Key Points

  • U.S. Securities and Exchange Commission (SEC) Chief Accountant Paul Munter will retire on January 24, about four days after President-elect Donald Trump's inauguration, according to an SEC press release on Tuesday. SEC Chair Gary Gensler plans to step down on January 20.
  • Munter, a prolific and articulate speaker, was outspoken on various financial reporting issues during his tenure, issuing a total of 22 statements and speeches. Gensler said in a statement: "I thank Paul for his leadership of the Office of the Chief Accountant, his advice, and his clear accounting guidance. As Chief Accountant, he led the office in critical work to ensure investors receive high-quality financial disclosures from public companies."
  • Munter has served at the SEC since 2019, became acting Chief Accountant in 2021, and was officially appointed Chief Accountant in January 2023. During his tenure, he oversaw the Financial Accounting Standards Board (FASB) and the Public Company Accounting Oversight Board (PCAOB).

Deep Dive

Munter's departure plan comes as some federal officials prepare to leave office before the start of the second Trump administration.

Similar to his boss Gensler, Munter often spoke passionately in speeches in support of strong rulemaking and financial reporting transparency aimed at serving investors, while also expressing concerns about headwinds facing the accounting profession.

For example, in July 2023, he called out some cryptocurrency companies for paying fees to obtain less-than-rigorous reviews and then misleadingly presenting them as audits. In a written statement, Munter warned that accounting firms could face legal liability due to client misstatements in crypto assets, as previously reported by CFO Dive.

During his time as acting Chief Accountant in 2022, he also pointed to signs of declining "professionalism" among staff at some large accounting firms. At a conference in New York City, Munter urged academics in the audience to push back against the view that "accounting is just an industry," saying such a mindset could lead to a deterioration in professional confidence and the credibility of financial information used by investors.

At the time, Munter did not name any firms, but the SEC fined Ernst & Young $100 million in June 2022 after its auditors cheated on ethics exams and concealed evidence of misconduct from SEC enforcement staff.

Munter is a certified public accountant with a PhD in accounting from the University of Colorado. Before joining the SEC, he had experience at traditional Big Four accounting firms and participated in accounting standard-setting. He previously worked at KPMG, serving as the lead technical partner for U.S. firms' international accounting and IFRS activities.