Compliance
The PCAOB announced on Tuesday that it permanently revoked the registration of Centurion ZD CPA & Co and imposed a permanent bar and a $75,000 fine on its partner Chan Kam Fuk. The firm and its partner failed to properly perform risk assessments and obtain sufficient evidence in audits, including the 2021 audit of Luckin Coffee.
The White House on Wednesday released an AI action plan aimed at maintaining U.S. global leadership by cutting regulatory 'red tape.' The plan proposes that federal funds should not support states with excessive regulation, while avoiding interference with reasonable state legislation. President Trump subsequently called for a federal AI standard that 'supersedes all states.' The plan encompasses over 90 policy actions, spanning three pillars including innovation, infrastructure, and international diplomacy, eliciting mixed reactions from industry and civil rights organizations.
Cybersecurity company Qualys released the "2025 State of Cyber Risk" research report, indicating that most organizations still treat cybersecurity as a purely IT issue, with low finance department involvement (22%) and insufficient alignment of risk programs with business objectives (30%). The research emphasizes that only 14% of organizations link integrated risk scenarios to financial metrics, making it difficult for security investments to effectively reduce risk.
Erica Williams, chair of the Public Company Accounting Oversight Board (PCAOB), announced her resignation effective July 22, marking the latest move by the Trump administration to adjust financial services regulation. This follows unsuccessful attempts by Republican lawmakers to abolish the agency, and comes just three months into the tenure of new SEC Chair Paul Atkins.
The European Commission published the final version of the General-Purpose AI Code of Practice on Thursday, providing compliance guidance for companies under the AI Act framework. The code was developed with the participation of 13 independent experts and over a thousand stakeholders, addressing core issues such as transparency, copyright, and safety. As the application date for general-purpose AI rules on August 2, 2025, approaches, companies can voluntarily sign the code to reduce administrative burdens, though some industry groups still call for clearer guidance.
The U.S. Congress recently failed to pass a proposal to freeze state-level AI laws, leaving businesses operating across states facing fragmented regulation. A comprehensive AI act in Colorado will take effect on February 1, 2026, requiring businesses to establish risk management systems covering impact assessments, oversight processes, and mitigation strategies. Analysts note that the act is unique nationwide, similar to the EU AI Act, but carries a heavy compliance burden, and businesses need to plan early.
The US plans to implement 30% tariffs on imports from the EU and Mexico starting August 1. Trump published the relevant letter on Truth Social and threatened to raise rates if they retaliate. Mexico has established a working group with the US to seek alternatives, while the EU has expressed willingness to negotiate but reserves the right to countermeasures.
A new study from the Hebrew University Business School finds that non-U.S. companies listed in the U.S. make shrewd trade-offs when choosing between U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The research notes that since the U.S. Securities and Exchange Commission (SEC) eliminated the reconciliation requirement between IFRS and GAAP in 2007, many companies have shifted to IFRS, especially in capital-intensive industries such as manufacturing and mining. However, some companies still prefer U.S. GAAP, as it may reduce compliance costs and lessen SEC scrutiny. The study was published in the International Journal of Accounting.
The U.S. Securities and Exchange Commission (SEC) has reached an agreement in principle with SolarWinds and its Chief Information Security Officer Timothy Brown to resolve litigation stemming from a Russian-backed hack of the company's systems. The judge has approved a stay of case deadlines, and both parties must submit settlement documents or provide updates by September 12. The case originated from an SEC lawsuit filed in October 2023, alleging that the company misled investors. Analysts believe the settlement terms will reveal whether the SEC is abandoning certain legal theories.
Zachary Donah, CEO of the Massachusetts Society of CPAs, is actively urging the state legislature to pass two companion bills designed to lower the barriers to obtaining a CPA license, aiming to prevent Massachusetts from becoming a 'laggard' in the wave of reform for CPA licensure qualifications. Currently, more than 20 states across the country have passed similar legislation. The two bills in Massachusetts (House Bill 352 and Senate Bill 209) were introduced earlier this year but have progressed slowly due to the state legislature's two-year session. Donah is communicating with the governor's office and legislators to push for the bills' swift passage.