07/24/2025

Well, hi there! Sit back, enjoy, and relax as you’re currently on the Daily Accrual.

Every day, I sift through the accounting noise so you don’t have to. I share to you the most relevant, juicy accounting insights that really matter – nothing phony, just some good, accounting testimony! 

📝 Journaling Insider

PCAOB has revoked Centurion ZD CPA & Co.’s registration, barring their managing partner, Chan Kam Fuk. The mentioned firm has failed in addressing known fraudulent risks in the 2021 auditing reports of Luckin Coffee, which had fabricated over $300 million in sales. Centurion ZD ignored audit standards, skipped risk assessments, and failed to gather sufficient evidence.

The mentioned firm additionally violated audit standards in reviews of Moxian and Greenpro Capital subsidiaries. PCAOB also found weak quality controls, poor staffing conditions, and lack of professional skepticism. Required filings and communications were continuously neglected. The accounting firm and partnership with Chan faces permanent sanctions and $75,000 penalty.

Source: CPA Practice Advisor 

💰 Making Cents of Accounting

#AccountingDelusions✨🌌

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Source: Wisdify

💸 Profit & Loss Report

The IRS has increased ACA employer shared responsibility penalties for 2026. ALEs that failed in offering minimum essential coverage to 95% of full-time employees will be getting a $3,340 per-employee penalty, possibly going up to $440 from 2025. If coverage is unaffordable or lacks minimum value, the mentioned penalty jumps to $5,010 per employee, a $660 increase more. 

Employers must ensure they’re accurately identifying full-time employees and offering compliant, affordable coverage for them. The IRS is currently using Letter 226-J and Form 14764 in notifying and reviewing penalties, with an initial 90-day response window starting from January 2025. Previous court rulings may affect procedures, so remaining proactive is necessary. 

Source: Thomson Reuters 

💎 Rare Accounting Oddities

Monopoly was built in 1904 by Lizzie Magie to denounce capitalism. Originally named The Landlord’s Game, was meant to educationally portray how rent and greed destroys society. 

Fast forward: Charles Darrow sells a tweaked version, becomes rich, and Magie gets just $500. Now here’s the real kicker, accountants have been using Monopoly in teaching economics.

From cost accounting to journal entries, it’s become a go-to classroom instrument. Starting with anti-capitalist protest to accounting lesson plans? That’s what we call a balance sheet plot twist.