backOn November 20, 2025, Acting PCAOB Chair George Botic delivered prepared remarks at Baruch College’s 20th Annual Audit Conference. Acting Chair Botic called for a comprehensive, shared definition of “audit quality” as increasing private equity (PE) investment and rapid artificial intelligence (AI) adoption reshape public company auditing. Acting Chair Botic described a unified definition as a “North Star” to evaluate these developments and their effects on shareholders. In his remarks, Acting Chair Botic cited research indicating 81 PE deals involving accounting firms in 2025 (which were “practically non-existent” five years ago), noting these investments have the potential to transform small and medium-sized accounting firms. And he cautioned that while these investments can finance technology and talent, they heighten questions about independence in fact and appearance.
Acting Chair Botic underscored that AI adoption in financial reporting and auditing is accelerating. Based on his observations and conversations, he said that it appears AI is poised to completely transform how audits are performed, noting academic studies on a potential “one‑click audit.” Acting Chair Botic noted a recent survey showing 21% of firms already using generative AI and over half are planning or considering its use. He cautioned that AI can reinforce bias, overlook context, or hallucinate responses with no bearing in fact. To that, he raised practical questions about how to validate AI outputs, ensure transparency in algorithmic decisions, and keep human-led professional judgment and skepticism at the center.
Acting Chair Botic also previewed a PCAOB starting point for a shared definition of audit quality built around four concepts: integrity and independence, technical competence, audit performance, and outcomes and impact. He suggested that a common definition could ground discussions among various market participants about the state of auditing and audit quality, assist audit committees as they engage with their auditors (including around PCAOB inspection results), and inform academic research and education.
The PCAOB published Acting Chair Botic’s remarks as prepared for delivery here, titled “The Guardians of the Truth and the Need to Define Audit Quality.”