On June 2 and 3, 2025, the American Law Institute held its annual Accountants’ Liability Conference in Washington, D.C. PCAOB Chair Erica Williams and SEC Commissioner Hester Peirce were keynote speakers. Both Chair Williams and Commissioner Peirce discussed their agencies’ respective priorities and commented on pending legislation to transfer the functions of the PCAOB to the SEC. 

In remarks she described as expressing her own views, Chair Williams addressed her belief in the importance of the PCAOB and its work. Noting that the Board was created to restore trust in financial markets and to protect investors, she said that “strong enforcement” was intended to be “essential to the PCAOB’s mission.” She touted a number of PCAOB actions during her time as Chair aimed at that goal, including examples of specific enforcement actions and the Board’s agreements and cooperation with foreign regulators. She also described the PCAOB’s work in updating audit standards and performing inspections, which she credits with having significantly improved audit quality. Reflecting on the potential transfer of the PCAOB’s functions to the SEC, she said that the work of the SEC is “different,” and she cautioned that the PCAOB’s experience and expertise “cannot simply be cut and pasted without significant risk to investors at a time when markets are already volatile.”  

Commissioner Peirce addressed several topics, including her perspective on SEC priorities, gatekeeper liability for auditors and accountants, and the new administration’s approach to cryptocurrency. With respect to priorities, she said that the SEC will focus on capital formation and regulatory changes that will allow companies, especially smaller companies, to go public sooner and access capital more easily. Concerning enforcement, she said that cases brought by the SEC will largely stay consistent; however, she expects more of a focus on areas where there is quantifiable retail harm and a priority to hold individuals accountable. Concerning gatekeepers, she said the SEC would approach auditor enforcement in a way that recognizes the value of auditor judgment without second guessing, so as not to incentivize a robotic, check-the-list form of audit work that would undermine the system. But she did emphasize that the SEC expects auditors to do their job, and where auditors fail to do their job or subvert an audit, cases will continue to be brought. she also criticized the productivity of the PCAOB and expressed concerns about the implementation of the PCAOB’s new quality controls standards, emphasizing that regulated entities should be able to engage staff and ensure they are receiving consistent answers. Finally, with respect to cryptocurrency, she emphasized the role of the recently formed Crypto Task Force and said that the Task Force will focus on establishing clear rules for the industry and then enforce those rules.  

Other speakers at the conference included staff from the SEC and PCAOB discussing trends and priorities in their offices and respective roles. More information about the conference can be found here. A transcript of Chair Williams’ remarks is available on the PCAOB website.