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If you're in audit and haven't noticed the vibe shift, wake up.

The SEC just had its quietest year in almost a decade. Only 10 accounting and auditing enforcement actions in 2025 — down 68% from 2024, according to new data from Cornerstone Research. That's the lowest since 2016.

The PCAOB? Down 27%. Total penalties dropped from $35 million in 2024 to $17.6 million in 2025.

This isn't a quiet year. This is a regime change.

What Changed

Paul Atkins took over as SEC chair in April 2025 after Gary Gensler resigned. Atkins, a former commissioner from the Bush years, came in with one job: dial it back.

Under Gensler, the SEC brought 31 enforcement actions in 2024. Under Atkins? Just 10 in 2025. Four of those happened after he took the chair — the rest were leftovers from Gensler's final weeks.

Monetary settlements tell the same story. $907 million in 2024. $31 million in 2025. And 98% of that $31 million came in Gensler's last three weeks before he left.

Translation: once Atkins showed up, enforcement stopped.

The PCAOB Followed Suit

At the PCAOB, Erica Williams stepped down in July 2025 after Atkins asked her to resign. Williams had been aggressive — she imposed record fines, ran sweeps, and pushed for transparency in inspection reports.

She also took heat for focusing on what some in the profession called "minor infractions." But here's the stat that matters: 75% of all PCAOB penalties in its 23-year history were imposed under her watch.

Her replacement, George Botic, served as interim chair before Demetrios "Jim" Logothetis — a 40-year EY veteran — was sworn in as the new PCAOB chair in February 2026.

The result? Enforcement activity dropped immediately. The PCAOB finalized 37 actions in 2025, down from 51 in 2024. Penalties on auditing actions fell 50%.

What This Means for Audit CPAs

Less enforcement doesn't mean less risk. It means the rules are still there, but the cops aren't writing tickets.

For Big 4 and national firms, this is breathing room. Fewer sweeps, smaller penalties, less scrutiny on documentation minutiae. The firms that spent the last few years under Williams beefing up compliance? They're quietly dialing it back.

For smaller firms, it's a mixed bag. On one hand, less fear of a random PCAOB inspection turning into a five-figure fine over workpaper formatting. On the other hand, less oversight means bad actors stay in the game longer.

And for clients? Expect less noise. Fewer restatements driven by enforcement pressure. Fewer "the auditors made us do it" conversations.

But don't confuse quiet with safe. Audit quality still matters. Independence still matters. And when the next blowup happens — and it will — the question won't be "where was the PCAOB?" It'll be "where were you?"

The Bigger Picture

This is what a second Trump administration looks like in practice. Lighter regulation, smaller penalties, leadership picked from the industry they're supposed to oversee.

The SEC and PCAOB aren't gone. They're just on a different frequency. If you're running audit engagements, that's worth knowing.

The guardrails are still there. They're just not electrified anymore.