The Public Company Accounting Oversight Board (PCAOB) saw record enforcement activity in 2024, marking the highest level since 2017, according to a report by the US-based Cornerstone Research.
The report, PCAOB Enforcement Activity—2024 Year in Review, highlights a surge in regulatory actions, with total monetary penalties reaching an all-time high of $35.7m—up 78% from 2023.
These penalties accounted for nearly 40% of all fines imposed since the PCAOB’s inception.
The PCAOB disclosed 51 enforcement actions in 2024, with 40 related to audit performance.
Most actions occurred in the first half of the year, with 30 finalised before the US Supreme Court’s ruling in SEC v. Jarkesy.
Cornerstone Research’s accounting practice co-head and report co-author Jean-Philippe Poissant said: “The PCAOB continued aggressive enforcement in 2024, finalising 30 Auditing Actions in the first half of 2024, more than triple the number of actions finalized in the first half of 2023.
“In one in five Auditing Actions, the PCAOB alleged violations of not only Auditing Standards, but Quality Control Standards and Ethics and Independence, as well.”
Comparing enforcement under different administrations, the report noted that the PCAOB finalised 160 actions under the Biden administration (20 January 2021–31 December 2024), including 124 Auditing Actions.
This contrasts with 126 total actions, including 101 Auditing Actions, during the Trump administration.
Monetary penalties under Biden’s term were nearly seven times higher, reaching approximately $68m compared to over $10m under Trump.
Cornerstone Research principal and report co-author Russell Molter said: “The type of respondents in enforcement actions shifted from a majority of individual respondents during the Trump administration to a near even split between individual and firm respondents during the Biden administration.
“Additionally, the percentage of respondents fined in Auditing Actions climbed from a little over half (59%) to nearly all respondents (94%).”
Key trends in 2024 included an increase in Auditing Actions involving US respondents, while actions involving non-US respondents remained unchanged.
For the first time since 2021, some 2024 actions referenced a company’s disclosure of a material weakness in internal control.
Additionally, 52% of 2024 Auditing Actions alleged violations of Quality Control Standards.
The requirement for firm respondents to retain independent consultants dropped to 11% in 2024, down from 15% in 2023.
As the PCAOB marks its 20th anniversary since its first enforcement action, the non-profit entity finalised 487 actions involving 675 respondents, with individuals accounting for the majority at 344.
The PCAOB has imposed $94m in penalties since its inception.
In February 2025, the PCAOB launched a self-assessment tool designed to help auditors gauge their comprehension of AS 2310.
