Accounting
Take comfort in gradual change in an era of audit upheaval
There is a saying that has been going through my mind of late: “May you live in interesting times.” Its origin is vague but many attribute it to a translation of a Chinese curse. Indeed, while the saying sounds like a blessing, it is more likely that wishing someone a life of interesting times is cursing them to a life of upheaval and conflict.
Whether you are optimistic, neutral or pessimistic about the current state of affairs, it’s safe to say we are all living in interesting times. Disruption has become a way of life in the 21st century. Consider this: In just the past five years we have experienced a global pandemic, geopolitical instability driven by wars in Ukraine and Gaza, intensifying natural disasters fueled by climate change, and technology disruptions brought on by artificial intelligence. Presently, we are all trying to decipher what will happen next with tariffs and their impacts on financial markets, which of late are behaving more like amusement park thrill rides than reflections of economic conditions.
I have written extensively about how today’s business leaders must learn to not only manage disruptive change but embrace it. In the second edition of my book,
However, I ran across a couple of interesting data points tucked into the latest
The Pulse data, which is gleaned from a survey of internal audit leaders across North America and Canada, show we’ve reached the inflection point in the generational transition. At 58%, Generation X (1965-1980) still makes up the lion’s share of chief audit executives, but the percentage of audit leaders who are millennials (1981-1996) now matches those who are baby boomers (1946-1964) at 21%.
This clearly reflects the passing of the torch, because the numbers will continue to skew toward a younger generation of internal audit leaders with each passing year. I’ll explore what that means in a moment, but I also want to mention a second significant data point. The Pulse reports that women represent 44% of CAEs in North America overall, and a breakdown by age group shows the figure is significantly higher for audit leaders under 40.
The changing CAE gender profile
When I began my career in internal auditing in 1975, a woman leading an audit function was rare. However, over time pioneering women leaders emerged, including Carmen LaPointe, Betty McPhilimy and Patty Miller, each of whom went on to serve as IIA global board chairs. Since then, the IIA has had several other women lead the board including Angela Witzany, Jenitha Jones, Sally-Anne Pitt and current chairman Terry Grafenstine. The profession approaching true gender balance in leadership is something in which all internal audit practitioners should take great pride. Unlike generational change in leadership, gender equality is not inevitable.
When we dive deeper into the data, the true significance of the progress toward gender equality emerges. Baby boomers continue to skew the data toward males, where they make up two-thirds of CAEs born between 1946 and 1964. However, the gap closes significantly among Gen Xers (1965-1980) where women make up 48% of CAEs and comes to 50/50 parity among millennials (1981-1996).
A quick analysis of gender breakdown by industry finds women are making solid progress in other areas, as well. But we’d be hard pressed to find one where half of the leaders are women.
- Medical/health – 43%
- Education, consumer services and government – 40%
Women still lag significantly in leadership roles in:
- Food and beverage – 30%
- Transportation/logistics/supply chain, and automotive – 19%
- Aerospace/defense – 18%
- Agriculture – 17%
- Oil/gas/mining – 16%
It’s also encouraging to see the rapid pace at which women are ascending to leadership roles within the profession. We have available data from the IIA’s 2015 CBOK report, which provides a touchpoint. The report, which was based on a 2014-15 global survey of audit practitioners, found women held 31% of CAE positions globally and 39% in North America. In just 10 years, the percentage of female North American CAEs grew 5%.
Generational changes
Moving to the proverbial changing of the guard, the parity between baby boom and millennial internal audit leaders was inevitable as older CAEs leave the workforce. Of significance here is the timing. When I first saw the data, I thought to myself, “Whew, just in the nick of time.” Allow me to elaborate.
At the risk of generalizing, millennials bring to the table technology skills, views about work-life balance, and preferences in communication styles, creativity and diversity that are more suited to 21st century challenges. To be sure, baby boomer optimism, work ethic, loyalty and focus on teamwork helped found and build some of the greatest organizations the world has ever seen, including Microsoft, Apple, Nvidia, Amazon, Virgin Atlantic and others. Baby boomers also forged the digital foundation on which millennials will build the future.
However, the demands created by a world in near-constant upheaval require greater flexibility, agility, resilience and innovation that millennial characteristics are more likely to provide. It’s more than millennials being technologically adept. For example, millennials use digital tools for quick communication that support agility and flexibility, while boomers are more likely to prefer formal meetings and written communication.
There is little doubt that both generations share a desire for success and achievement, but their approaches and values differ significantly, reflecting the evolving social and economic landscape of their times.
From an internal audit perspective, greater numbers of millennial CAEs will invariably accelerate the long-overdue widespread adoption of technology among internal audit functions. What’s more, their communications styles, creativity and embracing of diversity will help position the profession to support organizations that are flexible, resilient, agile and, most importantly, built to succeed in interesting times.
CliftonLarsonAllen LLP, a Top 10 Firm, has added Dembo Jones CPAs and Advisors, a firm with offices in North Bethesda and Columbia, Maryland, expanding CLA’s presence in the U.S. Capital region, effective May 1.
Financial terms of the deal were not disclosed, but CLA earned over $2 billion in revenue in 2024, while Dembo Jones earned $24 million. CLA has nearly 9,000 people and more than 130 U.S. locations, while Dembo Jones has over 80 team members and two locations. CLA ranked No. 10 on Accounting Today‘s 2025 list of the
The deal is part of CLA’s plan to grow by $1 billion through the addition of new partner firms over the next five years.
“This is such a great time for us to embrace Dembo Jones into the CLA family,” said CLA chief development officer Scott Engelbrecht in a statement. “At CLA, we understand that independence is key to innovation and growth. Our unique partnership model allows firms to retain local identity while accessing our global resources and our exceptional professionals across the country. This approach ensures that the firms that join us can continue to thrive in their markets while benefiting from the strength of a larger firm. Our friends at Dembo Jones talk about how their clients get all of Dembo Jones when they are working together. That is exactly how CLA operates, bringing all of CLA to our clients.”
Dembo Jones has offered accounting, auditing, tax, and consulting services to businesses, government agencies, organizations and individuals for over 70 years.
“Joining CLA presents an incredible opportunity for both our team at Dembo Jones and the numerous clients who depend on our specialized services,” said Dembo Jones managing partner Brent Croghan in a statement. “Our shared values and mutual dedication to serving individuals, businesses, government entities and nonprofit organizations make this partnership a natural fit. With access to CLA’s extensive national footprint, we are now better equipped to provide enhanced resources to our clients.”
Last year, CLA added
In 2023, CLA acquired
Rehmann, a Top 50 Firm based in Troy, Michigan, has added Martinet Recchia, a family-owned CPA firm in the Cleveland suburb of Willoughby, expanding Rehmann’s presence in Ohio, complementing its existing office in Toledo.
Martinet Recchia dates back to 1955 when it was founded by Thomas and Richard Martinet. Richard’s son Keith Martinet remains a shareholder today, while managing shareholder Joseph Recchia joined the firm in 1998. All of Martinet Recchia’s shareholders intend to stay with the firm, along with the entire staff, and the firm will continue to operate in its current location under the Rehmann name.
Financial terms of the deal were not disclosed. Rehmann ranked No. 38 on Accounting Today‘s 2025 list of the
“We’re thrilled about this mutually beneficial business combination and what it means for our clients and their organizations,” said Rehmann CEO Stacie Kwaiser in a statement Thursday. “Both firms share similar cultural values and philosophies related to client service, striving to be good community partners, and supporting the areas in which our associates live and work. The added expertise and capacity on both sides will allow us to continue maximizing client potential in Ohio and beyond.”
Martinet Recchia offers various tax and business consulting services to the construction, manufacturing and distribution, restaurant & hospitality, and professional services industries.
“Like Rehmann, we put people first,” Martinet stated. “As a small local firm, we pride ourselves on meeting regularly with our clients in person, which has inspired their loyalty over the firm’s 70 years. Similarly, we’ve always taken care to prioritize work/life balance for our staff, and it’s their commitment—in addition to our great clients—that has made us successful. We’re excited about this new chapter, and I think if my father saw where the firm was now, he would be very proud.”
“Combining with Rehmann offers more professional development opportunities for our associates who want to advance in their careers,” Recchia added. “We’re always looking for ways to better serve our clients, and this combination gives us increased capacity and broader services in a competitive market. It will still be our associates on the end of the phone offering the same quality service, but now we’re one team serving clients in the Cleveland area.”
Last year, Rehmann expanded in its home state of Michigan by adding
Key House Republicans on Thursday discussed ways to direct an expanded state and local tax deduction to those making less than $400,000 as they seek to balance the cost of the tax break with the political needs of several lawmakers from New York and other high-tax states.
The $10,000 cap on SALT, one of the most contentious issues in the GOP debate on its giant tax bill, remained unresolved as lawmakers left Washington Thursday.
Republicans on the House tax panel discussed a series of options to direct the deduction to middle-class households, New York Representative Nicole Malliotakis told reporters. Committee members delved into options, including the overall cap level, how many years to extend it and if there should be income limits for who can claim the write-off, she said.
“It needs to be adjusted in a reasonable manner where it is targeted to the middle class,” she said, adding that the Ways and Means Committee would reconvene on the issue next week. Malliotakis represents Staten Island.
Targeting middle-class taxpayers could be accomplished through an income limit or through the size of the cap itself, which would limit the benefits going toward those with the highest property and income tax bills.
Such a SALT change could cost about $25 billion per year, Malliotakis said, but that depends on the size and duration of the cap adjustment. She said she opposes any changes to the alternative minimum tax, which could hit middle-class taxpayers.
Thursday’s discussion followed a Wednesday meeting between pro-SALT members and House Speaker Mike Johnson and Ways and Means Committee Chairman Jason Smith. Members left the meeting saying the two factions didn’t reach a deal.
An income limit would curb benefits for residents in some of the most expensive areas of the country — near New York City and Southern California — that are most concerned about the SALT deduction.
“I have made clear in no uncertain terms that I won’t support an income limit,” Representative Mike Lawler, who represents a suburban district just north of New York City, said in an interview Thursday, adding that he’s waiting to see a concrete SALT proposal from the Ways and Means Committee.
How to expand SALT — which was limited in President Donald Trump’s first-term tax bill — is among the most politically divisive issues facing Congress as lawmakers negotiate the contours of tax and spending legislation that they’re billing as their signature legislative priority for the year.
Trump met with Johnson and other key Republicans at the White House on Thursday to discuss the overall tax package, which forms the basis of the president’s legislative agenda.
“The final details are coming together, and they’re coming together rapidly, and I think we’re right on schedule,” Trump said.
The plan will renew Trump’s 2017 cuts, but Republicans face a series of tough choices as they debate which new levy reductions to include and whether to cut popular benefit programs, including Medicaid.
The deduction is an important issue to a small, but vocal, faction of House Republicans representing high-tax areas. A narrow GOP majority means that the pro-SALT members can block the bill if they view the tax changes as too meager for their constituents.
“I just don’t support that policy, but there’s gonna be 1,000 choices in this package,” Representative Chip Roy, a hardline conservative member from Texas, said. “But then again, you got to figure out how to get a deal done. So if the math adds up and we’re doing enough on the spending restraint side, and the tax policy works out, and SALT goes up a little, whatever.”
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