Generative AI and Risks to CPA Firms

November 14, 2023

Generative AI and Risks to CPA Firms

November 14, 2023

CPA firms considering Generative AI like ChatGPT should navigate potential risks with caution.

The article explores the integration of generative AI, exemplified by ChatGPT, in CPA firms and highlights potential professional liability risks associated with its use. It emphasizes that while these AI models offer speed and versatility, they lack human judgment and context comprehension, which can lead to unreliable outputs.


The risks discussed include confidentiality concerns, as sensitive client data is shared with the AI tool's owners, and reliability issues due to potential inaccuracies stemming from outdated or incomplete training data. The article suggests several risk management recommendations for CPA firms considering the use of generative AI, including understanding the tool's limitations, developing a firmwide policy for its appropriate use, and providing training and oversight to ensure compliance.


Additionally, it advises consulting with legal counsel to navigate terms of service and privacy policies, and staying updated on the evolving landscape of generative AI technology. For more information click the link!



https://www.journalofaccountancy.com/issues/2023/oct/generative-ai-and-risks-to-cpa-firms.html


FPA Executive Tax Brief Issue 009 covering estimated taxes, bonus depreciation, manufacturing proper

5 Tax Decisions Already Affecting 2026

September 14, 2026
FPA Brief 009 covers the Sept. 15 tax deadline, 100% bonus depreciation, Section 168(n), permanent Opportunity Zones and the shift from GILTI to NCTI.
FPA Brief 008 covers Rev. Proc. 2026-32, Section 174A R&D, Section 987 CFC relief, BOI reporting and

5 Tax Rules Where the Headline Misses the Details

September 7, 2026
FPA Executive Tax Brief Issue 008 covering construction accounting, Section 174A R&D, Section 987, BOI reporting and energy tax incentives.
FPA Executive Tax Brief Issue 007 covering Section 163(j), IRIS, Opportunity Zones, Section 45X and

5 Tax Decisions With Deadlines Approaching

September 1, 2026
FPA Brief 007 covers Section 163(j), the FIRE-to-IRIS transition, Opportunity Zones 2.0, Section 45X sourcing rules and September estimated taxes.
Executive tax and trade planning for semiconductor manufacturing, real estate, workforce benefits

5 Tax & Trade Decisions With Deadlines Already Running

August 24, 2026
FPA Brief covers conservation easement enforcement, polysilicon tariffs, the Section 48D deadline, Trump Account employer contributions and Canada trade retaliation.
FPA Executive Tax Brief Issue 005 covering overtime reporting, international tax compliance, manufac

5 Tax Deadlines & Decisions That Cannot Wait Until April

August 17, 2026
FPA Executive Tax Brief 005 covers overtime reporting, Form 5472, manufacturing costs, the $32M contractor threshold and 2026 Opportunity Zone gains.

5 Tax Changes CEOs and CFOs Should Know This Week

August 10, 2026
FPA Executive Tax Brief 004 covers paid-leave credits, Canadian tariffs, R&D reporting, residential contract accounting and IRS Business Tax Account updates.
FPA Executive Tax Brief Issue 003 covering tariffs, international tax, manufacturing facilities, Opp

5 Tax and Trade Changes That Could Require CEOs and CFOs to Rethink Their 2026 Strategy

August 4, 2026
FPA Executive Tax Brief 003 explains new tariffs, NCTI, production-property expensing, Opportunity Zone guidance, and proposed IRS reforms.
FPA Executive Tax Brief Issue 002 covering tax developments affecting construction, manufacturing,

5 Tax & Business Developments Every CEO and CFO Should Know This Week

July 28, 2026
The FPA Executive Tax Brief covers this week's most important developments affecting construction, manufacturing, real estate, and international businesses

5 Business & Tax Developments Every CEO and CFO Should Know This Week

July 22, 2026
FPA Executive Tax Brief™ Issue No. 001 | Week of July 21–27, 2026 Strategic Tax Intelligence for CEOs, CFOs & Growth-Focused Business Owners Estimated Reading Time: 7 Minutes Industries Covered This Week ✔ Construction ✔ Manufacturing ✔ Real Estate Development ✔ Multi-State Businesses
Kwong v United States

What Business Owners Should Know About the Kwong Decision

May 29, 2026
Learn how the Kwong v. United States decision may create IRS penalty refund opportunities for businesses that paid penalties during the COVID disaster period.