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Abstract: 

In this article, the authors discuss new developments in regulatory enforcement and litigation around auditing firms, the “gatekeepers” of the U.S. financial markets. The authors begin by reviewing regulatory enforcement activity and public comments in 2025 by the SEC and Public Company Accounting Oversight Board (“PCAOB”), including in contrast to the prior years and administration. Then, the authors analyze the highly unusual issuance of a lengthy report by members of the U.S. Senate that specifically calls out high-profile failures by a major auditing firm with respect to its audits of several major banks that collapsed in 2023. Finally, the authors discuss private enforcement actions against auditors in 2025.

Keywords: Decreased SEC Enforcement; PCAOB; U.S. Senate Regional Bank Failures Report

Affiliations:  1: Labaton Keller Sucharow LLP; 2: Labaton.