The PCAOB on August 26, 2025, said that it has formed the Smaller Firm Resource Group, an advisory group of audit professionals from smaller accounting firms.
The new panel, which consists of 12 members, will advise PCAOB staff on the following:
- Auditing and related professional practice standards
- Inspections
- Economic considerations, including—but not limited to—the costs and benefits of PCAOB programs and their impact on audit quality among smaller firms, with the goal of protecting investors
“Smaller audit firms play an essential role in the U.S. capital markets and in protecting investors, which is why creating the Smaller Firm Resource Group was a priority for the PCAOB,” said PCAOB Acting Chair George Botic in a statement. “We are eager to hear from the participants who have generously volunteered to share their real-world perspectives into the experiences of smaller firms.”
The establishment of the resource group comes as the PCAOB has, over the past year, ramped up its support for smaller audit firms. Efforts include the publication of new serial guides—Audit Focus; in-person and virtual workshops to help smaller firms implement new quality control standards; other staff guidance, among other initiatives.
While the Big Four firms audit about 80% of the total U.S. public market cap, smaller firms play a significant role in auditing smaller public companies. However, audit inspection findings show higher deficiencies among smaller audit firms that are not part of larger global networks. In 2024 the audit work deficiency rate was 61%. Although this represents a slight improvement from 67% in 2023, it remains a very high deficiency rate.
By comparison, the deficiency rate for Big Four U.S. firms was 20% in 2024, down from 26% in 2023.
The focus on smaller firms also coincides with the PCAOB’s strong regulatory agenda during Erica Williams’ tenure as chair, which included robust inspection and enforcement activities as well as revisions to audit standards and rules. Smaller firms typically have fewer resources to properly implement new standards. Williams, who stepped down as chair in July, announced in May that the PCAOB would set up this resource group.
At a conference in early June, Williams told Thomson Reuters that the new resource group is separate and different from the board’s two advisory groups—Investor Advisory Group (IAG) and Standards and Emerging Issues Advisory Group (SEIAG)— which meet publicly on a regular basis.
It will be “definitely different from the advisory groups and it’s an internal group that would be helping to advise or provide information to our staff,” Williams said.
When asked about whether the group will meet publicly, she indicated that it will meet privately with the staff. This will likely allow members to more freely discuss various issues, technical or otherwise, related to the PCAOB’s activities.
Members of Smaller Firm Resource Group
The following individuals were selected to serve on the group:
- Ryan Ayre, partner, Manning Elliott LLP
- David Gosselin, assurance partner, dbbmckennon
- Kristi Griffin, managing director, Elliott Davis, LLC
- Jeff Maichel, SEC reporting and accounting leader, Assure CPA, LLC
- Reshma Mahase, assurance partner, Davidson & Company LLP
- Kyle Manny, assurance partner, Plante & Moran, PLLC
- Steven Morrison, partner and national director of audit, CohnReznick LLP
- Bryce Rojas, partner, Cropper Accountancy Corporation
- Laura See, co-managing partner, Ernst Wintter & Associates LLP
- Steven Siegel, technical director of assurance and SEC assurance leader, Cherry Bekaert LLP. He previously worked in the PCAOB’s Division of Registration and Inspections.
- Rebekah Walters, principal-in-charge of quality control, Frazier & Deeter, LLC
- Brendan Whalen, audit partner, S.R. Snodgrass, P.C.
Notably, one of the members, CohnReznick’s Steven Morrison, also serves on the SEIAG.
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