Enforcement actions hit nine-year and four-year lows, respectively, during a year of agency leadership transitions.
Accounting and auditing enforcement activity fell in 2025 at both the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), according to two new Cornerstone Research reports, SEC Accounting and Auditing Enforcement Activity—2025 Year in Review and PCAOB Enforcement Activity—2025 Year in Review.
The SEC brought 68% fewer accounting and auditing actions than in 2024, and the PCAOB finalized 27% fewer actions over the same period. The declines occurred during a year marked by leadership transitions at both agencies.
Consistent with SEC trends, PCAOB enforcement activity declined under the new chair.
SEC Accounting and Auditing Enforcement Activity in 2025
- The SEC initiated only 10 accounting and auditing enforcement actions in 2025, down from 31 in 2024 and its lowest level in nine years.
- Monetary settlements fell sharply to $31 million, down from $907 million in 2024.
- Almost all (98%) the $31 million of 2025 settlements was imposed during outgoing Chair Gary Gensler’s final three weeks in office.
- Only four of the 10 actions in 2025 were initiated after Paul Atkins became chair in April.
“Although enforcement activity often declines during administrative transitions, 2025 activity was significantly lower than in the first years of the prior two SEC chairs,” said Jean-Philippe Poissant, a report coauthor and cohead of Cornerstone Research’s accounting practice.
Read the full SEC Accounting and Auditing Enforcement Activity—2025 Year in Review report.
PCAOB Enforcement Activity in 2025
- The PCAOB finalized 37 enforcement actions in 2025, down from 51 in 2024 and its lowest number since 2021.
- Of those actions, 33 involved the performance of an audit (Auditing Actions), an 18% decrease from the prior year.
- Monetary penalties for Auditing Actions totaled $17.6 million, a 50% decrease from 2024.
- Firms comprised over two-thirds of total respondents in 2025 Auditing Actions, up from approximately one-half in 2024.
- Of the $17.6 million in total monetary penalties imposed in 2025, over 98% were finalized before outgoing Chair Erica Williams stepped down on July 22, 2025.
“Consistent with SEC trends, PCAOB enforcement activity declined under the new chair,” said Russell Molter, a principal at Cornerstone Research and report coauthor. “Interestingly, penalties imposed under Chair Williams accounted for 75% of all monetary penalties imposed by the PCAOB throughout its 23-year history.”
Read the full PCAOB Enforcement Activity—2025 Year in Review report.