backOn May 4 and 5, 2023, the American Law Institute held its annual Accountants’ Liability Conference in Washington, D.C. The keynote speaker was Natasha Guinan, the Chief Counsel of the SEC’s Office of the Chief Accountant. Ms. Guinan expressed her view that, under the Sarbanes-Oxley Act, outside auditors play a “gatekeeper” and “public watchdog” role for the investing public. Ms. Guinan outlined three ways that enforcement regulators expect audit firms to preserve public trust: instituting a culture of compliance with a “tone from the top” that encourages all auditors to focus on professional responsibilities; thinking about auditor independence, including by focusing on both “bright line” prohibitions and other issues that may give rise to independence concerns or violations; and prioritizing assurance practices and insulating them from business pressures. Ms. Guinan concluded by stating that, in the absence of industry efforts on these fronts, “disruptive change may be inevitable.” Other speakers at the conference included staff from the SEC and PCAOB enforcement divisions discussing trends and priorities in their offices.