Q3 2025 in Review
The third quarter of 2025 was packed with action from the standard setters. This blog will review the major proposals and final standards issued by the FASB, AICPA and GASB. Be in the know on what’s changing!
AICPA Releases 2025 MAP Survey
The AICPA’s newly released 2025 MAP Survey shows strong revenue growth and rising staff compensation across U.S. accounting firms, with median firm revenue up 6.7% and partner earnings up nearly 12% since the last survey. Salaries for new grads also jumped significantly—up 11% for bachelor’s and 17% for master’s degree holders—highlighting continued demand for talent.
OMB Memo on Auditing
On June 23rd, OMB issued Memo M-25-30: Ensuring Accountability: How We Oversee, Audit, and Improve. It reinforces the importance of federal audits in providing transparency and accountability while preventing waste, fraud, and abuse. The memo also ties to the July 14th update of OMB Circular A-136, which revises federal financial reporting requirements, including moving to a single-year presentation.
Presidential EO on Grants
On August 7th, the President issued an EO creating a review process for discretionary grants. It also calls for updates to the Uniform Guidance and a review of the terms and conditions of federal awards.
DRAFT 2025 Compliance Supplement
After much delay, the draft of the 2025 Compliance Supplement has been released. Key proposed changes include updates to program compliance requirements, the removal of COVID-19 funding programs from higher risk designations, and two Part 3 sections for compliance testing, one under the prior Uniform Guidance and one under the 2024 Uniform Guidance.
AICPA Updates Quality Management Resources
To help firms prepare for the December 15 deadline, the AICPA has updated its quality management resources. The revised Quality Management Practice Aid expands on SQMS No. 1 objectives, clarifies ultimate responsibility for the QM system, and addresses sole practitioner considerations. It provides deeper coverage of the eight QM components, highlighting new requirements, small-firm implementation differences, and practical tools like risk libraries and documentation templates. The aid also clarifies evaluation requirements and expands guidance on documentation. In addition, the AICPA released The Monitoring and Remediation Process for a Firm’s System of Quality Management, which offers requirements, application guidance, and tips for continuous improvement.
Public Sector Current Landscape & Future Recommendations
Government entities rely on strong accounting, auditing, and finance functions to ensure transparency and accountability. But attracting and retaining CPAs in the public sector, and securing quality audit services, remains a challenge. The joint AICPA & NASACT report outlines critical findings and solutions in valuing CPAs, shifting from commodity-based to value-based engagements, strengthening the pipeline, and more! The bottom line is, to sustain accountability in the public sector, we must prioritize CPAs as essential partners in public service, and create an environment where they can thrive.
NASBA & AICPA Update Uniform Accountancy Act
NASBA and the AICPA have issued the 9th edition of the Uniform Accountancy Act which acts as a model piece of legislation that can be used by individual state boards of accountancy to create consistency and uniformity. The new edition includes 3 pathways to licensure as well as changes to mobility requirements. It is important to note that each state must adopt these requirements before they can be applied in that state.
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.
