The Public Company Accounting Oversight Board (PCAOB) ramped up its enforcement activity in 2024, finalizing 51 enforcement actions—the highest level since 2017, according to a report by Cornerstone Research.

Monetary penalties surged to $35.7 million, nearly doubling the previous year’s record, and accounting for almost 40% of all penalties imposed since the PCAOB’s inception. 

A notable shift in enforcement trends under the Biden administration saw monetary penalties totaling $67.8 million, nearly seven times higher than the $10.1 million imposed during Trump’s first term.

Additionally, enforcement actions increasingly targeted firms, which comprised nearly half of all respondents in 2024, compared to a majority of individual respondents in prior years. 

The PCAOB’s crackdown included violations of auditing standards, quality control lapses and ethics breaches. Over 50% of cases involved deficiencies in quality control, and over 40% cited violations of ethics and independence rules. While non-U.S. audit firms accounted for fewer cases, they represented over 80% of the total monetary penalties. 

Accounting Today noted that the report also highlights the potential impact of political shifts on the PCAOB’s future. With the Trump administration considering folding the PCAOB into the Securities and Exchange Commission, there is speculation that enforcement efforts could ease.

However, current trends suggest that the PCAOB has taken an increasingly aggressive stance, particularly in imposing financial penalties and requiring remedial actions.