The US audit regulator plans to rewrite rules governing accounting firms’ quality control systems after significant industry pushback. Jim Logothetis, appointed chair of the Public Company Accounting Oversight Board in January, announced plans for “narrow” revisions to the controversial QC 1000 standard.

The Big Four audit firms had argued many provisions were unnecessary and unworkable, while smaller firms claimed compliance would be too costly. The standard, adopted in September 2024, requires firms auditing over 100 public companies to establish internal oversight boards with independent outsiders. The rules were put on hold after the Trump administration ousted previous chair Erica Williams.

Logothetis, the first career auditor to lead the PCAOB, brings 40 years of experience from EY where he audited major companies including Coca-Cola and Whirlpool. His comments came during the PCAOB’s first public meeting with new members, where they approved seeking public comment on a new five-year plan. The regulator faces pressure from the Trump administration’s deregulatory agenda and SEC oversight.