The pace of new SEC enforcement actions in the audit, accounting, and financial reporting space did not ease in 2017 as it did in other areas (see table on page 8). We anticipate the SEC, not to mention the PCAOB and the plaintiffs’ bar, will scrutinize how corporations and accounting firms adapt to the new revenue recognition and lease standards, as well as to the newly enacted standard for the auditor’s report (AS 3101). Among other conditions, AS 3101 requires auditors to communicate in their audit committee reports any “Critical Audit Matters” arising from the audit. How that requirement might impact the auditor-client relationship – and whether it gives rise to unintended or creative liability – remains to be seen.