Accounting and auditing enforcement actions at the U.S. Securities and Exchange Commission and the Public Company Accounting Oversight Board dropped sizably in 2025, falling to multiyear lows at both bodies, according to a report released Wednesday.
The SEC brought 68% fewer accounting and auditing actions in 2025 than in 2024 and the PCAOB brought 27% fewer actions, according to two studies by Cornerstone Research. The commission’s 10 enforcement actions were the fewest taken in nine years, and the PCAOB’s 37 enforcement actions were the fewest in four years, the report found.
Both agencies experienced leadership changes in 2025: Paul Atkins became chair at the SEC on April 21, while George Botic became acting chair of the PCAOB on July 23. Slowdowns in enforcement often occur during periods of transition, but last year was an unusual decrease in activity, said Jean-Philippe Poissant, a report coauthor and co-head of Cornerstone Research’s accounting practice.
“I think what we’ve seen in 2025 is the drop was much more substantial,” he said.
Source: SEC, PCAOB Enforcement Hit Multiyear Lows in 2025, Report Says | Law.com