A new biannual survey shows some perceptions of the economy are improving.

The Center for Audit Quality's fall 2022 Audit Partner Pulse Survey found almost 60% of audit partners expressed pessimism for the U.S. economy. However, the group's more recent fall 2023 survey showed overall pessimism dropped to 27%.

Julie Bell Lindsay, CEO of the center, explained audit partners are present in all public companies in the country. They are responsible for understanding risks and pressures affecting businesses and the industries they operate in.

"Certainly the economic outlook is stronger than a year ago," Lindsay noted. "But auditors still see the potential for inflation, while it is falling, to have a significant impact on business operations over the course of the next year."

Lindsay added almost 70% of auditors see what she calls "inflationary effects" hitting business for longer than 12 months. She asserted businesses are being heavily affected by the country's current regulatory environment, with a majority saying the effects have been negative, citing additional costs associated with compliance with new rules.

Lindsay acknowledged despite the various challenges plaguing the business community from cybersecurity to learning how to better handle artificial intelligence, the country finds itself in what she terms a "relatively strong position."

"The U.S. continues to have, I would say, the most liquid and strong capital markets in the world," Lindsay contended. "We are not without our challenges, but we seem to be coming out of the pandemic and an inflationary cycle in a fairly strong position."

According to the survey, companies' top three priorities are cost management, financial performance and overall growth. Lindsay noted while artificial intelligence was lower on the list of companies' priorities, it is high on their list of challenges because of data quality concerns and data security risks.

Lindsay added companies across the country are also experiencing a shortage of accounting and auditing professionals.

"It is not just getting talent into the companies," Lindsay stressed. "When you have less talent, that means the existing talent has to take on additional responsibilities and that can hurt retention."

While half of companies are focused on upskilling, the survey found one in three is working to increase compensation and workplace flexibility for current employees.


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Virginia ranks third behind only Maryland and Delaware among the worst states for the average amount of back wages companies owe to their workers. Virginia employers owe an average of more than $1,600 to nearly 3,500 employees.

A report from the financial training website Goat Academy analyzing federal data found since 2021, nearly 4,800 wage theft violations have occurred.

Paul Falabella, attorney and past president of the Virginia Employment Lawyers Association, said wage theft laws were passed only recently in the Commonwealth. He pointed out a lack of oversight combined with a construction boom may have contributed to Virginia's wage theft problem.

"Virginia had no state law on wage theft and didn't have the ability for workers to sue directly," Falabella noted. "Workers had to go to either the federal or the state Department of Labor."

It changed in July 2020, when the Virginia Wage Payment Act went into effect. The law gave workers the right to sue their employers in court for wage theft, which previously was impossible.

Falabella added more resources at the Virginia Department of Labor and Industry would help address wage theft issues. But he acknowledged labor law enforcement depends on who is leading the Commonwealth.

"The Virginia Department of Labor and Industry has been underfunded for a long, long time," Falabella asserted. "It's a little better now, but it depends on who's in charge, who's in the governor's office, how robust that enforcement might be, how much attention they're going to focus on workers' rights."

The report, which analyzed U.S. Department of Labor data, found in total, more than $128 million in back wages are owed to U.S. workers.


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Democrat-backed bills in Michigan addressing pensions, health-care costs and public assistance remain stalled before heading to Gov. Gretchen Whitmer for signing.

The bills -- House Bills 4665, 4666 and 4667 -- were passed by Democrats in their final days of the Michigan House majority, with bipartisan support. But they're now on hold as Republicans conduct what they call a "legal review" before sending them to the governor's desk. The bills include adding corrections officers to the state police pension system.

Richard Cardenas, director of the Michigan State Employees Association's Public Safety Division, said he sees that as a critical step for public safety.

"Obviously we want to have the best candidates coming into this profession," he said, "because it's no secret, sometimes we might be put into situations that we have to make split-second decisions under very stressful conditions."

Other media sources report Republican House Speaker Matt Hall questioned whether a new Legislature can address the actions of the previous one, so he stressed the need for the legal review before making a decision.

Sending bills from a previous session to the governor is rare. The bills in question passed the Michigan House and Senate, after hundreds of public-safety officers and supporters lobbied state lawmakers. Despite the stall, Cardenas said he's pleased with the bills' progress so far.

"To get it through the House and the Senate is obviously a huge accomplishment," he said. "There's been several attempts to get a better retirement package through the process and unfortunately, it's fallen short several times. And this is the farthest that we've ever seen it get."

In Michigan, after passing both chambers, a bill must be sent to the governor, who then has 14 days to sign or veto it. However, there's no set time for when the bill must be presented to the governor.

More Michigan residents need access to affordable housing and health insurance, according to a lawmaker pushing for change.

Rep. Carrie Rheingans, D-Ann Arbor, a public health policy expert, marks the issues as priorities. This week, she introduced House Bill 4009 to repeal Michigan's 1988 ban on rent stabilization. She said it would restore local control and allow cities to consider measures like rent control.

Rheingans shared her personal experience of the financial strain on renters in cities like Ann Arbor, where many spend over half their income on housing.

"I'm a renter in Ann Arbor. I've been a renter there for over 20 years, because I can't afford to buy a house in the area," Rheingans explained. "My rent went up 33% from my last lease year to this lease year and there's nothing prohibiting that."

The bill has been referred to the Committee on Government Operations for review. Rheingans added she is also a strong advocate for expanding the MiCare program, created under the Affordable Care Act, to become publicly funded insurance covering all Michiganders without co-pays or coverage limits.

Nearly 500,000 Michigan residents, including 80,000 children, lack health insurance. Rheingans emphasized if MiCare could be expanded, they would be eligible for comprehensive coverage, from hospital stays and prescriptions to mental health care. With a background in public health, she called it her passion.

"I believe that every policy issue is a health issue," Rheingans outlined. "The air we breathe, the water we drink, the food we eat and the access we have to medical care. All those kinds of things are items that we can work on in the world of policy."

Rheingans now represents the area of Michigan where she grew up in Jackson County. Her great-grandfather served as a minister there nearly a century ago. Her legislative tenure began two years ago this month.


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