<p>Can AI really clean up messy bookkeeping—and what happens when firms trust it too much? Blake and David break down KPMG’s error-filled AI report, the Pentagon’s new “Agentic Auditor,” and State Farm’s move to tie agent pay to AI. Blake also shares how he used Claude to complete two years of write-up work in hours, with practical lessons on where AI helps, where it fails, and why human review still matters.</p><p></p><p><strong>Sponsors</strong><br>Canopy - <a href="http://accountingpodcast.promo/canopy">http://accountingpodcast.promo/canopy</a><br>The Value Builder System - <a href="http://accountingpodcast.promo/value">http://accountingpodcast.promo/value</a><br>OnPay - <a href="http://accountingpodcast.promo/onpay">http://accountingpodcast.promo/onpay</a></p><br><strong>Chapters</strong><br><ul><li>(00:00) - TAP 493</li> <li>(02:20) - KPMG AI Report Scandal</li> <li>(04:01) - GPTZero Findings Breakdown</li> <li>(05:16) - Hallucinated Case Studies</li> <li>(07:18) - Pentagon Turns to AI Audits</li> <li>(08:33) - Microsoft Copilot Cowork Launch</li> <li>(10:09) - Claude Cowork Write Up Win</li> <li>(15:22) - Recon Fixes and Loan Discovery</li> <li>(20:48) - Future of Agentic Accounting</li> <li>(24:06) - Livestream Q and A TaxGPT</li> <li>(27:01) - AI Review and Human Loop</li> <li>(28:38) - QuickBooks AI Gripe Vibe Coding</li> <li>(31:15) - OnPay Payroll Pitch</li> <li>(32:10) - CPA Fees Rising</li> <li>(33:58) - State Farm AI Agents</li> <li>(37:09) - SpaceX IPO Accounting</li> <li>(39:31) - Musk Disclosure Shift</li> <li>(41:02) - Quarterly Reporting Debate</li> <li>(46:31) - Celebrity Accountant Fraud</li> <li>(50:52) - KPMG Summer Perk Cut</li> <li>(52:24) - Intuit Humanizing AI</li> <li>(55:22) - IRS Data Shared With ICE</li> <li>(57:56) - CPE And Farewell</li> </ul> <p><br></p><p><strong>Show Notes</strong></p><p>Chasing the Hallucinations: KPMG's AI-Powered Attempt at "Redefining Excellence"</p><p><a href="https://gptzero.me/news/investigations-kpmg/">https://gptzero.me/news/investigations-kpmg/</a></p><p><br>KPMG's AI report becomes an accidental demo of AI hallucinations</p><p><a href="https://www.theregister.com/ai-and-ml/2026/06/12/kpmgs-ai-report-turns-into-a-demo-of-ai-hallucinations/5255029">https://www.theregister.com/ai-and-ml/2026/06/12/kpmgs-ai-report-turns-into-a-demo-of-ai-hallucinations/5255029</a></p><p><br>Pentagon turns to AI in push for clean financial audit by 2028</p><p><a href="https://www.stripes.com/theaters/us/2026-06-11/pentagon-audit-ai-contract-21941885.html">https://www.stripes.com/theaters/us/2026-06-11/pentagon-audit-ai-contract-21941885.html</a></p><p><br>Copilot Cowork is now generally available</p><p><a href="https://www.microsoft.com/en-us/microsoft-365/blog/2026/06/16/copilot-cowork-is-now-generally-available/">https://www.microsoft.com/en-us/microsoft-365/blog/2026/06/16/copilot-cowork-is-now-generally-available/</a></p><p><br>Tax Prep Billing Rates Lift Busy Season 2026</p><p><a href="https://cpatrendlines.com/2026/04/14/tax-prep-emerges-from-busy-season-2026-as-the-new-engine-for-billing-rates/">https://cpatrendlines.com/2026/04/14/tax-prep-emerges-from-busy-season-2026-as-the-new-engine-for-billing-rates/</a></p><p><br>State Farm overhauls agent contracts, mandates AI use</p><p><a href="https://finance.yahoo.com/technology/ai/articles/state-farm-overhauls-agent-contracts-115756712.html">https://finance.yahoo.com/technology/ai/articles/state-farm-overhauls-agent-contracts-115756712.html</a></p><p><br>SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire</p><p><a href="https://fortune.com/2026/06/13/spacex-cfo-bret-johnsen-overnight-billionaire-ipo/">https://fortune.com/2026/06/13/spacex-cfo-bret-johnsen-overnight-billionaire-ipo/</a></p><p><br>SpaceX CFO Bret Johnsen joins billionaire ranks after $75B IPO: Trial Balance</p><p><a href="https://www.cfo.com/news/spacex-cfo-bret-johnsen-joins-billionaire-ranks-after-ipo-trial-balance/822848/">https://www.cfo.com/news/spacex-cfo-bret-johnsen-joins-billionaire-ranks-after-ipo-trial-balance/822848/</a></p><p><br>Investors oppose semiannual reporting, says poll</p><p><a href="https://www.accountingtoday.com/news/investors-oppose-semiannual-reporting-says-poll">https://www.accountingtoday.com/news/investors-oppose-semiannual-reporting-says-poll</a></p><p><br>CFA Institute Investor Perspectives: Quarterly Reporting 2026</p><p><a href="https://rpc.cfainstitute.org/sites/default/files/docs/research-reports/investor-perspectives-quarterly-reporting-2026.pdf">https://rpc.cfainstitute.org/sites/default/files/docs/research-reports/investor-perspectives-quarterly-reporting-2026.pdf</a></p><p><br>The Global Freelancer Pay Gap Report</p><p><a href="https://www.remitly.com/us/en/landing/global-freelancer-pay-gap">https://www.remitly.com/us/en/landing/global-freelancer-pay-gap</a></p><p><br>Nick Cannon's Business Accountant Allegedly Embezzles $2 Million, Flees U.S.</p><p><a href="https://www.tmz.com/2026/05/08/nick-cannon-business-manager-embezzled-millions/">https://www.tmz.com/2026/05/08/nick-cannon-business-manager-embezzled-millions/</a></p><p><br>KPMG scraps summer early Friday finish for staff</p><p><a href="https://www.cityam.com/kpmg-scraps-summer-early-friday-finish-for-staff/">https://www.cityam.com/kpmg-scraps-summer-early-friday-finish-for-staff/</a></p><p><br>Intuit hires Mother to humanize the QuickBooks maker's AI pitch</p><p><a href="https://adage.com/agencies/accounts-in-review/aa-intuit-hires-mother-as-creative-strategy-partner/">https://adage.com/agencies/accounts-in-review/aa-intuit-hires-mother-as-creative-strategy-partner/</a></p><p><br>After issuing more than $20 billion in tariff refunds, the Trump administration is now pursuing legal action to bring the process to a standstill</p><p><a href="https://fortune.com/2026/06/01/trump-administration-plan-appeal-illegal-ieepa-tariff-universal-refunds/">https://fortune.com/2026/06/01/trump-administration-plan-appeal-illegal-ieepa-tariff-universal-refunds/</a></p><p><br>IRS gave 47,000 taxpayers' addresses to ICE</p><p><a href="https://www.accountingtoday.com/news/irs-gave-47-000-taxpayers-addresses-to-ice">https://www.accountingtoday.com/news/irs-gave-47-000-taxpayers-addresses-to-ice</a></p><p><br><strong>Need CPE?</strong></p><p>Get CPE for listening to podcasts with Earmark: <a href="https://earmarkcpe.com/">https://earmarkcpe.com</a><br>Subscribe to the Earmark Podcast: <a href="https://podcast.earmarkcpe.com/">https://podcast.earmarkcpe.com</a></p><p><br></p><p><strong>Get in Touch</strong></p><p>Thanks for listening and the great reviews! We appreciate you! Follow and tweet <a href="https://twitter.com/blaketoliver/">@BlakeTOliver</a> and <a href="https://twitter.com/davidleary/">@DavidLeary</a>. Find us on <a href="https://www.facebook.com/CloudAccountingPodcast/">Facebook</a> and <a href="https://www.instagram.com/cloudacctpod/">Instagram</a>. If you like what you hear, please do us a favor and write a review on <a href="https://itunes.apple.com/us/podcast/cloud-accounting-podcast/id1312460765?mt=2">Apple Podcasts</a> or <a href="https://www.podchaser.com/podcasts/cloud-accounting-podcast-588480">Podchaser</a>. Call us and leave a voicemail; maybe we'll play it on the show. <strong>DIAL (202) 695-1040.</strong></p><p><br></p><p><strong>Sponsorships</strong></p><p>Are you interested in sponsoring The Accounting Podcast? For details, <a href="https://earmarkcpe.promo/EarmarkMediaKit">read the prospectus</a>.</p><p><br></p><p><strong>Need Accounting Conference Info? </strong></p><p>Check out our new website - <a href="https://accountingconferences.com/">accountingconferences.com</a></p><p><br></p><p><strong>Limited edition shirts, stickers, and o...</strong></p>

The Accounting Podcast

Blake Oliver & David Leary

KPMG Withdraws AI Report Full of "Vibe Citations"

JUN 26, 202660 MIN
The Accounting Podcast

KPMG Withdraws AI Report Full of "Vibe Citations"

JUN 26, 202660 MIN

Description

Can AI really clean up messy bookkeeping—and what happens when firms trust it too much? Blake and David break down KPMG’s error-filled AI report, the Pentagon’s new “Agentic Auditor,” and State Farm’s move to tie agent pay to AI. Blake also shares how he used Claude to complete two years of write-up work in hours, with practical lessons on where AI helps, where it fails, and why human review still matters.SponsorsCanopy - http://accountingpodcast.promo/canopyThe Value Builder System - http://accountingpodcast.promo/valueOnPay - http://accountingpodcast.promo/onpayChapters(00:00) - TAP 493 (02:20) - KPMG AI Report Scandal (04:01) - GPTZero Findings Breakdown (05:16) - Hallucinated Case Studies (07:18) - Pentagon Turns to AI Audits (08:33) - Microsoft Copilot Cowork Launch (10:09) - Claude Cowork Write Up Win (15:22) - Recon Fixes and Loan Discovery (20:48) - Future of Agentic Accounting (24:06) - Livestream Q and A TaxGPT (27:01) - AI Review and Human Loop (28:38) - QuickBooks AI Gripe Vibe Coding (31:15) - OnPay Payroll Pitch (32:10) - CPA Fees Rising (33:58) - State Farm AI Agents (37:09) - SpaceX IPO Accounting (39:31) - Musk Disclosure Shift (41:02) - Quarterly Reporting Debate (46:31) - Celebrity Accountant Fraud (50:52) - KPMG Summer Perk Cut (52:24) - Intuit Humanizing AI (55:22) - IRS Data Shared With ICE (57:56) - CPE And Farewell  Show NotesChasing the Hallucinations: KPMG's AI-Powered Attempt at "Redefining Excellence"https://gptzero.me/news/investigations-kpmg/KPMG's AI report becomes an accidental demo of AI hallucinationshttps://www.theregister.com/ai-and-ml/2026/06/12/kpmgs-ai-report-turns-into-a-demo-of-ai-hallucinations/5255029Pentagon turns to AI in push for clean financial audit by 2028https://www.stripes.com/theaters/us/2026-06-11/pentagon-audit-ai-contract-21941885.htmlCopilot Cowork is now generally availablehttps://www.microsoft.com/en-us/microsoft-365/blog/2026/06/16/copilot-cowork-is-now-generally-available/Tax Prep Billing Rates Lift Busy Season 2026https://cpatrendlines.com/2026/04/14/tax-prep-emerges-from-busy-season-2026-as-the-new-engine-for-billing-rates/State Farm overhauls agent contracts, mandates AI usehttps://finance.yahoo.com/technology/ai/articles/state-farm-overhauls-agent-contracts-115756712.htmlSpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionairehttps://fortune.com/2026/06/13/spacex-cfo-bret-johnsen-overnight-billionaire-ipo/SpaceX CFO Bret Johnsen joins billionaire ranks after $75B IPO: Trial Balancehttps://www.cfo.com/news/spacex-cfo-bret-johnsen-joins-billionaire-ranks-after-ipo-trial-balance/822848/Investors oppose semiannual reporting, says pollhttps://www.accountingtoday.com/news/investors-oppose-semiannual-reporting-says-pollCFA Institute Investor Perspectives: Quarterly Reporting 2026https://rpc.cfainstitute.org/sites/default/files/docs/research-reports/investor-perspectives-quarterly-reporting-2026.pdfThe Global Freelancer Pay Gap Reporthttps://www.remitly.com/us/en/landing/global-freelancer-pay-gapNick Cannon's Business Accountant Allegedly Embezzles $2 Million, Flees U.S.https://www.tmz.com/2026/05/08/nick-cannon-business-manager-embezzled-millions/KPMG scraps summer early Friday finish for staffhttps://www.cityam.com/kpmg-scraps-summer-early-friday-finish-for-staff/Intuit hires Mother to humanize the QuickBooks maker's AI pitchhttps://adage.com/agencies/accounts-in-review/aa-intuit-hires-mother-as-creative-strategy-partner/After issuing more than $20 billion in tariff refunds, the Trump administration is now pursuing legal action to bring the process to a standstillhttps://fortune.com/2026/06/01/trump-administration-plan-appeal-illegal-ieepa-tariff-universal-refunds/IRS gave 47,000 taxpayers' addresses to ICEhttps://www.accountingtoday.com/news/irs-gave-47-000-taxpayers-addresses-to-iceNeed CPE?Get CPE for listening to podcasts with Earmark: https://earmarkcpe.comSubscribe to the Earmark Podcast: https://podcast.earmarkcpe.comGet in TouchThanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040.SponsorshipsAre you interested in sponsoring The Accounting Podcast? For details, read the prospectus.Need Accounting Conference Info? Check out our new website - accountingconferences.comLimited edition shirts, stickers, and o...