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Your go-to source for expert insights, industry updates, and exclusive CalCPA content. Stay ahead with practical guidance, pro tips, and must-know trends—all designed to fuel your success.

Stay ahead with essential CPA resources

Leading the Charge on Climate Disclosure, Assurance

CalCPA and the AICPA continue to play a leading role in shaping California’s climate disclosure regulations—an area of growing importance for the profession, markets, and the public.

California's Political, Policy Landscape Heats Up

The California Legislature is sprinting toward key April deadlines, the governor's race is wide open and a billionaire tax fight is heating up. Our recent CalCPA Capitol Beat covered the key issues that matter most for the profession now—and what's coming next.

Audit Confirmations Are Changing—Are You Ready?

The confirmation letter is a fundamental audit evidence tool in CPA practices. And new PCAOB and AICPA standards are rewriting the rules on confirmation letters. Here’s what CPAs need to know.

Offshoring: A Leadership Challenge, Not a Line Item

Firms that succeed treat offshoring as an operational strategy—not just a budget decision—and understand how it can transform their firm’s capacity and resilience.

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Looking for an old article or a past issue from California CPA magazine? You're in the right spot!

Part articles and archives

CPAs: Making Sense of What Comes Next campaign

CalCPA, in partnership with the AICPA, continues to play a leading role in shaping California’s climate disclosure regulations—an area of growing importance for the profession, markets, and the public.

Following CARB’s March 2026 public workshop, 

CalCPA and AICPA submitted joint comments

 providing technical input on the next phase of implementation under California’s climate disclosure laws. This marks the latest step in an ongoing series of engagement with state regulators as the policy continues to take shape.  

This most recent workshop was notable as the first meaningful discussion of the assurance framework that will underpin greenhouse gas (GHG) disclosures. Assurance is critical to the success of the policy—providing investors, regulators, and the public with confidence that reported emissions data is credible and decision-useful.

CARB identified AICPA standards as one of the proposed acceptable frameworks for assurance, and CalCPA and AICPA strongly supported their inclusion. As the standard setter for audit and attestation engagements in the U.S., AICPA standards bring a recognized level of rigor, independence, and professional oversight that markets rely on.  

A central theme of the joint comments is the importance of consistent, high-quality assurance across all providers. While CPAs operate under well-established frameworks for independence, ethics, and quality control, not all assurance providers are held to the same standards.

To address this, CalCPA and AICPA recommended that CARB:

These recommendations are designed to protect the integrity of the system and ensure that all users of GHG disclosures can rely on the results, regardless of who performs the assurance.

The comments also emphasized the importance of aligning California’s requirements with the Greenhouse Gas Protocol, the global baseline for emissions reporting. Maintaining consistency across accounting methodologies, reporting requirements, and assurance is key to:

CalCPA and AICPA encouraged CARB to fully incorporate GHG Protocol guidance and ensure that both quantitative and qualitative disclosures are included within the scope of assurance.  

As companies navigate an increasingly complex global reporting landscape, the comments also highlight the importance of interoperability. CalCPA and AICPA recommended that CARB allow companies to leverage reporting and assurance prepared under other major frameworks, such as international sustainability standards, where appropriate.

These comments reflect CalCPA and AICPA’s continued leadership and engagement with California regulators on an issue that extends well beyond the state’s borders. California’s climate disclosure framework is being closely watched at both the national and international levels and is likely to influence how other jurisdictions approach reporting and assurance.

As a result, the policies being developed—and the standards that underpin them—have broader implications for the accounting profession, global markets, and the consistency of sustainability reporting worldwide. CalCPA and AICPA will continue to engage to help shape a framework that is practical, aligned with global standards, and grounded in strong professional requirements, while keeping members informed as these developments evolve.

Spring has arrived in Sacramento, and with it comes the familiar mix of legislative deadlines, budget uncertainty and political maneuvering that defines the capital's most frenetic months. During CalCPA's April 2026 Capital Beat, Vice President of Advocacy and Public Affairs Jason Fox and lobbyist Missy Johnson of Nielsen Merksamer walked members through a landscape that is anything but quiet.

The 2025–26 legislative session is firmly in its second year, and the pace is accelerating fast. Johnson described the environment as one where coming decisions will carry real weight for new Senate President Pro Tem Monique Limon, who faces her first major test navigating budget shortfalls while managing a Democratic caucus that didn't run for office to cut programs.

Perhaps no topic generated more discussion than the 2026 governor's race—described by CalCPA Vice President of Advocacy and Public Affairs Jason Fox as the most wide-open California has seen in years. The field of Democratic candidates remains crowded, with at least eight contenders heading into California's primary, where the top two vote-getters advance regardless of party.

A major development that significantly reshapes the race, Johnson said, came when former Trump adviser Steve Hilton received the president's endorsement. “I think he pretty much did away with the Republicans' chances of two Republicans making it to the top two primary,” she explained, noting that a unified Republican lane now makes it easier—and more urgent—for Democrats to coalesce around a single candidate.

Fox noted candidate Tom Steyer continued to spend heavily on name recognition and San Jose Mayor Matt Mahan, despite over $100 million in independent expenditure support from tech circles, had not yet seen his polling numbers move meaningfully. Johnson predicted that a clearer Democratic frontrunner likely won't emerge until ballots are mailed. 

The proposed 5 percent tax on California billionaires—sponsored by SEIU United Healthcare West—remains one of the most closely watched measures in the state. Proponents have cleared the 25 percent signature-gathering threshold required to move forward but have not yet filed the full batch of signatures. Fox and Johnson both believe that hesitation is deliberate.

There are well-funded counter-initiatives backed by tech billionaires through a group called Building a Better California that are designed to neutralize or undercut the wealth tax are gathering signatures at a reported $15 per signature—an almost unheard-of figure. 

The state's budget picture remains deceptively calm for now, propped up by strong stock market performance and AI-fueled economic growth. But both Fox and Johnson cautioned that the calm may not last. Legislative budget committees have been spending weeks analyzing the fiscal impact of federal funding cuts tied to H.R. 1, and the real reckoning, they agreed, is likely coming in the 2027–28 budget cycle.

AI Policy, PTET Credits, and the Profession's Future

Beyond politics, Fox highlighted several profession-specific advocacy priorities. CalCPA continues to push for a fix to "stranded credits" under California's Pass-Through Entity Tax program, which faces a five-year expiration that could disrupt taxpayer planning strategies. 

On AI, Fox described the profession as well-positioned to play a natural role in third-party assurance of AI systems. "We have a role, we have some insights in this—here's what we need to think about as you look through this," he said referring to the messaging the profession has been sharing with policy leaders.

The California Board of Accountancy, meanwhile, is deep into implementing AB 1175, the landmark CPA licensure modernization bill, with new pathways set to take effect Jan. 1, 2027. The board is also undertaking a broader re-evaluation of the continuing education framework, including whether the current 40-hours-per-year structure remains appropriate.

Fox closed with a message that resonates especially during tax season: in an era of AI-generated advice and social media tax tips, the value of a trusted CPA has never been more important. "Don't go to ChatGPT or TikTok for your taxes," he said. "Have a year-long relationship with your CPA, not a transactional one-stop shop."

As Sacramento enters its most intense policy stretch of the year, CalCPA's advocacy team will continue to keep watch, be involved and ensure the voice of the profession is heard.

 by registering and accessing the event in your Activities. Then mark your calendars for 

. Register now and be a part of the conversation.

The confirmation letter is a fundamental audit evidence tool in CPA practices. And new PCAOB and AICPA standards are rewriting the rules on confirmation letters. In this article, CalCPA Accounting Principles and Assurance Services Committee member 

, explains what every CPA needs to know about the revised PCAOB AS 2310 (effective June 15, 2025) and the AICPA Proposed SAS on External Confirmations (February 2025) to help update processes in light of the new standards. 

Topics covered include the legal nature of confirmation letters; their classification by form and application area; a detailed analysis of material 2024–26 regulatory changes across PCAOB and GAAS; the critical Direct Access principle; digitization risks and opportunities; workflow adaptation steps; common inspection deficiencies; and the impact on auditor liability. 

Offshoring audit work is often framed as a cost decision. In reality, it is a leadership and infrastructure decision.

For many small and mid-sized firms, the challenge is not ambition—it’s capacity. Staff turnover after year four is common. As professionals gain experience, expectations around compensation, advancement and leadership opportunities increase. Smaller firms may struggle to move quickly enough to meet those expectations, while workloads continue to grow and burnout risk rises.

Larger firms face similar pressures at scale. The broader shortage of accountants is a profession-wide reality.

The question is not whether offshoring exists. It does.

The real question is how to implement it intentionally without compromising quality, culture or data security.

Building an Offshore Model Before It Was Common

I began building an offshore team in 2017, before offshoring became widely adopted across the profession. It was not about reducing costs. It was about creating stability.

At the time, we were experiencing turnover and capacity strain. Simultaneously, I transitioned from our New Jersey office to Wisconsin, which required rethinking how we collaborated—not only offshore, but remotely within the United States.

If this model was going to work, it could not be transactional. It had to be structured and intentional.

When my firm was later acquired, the offshore professionals who had been working with me were invited to join as employees. They chose to transition with us. That loyalty was not contractual—it was relational. To me, that was proof that we had built something meaningful.

Offshoring Requires Infrastructure, Not Just People

Offshoring cannot succeed without guardrails.

At the time, we did not have centralized global infrastructure. I had to evaluate collaboration platforms, establish secure file-sharing methods and create communication protocols that protected confidential client data. It required intentional design and discipline.

Smaller firms may not always have the same technological resources as larger organizations, but the principles remain the same. Data security, clear communication and defined oversight structures are foundational. Without them, offshoring introduces risk instead of reducing it.

One of the most persistent misconceptions is that offshoring means handing off responsibility. 

We are not delegating accountability. We are redistributing work under structured oversight and supervision. The engagement team remains responsible for quality, judgment and client service.

When expectations are clear and review processes are disciplined, quality does not decline. In many cases, it improves because roles become more defined and documentation more consistent.

Our offshore team is not treated as a vendor. They are part of our firm and held to the same expectations and accountability standards as any U.S.-based professional.

Despite time differences, I meet with them regularly, just as I would with any team member domestically. I encourage them to understand not just the task, but the reasoning behind it. We invest in training, provide exposure to engagement-level thinking and challenge them to exercise professional judgment.

When offshore professionals feel included and supported, morale strengthens, engagement increases and quality follows.

Another common concern is that offshoring replaces U.S. jobs.

By redistributing execution-heavy tasks, U.S.-based professionals gain capacity to lead client discussions, strengthen relationships, develop professional judgment and participate more meaningfully in growth and advisory initiatives.

Offshoring becomes a development lever rather than a displacement strategy. It allows firms to strengthen domestic leadership pipelines while maintaining sustainable workloads.

A well-structured offshore model supports more balanced margins, reduced burnout risk and greater deadline flexibility. Firms can extend service coverage across time zones without overburdening individual team members.

We effectively operate with expanded coverage, not by pushing individuals harder, but by distributing work intelligently.

Equally important, diversity of culture, experience and perspective strengthens teams. When embraced intentionally, that diversity becomes an asset rather than a complication.

Without structure, firms may experience communication breakdowns, cultural disconnect, insufficient supervision, data security vulnerabilities and inconsistent quality.

The difference between success and failure lies in intentional design. Clear expectations, secure systems, strong review protocols and inclusive culture are essential.

Offshoring cannot be treated as an afterthought.

When implemented thoughtfully, offshoring is not about cost arbitrage.

It is about building firms that can retain and develop talent, protect audit quality, balance workloads and serve clients effectively in a changing environment.

It requires investment, infrastructure and leadership. And when done well, it strengthens both offshore and domestic teams.

The recent CalCPA Town Hall conversation—and a poll at the top of the meeting—made one thing clear: tariffs are dominating client conversations. Guest speaker Sven Jost, economist and BPM’s Data Analytics Leader and Transfer Pricing Leader, brought some perspective from the front lines of a rapidly shifting trade environment.

"Tariffs are now truly directly affecting the cost structures of our clients," he said. "It's an incredibly busy year, and it's not going to get any better."

Jost urged CPAs not to wait for clients to come to them. Tangible goods importers—particularly in manufacturing, semiconductors and consumer goods—are navigating complex tariff codes, third-party logistics decisions, and an emerging wave of refund opportunities. Getting in front of those clients now, he said, is essential.

He also flagged a growing collaboration between CPA firms, economists and customs lawyers. "You can work with software to calculate your refund tariffs based on all the products that you have imported and then work with the customs lawyers in how to actually make it work. It's a collaboration."

With geopolitical events moving fast and traditional annual planning cycles struggling to keep pace, Jost made a case for a different approach altogether.

"Rather than just pure forecasting, shift to real-time monitoring," he advised. That means tracking freight rates, energy prices, jobless claims, purchasing managers indexes and whatever KPIs are most relevant to your client's industry—and having the conversations to match.

"I think we as CPAs have this very unique opportunity because we know our clients and have great relationships with them," he said. "Turn those tax and audit relationships into something a lot more."

On AI, Jost was clear that this is no bubble. "This is a massive structural shift throughout every industry. The investment into AI becomes a lot smarter—boards want to understand the ROI." His bottom line: expect significant productivity gains as the geopolitical dust settles, with CPAs doing more with the same teams or thriving by hiring people who are more adaptable than ever before.

In the midst of all the change and taking care of clients, attendees were reminded to schedule time for something that sometimes gets forgotten: themselves. 

"Some seasons, we realistically can't balance everything we want to balance," said Michelle Niehaus, licensed marriage and family therapist. Rather than chasing the myth of perfect work-life balance, she encouraged members to identify their "non-negotiables"—one or two high-priority personal needs that, if honored, can sustain performance through even the most demanding stretch.

"Pick one thing to honor a day, or one to honor a week. Then just assess—don't judge, don't criticize. See how you felt at the end of that week versus a week where you didn't prioritize anything for yourself."

On burnout, a word that's become almost unavoidable in any profession, Niehues offered a grounding reminder: it's often the best workers who are most at risk. 

"Sometimes our hardest workers are most vulnerable to burnout. They're trying to give it their all in all capacities. Our bodies and brains are like new tires on a car—if you go 150 mph for three months straight, they're going to wear out way faster."

Her parting advice? Connection. "Connect with each other, because you're in it together. Just say: I see you. How are you doing? It helps normalize it. We don't feel so alone."

The second half of the town hall turned to the profession's broader standing and what's at stake if CPAs don't stay engaged.

Deregulation efforts are no longer a distant threat. Proposals targeting licensing standards and CPA oversight are gaining momentum, and the message from leadership was clear: this is an advocacy moment. 

"These proposals weaken the safeguards that protect the public," said CalCPA Chair Jillian Phan. "Licensing boards are not bureaucratic; they exist to ensure expertise, accountability, and trust in financial markets."

CPA profession marks 125 years in California this year

, honored by Senate Concurrent Resolution 111. And the AICPA's upcoming "Trust" campaign launching in June will put CPAs front and center as the most credible financial advisers in a world full of TikTok tax tips and misinformation.

"We are certified versus verified," said Phan. "You'd rather get tax information from your CPA than TikTok."

If one theme ran through every segment of the town hall it was the irreplaceable value of genuine human relationships.

"The most important thing is what can never be replaced," Jost said in his closing remarks. "The human relationship. Instead of checking in with clients twice a year, think about four times a year."

Niehaus echoed it from a different angle. In a year defined by uncertainty, show up, stay connected and trust what you bring to the table. Because your clients already do.

 by registering and accessing the event in your Activities. 

And be a part of the next Town Hall conversation on May 26

Tariffs, AI and Burnout: What CPAs Need to Know 

The recent CalCPA Town Hall covered the issues keeping CPAs up at night—and the strategies to tackle them head-on.

Stay ahead with essential CPA resources

Golden State wisdom straight from the experts

Leading the Charge on Climate Disclosure, Assurance

California's Political, Policy Landscape Heats Up

Audit Confirmations Are Changing—Are You Ready?

Offshoring: A Leadership Challenge, Not a Line Item

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Rise & Stride Podcast

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Part articles and archives

CPAs: Making Sense of What Comes Next campaign