George Botic Appointed Acting Chair of PCAOB Following Williams' Ouster

In a significant leadership change, the Securities and Exchange Commission (SEC) has appointed George Botic as the acting chair of the Public Company Accounting Oversight Board (PCAOB) effective July 23, 2025. This decision follows the abrupt removal of Erica Williams from her position as chair, which took effect the previous day.

The PCAOB is tasked with overseeing the audits of public companies, ensuring adherence to auditing standards, and enhancing the quality of audit services in the United States. The SEC's role is pivotal in appointing and removing board members and approving PCAOB’s standards and yearly budgets. Botic, a long-time PCAOB official who joined the organization in 2003, previously served as the director of the Division of Registration and Inspections (DRI) before becoming a PCAOB board member in 2023, with a current term set to run until October 2028.

Botic's appointment comes as a surprise to some observers who speculated that PCAOB member Christina Ho would be chosen due to her vocal criticism of Williams' leadership. Nevertheless, Botic's longstanding affiliation with the PCAOB and his professional background as a Certified Public Accountant (CPA) at PricewaterhouseCoopers provided a strong case for his interim leadership role. He has collaborated closely with prior PCAOB chairs, including James Doty and William Duhnke, which positions him favorably in maintaining continuity within the board.

Richard Chambers, senior adviser for risk and audit at AuditBoard, noted that Botic's appointment aligns with a historical trend where PCAOB leadership reflects the regulatory philosophy of the SEC chair and, by extension, the current administration. "There has been a quadrennial shift of PCAOB leadership to mirror the regulatory philosophy of the SEC chair, which ultimately mirrors the regulatory philosophy of the White House," said Chambers, who also served as president of the Institute of Internal Auditors.

The transition in leadership comes amid a backdrop of intense scrutiny and criticism of the PCAOB's direction under Williams, who was appointed by former SEC Chair Gary Gensler. Williams' tenure was marked by aggressive regulatory actions that some industry stakeholders viewed as excessive. SEC Chair Paul Atkins, who was appointed by former President Trump, is expected to pursue a more moderate regulatory agenda, indicating a potential shift in PCAOB's focus under Botic's interim leadership.

Chambers expressed skepticism regarding the likelihood of new initiatives during Botic's tenure, suggesting he will act primarily as a caretaker until a permanent chair is appointed. "I would be surprised during the interim if there were much in the way of new initiatives, or progress on any pending initiatives," he stated.

In a statement reflecting on Williams' departure, Democratic SEC Commissioner Caroline Crenshaw expressed disappointment, highlighting Williams' contributions to modernizing auditing standards and improving audit quality during her leadership. Crenshaw noted, "The PCAOB has updated, refined and modernized auditing standards and rules, and improved overall audit quality; sharpened the inspections program and helped reduce deficiencies across audit firms; and effectively held wrongdoers to account, helping to deter future bad actors and making our markets safer for investment."

As the PCAOB navigates this transitional period, the financial and regulatory communities will be closely observing the SEC's next moves, particularly regarding the appointment of a permanent chair and potential shifts in regulatory policy. With a history of aligning PCAOB leadership with the prevailing political climate, stakeholders may expect further changes in the board's composition and direction in the forthcoming months.