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- Big 4 scandal. IRS surprise. Peanut butter dominance.
Big 4 scandal. IRS surprise. Peanut butter dominance.
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I share the 4-5 most important accounting that actually matter. I scroll so you don’t have to.
So grab your coffee, take a quick break, and lets catch up.
In this issue:
KPMG partners used ChatGPT to pass their own AI exam
The IRS quietly rolled out a Tax Pro upgrade firms will actually use
Peanut butter beat ketchup and 4% of Americans carry it like contraband
- Ledger Lowdown Team
WTF of the Day🤯
KPMG Used ChatGPT to Cheat on Its AI Test
KPMG Australia just became the first Big 4 firm to get caught using AI to cheat on internal AI training exams. An audit partner uploaded the training manual to ChatGPT and let it answer for them. The fine? $10,000. Partner comp at KPMG Australia? $506K/year. Do the math.
It wasn't just one person. 24+ KPMG employees got caught doing the same thing since July 2024. The firm says it self-reported.
ASIC's(Australian Securities and Investments Commission) response told a different story, they didn't actually file a report until a newspaper published the story. Then they 'voluntarily' cooperated.
The bigger issue is this is going to happen everywhere. AI makes it trivially easy to cheat on any open-book exam. Every firm needs to answer the question KPMG couldn't where's the line between using AI as a tool and using it to cheat?
What’s poppin in accounting🍿
The IRS Finally Built Something Useful for CPA Firms
Tax Pro Account just got a major upgrade for firms. You can now manage CAF (Centralized Authorization File) authorizations at the business level, set employee access controls, link your firm’s CAF number to your EIN, and withdraw client authorizations digitally. No more paperwork.
If you run a firm and you’re still managing client authorizations manually, this is your sign to stop. Get your designated business representative into Tax Pro Account, link the EIN, and set those access levels now. During tax season, every hour matters.
For solo practitioners, not much changes. But if your firm operates as a business entity, this is legitimately useful.
Weekly Trend Chart 📊
America's Favorite Condiments
Peanut butter just won America.
A new survey says 44% of adults love it. Another 35% like it. That makes it the top “condiment” in the country. Yes, condiment. They defined it broadly. Don’t fight me.
Even crazier, 4% of Americans carry peanut butter with them. In their bag. Like lip balm. Ketchup still wins on ownership at 84% of households, but peanut butter wins on obsession. That’s the difference.
This matters if you sell food. People don’t just buy peanut butter. They identify with it. Hershey learned that the hard way after a Reese family member blasted them for swapping real peanut butter for “peanut butter crème” in Reese's Peanut Butter Cups. Don’t mess with the sacred stuff.
If you’re building a CPG brand, here’s the lesson. Commodity products are boring. Emotional products print money. Peanut butter is emotional. Ketchup isn’t.
Meme of the Day😂
Happy Friday😂