Regulation is reshaping the agenda for accounting and tax firms
From Washington to London, Delhi and Hong Kong, regulators are rolling out proposals, guidance and new programs that directly affect professional accounting and tax services. The latest developments touch financial reporting, tax enforcement, audit quality, ethics and even the way firms use generative AI.
Firms that translate these headlines into concrete action plans will be better positioned to protect clients, manage risk and demonstrate high standards of professionalism.
Reporting and transparency: beyond ticking boxes
In the US, the Securities and Exchange Commission is working on a proposal that would remove the obligation for listed companies to disclose earnings every quarter, according to reporting cited in the feed. If implemented, this would mark a major shift in how public companies communicate financial performance.
For accounting advisors, this raises practical questions about guidance on disclosure frequency, investor communications and how to maintain discipline around internal reporting even if external requirements ease.
- Review how clients collect and analyze financial data between reporting dates.
- Stress the importance of consistent internal management reporting, regardless of formal filing intervals.
- Prepare to explain to stakeholders what any change in disclosure rules means for perceived transparency.
In the UK, the Financial Reporting Council has issued updated guidance on
comply or explain governance reporting. This keeps the focus on the quality of narrative reporting, not just the mechanics of compliance.
Similarly, in Canada, CPAB has begun publishing individual firm inspection reports for firms that audit publicly traded companies. Public inspection reports put additional attention on audit quality and remedial actions.
- Revisit governance and narrative reporting processes against the latest FRC expectations.
- Anticipate how public inspection findings could influence client perceptions of audit firms.
- Use inspection themes as a roadmap for internal quality improvements, even if your firm is not directly named.
At the federal level in the US, the American Institute of CPAs has renewed its backing for the Fiscal State of the Nation Act, supporting greater transparency around government finances. This reinforces the profession’s ongoing role in promoting clarity and accountability in public sector reporting.
Tax enforcement and client planning step up a gear
Tax authorities are also sharpening their focus. The UK’s HM Revenue & Customs is preparing a fresh clampdown on undeclared online sales income after receiving earning reports on almost four million online sellers in 2025.
For firms supporting individuals and businesses with digital or platform-based income, this is a clear signal that online activity is firmly on the tax radar.
- Encourage clients to maintain complete records of online sales and related expenses.
- Proactively review past filings where online income may have been underreported.
- Build specific questions about online trading into client onboarding and annual review processes.
In the US, the IRS has updated its Tax Withholding Estimator to incorporate changes to credits and deductions under the OBBB. This tool helps taxpayers align withholding with their evolving tax position.
- Point payroll and individual clients toward the updated estimator as part of midyear reviews.
- Use the changes to credits and deductions as a trigger to revisit estimated payments and cash flow assumptions.
Looking ahead, Chartered Accountants Australia and New Zealand are urging employers to prepare early for payday superannuation reforms, scheduled to take effect on 1 July 2026. Early preparation will be essential to avoid compliance pressure as the effective date nears.
In the UK, advisers at Azets are warning that a new inheritance tax cap from April 2026 will hit farmers, potentially increasing the risk of land sales among rural families. For practitioners serving agricultural and rural clients, this highlights the need to reassess succession and asset-transfer strategies well before the changes arrive.
Audit quality, ethics and oversight under the microscope
Several developments underscore the scrutiny on audit quality and ethical conduct. India’s National Financial Reporting Authority has identified a series of deficiencies in work performed by audit firms linked to BDO, EY, KPMG and PwC. At the same time, NFRA and the Institute of Chartered Accountants of India are working on a coordination framework to bolster regulatory alignment and improve audit quality.
These moves show that inspection findings are being paired with structural efforts to lift standards across the market.
- Use public findings from regulators as case studies for internal training.
- Assess your own engagement performance against the types of deficiencies regulators are highlighting.
- Strengthen documentation and review procedures before inspections, not after.
In Hong Kong, the local professional body HKICPA has signed a memorandum of understanding with the Hong Kong International Academy Against Corruption to enhance ethical conduct in the accounting profession. This places ethics and anti-corruption awareness at the center of professional development.
In the US, the Public Company Accounting Oversight Board has created an Audit Practitioner Fellowship Program within the office of the chief auditor. By bringing practitioners into the standard-setting environment, the program reinforces the link between regulation and real-world audit practice.
- Elevate ethics and independence discussions from one-time training to an ongoing conversation.
- Encourage senior staff to engage with standard-setting and regulatory initiatives where possible.
- Position your firm’s quality-control framework as a competitive differentiator in the market.
GenAI, geopolitical risk and the evolving advisory role
Technology and global instability are adding new dimensions to professional judgment. New research from the Institute of Chartered Accountants of Scotland finds that many professionals remain cautious about the reliability of generative AI in accounting work, even as they acknowledge its productivity benefits.
This dual view reflects a practical reality: GenAI can support routine tasks, but it also introduces the risk of subtle, compounding errors if not supervised carefully.
- Set clear boundaries around which tasks can be assisted by GenAI and which require manual work.
- Mandate human review of any GenAI-assisted outputs used in client deliverables.
- Provide staff with training on both the capabilities and limitations of AI tools.
Meanwhile, more than half of chartered accountants surveyed by the ICAEW report that their organisations are exposed to risks from conflict in the Middle East. This underlines the growing demand for accountants who can connect financial data with supply chain, geopolitical and operational risk insights.
- Incorporate scenario discussions about regional instability into budgeting and forecasting work with clients.
- Coordinate with risk management and treasury teams to understand where financial exposures lie.
Professional resilience and client confidence
Even professional education is being tested by operational challenges. Chartered Accountants Australia and New Zealand have had to respond to a technical disruption affecting the Audit and Risk (AR126) exam, offering replacement options to affected candidates.
For firms, this is a reminder that resilience, communication and contingency planning matter at every level of the profession—from exams and training to client-facing systems.
Taken together, these developments point to a profession that is being asked to do more than ever: uphold transparency, navigate tighter enforcement, drive audit quality, manage emerging technologies and interpret global risk. Accounting and tax firms that respond with proactive planning, rigorous ethics and clear communication will be best placed to guide clients through 2026 and beyond.
