In 2025, both the US Securities and Exchange Commission and the Public Company Accounting Oversight Board took far fewer enforcement actions against accounting and auditing firms, according to new reports from Cornerstone Research. The SEC began just 10 enforcement actions last year, compared to 31 in 2024, which is the lowest in nine years. The PCAOB also reported a notable decrease in enforcement actions. 

Monetary settlements at the SEC also fell sharply, dropping to $31 million from $907 million in 2024. Nearly all penalties were finalized in the last weeks of former SEC Chair Gary Gensler’s term, with 98% imposed before he left. After Paul Atkins took over as chair in April, only four of the 10 enforcement actions were initiated. 

“Although enforcement activity often declines during administrative transitions, 2025 activity was significantly lower than in the first years of the prior SEC chairs,” said Jean-Philippe Poissant, a coauthor of the Cornerstone report and cohead of the firm’s accounting practice. 

The PCAOB showed similar trends. The board completed 37 enforcement actions in 2025, down from 51 the previous year and the lowest since 2021. Of these, 33 were related to audit performance. Total monetary penalties fell to $17.6 million, about half of what they were in 2024. 

“Consistent with SEC trends, PCAOB enforcement activity declined under the new chair,” said Cornerstone principal Russell Molter. He noted that most sanctions in the board’s history were imposed during former chair Erica Williams’ tenure.