will give the two firms a year to remediate deficiencies around quality controls, and the agency will make referrals to the agency's enforcement team where appropriate.
The US Public Company Accounting Oversight Board (PCAOB) found unacceptable deficiencies in audits of US-listed Chinese companies performed by KPMG in China and PricewaterhouseCoopers in Hong Kong. The deficiencies were so great that auditors failed to obtain enough evidence to substantiate companies' financial statements. The PCAOB will give the two firms a year to remediate deficiencies around quality controls, and the agency will make referrals to the agency's enforcement team where appropriate.
The AI industry is desperate for regulation to slow down the competition and ensure safety. Priorities for regulation include interpretability, security, evaluations and audits, and liability for AI-design companies. The industry is willing to accept imperfect rules to ensure safety and prevent a race to the bottom.
KPMG, one of the Big Four accounting firms, has defended its audits of Silicon Valley Bank and Signature Bank after a report by the US Senate Permanent Subcommittee on Investigations criticised the banks for failing to prevent money laundering. KPMG said it stood by its work and that the report did not identify any deficiencies in its audits.