PCAOB Acting Chair Botic Delivers Remarks at the AICPA Conference

On December 9, 2025, PCAOB Acting Chair George R. Botic delivered remarks at the AICPA Conference on Current SEC and PCAOB Developments. Acting Chair Botic emphasized three “pillars” of the PCAOB’s efforts to protect investors: the Board’s inspections program, the adoption of new and revised audit standards, and increased audit transparency through Forms AP and Critical Audit Matters. He noted that preliminary results for the 2025 inspection cycle show a decrease in Part 1.A findings for both the six U.S. Global Network Firms and other annually inspected firms.

He also identified the increased use of artificial intelligence and the expansion of private equity investments in accounting firms as two developments reshaping the audit profession. He noted that while AI has enhanced risk assessment and enabled auditors to focus on areas that require judgment, overreliance on AI may ultimately undermine auditors’ exercise of professional skepticism and judgment. He similarly cautioned that while private equity investments have the potential to enhance audit quality by increasing firm capacity and modernizing audit tools with advanced technologies, they risk shifting firm incentives to prioritize profitability over audit quality.

Finally, Chair Botic encouraged auditors and firms to focus on five “imperatives” when conducting year-end fieldwork: (1) safeguarding independence; (2) ensuring that each member of the audit engagement team has an in-depth understanding of the company’s business strategy and operations; (3) developing a culture of professional skepticism; (4) reinforcing the need to have sufficient time to complete the audit; and (5) exploring the existence of any potential Critical Audit Matters.

The PCAOB published Acting Chair Botic’s remarks, titled “Like a Sentinel Standing Watch, the Financial Statement Auditor Is Indispensable to the Capital Markets,” as prepared for delivery here.