SEC Chair Atkins Urges Accounting and Audit Boards to Prioritize Investors

SEC Chair Paul S. Atkins urged accounting and audit oversight boards Thursday to focus on investor needs and weigh regulatory costs against benefits when choosing projects.

At the Thursday, Nov. 12, Corporate Financial Reporting Insights Conference, Atkins called the approach “getting back to basics” and said the boards should focus on “issues that are material to investors.” He said they should keep pace with changes in markets and technology while keeping their work within core responsibilities. He also urged regular stakeholder input as the boards consider projects. The event was listed as virtual and scheduled for 10 a.m. ET.

Atkins directed a specific review process at the Public Company Accounting Oversight Board (PCAOB): connect its work to investor protection, assess the evidence for a proposed project and consider alternatives before moving ahead. He also called for weighing regulatory costs against benefits. The remarks addressed how oversight work is chosen and did not announce a new rule or vote.

The Financial Accounting Standards Board (FASB) sets accounting standards, while the PCAOB oversees audits of public companies. FASB is researching trends in data infrastructure investments, nontraditional lending and semiannual reporting. Staff will present the findings to the board to help it decide whether to add any of those topics to its technical agenda.

FASB added a separate project on private credit disclosures to its technical agenda. That project is distinct from the three research areas, whose findings will inform a later decision on whether to add topics.

Atkins said the views in his remarks were his own and did not necessarily reflect the Securities and Exchange Commission or other commissioners.

The remarks came after the SEC approved amendments to PCAOB standard QC 1000 on Nov. 2. The changes remove the requirement for an external quality-control function and shorten the retention period for QC system documentation from seven years to five. The amendments take effect Dec. 15, 2026, when QC 1000 is also scheduled to take effect. The standard’s original effective date was delayed by one year after firms reported implementation challenges.