BDO Audit Failure, First Brands Collapse, and Missing Debt

Is private equity eroding the soul of the accounting profession? Blake and David unpack NASBA’s PE task force, the BDO–First Brands meltdown, and why ‘appearance of independence’ matters. They also break down the end of IRS Direct File, Intuit’s TurboTax stores, the Supreme Court’s skepticism of Trump tariffs, and a new IRS notices law. Plus: AI agents that fall for scams. Learn what these shifts mean for firms, auditors, and your clients this tax season.

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• (00:00) - Welcome to The Accounting Podcast
• (01:16) - Viral Tweet and Personal Anecdotes
• (01:53) - Interview with Furloughed IRS Lawyer
• (05:45) - Government Shutdown Economic Impact
• (10:11) - Intuit's New Retail Stores and IRS Direct File Shutdown
• (14:30) - IRS Leadership and Controversies
• (17:28) - Trump's Pardons and IRS Math and Taxpayer Help Act
• (24:53) - Supreme Court Hearing on Tariffs
• (31:17) - Major Authority and the Power of the Purse
• (32:03) - AI Agents Falling for Scams
• (35:32) - NASBA's Private Equity Task Force White Paper
• (37:02) - Concerns Over Auditor Independence
• (49:10) - BDO and First Brands Scandal
• (01:02:35) - Wrap up and Final Thoughts

Show Notes

Longest Shutdown in History Costs U.S. Economy About $15 Billion Each Week
https://www.cpapracticeadvisor.com/2025/11/05/longest-shutdown-in-history-costs-u-s-economy-about-15-billion-each-week/172368/

IRS tells states Direct File 'will not be available' in 2026
https://federalnewsnetwork.com/it-modernization/2025/11/irs-direct-file-will-not-be-available-in-2026-agency-tells-states/

Intuit to open 20 brick-and-mortar TurboTax stores+offices
https://www.accountingtoday.com/news/intuit-to-open-20-brick-and-mortar-turbotax-stores-offices

Social Security, IRS Leader Bisignano Panned After Fiserv Stock Tanks
https://401kspecialistmag.com/social-security-irs-leader-bisignano-panned-after-fiserv-stock-tanks/

Trump Tariffs Face Supreme Court Challenge From Chicago Toymaker
https://www.bloomberg.com/news/features/2025-11-02/trump-tariffs-face-supreme-court-challenge-from-chicago-toymaker

Supreme Court justices appear skeptical that Trump tariffs are legal
https://www.cnbc.com/2025/11/05/supreme-court-trump-trade-tarrifs-vos.html

AICPA Applauds the Passage of the IRS Math and Taxpayer Help Act
https://www.aicpa-cima.com/news/article/aicpa-applauds-the-passage-of-the-irs-math-and-taxpayer-help-act

First Brands founder accused of looting company
https://fortune.com/2025/11/05/first-brands-bankruptcy-founder-allegations-patrick-james/

Are Alternative Practice Structures in Private Equity Considerations and Questions for Boards of Accountancy (NASBA White Paper) https://nasba.org

Microsoft Gave AI Agents Fake Money to Buy Things Online. They Spent It All on Scams
https://decrypt.co/347709/microsoft-ai-agents-fake-money-buy-online-they-spent-scams

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Transcripts

The full transcript for this episode is available by clicking on the Transcript tab at the top of this page