Accounting
PCAOB chair Erica Williams defends audit regulator amid possible SEC takeover
Public Company Accounting Oversight Board chair Erica Williams told Accounting Today that the role played by the PCAOB can’t simply be “cut and pasted” into the Securities and Exchange Commission after the House Financial Services Committee
Speaking on the sidelines of Baruch College’s annual financial reporting conference in New York on Thursday, the day after Republicans on the committee voted Wednesday night to advance the bill, Williams declined to speculate on what would happen in the event of a
She noted that the PCAOB has provided technical assistance to the committee’s ranking member Rep. Maxine Waters, D-California, and would be happy to provide any additional technical assistance.Williams pointed to the agreements the PCAOB has with audit regulators around the world to do inspections, and its hard-won efforts to secure access to inspect auditing firms in China. She noted during a speech Wednesday at a meeting of the PCAOB’s Investor Advisory Group that those agreements are
“I don’t know if they’d be able to renegotiate it, but in order to be able to inspect and investigate completely there, as required by the HFCAA, they would need to have a new statement of protocol,” Williams replied. “History tells us that in times when the economy is tight, this is what companies do, so if there is a period of time when no one is watching, that’s when investors will be put at risk.”
The SEC is taking a friendlier stance toward the cryptocurrency industry,
Williams was asked about enforcement of audits of crypto companies.
“To the extent that companies are public companies with investors, we absolutely have been focused on the inspections of public companies who have involvement in cryptocurrency,” Williams replied. “That’s one of the areas of focus in our inspection reports, and we also have staff that are really expert in that area and happy to provide that expertise out there. But in general, what I can say is our staff is the most talented, dedicated, qualified folks. I worked with the SEC for more than 11 years. They are very expert in what they do and very different in what they do.”
She was asked about the possibility of people from the PCAOB being transferred over to the SEC.
“I think they would need to take on hundreds of new staff who have the qualifications to do these types of inspections that we do,” said Williams. “Every single member of the PCAOB that was critical to us being able to deliver on our investor protection.”
She pointed out there is currently a shortage of accountants. Williams was also asked about the standards that are currently on hold at the PCAOB, such as
“I can’t speculate on what might happen with the standards, but of course, in order for our standards to be implemented, they have to be approved by the SEC, so we want to make sure we’re aligned, and I need to have a discussion with Chairman Atkins, which I anticipate will happen to make sure that we’re aligned in those areas,” she said.
Asked about the possibility of the PCAOB operating as a subsidiary of the SEC, Williams replied, “That would be up to Congress.”
The legislation is expected to become part of the massive tax and budget reconciliation bill that is currently working its way through Congress, and would take effect in a year after enactment. Williams was asked about the possibility of alterations in the bill before it’s passed, but she declined to speculate on what might happen. “There’s a lot of uncertainty and a lot of questions that need to be answered,” she noted.
The proposal to fold the PCAOB into the SEC was among the ideas that were part of the Heritage Foundation’s Project 2025 plans for the Trump administration, but the legislation seemed to emerge just in the last few days and took many observers by surprise at how quickly it moved. Williams was asked if she had much advance warning about the bill.
“We weren’t asked about technical assistance,” she replied. “But what I can say is, our work protecting investors doesn’t stop. So we have inspectors all around the world conducting inspections. We have people who are doing enforcement investigations. We have folks who are helping to make sure that firms are prepared to implement our standards, quality control and others. So our work and our focus is really on our mission, and that’s what we’re continuing here. “
Williams also touched on Wednesday night’s vote during her speech at the Baruch College conference.
“I am deeply troubled by legislation passed by the House Financial Services Committee that proposes to eliminate the PCAOB as we know it,” she said. “The integrity of our markets is not inevitable. It takes vigilance to guard against negligence, recklessness, and fraud that threaten our system and the people who depend on it. The PCAOB plays a vital role in that effort — a role our talented and dedicated staff have developed over decades, building unique experience and expertise that cannot be simply cut and pasted elsewhere without significant risk to investors at a time when markets are already volatile, and investors have so much to lose.”
On an earlier panel featuring officials from the Securities and Exchange Commission and the Financial Accounting Standards Board, moderator Norman Strauss of Baruch College’s Zicklin School of Business asked about the impact of the legislation. SEC acting chief accountant Ryan Wolfe declined to comment specifically on the legislation other than to say he was aware of it, but added, “What I can say, with respect to the FASB issue, is just re-emphasizing the importance of an independent standard-setter. … We’re interested in supporting that in any way that we can. It’s obviously critical to the financial reporting ecosystem.”
“We’ve been around for a little over 50 years, and one thing I think we’ve certainly benefited from is we have a pretty narrowly focused mission: it’s financial accounting,” said FASB chair Richard Jones. “But while independent standard-setting is important, I sometimes worry about that term, because independence doesn’t mean us being unaccountable. We’re accountable to our stakeholders, and we earn the right to set standards by the standards we set.”
CliftonLarsonAllen LLP, a Top 10 Firm, has added Dembo Jones CPAs and Advisors, a firm with offices in North Bethesda and Columbia, Maryland, expanding CLA’s presence in the U.S. Capital region, effective May 1.
Financial terms of the deal were not disclosed, but CLA earned over $2 billion in revenue in 2024, while Dembo Jones earned $24 million. CLA has nearly 9,000 people and more than 130 U.S. locations, while Dembo Jones has over 80 team members and two locations. CLA ranked No. 10 on Accounting Today‘s 2025 list of the
The deal is part of CLA’s plan to grow by $1 billion through the addition of new partner firms over the next five years.
“This is such a great time for us to embrace Dembo Jones into the CLA family,” said CLA chief development officer Scott Engelbrecht in a statement. “At CLA, we understand that independence is key to innovation and growth. Our unique partnership model allows firms to retain local identity while accessing our global resources and our exceptional professionals across the country. This approach ensures that the firms that join us can continue to thrive in their markets while benefiting from the strength of a larger firm. Our friends at Dembo Jones talk about how their clients get all of Dembo Jones when they are working together. That is exactly how CLA operates, bringing all of CLA to our clients.”
Dembo Jones has offered accounting, auditing, tax, and consulting services to businesses, government agencies, organizations and individuals for over 70 years.
“Joining CLA presents an incredible opportunity for both our team at Dembo Jones and the numerous clients who depend on our specialized services,” said Dembo Jones managing partner Brent Croghan in a statement. “Our shared values and mutual dedication to serving individuals, businesses, government entities and nonprofit organizations make this partnership a natural fit. With access to CLA’s extensive national footprint, we are now better equipped to provide enhanced resources to our clients.”
Last year, CLA added
In 2023, CLA acquired
Rehmann, a Top 50 Firm based in Troy, Michigan, has added Martinet Recchia, a family-owned CPA firm in the Cleveland suburb of Willoughby, expanding Rehmann’s presence in Ohio, complementing its existing office in Toledo.
Martinet Recchia dates back to 1955 when it was founded by Thomas and Richard Martinet. Richard’s son Keith Martinet remains a shareholder today, while managing shareholder Joseph Recchia joined the firm in 1998. All of Martinet Recchia’s shareholders intend to stay with the firm, along with the entire staff, and the firm will continue to operate in its current location under the Rehmann name.
Financial terms of the deal were not disclosed. Rehmann ranked No. 38 on Accounting Today‘s 2025 list of the
“We’re thrilled about this mutually beneficial business combination and what it means for our clients and their organizations,” said Rehmann CEO Stacie Kwaiser in a statement Thursday. “Both firms share similar cultural values and philosophies related to client service, striving to be good community partners, and supporting the areas in which our associates live and work. The added expertise and capacity on both sides will allow us to continue maximizing client potential in Ohio and beyond.”
Martinet Recchia offers various tax and business consulting services to the construction, manufacturing and distribution, restaurant & hospitality, and professional services industries.
“Like Rehmann, we put people first,” Martinet stated. “As a small local firm, we pride ourselves on meeting regularly with our clients in person, which has inspired their loyalty over the firm’s 70 years. Similarly, we’ve always taken care to prioritize work/life balance for our staff, and it’s their commitment—in addition to our great clients—that has made us successful. We’re excited about this new chapter, and I think if my father saw where the firm was now, he would be very proud.”
“Combining with Rehmann offers more professional development opportunities for our associates who want to advance in their careers,” Recchia added. “We’re always looking for ways to better serve our clients, and this combination gives us increased capacity and broader services in a competitive market. It will still be our associates on the end of the phone offering the same quality service, but now we’re one team serving clients in the Cleveland area.”
Last year, Rehmann expanded in its home state of Michigan by adding
Key House Republicans on Thursday discussed ways to direct an expanded state and local tax deduction to those making less than $400,000 as they seek to balance the cost of the tax break with the political needs of several lawmakers from New York and other high-tax states.
The $10,000 cap on SALT, one of the most contentious issues in the GOP debate on its giant tax bill, remained unresolved as lawmakers left Washington Thursday.
Republicans on the House tax panel discussed a series of options to direct the deduction to middle-class households, New York Representative Nicole Malliotakis told reporters. Committee members delved into options, including the overall cap level, how many years to extend it and if there should be income limits for who can claim the write-off, she said.
“It needs to be adjusted in a reasonable manner where it is targeted to the middle class,” she said, adding that the Ways and Means Committee would reconvene on the issue next week. Malliotakis represents Staten Island.
Targeting middle-class taxpayers could be accomplished through an income limit or through the size of the cap itself, which would limit the benefits going toward those with the highest property and income tax bills.
Such a SALT change could cost about $25 billion per year, Malliotakis said, but that depends on the size and duration of the cap adjustment. She said she opposes any changes to the alternative minimum tax, which could hit middle-class taxpayers.
Thursday’s discussion followed a Wednesday meeting between pro-SALT members and House Speaker Mike Johnson and Ways and Means Committee Chairman Jason Smith. Members left the meeting saying the two factions didn’t reach a deal.
An income limit would curb benefits for residents in some of the most expensive areas of the country — near New York City and Southern California — that are most concerned about the SALT deduction.
“I have made clear in no uncertain terms that I won’t support an income limit,” Representative Mike Lawler, who represents a suburban district just north of New York City, said in an interview Thursday, adding that he’s waiting to see a concrete SALT proposal from the Ways and Means Committee.
How to expand SALT — which was limited in President Donald Trump’s first-term tax bill — is among the most politically divisive issues facing Congress as lawmakers negotiate the contours of tax and spending legislation that they’re billing as their signature legislative priority for the year.
Trump met with Johnson and other key Republicans at the White House on Thursday to discuss the overall tax package, which forms the basis of the president’s legislative agenda.
“The final details are coming together, and they’re coming together rapidly, and I think we’re right on schedule,” Trump said.
The plan will renew Trump’s 2017 cuts, but Republicans face a series of tough choices as they debate which new levy reductions to include and whether to cut popular benefit programs, including Medicaid.
The deduction is an important issue to a small, but vocal, faction of House Republicans representing high-tax areas. A narrow GOP majority means that the pro-SALT members can block the bill if they view the tax changes as too meager for their constituents.
“I just don’t support that policy, but there’s gonna be 1,000 choices in this package,” Representative Chip Roy, a hardline conservative member from Texas, said. “But then again, you got to figure out how to get a deal done. So if the math adds up and we’re doing enough on the spending restraint side, and the tax policy works out, and SALT goes up a little, whatever.”
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