The Securities and Exchange Commission is now reviewing President Trump’s request to consider ending the long-standing rule that requires public companies to file quarterly reports — a move that could save corporations significant time and money while dealing a financial blow to the world’s largest accounting firms.

A few weeks ago, Trump suggested on Truth Social that switching to semi-annual reporting would “save money and allow managers to focus on properly running their companies.” SEC Chair Paul Atkins later confirmed to CNBC that a proposal is in motion, noting that the rule would likely allow firms to choose their reporting frequency. “For the sake of shareholders and public companies, the market can decide what the proper cadence is,” he said.

If the proposal moves forward, companies could potentially cut the heavy costs associated with quarterly filings in half. Preparing a 10-Q — the official SEC report — can require around 180 hours of work, costing anywhere from $50,000 for small firms to over $1 million for major corporations. These reports must be reviewed by independent auditors, typically from the Big Four firms: Deloitte, EY, KPMG, and PwC.

Unlike quarterly earnings press releases, which highlight profits and revenue but are unaudited, the SEC-mandated 10-Q must meet strict disclosure standards and undergo external review. Reducing the frequency of such filings would therefore shrink a key source of revenue for accounting giants.

Jerry Maginnis, a former KPMG audit partner, estimated that up to 15% of the Big Four’s annual audit fees could vanish if semi-annual reporting becomes the norm. “They are paying very close attention to this proposal,” he said, noting the potential to disrupt their long-standing business model.

Some experts, like Brown University economist Larry Rand, believe the firms could offset losses by expanding consulting or tax services. “If a substantial revenue flow disappears, they’ll need to find efficiencies,” Rand said. “That likely means fewer hires and greater reliance on artificial intelligence.”

In fact, PwC has already projected it will hire one-third fewer graduates by 2028, including nearly 40% fewer in audit roles — a change driven by both automation and evolving business needs. A shift in SEC reporting rules could accelerate this transformation.

The new proposal caught many off guard, as it wasn’t part of Trump’s earlier deregulatory agenda or the broader Project 2025 framework. However, it revives an idea he first floated in 2018, when the SEC sought public feedback but never followed through. Given the current administration’s track record on deregulation, this attempt might stand a stronger chance. An SEC spokesperson confirmed the agency is “prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies.”

The Big Four have so far declined to comment. Historically, however, they have defended quarterly reporting. When the SEC explored similar changes in 2018, Deloitte called the current system a cornerstone of investor trust. EY argued that quarterly filings reduce uncertainty and keep management accountable. KPMG emphasized that investors rely on auditors’ reviews to guide decisions, while PwC warned that loosening standards could create confusion about what information has been independently verified.

Still, the firms have acknowledged the SEC’s authority to modernize its requirements. EY even admitted that the system could benefit from targeted improvements to reduce compliance costs — though not at the expense of transparency.

Globally, the concept of less frequent reporting isn’t new. The European Union and the U.K. shifted away from mandatory quarterly reports more than a decade ago. Many large European companies still publish quarterly updates voluntarily to maintain investor confidence. Morningstar’s Dominic Pappalardo believes a similar outcome would occur in the U.S. “If companies think investors expect quarterly data, they’ll keep providing it,” he said.

Some analysts warn that firms seeking to issue debt or equity might still need quarterly disclosures to maintain credibility and avoid higher financing costs. Competitive pressures could also push companies to align with peers’ reporting rhythms, making an outright shift to semi-annual filings less likely than it appears.

For the Big Four, the potential fallout may therefore be less severe than initial fears suggest. “Even if the SEC stops requiring quarterly reviews, some clients will likely continue to involve their auditors,” Maginnis observed. “In those cases, the impact on revenue could be muted.”

Proponents of the change argue that easing the reporting burden might encourage more private companies to go public, reversing a long decline in U.S. listings — from over 7,000 in 1996 to under 4,000 in 2020. A revived IPO market could, ironically, create new work for the same accounting firms now bracing for losses.

Rand noted, “They may lose revenue from existing clients but gain it back through more IPOs. In the end, it could balance out.”

The SEC will take months to gather feedback and evaluate the potential rule. But this time, the political and economic environment may be more favorable. Maginnis believes the chances of adoption are stronger than before: “Between the president’s support and the SEC’s deregulatory momentum, I’d say it has at least a fifty-fifty shot — maybe even better.”