Leadership Transition at the PCAOB

The accounting profession is entering a new chapter. The Public Company Accounting Oversight Board (PCAOB) has announced that Chair Erica Williams will step down on July 22, 2025, following a request from SEC Chair Paul Atkins. This leadership change reflects a broader shift in regulatory priorities under the SEC’s current direction.

Reflecting on Erica Williams’ Tenure

During her time as PCAOB Chair, Williams pursued an ambitious regulatory agenda. Key elements included:

• Record-setting enforcement actions – Audit firms faced unprecedented penalties, reflecting a hardline approach to compliance and ethics.

• Leadership without audit experience – Ms. Williams lacked direct experience conducting or supervising SEC-regulated financial audits. In my view, placing someone without this expertise at the helm of the PCAOB created a dangerous level of unconscious incompetence.

• 15 years of a “temporary” broker-dealer program – The so-called Interim Inspection Program for Broker-Dealers has been in place since 2011. It remains incomplete and unresolved, adding unnecessary regulatory costs with little public benefit.

• Rising audit deficiency rates – While the PCAOB pointed to increasing deficiencies, many professionals in the field have observed steady improvements in audit quality. The Board still fails to appropriately categorize deficiencies by severity—missing the distinction between insignificant errors and material failures.

These issues have sparked robust debate about the PCAOB’s real impact on audit quality, costs, and the profession’s sustainability.

What Lies Ahead for the PCAOB

Chair Williams’ departure, initiated by SEC Chair Atkins, suggests a pivot toward a more pragmatic and possibly deregulatory stance. This could lead to:

• Potential rollback of recent standards – Especially those viewed as overly burdensome or misaligned with real-world audit practice.

• Refocused enforcement priorities – With greater emphasis on egregious violations and less regulatory overreach.

  
  

A Call to Action

This is an opportunity for the profession to speak up. It’s time to demand a PCAOB led by individuals who have real-world experience in SEC financial auditing—someone who has signed audit opinions, reviewed workpapers, and understands the pressures and realities of our industry.

If you care about the future of the profession, I encourage every PCAOB-registered firm to formally contact their U.S. Senators and Representatives. Let’s advocate for leadership that blends regulatory integrity with professional competence.

Erica Williams steps down as chair; what this means for the profession.