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Enhancing public trust in the capital markets by promoting high-quality financial reporting.

<p>The Center for Audit Quality</p>

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Discover the latest insights, resources, and standards in auditing and accounting at the Center for Audit Quality (CAQ) website. Access valuable guidance, research, and tools to enhance your expertise and stay informed in the ever-evolving auditing landscape.

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, Capital Markets Pulse dives into the latest key matters related to the capital markets featuring experts from across the corporate reporting world....

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, Capital Markets Pulse dives into the latest key matters related to the capital markets featuring experts from across the corporate reporting world.

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Podcast | Capital Markets Pulse Episode 1

Audit Quality

Auditors

Blog Post

Company Management

Cybersecurity

Emerging Reporting Areas

Investors

Podcast

A letter from the Center for Audit Quality’s CEO Julie Bell Lindsay:
Dear Readers,
After years of uncertainty due to the global pandemic, 2022 felt like the year that we could finally begin to move forward, whether this meant taking vacations, not...

2023 Profession Outlook

<h4>A letter from the Center for Audit Quality’s CEO Julie Bell Lindsay:</h4>
<p>Dear Readers,</p>
<p>After years of uncertainty due to the global pandemic, 2022 felt like the year that we could finally begin to move forward, whether this meant taking vacations, not thinking twice about going to a restaurant, attending concerts or sporting events or other hallmarks of normalcy.</p>
<p>&nbsp;</p>


<p>Things moved forward in the world of public company auditing, too. Auditors continued to deliver high quality audits, whether in the office or remotely, while using valuable skills they gained during the pandemic, such as using technology to facilitate audits or applying creativity to new challenges. The SEC and PCAOB fulfilled their promise to establish robust regulatory agendas and issued much-anticipated proposals. And the CAQ launched a collaborative, multimillion-dollar initiative to attract a diverse talent pipeline and bring awareness to the U.S. public company audit profession’s focus on diversity, equity, and inclusion (DEI).</p>
<p>Thank you for engaging with us, supporting the CAQ and supporting public company auditors.  To stay up-to-date on the CAQ’s work,  visit <a href="http://www.caq.org">caq.org</a> or follow us on <a href="https://www.linkedin.com/company/2859773/admin/">LinkedIn</a> or <a href="https://twitter.com/TheCAQ">Twitter</a>.</p>


<h1>2022 Outlook: Areas of Opportunity</h1>


<h3>Audit Quality: Enhancing Trust and Transparency</h3>
<p>Public company auditors serve as builders of trust, building confidence for investors – from the retiree in Arizona to the hedge fund manager in New York – that the financial information disclosed by public companies and the internal controls underlying this information is reliable. Investors then have this information available to inform resource allocation decisions that drive the multi-trillion-dollar U.S. capital market. Audited financial statements might not get the most attention on a day-to-day basis but they play an important role in the capital market system that provides resources to so many of the companies that touch our daily lives.</p>
<p>This role in the public trust is a big part of the audit profession’s mission and it drives our focus on audit quality. This year marks the 20<sup>th</sup> anniversary of the Sarbanes-Oxley Act (SOX) becoming the new benchmark for accountability and transparency related to public company audits and auditors. Twenty years later, SOX continues to serve an important role in protecting investors, resulting in higher quality financial reporting for investors and other capital market stakeholders to use. Coupled with significant investments by auditors – in talent, tools and technologies – the ability of auditors to perform high quality audits has never been higher.</p>
<p>While audit quality remains high, auditors remain committed to enhancing trust and transparency in public company audits. In 2022, the CAQ will encourage audit firms to increase transparency by:</p>
<ul>
<li>Continue – or begin – publishing annual transparency reports demonstrating commitment to audit quality</li>
<li>Supporting the continued evolution of auditing standards around issues such as quality control, technology and more to maintain high audit quality</li>
<li>Acknowledging and supporting the need for financial statements to include forward-looking information, as applicable</li>
</ul>
<p>Other stakeholders, including the PCAOB and audit committees, also have the opportunity to increase transparency through a variety of actions. For example, we believe that timely inspection reports produced by the PCAOB are critical to audit quality and encourage the PCAOB to strive for timelines that will provide audit firms with more actionable information. And audit committees bring oversight and significant expertise and dedication to a public company’s audit process. We encourage audit committees to continue to increase their disclosures in the proxy statement to tell investors and other users of financial statements not just <em>what </em>they do, but <em>how</em> they are overseeing the external auditor, auditor independence and their company’s financial reporting.</p>
<p>These are just a few examples for how the profession can increase trust and transparency and we will plan to advocate for more throughout 2022.</p>


<h3>Increasing Demand for Assurance: ESG and the Auditor</h3>
<p>ESG reporting is no longer an emerging trend, but has become necessary information that investors have come to expect. Larry Fink said in <a href="https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter">his annual letter</a> to CEOs, “As stewards of our clients’ capital, we ask businesses to demonstrate how they’re going to deliver on their responsibility to shareholders, including through sound environmental, social, and governance practices and policies.”</p>


<p>Stakeholders will continue to put pressure on public companies to disclose their ESG practices in 2022. And based on an <a href="http://localhost:10010/sp-500-and-esg-reporting/">analysis</a> we conducted of the S&amp;P 500, we know that the majority of these public companies (95%) already are. We are also seeing more requests for assurance on aspects of company-reported ESG information, and like others, we await the SEC’s proposals on certain of these ESG topics such as climate and human capital disclosures, expected in the first quarter of 2022. Public company auditors are already providing this assurance in limited circumstances. In their public interest role, auditors are uniquely equipped to draw on the same capabilities, such as professional skepticism and independence, that underpin the high-quality U.S. financial reporting system.  Public company auditors are already steeped in the corporate reporting ecosystem and can use their knowledge of public companies’ internal systems and controls to help company management and boards establish integrated and reliable ESG reporting controls and processes.</p>
<p>The reliability of ESG reporting is just one critical issue to aid investors in evaluating ESG information; comparability also proves essential. The formation of the International Sustainability Standards Board (ISSB) in 2021 was a positive step forward delivering comparability and it will go a long way in establishing a global baseline for ESG-related disclosures.</p>


<h3>Fraud: External Independent Auditors Will Continue to Play an Important Role as the Last Line of Defense</h3>
<p>It’s clear that the pandemic – and an increasingly remote work environment – has made many companies more acutely aware of their fraud risk in remote work situations.</p>
<p>In the recent report the CAQ wrote with Deloitte, we found that 42% of audit committee members surveyed thought fraud risk has increased. Additionally, 74% said they updated their internal controls over the last 12 months to address the remote work environment.</p>


<p>The key to protecting companies from fraud is for all members of the financial reporting ecosystem to demonstrate vigilance, a resolve to exercise skepticism, focus on culture and attention to risk.</p>
<p>Public company auditors are the last line of defense in this ecosystem, exercising independence and skepticism to reasonably assure that financial statements are free of any material misstatements that may have been caused by fraud.</p>
<p>Given the heightened fraud risk environment in 2022, we encourage all members of the financial reporting supply chain to refer to the <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration</a>, an organization led by the CAQ, along with FEI, NACD and IIA, to advance the discussion of critical anti-fraud efforts. The Anti-Fraud Collaboration develops resources that provide insights and recommendations that the respective members of the collaborating organizations can use to more efficiently and effectively perform those functions that focus on fraud deterrence and detection and fraud risk management.</p>


<h3>Diverse Talent: Investing in the Next Generation</h3>
<p>The eight public company audit firms represented on the CAQ Governing Board have made significant investments (over $470M to date) to increase diversity and inclusion within the workforce and talent pipeline, but in 2022 we aim to accelerate these efforts. In January, we launched <a href="https://www.boldambition.org/">Bold Ambition</a> and <a href="https://www.joinaccountingplus.com/">Accounting+</a>, initiatives to attract a diverse talent pipeline and bring awareness to the U.S. public company audit profession’s focus on diversity, equity, and inclusion.</p>
<p>Pursuing greater diversity and inclusion is the right thing to do – it advances equity and opportunity, while recognizing each individual’s identity. It is also the smart thing to do – it helps the audit profession better perform its public mission and, ultimately, improve audit quality.</p>
<p>I’m proud of these programs but they are only the next step in this profession’s DEI journey. We have a long way to go until accounting and auditing looks like our society at large, but that is our Bold Ambition.</p>


The strength of our public company financial reporting system relies on many stakeholders playing different but interconnected roles in a process designed to provide investors and our markets with high-quality, reliable financial information.

Sara Lewis serves on the Board of Weyerhaeuser,...

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The strength of our public company financial reporting system relies on many stakeholders playing different but interconnected roles in a process designed to provide investors and our markets with high-quality, reliable financial information.

Sara Lewis serves on the Board of Weyerhaeuser, and is the Chair of the Audit Committee. She also sits on the Audit Committee Council at the CAQ. In an interview with the CAQ, she shared her thoughts on the importance of her role.

“Audit committees play a vital role in the integrity of the financial reporting system,” said Lewis. “Our primary role is oversight of financial reporting, including the audit of a company’s financial statements and internal control over financial reporting. I’ve served on eight public company audit committees over the last eighteen years and I believe we all want the same outcome – to provide reliable, high-quality financial information to the market and our investors.”

In 2002 after a series of financial reporting scandals, the Sarbanes-Oxley Act (SOX) was established and introduced a number of requirements to increase and strengthen the role of audit committees in financial reporting, including the requirement to have an independent audit committee. Among other responsibilities, audit committees are directly responsible for the appointment, compensation, retention and oversight of the work of auditors who provide audit services to the organization.

“There were a number of good outcomes, including the explicit certification of financial statements by the CEO and CFO,” said Lewis. “And I think the most important change at the board level was the requirement for executive sessions. At the audit committee, we meet separately with the CFO and CAO, internal audit and the external audit team to discuss anything the members would like to pursue further. After these executive sessions, the audit committee meets privately to debrief.

She added, “These private meetings allow each group to discuss anything they may be hesitant to discuss with a broader group. A free and open dialogue is essential for a high-quality audit.”

<img class="size-full wp-image-829 alignright" src="https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1.jpg" sizes="(max-width: 450px) 100vw, 450px" srcset="https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1.jpg 450w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-300x267.jpg 300w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-394x350.jpg 394w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-50x44.jpg 50w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-36x32.jpg 36w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-52x46.jpg 52w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-293x260.jpg 293w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-113x100.jpg 113w, https://www.auditinaction.org/wp-content/uploads/2022/10/Lewis_Sara_Quote-1-170x151.jpg 170w" alt="" width="450" height="400" />These measures have proven to be some of the most effective financial reporting enhancements included in SOX.

“Effective oversight by strong, active, knowledgeable and independent audit committees is key to our common goal of providing high-quality, reliable financial statements,” said Lewis.

But in light of the pandemic, the growth of ESG and other factors that are rapidly evolving the corporate governance landscape, audit committee members are facing increasing demands.

“We now often have oversight of enterprise risk management, cybersecurity and compliance. And we may now also have oversight responsibility for internal controls over ESG and climate reporting,” said Lewis. “Sometimes the full board or another committee may be better positioned to oversee these risks. The board evaluates these responsibilities on a regular basis.”

A recent survey of audit committee aligns with this. Conducted by the CAQ and Deloitte, the results found that while all audit committee members remain focused on their primary roles of financial reporting and internal controls including fraud risk, audit committee members are facing scope creep in areas like audit cybersecurity, data privacy security, ethics and compliance, third-party risk and enterprise risk management (ERM).

Lewis also shared how she believes audit firms can benefit from teams of subject matter experts as public companies become more and more complex.
“When I was an audit committee chair previously at a large, global corporate board, the actuarial team at our audit firm provided invaluable expertise to the audit process,” said Lewis. “As companies become more complex, their accounting and financial reporting also becomes more complex. The speed of change in IT environments and business models is unprecedented. Having these experts and specialists available improves audit quality from my perspective.”

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The Role of the Audit Committee: An Interview with Audit Committee Chair Sara Lewis

Audit Committee

You don’t have to go too far back in history to see how financial reporting fraud can harm US markets. The fraud scandals in the early 2000s led to a massive disruption in the markets and – more importantly –...

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			<p>You don’t have to go too far back in history to see how financial reporting fraud can harm US markets. The fraud scandals in the early 2000s led to a massive disruption in the markets and – more importantly – investor trust in those markets.</p>
<p>“Financial fraud has threatened the underlying fabric of markets in the past,” said Phillip Austin, National Assurance Managing Partner at BDO. “Companies were failing that shouldn’t have failed based on their financial reports, because financial statements were being manipulated.”</p>
<p>This fraud threatened everyone with money invested in US markets, from large institutional investors to individual Americans with 401ks. Fortunately, the tools to fight fraud have strengthened substantially over the past 20 years. Transformational financial reporting regulation in the United States, through the Sarbanes-Oxley Act, increased public company management’s accountability for fraud prevention and the external auditors’ independence.</p>
<p style="text-align: left;">Auditors are increasingly leveraging&nbsp;data and technology&nbsp;to fight fraud. With new automation technology, auditors are moving from sampling small subsets of relevant data to looking at larger swaths or even complete datasets. In specific cases, auditors are applying technology like machine learning to effectively evaluate documents for specific terms or phrases.</p>

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			<p>“The outcome of auditors’ efforts to fight fraud really starts with sustaining audit quality, which includes robust execution of fundamental audit procedures to detect material misstatements from fraud,” said Christian Peo, National Managing Partner, Audit Quality and Professional Practice at KPMG. “That’s critical to our role in protecting and serving the capital markets.”</p>
<p>Auditors are fulfilling their responsibility to fight fraud under US auditing standards, but fraud deterrence and detection is a shared responsibility, according to CAQ Executive Director Julie Bell Lindsay.</p>
<p>“It requires extreme vigilance from all participants in the financial reporting system,” said Lindsay. “That includes regulators, internal and external auditors, audit committees, and especially public company management, which is ultimately responsible for designing and implementing programs and controls to deter and detect fraud.”</p>
<p>The United States has one of the strongest financial reporting systems in the world. In fact, regulators in other countries are considering establishing their own laws and regulations with provisions similar to the Sarbanes-Oxley Act in the United States.</p>
<p>Innovation by auditors and other financial reporting stakeholders in the US will continue to improve our ability to fight fraud in the future.</p>

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Fighting Fraud for Two Decades

Anti-Fraud

Public company auditors perform thousands of audits each year. These audits promote investor confidence in the public company financial reporting that underpins our capital markets.
To continually improve audit quality, firms develop and deploy robust audit quality measures and many firms...

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			<p>Public company auditors perform thousands of audits each year. These audits promote investor confidence in the public company financial reporting that underpins our capital markets.</p>
<p>To continually improve audit quality, firms develop and deploy robust audit quality measures and many firms describe such efforts in annual voluntary audit quality reports.</p>
<p>The CAQ spoke with the assurance leaders of two of its member firms that released audit quality reports in late 2021 to learn more about their efforts, particularly in the areas of technology, environmental, social and governance (ESG) matters, diversity and inclusion and PCAOB inspections.</p>
<h3><strong>Technology</strong></h3>
<p>Firms are increasingly using technology to transform the audit process.</p>
<p>At Ernst &amp; Young LLP (EY), 95% of audit teams on U.S. public company audits fully implemented the firm’s digital audit methodology in the most recent audit cycle. That means they analyzed full populations of data to assess risks and identify items for testing.</p>
<p>“Technology is helping to foster innovation and maintain high audit quality and in fiscal 2021 we significantly expanded our data-first approach,” said John King, US Vice Chair – Assurance, Ernst &amp; Young LLP. “In our current audit cycle, we’re fully implementing our digital audit methodology and we’re also using data and analytics to manage risks firm-wide and strengthen our system of quality control. We are also investing in our teams. Empowering them with the right skills and the right support to deliver high-quality audits.”</p>
<p>PwC’s 2021 audit quality report highlighted a people-led approach to audit quality enhanced by technology. During FY21, their audit professionals completed more than 50,000 hours of training to maintain their digital skills.</p>
<p>“It’s about the right combination of people and technology,” said Kazi Islam, Assurance Strategy Leader at PwC US. “Neither can be overlooked.”</p>
<h3><strong>Diversity, Equity &amp; Inclusion</strong></h3>
<p>Public company audit firms also see diversity and inclusion as critical to their ability to perform high- quality audits. In both their audit quality reports, EY and PwC highlighted their efforts to increase diversity and inclusion within their workforce and talent pipelines. Both firms also significantly increased diversity within their leadership:</p>
<ul>
<li>In its audit quality report, PwC highlighted that 41% of current audit partners are women or racially and ethnically diverse individuals.</li>
<li>At EY, 56% of the audit partners and managing directors recently promoted were women and racially and ethnically diverse individuals.</li>
</ul>
<h3><strong>Demand for ESG</strong></h3>
<p>In 2021, public company audit firms actively engaged with regulators, standard setters and other stakeholders for corporate reporting on ESG matters. This included sharing perspectives with policymakers and others and considering how the profession might provide assurance on any new disclosures the Securities and Exchange Commission (SEC) may require public companies to make.</p>
<h3><strong>Inspection Report Findings</strong></h3>
<p>Firm investments are not the only indicators of a strong commitment to audit quality. The most recent inspection reports issued by the Public Company Accounting Oversight Board (PCAOB) also demonstrate that audit quality is improving.</p>
<p>Of the US member firms of the six top global networks inspected in 2020, most firms saw a decrease in overall deficiencies compared with 2019 inspections, and there were no restatements as a result of inspections.</p>
<p>“We are very proud of our 2021 inspection results but we also view them with a high degree of humility and sensibility,” said Islam. “We realize that audit quality is not a snapshot in time but rather a journey.”</p>
<p>King said the PCAOB inspection process provides “valuable information we use to drive continuous improvement in our audit approach and to strengthen our system of quality control.”</p>
<h3><strong>Looking Ahead</strong></h3>
<p>PwC and EY are committed to continuing to disclose their efforts and share their key learnings in audit quality, technology, DEI and more for all relevant stakeholders who can benefit from this information.</p>
<p>Looking ahead, the public company auditing profession remains committed to maintaining its strides in audit quality, leveraging the latest technology, training, and other capabilities at every stage of the audit process&nbsp;as well as working with the PCAOB.</p>
<p>Read the EY 2021 audit quality report <a href="https://www.ey.com/en_us/assurance/audit-quality-report-2021">here</a> and PwC’s full 2021 audit quality report <a href="https://www.pwc.com/us/en/services/audit-assurance/assets/pwc-2021-audit-quality-report.pdf">here</a>.</p>

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Audit Quality Reports: An Interview with Assurance Leaders at EY and PwC

The CAQ's Dennis McGowan will be speaking at this year's ACFE Global Fraud Conference on the panel, Fraud Risk in the New Risk Fronter: ESG Reporting and Practices.

Panel Description:

ESG practices and reporting are quickly emerging as a new frontier of...

The CAQ's Dennis McGowan will be speaking at this year's ACFE Global Fraud Conference on the panel, <a href="https://events.acfe.com/session_catalog/#/attendee/6C92606D-E3B9-45EC-A013-59C96EB5D76E/catalog">Fraud Risk in the New Risk Fronter: ESG Reporting and Practices</a>.

Panel Description:

ESG practices and reporting are quickly emerging as a new frontier of risk in business and society. The potential for fraud is rising alongside it. Join us for a discussion among experts in various fields and learn how organizations can design and implement controls to ensure accurate ESG practices and reporting.

You Will Learn How To:
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 	<li>Explore the emerging risks around ESG practices and reporting, including “greenwashing”</li>
 	<li>Identify the potential for fraud in ESG practices and disclosures</li>
 	<li>Examine ways in which organizations can design effective controls around ESG information to build confidence in disclosures and mitigate fraud risk</li>
</ul>
Speakers: <strong><span class="speakerContainer"><span class="speakerItem"><span tabindex="0" title="View Speaker">Brad </span><span tabindex="0" title="View Speaker">Monterio, </span></span><span class="speakerItem"><span tabindex="0" title="View Speaker">Benito </span><span tabindex="0" title="View Speaker">Ybarra, CFE, </span></span><span class="speakerItem"><span tabindex="0" title="View Speaker">Dennis </span><span tabindex="0" title="View Speaker">McGowan, CPA, </span></span><span class="speakerItem"><span tabindex="0" title="View Speaker">Grant </span><span tabindex="0" title="View Speaker">Ostler</span></span></span></strong>
<div class="session-datetime"><strong>CPE:</strong> 1.5 | <strong>Ethics CPE: </strong>No</div>
<div class="session-datetime"><strong>Session Level:</strong> Overview</div>
<div class="session-datetime"><strong>Field of Study: </strong>Specialized Knowledge</div>
<div class="session-datetime"><strong>Recommended Prerequisite: </strong>None</div>
<div></div>
<div><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.fraudconference.com_-3F-5Fga-3D2.118560844.417916913.1685452717-2D857206003.1666707546-26-5Fgac-3D1.120195578.1684334086.CjwKCAjw9pGjBhB-2DEiwAa5jl3NDE7ytri5y49Prd-5FbJHZO9Th-2DNTVrV5exZ4kWYyV8tvAuAFRVwCsBoCLa0QAvD-5FBwE&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=4PdDGDrNTfeQvy4B6Rmdpg&amp;m=VLLdb4L-GvMvHc4zrWRqBmGeXpT-KQiORRzR5SuXAwY&amp;s=SupLr1GDivGHjeLom0gi4NFXestu--UaFjYX1MUnv9g&amp;e=">Register for the conference.</a></div>

ACFE Global Fraud Conference - Fraud in the New Risk Frontier: ESG Reporting and Practices

Over the course of their careers, audit partners spend decades honing industry-specific expertise on how companies across the economy operate. This provides auditors with a thorough understanding of the industries in which the companies they audit function, from financial services...

Audit Partner Pulse Survey Spring 2023

Welcome to Audit Committee Effectiveness: a webinar series brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from leaders in the financial reporting ecosystem alongside resources...

Welcome to Audit Committee Effectiveness: a webinar series brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from leaders in the financial reporting ecosystem alongside resources developed to aid audit committees and public company board members. Stay tuned to this page for information about topics, participants, and how to register for upcoming webinars.
<h4></h4>

2023 Audit Committee Effectiveness Webinar

Overview



Our annual update on financial reporting provides a review of (1) new accounting standards that are becoming effective within the next 12 months and (2) proposed accounting standards for which exposure drafts have been issued with comments being sought from...

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<h3 class="title-heading-left">Overview</h3>
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Our annual update on financial reporting provides a review of (1) new accounting standards that are becoming effective within the next 12 months and (2) proposed accounting standards for which exposure drafts have been issued with comments being sought from the user community. It is an opportunity to stay up to speed on changes in accounting standards and financial reporting in a single session.

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8:55 AM | <strong>WELCOMING REMARKS</strong>

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9:00 AM | <strong>OVERVIEW OF FASB’S WORK PROGRAM AND NEWLY EFFECTIVE </strong><b>STANDARDS</b>

<strong>Moderator</strong>

TBD

<strong>Panelists</strong>

<a href="https://cfany.org/speaker-organizer/pj-patel-cfa-asa/">PJ Patel, CFA</a>, CEO, <strong>Valuation Research Corporation</strong>

<a href="https://cfany.org/speaker-organizer/pat-durbin/">Pat Durbin</a>, Partner, <strong>PwC</strong>

<a href="https://cfany.org/speaker-organizer/frederick-cannon-cfa/">Frederick L. Cannon</a>, Board Member, <strong>FASB</strong>

<hr />

9:45 AM | <strong>IMPROVEMENTS TO INCOME TAX DISCLOSURES</strong>

<a href="https://cfany.org/speaker-organizer/frederick-cannon-cfa/">Frederick L. Cannon</a>, Board Member, <strong>FASB</strong>

<hr />

10:15 AM | <strong>DISAGGREGATION OF INCOME STATEMENT EXPENSES</strong>

<a href="https://cfany.org/speaker-organizer/frederick-cannon-cfa/">Frederick L. Cannon</a>, Board Member, <strong>FASB</strong>

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10:45 AM |<strong> BREAK</strong>

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11:00 AM | <strong>SUPPLIER FINANCING ARRANGEMENTS</strong>

<strong>Moderator</strong>

TBD

<strong>Panelists </strong>

<a href="https://cfany.org/speaker-organizer/david-gonzales/">David Gonzales</a>, VP – Senior Accounting Analyst, <strong>Moody’s Investors Services</strong>

<a href="https://cfany.org/speaker-organizer/gary-buesser-cfa/">Gary Buesser, CFA</a>, Board Member, <strong>FASB</strong>

<hr />

11:30 AM | <strong>ACCOUNTING FOR LONG-TERM INSURANCE CONTRACTS</strong>

<strong>Moderator</strong>

TBD

<strong>Panelists </strong>

<a href="https://cfany.org/speaker-organizer/ryan-krueger-cfa/">Ryan Krueger, CFA</a>, Managing Director, Equity Research, <strong>Keefe, Bruyette &amp; Woods, Inc.</strong>

<a href="https://cfany.org/speaker-organizer/gary-buesser-cfa/">Gary Buesser, CFA</a>, Board Member, <strong>FASB</strong>

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12:00 PM | <strong>LUNCH</strong>

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1:00 PM | <strong>THE FINANCIAL REPORTING LANDSCAPE</strong>

<strong>Moderator</strong>

TBD

<strong>Panelists </strong>

<a href="https://cfany.org/speaker-organizer/jackson-day/">Jackson Day</a>, Partner and EY Americas Director of Accounting and Chief Accountant, <strong>Ernst &amp; Young LLP</strong>

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1:30 PM | <strong>XBRL</strong>

<strong>Moderator</strong>

<a href="https://www.cfany.org/speaker-organizer/mohini-singh-aca/">Mohini Singh, ACA</a>, Governance Insights Center &amp; Public Policy, <strong>PwC</strong>

<strong>Panelists </strong>

<a href="https://cfany.org/speaker-organizer/campbell-pryde/">Campbell Pryde</a>, President and CEO, <strong>XBRL US</strong>

<hr />

2:00 PM | <strong>AUDITING AND AUDIT COMMITTEE PANEL</strong>

<strong>Moderator</strong>

TBD

<strong>Panelists </strong>

<a href="https://cfany.org/speaker-organizer/barbara-vanich-cpa/">Barbara Vanich, CPA</a>, Chief Auditor and Director of Professional Standards, <strong>PCAOB</strong>

<a href="https://cfany.org/speaker-organizer/vanessa-teitelbaum-cpa/">Vanessa Teitelbaum, CPA</a>, Senior Director, Professional Practice, <strong>Center for Audit Quality</strong>

<hr />

2:45 PM | <strong>THE VIEW FROM THE SEC</strong>

<a href="https://cfany.org/speaker-organizer/sarah-lowe/">Sarah Lowe,</a> Deputy Chief Accountant, Division of Corporation Finance, <strong>U.S. SEC</strong>

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3:30 PM | <strong>CLOSING REMARKS</strong>

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Learning Outcomes

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<ul>
 	<li>Learn about new accounting standards (or modifications to existing standards) that are becoming effective over the next 12 months</li>
 	<li>Hear about proposed changes to existing accounting standards and gain the opportunity to participate in the discussion by submitting a comment letter to the FASB; and</li>
 	<li>Get an update on the FASB’s work program to follow the course of proposed changes to accounting and financial reporting standards over the next few years.</li>
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</div>

What’s New in U.S. Financial Reporting?

&nbsp;
July 27, 2022 | 1:00-2:00 PM ET
			
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				Signed into law on July 30, 2002, the Sarbanes-Oxley Act established a framework to protect institutional and hardworking individual investors alike by improving the accuracy and reliability of the information that drives...


            
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				<div class="et_pb_text_inner"><p><img decoding="async" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2.png" width="755" height="132" alt="" class="wp-image-12578 alignnone size-full" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2.png 2550w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-300x52.png 300w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-1024x178.png 1024w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-768x134.png 768w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-1536x267.png 1536w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-2048x357.png 2048w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-1080x188.png 1080w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/SOX-20th_Logo_Horizontal_V2-1200x209.png 1200w" sizes="(max-width: 755px) 100vw, 755px"></p>
<p>&nbsp;</p>
<h4>July 27, 2022 <span>|</span> 1:00-2:00 PM ET</h4></div>
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				<div class="et_pb_text_inner"><p>Presented by</p>
<p><img decoding="async" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/CAQ-CA-Logos.png" width="232" height="58" alt="" class="wp-image-12602 alignnone size-full" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/CAQ-CA-Logos.png 600w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/CAQ-CA-Logos-300x75.png 300w" sizes="(max-width: 232px) 100vw, 232px"></p></div>
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				<div class="et_pb_text_inner"><p>Signed into law on July 30, 2002, the Sarbanes-Oxley Act established a framework to protect institutional and hardworking individual investors alike by improving the accuracy and reliability of the information that drives investments in our capital markets. To mark the 20<sup>th</sup> anniversary of this landmark legislation, join the Center for Audit Quality and Capitol Account for remarks from SEC Chair Gary Gensler and a discussion with Deloitte US CEO Joe Ucuzoglu about the impact of SOX and the future of corporate reporting in the U.S.</p></div>
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				<span class="et_pb_image_wrap "><img decoding="async" width="300" height="300" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Gensler.png" alt="" title="Headshots_Gensler" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Gensler.png 300w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Gensler-150x150.png 150w" sizes="(max-width: 300px) 100vw, 300px" class="wp-image-12574"></span>
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				<div class="et_pb_module et_pb_text et_pb_text_3 et_animated  et_pb_text_align_left et_pb_bg_layout_light">
				
				
				
				
				<div class="et_pb_text_inner"><h3><span>Chair Gary Gensler</span></h3>
<h4><span>Chair, U.S. Securities and Exchange Commission</span></h4>
<p>Gary Gensler was nominated by President Joseph R. Biden to Chair the U.S. Securities and Exchange Commission on February 3, 2021, confirmed by the U.S. Senate on April 14, 2021, and sworn into office on April 17, 2021.</p>
<p>Before joining the SEC, Gensler was professor of the Practice of Global Economics and Management at the MIT Sloan School of Management, co-director of MIT’s Fintech@CSAIL, and senior advisor to the MIT Media Lab Digital Currency Initiative. From 2017-2019, he served as chair of the Maryland Financial Consumer Protection Commission.</p>
<p>Gensler was formerly chair of the U.S. Commodity Futures Trading Commission, leading the Obama Administration’s reform of the $400 trillion swaps market. He also was senior advisor to U.S. Senator Paul Sarbanes in writing the Sarbanes-Oxley Act (2002), and was undersecretary of the Treasury for Domestic Finance and assistant secretary of the Treasury from 1997-2001.</p>
<p>In recognition for his service, he was awarded the Alexander Hamilton Award, the U.S. Treasury’s highest honor. He is a recipient of the 2014 Frankel Fiduciary Prize.</p>
<p>Prior to his public service, Gensler worked at Goldman Sachs, where he became a partner in the Mergers &amp; Acquisition department, headed the firm’s Media Group, led fixed income &amp; currency trading in Asia, and was co-head of Finance, responsible for the firm’s worldwide Controllers and Treasury efforts.</p>
<p>A native of Baltimore, Md., Gensler earned his undergraduate degree in economics in 1978 and his MBA from The Wharton School, University of Pennsylvania, in 1979. He has three daughters.</p></div>
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				<span class="et_pb_image_wrap "><img decoding="async" width="300" height="300" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Lindsay.png" alt="" title="Headshots_Lindsay" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Lindsay.png 300w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Lindsay-150x150.png 150w" sizes="(max-width: 300px) 100vw, 300px" class="wp-image-12575"></span>
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				<div class="et_pb_text_inner"><h3><span>Julie Bell Lindsay</span></h3>
<h4>Chief Executive Officer, CAQ</h4>
<p>Julie Bell Lindsay is the Chief Executive Officer of the Center for Audit Quality (CAQ), a position she has held since May 2019.</p>
<p>The CAQ is dedicated to enhancing investor confidence and public trust in the global capital markets by fostering high-quality performance by public company auditors. The CAQ also convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness, and responsiveness to dynamic market conditions.</p>
<p>As CEO, Lindsay is responsible for carrying out the mission and vision of the CAQ’s Governing Board, which is comprised of CEOs from eight leading public company auditing firms and the American Institute of CPAs, as well as three independent members from outside the public company auditing profession.</p>
<p>Previously, Lindsay served as a Managing Director and the Deputy Head of Global Regulatory Affairs at Citigroup, a position she began in February 2017. In that role, Julie worked to formulate and execute Citi’s regulatory policy priorities and strategy across the numerous regulatory agencies with oversight over Citi. Julie joined Citi in February 2009 as General Counsel – Capital Markets and Corporate Reporting, where she was the lead lawyer responsible for Citi’s public disclosures and global capital markets activities. During this time, her significant leadership accomplishments included managing Citi’s $20 billion TARP repayment—involving the then-largest public equity offering in US capital markets history—as well as Citi’s $58 billion exchange offers to boost Citi’s capital levels following the financial crisis.</p>
<p>Prior to Citi, Julie served as Counsel to Commissioner Cynthia Glassman at the US Securities and Exchange Commission, where she counseled the Commissioner on all matters relating to public company disclosure obligations, corporate governance standards, the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board and Financial Accounting Standards Board, enforcement matters, and issues affecting registered foreign companies. Julie also has securities and public company reporting and governance experience as Counsel and Associate at law firms in Washington, DC and Palo Alto, CA.</p>
<p>Julie graduated from The Ohio State University in 1993 with a BA in political science and received her JD from Vanderbilt School of Law in 1996. She serves as a Member of the Board of Directors of the Foundation for the National Institutes of Health and as a Member of the Dean’s Advisory Council of the College of Arts &amp; Sciences at The Ohio State University.</p></div>
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				<span class="et_pb_image_wrap "><img decoding="async" width="300" height="300" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Ucuzoglu_V2.png" alt="" title="Headshots_Ucuzoglu_V2" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Ucuzoglu_V2.png 300w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Ucuzoglu_V2-150x150.png 150w" sizes="(max-width: 300px) 100vw, 300px" class="wp-image-12583"></span>
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				<div class="et_pb_text_inner"><h3><span>Joe Ucuzoglu</span></h3>
<h4>Chief Executive Officer, Deloitte US</h4>
<p>Joe Ucuzoglu is the Chief Executive Officer, leading the largest professional services organization in the United States. With more than 150,000 professionals, Deloitte provides audit and assurance, tax, consulting, and risk and financial advisory services to a broad cross-section of the largest corporations and governmental agencies.</p>
<p>Joe remains actively engaged with many of our clients across multiple sectors, working to ensure that we are consistently delivering the full breadth of Deloitte. He frequently speaks on a broad range of current issues facing the business community such as building a culture of purpose and inclusivity, the future of work, the regulatory landscape, the evolving nature of leadership, and the role that businesses must play in leading society through the rapid pace of technology-driven change.</p>
<p>Joe serves on the board of directors of the Partnership for New York City, the governing board of the Center for Audit Quality, and the Board of Councilors of the University of Southern California Marshall School of Business. He is a member of the Fortune CEO Initiative, the CEO Action for Diversity and Inclusion, the Economic Club of New York, and the Committee on Capital Markets Regulation.</p>
<p>Joe received a BS in Accounting from the University of Southern California.</p></div>
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				<span class="et_pb_image_wrap "><img decoding="async" width="300" height="300" src="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Schmidt.png" alt="" title="Headshots_Schmidt" srcset="https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Schmidt.png 300w, https://thecaqprod.wpengine.com/wp-content/uploads/2022/07/Headshots_Schmidt-150x150.png 150w" sizes="(max-width: 300px) 100vw, 300px" class="wp-image-12603"></span>
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				<div class="et_pb_text_inner"><h4><span><strong>Moderator</strong></span></h4>
<h3>Rob Schmidt</h3>
<h4>Founder, Capitol Account</h4>
<p>Rob Schmidt is a founder of Capitol Account, a daily newsletter on financial regulation that launched in June. He previously spent 20 years as a reporter at Bloomberg News where he covered the Securities and Exchange Commission, the Treasury Department, the Justice Department and Wall Street lobbying.</p></div>
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SOX: The Evolution of Corporate Reporting

Events
                                2020 SEC Quarterly Update
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                                <h5>Events</h5>
                                <h4>2020 SEC Quarterly Update</h4>
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                                            <p>Where</p>
                                            <p>Webcast</p>
                                        </div>
                                        <div>
                                            <p>When</p>
                                            <p>Wed. June 24, 2020<br>1-3 PM ET</p>
                                        </div>   
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                                    <p>Join the CAQ’s Vanessa Teitelbaum, Senior Director Professional Practice along with Crowe’s Assurance Partner Matt Schell, Grant Thornton’s National Professional Standards Group’s partner Rohit Elhance, and DHG’s Professional Practice partner Liz Gantnier for the AICPA’s 2020 SEC Quarterly Update Q2 Webcast as they review trends in accounting and auditing, the latest standards updates and more. Today, June 24th from 1-3 pm ET.</p>
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2020 SEC Quarterly Update

 
Audit Partners Pessimistic on U.S. Economic Outlook as U.S. Businesses Continue to Face Inflation, Cybersecurity Risks 
 
&nbsp;
Washington DC, May 19, 2022 – Audit partners are pessimistic about the outlook for the U.S. economy as U.S. businesses continue to face inflation,...

May 2023 Audit Partner Survey

<p><strong> </strong></p>
<p><strong>Audit Partners Pessimistic on U.S. Economic Outlook as U.S. Businesses Continue to Face Inflation, Cybersecurity Risks </strong></p>
<p><strong> </strong></p>
<p>&nbsp;</p>
<p><strong>Washington DC, May 19, 2022</strong> – Audit partners are pessimistic about the outlook for the U.S. economy as U.S. businesses continue to face inflation, cybersecurity risks, and increased regulation, according to the Center for Audit Quality (CAQ’s), <a href="https://centerforauditquality.sharepoint.com/sites/SharedDrive/Shared%20Documents/Stakeholder%20Communications/Campaigns%20and%20Initiatives/Research/Partner%20Survey%20and%20Economic%20Impact/2023%20Surveys/2023%20Spring%20Survey/Communications/thecaq.org/audit-partner-pulse-survey-spring-2023"><em>Audit Partner Pulse Survey</em></a>, a biannual survey of U.S. public company audit partners. The survey provides independent and objective perspectives on a range of topics, including the overall health of the economy and business transformation.</p>
<p>&nbsp;</p>
<p>The survey found that organizations are prioritizing cost management and financial performance over other areas like talent and labor. “We have observed a very significant shift, especially with regards to talent and labor,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “While organizations were focused on attracting and retaining talent a year ago at the height of ‘The Great Resignation,’ reducing headcount is the top human capital action audit partners are observing within U.S. businesses today.”</p>
<p>&nbsp;</p>
<p>The nature of their work gives audit partners unique insights across a broad spectrum of industries and corporate trends. Below are key findings from their observations.</p>
<p>&nbsp;</p>
<p><strong>Audit partners’</strong><strong> outlook for the economy remains pessimistic</strong></p>
<p>&nbsp;</p>
<ul>
<li>Fewer than 1 in 5 audit partners are optimistic about the economy.</li>
<li>Top audit partner concerns driving this pessimism include inflation (the top concern for the second year in a row), cybersecurity threats, and regulation (a 10-point increase since Spring 2022).</li>
</ul>
<p>&nbsp;</p>
<p><strong>Attracting new talent no longer a focus</strong></p>
<p><strong> </strong></p>
<ul>
<li>Notably, concerns over labor shortages significantly decreased since Spring 2022 (falling by 18 percentage points).</li>
<li>While top human capital actions observed by audit partners a year ago were increasing flexibility in the workplace and increasing compensation, these steeply declined as priority human capital actions by Spring 2023 (a drop in 34 and 38 points, respectively).</li>
<li>Rather, U.S. businesses reported reducing headcount as the top human capital action taken in Spring 2023 (a 37-point increase since Spring 2022). Audit partners in the financial services and technology sectors most frequently observed this human capital action.</li>
<li>Top priorities at U.S. organizations in Spring 2023 were cost management (61%) and financial performance (51%).</li>
</ul>
<p>&nbsp;</p>
<p><strong>Emerging risks and technology shifts </strong></p>
<ul>
<li>Cybersecurity remains a top risk at U.S. organizations according to 39% of audit partners surveyed. The partners observed that organizations remain only moderately prepared for a cyberattack, though 54% of partners did note that communication between boards and public company management on this topic is improving.</li>
<li>Cybersecurity was also reported as a top ESG priority for U.S. businesses, with 55% of partners ranking it as the top short-term priority, and 48% of partners ranking it as the top long-term priority at organizations.</li>
<li>Most U.S. businesses are not exposed to risks associated with China, according to 69% of the audit partners surveyed. Of the partners who did report that organizations in their industry sector had exposure to China, top risks included supply chain disruption (59%), protection of intellectual property (43%) and risks from U.S.-government-imposed restrictions (39%).</li>
<li>Audit partners observed that plans to adopt cryptocurrency as a form of payment fell by 10% across industries since Spring 2022, with steeper drop-offs observed in financial services (18 percentage points), consumer products and retail (14 percentage points), and technology (13 percentage points) industries.</li>
<li>A new survey question revealed that 47% of U.S. businesses are already using artificial intelligence (AI) to some extent. Key uses observed include process automation (63%), customer experience, service and support (44%) and predictive analysis (31%).</li>
</ul>
<p>&nbsp;</p>
<p><strong>The accountant shortage </strong></p>
<ul>
<li>Amid resignations and pipeline challenges, 89% of audit partners reported U.S. businesses were greatly to somewhat affected by the accountant shortage. Audit partners in financial services and technologies, as well as audit partners working with companies valued at less than $1 billion, were more likely to report being organizations in their industry sector as being affected than other audit partners working within different industries and with larger organizations.</li>
</ul>
<p>&nbsp;</p>
<p>Download the report, <a href="https://centerforauditquality.sharepoint.com/sites/SharedDrive/Shared%20Documents/Stakeholder%20Communications/Campaigns%20and%20Initiatives/Research/Partner%20Survey%20and%20Economic%20Impact/2023%20Surveys/2023%20Spring%20Survey/Communications/thecaq.org/audit-partner-pulse-survey-spring-2023"><em>Spring 2023 CAQ Audit Partner Pulse Survey</em></a>, to access the full survey results.</p>
<p>&nbsp;</p>
<p><strong>About the Center for Audit Quality</strong></p>
<p>The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to the audits of public companies. The CAQ promotes high-quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions.</p>
<p>&nbsp;</p>


<b><strong>Audit Partners Pessimistic on U.S. Economic Outlook as U.S. Businesses Continue to Face Inflation, Cybersecurity Risks</strong></b>

<b>Washington DC, May 19, 2023</b> – Audit partners are pessimistic about the outlook for
the U.S. economy as U.S. businesses continue to face inflation, cybersecurity risks, and
increased regulation, according to the Center for Audit Quality (CAQ’s), <a href="https://www.thecaq.org/audit-partner-pulse-survey-spring-2023">Audit Partner</a>
Pulse Survey, a biannual survey of U.S. public company audit partners. The survey
provides independent and objective perspectives on a range of topics, including the
overall health of the economy and business transformation.

The survey found that organizations are prioritizing cost management and financial
performance over other areas like talent and labor. “We have observed a very
significant shift, especially with regards to talent and labor,” said Julie Bell Lindsay,
Chief Executive Officer, CAQ. “While organizations were focused on attracting and
retaining talent a year ago at the height of ‘The Great Resignation,’ reducing headcount
is the top human capital action audit partners are observing within U.S. businesses
today.”

The nature of their work gives audit partners unique insights across a broad spectrum of
industries and corporate trends. Below are key findings from their observations.

<b>Audit partners’ outlook for the economy remains pessimistic</b>
<ul>
 	<li>Fewer than 1 in 5 audit partners are optimistic about the economy.</li>
 	<li>Top audit partner concerns driving this pessimism include inflation (the top
concern for the second year in a row), cybersecurity threats, and regulation (a
10-point increase since Spring 2022).</li>
</ul>
<b>Attracting new talent no longer a focus</b>
<ul>
 	<li>Notably, concerns over labor shortages significantly decreased since Spring
2022 (falling by 18 percentage points).</li>
 	<li>While top human capital actions observed by audit partners a year ago were
increasing flexibility in the workplace and increasing compensation, these steeply
declined as priority human capital actions by Spring 2023 (a drop in 34 and 38
points, respectively).</li>
 	<li>Rather, U.S. businesses reported reducing headcount as the top human capital
action taken in Spring 2023 (a 37-point increase since Spring 2022). Audit
partners in the financial services and technology sectors most frequently
observed this human capital action.</li>
 	<li>Top priorities at U.S. organizations in Spring 2023 were cost management (61%)
and financial performance (51%).</li>
</ul>
<b>Emerging risks and technology shifts</b>
<ul>
 	<li>Cybersecurity remains a top risk at U.S. organizations according to 39% of audit
partners surveyed. The partners observed that organizations remain only
moderately prepared for a cyberattack, though 54% of partners did note that
communication between boards and public company management on this topic
is improving.</li>
 	<li>Cybersecurity was also reported as a top ESG priority for U.S. businesses, with
55% of partners ranking it as the top short-term priority, and 48% of partners
ranking it as the top long-term priority at organizations.</li>
 	<li>Most U.S. businesses are not exposed to risks associated with China, according
to 69% of the audit partners surveyed. Of the partners who did report that
organizations in their industry sector had exposure to China, top risks included
supply chain disruption (59%), protection of intellectual property (43%) and risks
from U.S.-government-imposed restrictions (39%).</li>
 	<li>Audit partners observed that plans to adopt cryptocurrency as a form of payment
fell by 10% across industries since Spring 2022, with steeper drop-offs observed
in financial services (18 percentage points), consumer products and retail (14
percentage points), and technology (13 percentage points) industries.</li>
 	<li>A new survey question revealed that 47% of U.S. businesses are already using
artificial intelligence (AI) to some extent. Key uses observed include process
automation (63%), customer experience, service and support (44%) and
predictive analysis (31%).</li>
</ul>
<b>The accountant shortage</b>
<ul>
 	<li>Amid resignations and pipeline challenges, 89% of audit partners reported U.S.
businesses were greatly to somewhat affected by the accountant shortage. Audit
partners in financial services and technology, as well as audit partners working
with companies valued at less than $1 billion, were more likely to report
organizations in their industry sector as being affected than other audit partners
working within different industries and with larger organizations.</li>
</ul>
Download the report, <a href="http://thecaqdev.wpengine.com/wp-content/uploads/2023/05/caq_audit-partner-pulse-survey-2023_2023-05.pdf">Spring 2023 CAQ Audit Partner Pulse Survey</a>, to access the full
survey results.

<b>
About the Center for Audit Quality</b>
The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving
as the voice of U.S. public company auditors and matters related to the audits of public
companies. The CAQ promotes high-quality performance by U.S. public company
auditors; convenes capital market stakeholders to advance the discussion of critical
issues affecting audit quality, U.S. public company reporting, and investor trust in the
capital markets; and using independent research and analyses, champions policies and
standards that bolster and support the effectiveness and responsiveness of U.S. public
company auditors and audits to dynamic market conditions.

Non-GAAP

Press Releases

The Center for Audit Quality and EVERFI Create Limitless Opportunities in the Accounting Field
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                                                                <h3>The Center for Audit Quality and EVERFI Create Limitless Opportunities in the Accounting Field</h3>
                                <h4>Thursday, March 23, 2023</h4>
                                                                <div class="content-block">   
                                    <p><em>CAQ and EVERFI celebrate the launch of digital curriculum designed to attract more diversity into the accounting profession</em></p>
<p><strong>Washington D.C., March 23, 2023</strong> – <a href="https://www.thecaq.org/">The Center for Audit Quality</a> (CAQ), a nonpartisan organization serving as the voice of U.S. public company auditors and <a href="https://everfi.com/">EVERFI</a>, the nation’s leading social impact education innovator, today announced the launch of a first-of-its-kind digital education program, <em><a href="https://accountingcareers.joinaccountingplus.com/">Accounting Careers: Limitless Opportunities</a></em>. The program is designed to help high school students discover how accounting skills can help them achieve their career goals and to attract greater diversity and representation into the accounting profession.</p>
<p>“We’re excited to be able to expose high school students to the accounting profession at a time when they are considering their future and believe this curriculum will help all groups of students see accounting as a viable career path,” says Liz Barentzen, Vice President Talent Initiatives, CAQ. “We know that representation matters, and through this program, we hope to cultivate equitable representation within the accounting field.”</p>
<p>In line with the goals of CAQ’s <a href="https://www.joinaccountingplus.com/">Accounting+</a> program, a nationwide campaign to attract a new generation of diverse students into the talent pipeline, <em>Accounting Careers: Limitless Opportunities </em>exposes students to the wide range of careers available in the accounting and finance space. The interactive course covers the extensive benefits accounting skills can provide in business or in daily life, including contexts like entrepreneurship, investing, and personal finance. The course aligns with Jump$tart National Standards in K-12 Personal Finance Education, ASCA National Standards, and Common Career Technical Core standards.</p>
<p>To celebrate the nationwide launch of the accounting education initiative, the CAQ and EVERFI hosted an interactive event for students and distinguished guests at H.D. Woodson STEM High School in Washington, D.C. This highly engaging event featured retired NFL linebacker and professional athlete, Dahani Jones as MC, and included several talk-show style components to help H.D. Woodson STEM high school students engage with each other and the curriculum. A key component of the event featured accounting professionals who spoke to students about their real-life experiences in their careers. During the event, students participated in activities that saw them exploring what matters to them, what accounting is like, and where a career in accounting can take them.</p>
<p>The event concluded with the presentation of a $5,000 scholarship to one of the participating students.</p>
<p>“Engaging with the students at H.D. Woodson was a valuable experience for our team and true validation of the hard work we are undertaking to ensure that the accounting profession is as diverse as those it serves,” said Barentzen. “We are grateful to District of Columbia Public Schools for seeing the value of this program and the impact it can have on their students and for allowing us to meet and work with them to celebrate the launch of this extraordinary program.”</p>
<p>To learn more about <em>Accounting Careers: Limitless Opportunities</em>, please visit the <a href="https://accountingcareers.joinaccountingplus.com/">website.</a></p>
<p><strong>About the Center for Audit Quality<br>
</strong>The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to the audits of public companies. The CAQ promotes high-quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions.</p>
<p><strong>About EVERFI, Inc.<br>
</strong>EVERFI from Blackbaud (NASDAQ: BLKB) is an international technology company driving social impact through education to address the most challenging issues affecting society ranging from financial wellness to mental health to workplace conduct and other critical topics. Founded in 2008, EVERFI’s Impact-as-a-Service<sup>TM</sup> solution and digital educational content have reached more than 45 million learners globally. In 2020, the company was recognized as one of the World’s Most Innovative Companies by <em>Fast Company</em> and was featured on <em>Fortune Magazine’s</em> Impact 20 List. The company was also named to the 2021 GSV EdTech 150, a list of the most transformative growth companies in digital learning.<a href="https://www.blackbaud.com/"> Blackbaud</a>, the world’s leading cloud software company powering social good, acquired EVERFI in December of 2021. To learn more about EVERFI, please visit <a href="http://everfi.com/">everfi.com</a> or follow us on <a href="https://www.facebook.com/everfi">Facebook</a>, <a href="https://www.instagram.com/everfi/">Instagram</a>, <a href="https://www.linkedin.com/company/everfi/">LinkedIn</a>, or<a href="https://twitter.com/EVERFI"> Twitter</a> @EVERFI.</p>
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The Center for Audit Quality and EVERFI Create Limitless Opportunities in the Accounting Field

Audit Committee Composition Changing Amid Expanded Scope and Emerging Risks, According to New Report from Deloitte and the Center for Audit Quality (CAQ)
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                                                                <h3>Audit Committee Composition Changing Amid Expanded Scope and Emerging Risks, According to New Report from Deloitte and the Center for Audit Quality (CAQ)</h3>
                                <h4>Friday, January 13, 2023</h4>
                                                                <div class="content-block">   
                                    <p><em>The second edition of the “Audit Committee Practices Report” shows cybersecurity, enterprise risk management (ERM), and environmental, social, and governance (ESG) reporting are topping audit committees’ agendas</em></p>
<p><strong>Washington DC, January 13, 2023</strong> – Corporate boards are taking a fresh look at their audit committee structures and practices in light of emerging corporate reporting areas and increased risks, according to a <a href="https://www.thecaq.org/audit-committee-practices-report-2023/">new survey and collaborative report</a> from Deloitte’s Center for Board Effectiveness and the Center for Audit Quality (CAQ).</p>
<p><em>Audit Committee Practices Report: Priorities and Committee Composition</em>, a survey of 164 audit committee members of primarily large-cap, public companies in the U.S., provides insight into shifting oversight priorities and practices related to audit committee composition. Over the next 12 months, one-quarter of respondents expect to make changes to the composition of their audit committee, with 25% anticipating increasing the size of their audit committee, 28% planning on replacing their audit committee chair, and 42% expecting to replace one or more committee members.</p>
<p>“Audit committees continue to be challenged by ‘scope creep’ — new demands that involve overseeing areas of disclosure and reporting that extend beyond their historical core responsibility of financial reporting and audit oversight. As a result, audit committees are considering if their composition needs to change,” said Krista Parsons, Audit &amp; Assurance managing director with Deloitte’s <a href="https://www2.deloitte.com/us/en/pages/center-for-board-effectiveness/topics/center-for-board-effectiveness.html">Center for Board Effectiveness</a> and Audit Committee Program leader. “The good news is that audit committees overwhelmingly report (92%) they have the expertise they need. Still, it is critically important for audit committees to continuously assess their current composition and skill set to make sure it meets the needs of the organization and the risks it faces.”</p>
<p>Respondents calling for additional skills and experience of their audit committee pointed to cybersecurity and technology as areas of expertise that could enhance their effectiveness. Within the financial services sector, respondents noted compliance as an area for enhanced proficiency; non-financial services respondents identified industry experience as the next top area needed to close the skills gap.</p>
<p>Increased cybersecurity threats, as well as additional attention and focus from regulators, factor into cybersecurity’s high ranking on the audit committee agenda, with 53% reporting that their company delegates cybersecurity oversight to audit committees. In addition, 43% of respondents noted that audit committees were responsible for enterprise risk management oversight within their organizations and 34% of respondents said that audit committees were responsible for the oversight of ESG disclosure and reporting — a significant 24-point increase over the previous year.</p>
<p>“Investors are making increased demands for disclosures outside of the traditional financial statement,” said Julie Bell Lindsay, chief executive officer, CAQ. “Audit committees play a critical oversight role that contributes to high-quality financial reporting and investor confidence in the U.S., and it is encouraging that their skills and expertise can be transferable to other areas of corporate reporting. This report can help audit committee members gauge how their organization stands with regards to their peers and corporate governance and identify best practices.”</p>
<p>Despite increased attention from regulators for fraud detection, only 20% of total respondents ranked fraud risk among their top three focus areas in the next 12 months. This response rate was slightly higher at 29% for those on the audit committee of financial services companies.</p>
<p>“Given the rapid rate at which risks are evolving, we were not surprised to see a continued trend of scope creep for audit committees,” said Vanessa Teitelbaum, senior director, professional practice, CAQ. “We’re pleased to be able to provide this report to audit committees and hope the practices we have identified will be a helpful gauge for them as they navigate their increasing oversight responsibilities.”</p>
<p>Download the report, <em><a href="https://www.thecaq.org/audit-committee-practices-report-2023/">Audit Committee Practices: Priorities and Committee Composition</a></em>, for the full results and analysis.</p>
<p><strong>About the Audit Committee Practices Report</strong></p>
<p>The second edition of the Audit Committee Practices Report presents findings from a survey distributed to audit committee members from August 24 to October 14, 2022. The survey contained 17 questions covering audit committee composition and core and emerging priorities and practices. Survey results are presented for all companies in total. The questions and this report were developed jointly by the Deloitte Center for Board Effectiveness and the CAQ. The data provided in response to the survey were presented and analyzed anonymously. The responses and results cannot be attributed to a specific company or companies individually or collectively. A total of 164 individuals participated in the survey.</p>
<p><strong>About the Center for Audit Quality</strong></p>
<p>The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to the audits of public companies. The CAQ promotes high-quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions.</p>
<p><strong>About Deloitte<br>
</strong><br>
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies.&nbsp;Our people <a href="https://www2.deloitte.com/us/en/pages/about-deloitte/articles/come-together-corporate-social-impact.html?id=us:2el:3pr:cometog:awa:greendot:11112020:boilerplate">come together</a> for the greater good and work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them.&nbsp;Building on more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 people worldwide connect for impact at <a href="http://www.deloitte.com">www.deloitte.com</a>.</p>
<p>###</p>
<p><strong>Contacts</strong></p>
<table>
<tbody>
<tr>
<td width="215">Brad Jacklin</td>
<td width="221">Kori Green</td>
<td width="221">Daniel Mucisko</td>
</tr>
<tr>
<td width="215">Director of Communications</td>
<td width="221">Public Relations</td>
<td width="221">Public Relations</td>
</tr>
<tr>
<td width="215">The Center for Audit Quality</td>
<td width="221">Deloitte Services LP</td>
<td width="221">Deloitte Services LP</td>
</tr>
<tr>
<td width="215">+1 202 494 9560</td>
<td width="221">+1 617 763 9593</td>
<td width="221">+1 973 602 4126</td>
</tr>
<tr>
<td width="215"><u>bjacklin@thecaq.org</u></td>
<td width="221"><a href="mailto:kogreen@deloitte.com">kogreen@deloitte.com</a></td>
<td width="221"><a href="mailto:dmucisko@deloitte.com">dmucisko@deloitte.com</a></td>
</tr>
</tbody>
</table>
<p>Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see <a href="https://www2.deloitte.com/us/en/legal/about-deloitte.html">www.deloitte.com/about</a>&nbsp;to learn more about our global network of member firms.</p>
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Audit Committee Composition Changing Amid Expanded Scope and Emerging Risks, According to New Report from Deloitte and the Center for Audit Quality (CAQ)

Leading Accounting Organizations Partner to Diversify the Accounting Profession
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                                                                <h3>Leading Accounting Organizations Partner to Diversify the Accounting Profession</h3>
                                <h4>Thursday, January 5, 2023</h4>
                                                                <div class="content-block">   
                                    <p><em>Pilot program from IMA, AAA, NABA, CalCPA, CAQ, and Gleim will reach out to Black students and professionals in California</em></p>
<p><strong>Montvale, N.J., January 5, 2023 – </strong><a href="http://www.imanet.org">IMA<sup>®</sup></a> (Institute of Management Accountants), <a href="https://aaahq.org/">AAA</a> (American Accounting Association), <a href="https://nabainc.org/">NABA</a> Inc. (formerly the National Association of Black Accountants), <a href="https://www.calcpa.org/">CalCPA</a> (California Society of Certified Public Accountants), <a href="https://www.thecaq.org/">CAQ</a> (Center for Audit Quality), and <a href="https://www.gleim.com/">Gleim Exam Prep</a>, today announced a partnership pilot program in California to encourage Black students to pursue accounting as a profession and Black professionals to consider sharing their experiences in the accounting classroom. The program will look to increase the number of Black and African American individuals who are fluent in accounting, the language of money, business, and wealth.</p>
<p>Under the partnership agreement, the six organizations will combine their resources for outreach to Black students and to professionals for teaching roles in California. Pending the success of this pilot program, it can eventually expand to other demographic groups and geographies.</p>
<p>The program will comprise four exclusive tracks that will aid participants in their success — three student tracks: the <a href="http://www.cmacertification.org">CMA<sup>®</sup></a> (Certified Management Accountant) track, which will map out a career in management accounting and ready participants to become CMAs; the CPA (Certified Public Accountant) track, which will map out a career in public and private accounting and ready participants to become CPAs; the leadership track to help participants become business leaders; and the faculty track, which will include faculty development from AAA and assist in the practitioner-to-faculty transition.</p>
<p>All of the tracks will include complimentary memberships to the respective relevant organizations in the partnership, along with resources and exposure to Black business leaders and faculty. Participants in the <a href="https://www.gleim.com/cma-review/">CMA</a> and <a href="https://www.gleim.com/cpa-review/">CPA</a> tracks will receive access to <a href="https://www.gleim.com/">Gleim Exam Prep</a> courses, a leader in the accounting exam prep space and trusted by candidates for more than 45 years.</p>
<p>The pilot program implements actionable solutions from the April 2022 <a href="https://www.imanet.org/insights-and-trends/the-future-of-management-accounting/diversifying-global-accounting-talent-actionable-solutions-for-progress?ssopc=1">Diversifying Global Accounting Talent: Actionable Solutions for Progress</a> report from IMA, CalCPA, and IFAC (International Federation of Accountants), in which all other organizations in this pilot program partnership were involved, that are directed toward attracting diverse talent with various types of campaigns. This program responds to the key call to action found in the research: advancing the United Nations Sustainable Development Goal 17: Partnerships for the Goals.</p>
<p>Applications for participants will open in January 2023. For more information about the program, visit <a href="https://nabainc.org/diversifying-the-accountancy-pipeline-program/">https://nabainc.org/diversifying-the-accountancy-pipeline-program/</a>.</p>
<p><strong>About IMA<sup>®</sup> (Institute of Management Accountants)<br>
</strong>IMA<sup>®</sup> is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA<sup>®</sup> (Certified Management Accountant) and CSCA<sup>®</sup> (Certified in Strategy and Competitive Analysis) programs, continuing education, networking, and advocacy of the highest ethical business practices. For more information about IMA, please visit <a href="http://www.imanet.org">www.imanet.org</a>.</p>
<p><strong>About CalCPA</strong></p>
<p>For every past, present and future CPA and accountant, CalCPA is a members’ club and professional education provider offering the leadership the CPA profession needs for change, and the knowledge you need for what’s next. Our education, member community and advocacy are transforming the profession for a brighter future.</p>
<p><strong>About NABA</strong></p>
<p>NABA Inc. is a nonprofit membership association dedicated to bridging the opportunity gap for Black Business Leaders in accounting, finance, entrepreneurship, and related business professions. NABA advances people, careers, and its mission by providing education, resources, and meaningful career connections to professional, student and corporate members. Visit&nbsp;<a href="http://www.nabainc.org/">http://www.nabainc.org</a>&nbsp;to learn more.</p>
<p><strong>About The American Accounting Association</strong></p>
<p>The American Accounting Association is the largest community of accountants in academia. Founded in 1916, we have a rich and reputable history built on leading-edge research and publications. The diversity of our membership creates a fertile environment for collaboration and innovation. Collectively, we shape the future of accounting through teaching, research and a powerful network, ensuring our position as thought leaders in accounting.</p>
<p><strong>About The Center for Audit Quality </strong></p>
<p>The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to the audits of public companies.</p>
<p><strong>About Gleim<sup>®</sup> Exam Prep</strong></p>
<p>Gleim creates online self-study courses for accounting certification exams, including the CPA, CMA, CIA, and EA. For 45+ years, Gleim’s mission has been to maximize knowledge transfer while minimizing customers’ time, frustration, and cost. With their proven system of success, Gleim Exam Prep has helped millions of candidates earn passing scores.</p>
<p>###</p>
<p><strong>IMA – </strong><strong>Giuseppe Barone<br>
</strong><strong>(201) 474-1681<br>
</strong><a href="mailto:giuseppe.barone@imanet.org"><strong>giuseppe.barone@imanet.org</strong></a></p>
<p><strong>CalCPA – Matt Koontz/Aldo Maragoni<br>
</strong><strong>650-522-3202/650-522-3203<br>
</strong><a href="mailto:Matthew.Koontz@calcpa.org"><strong>Matthew.Koontz@calcpa.org</strong></a><strong>/ </strong><a href="mailto:Aldo.Maragoni@calcpa.org"><strong>Aldo.Maragoni@calcpa.org</strong></a></p>
<p><strong>NABA – Toi Eshun<br>
</strong><strong>678-760-3490<br>
</strong><a href="mailto:teshun@nabainc.org"><strong>teshun@nabainc.org</strong></a></p>
<p><strong>&nbsp;</strong><strong>AAA – Mark VanZorn<br>
</strong><strong>941-556-4105<br>
</strong><a href="mailto:Mark.VanZorn@AAAHQ.org"><strong>Mark.VanZorn@AAAHQ.org</strong></a></p>
<p><strong>&nbsp;</strong><strong>CAQ – Brad Jacklin<br>
</strong><strong>202-494-9560<br>
</strong><a href="mailto:bjacklin@thecaq.org"><strong>bjacklin@thecaq.org</strong></a></p>
<p><strong>Gleim – Joy Riddle<br>
</strong><strong>352-375-0772<br>
</strong><a href="mailto:Joy@gleim.com"><strong>Joy@gleim.com</strong></a></p>
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                        <p><a href="https://www.thecaq.org/news/audit-committee-responsibilities-disclosures-continue-to-expand-according-to-joint-reports/">Audit Committee Responsibilities, Disclosures, Continue to Expand According to Joint Reports</a><br><span class="date">11.30.22</span></p>
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Leading Accounting Organizations Partner to Diversify the Accounting Profession

Audit Committee Responsibilities, Disclosures, Continue to Expand According to Joint Reports
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                                                                <h3>Audit Committee Responsibilities, Disclosures, Continue to Expand According to Joint Reports</h3>
                                <h4>Wednesday, November 30, 2022</h4>
                                                                <div class="content-block">   
                                    <p><strong>Washington, DC (November 30, 2022) – </strong>Audit committees are increasingly including disclosures about several key areas of oversight within public company proxy statements according to a new report from the Center for Audit Quality and Audit Analytics – an Ideagen solution. The results of the 9<sup>th</sup> annual <em><a href="https://www.thecaq.org/2022-barometer">Audit Committee Transparency Barometer</a></em> reflect a long-term positive trend of increased transparency in several areas by audit committee members.</p>
<p>The report found several positive disclosure trends among the S&amp;P 500. Among them, cybersecurity disclosures continue to increase year-over-year, consistent with expectations as cybersecurity threats grow. Fifty-four percent of the S&amp;P 500 audit committees reported having responsibility for cyber risk oversight, an eight-percentage point increase since 2021. Given the rise in environmental, social and governance (ESG) reporting, the report also for the first time tracked disclosure of audit committee oversight related to ESG. For S&amp;P 500 companies, 39% of audit committees disclosed having an ESG or sustainability expert on the board, while 18% of audit committees disclosed responsibility of oversight of ESG.</p>
<p>“Now in its ninth year, the Audit Committee Transparency Barometer continues to be a unique resource for audit committees and other market stakeholders,” said Michael Nohrden, VP Strategy Audit and Risk for Ideagen. “We are pleased to continue to partner with the CAQ in developing the only report with such comprehensive data across the S&amp;P 1500 related to audit committee transparency.”</p>
<p>The report also identifies areas where audit committees can provide more tailored disclosures. While 71% of audit committees of S&amp;P 500 companies disclose auditor tenure in the proxy statement, only 9% of such audit committees disclose how the audit committee considers length of auditor tenure when re-appointing the external auditor. And while 51% of audit committees of S&amp;P 500 companies disclose that they are involved in the selection of the audit engagement partner, few disclosed what&nbsp; their involvement in the selection of the audit engagement partner entails.</p>
<p>“We know that audit committee disclosures are correlated with enhanced audit quality and auditor independence, and we’re pleased to observe a continued positive trend of these disclosures in proxy statements,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “We encourage audit committees to consider how they can provide even more detailed disclosures in areas such as the execution of oversight responsibility to give investors insight into the processes, considerations, and decisions made by the audit committee.”</p>
<p>Given the increasing scope of oversight, how audit committees manage and disclose these responsibilities is an important consideration in today’s environment. These considerations are discussed in a separate report developed by the CAQ and academic researchers at the University of Tennessee Knoxville’s Neel Corporate Governance Center and the Pamplin College of Business at Virginia Tech. Published in conjunction with the Barometer, “<em><a href="https://www.thecaq.org/ac-kitchen-sink">Audit Committee: The Kitchen Sink of the Board</a></em>,” offers leading practices for audit committees, including how boards can effectively allocate oversight responsibilities to the audit committee, how audit committee members can keep up with an ever-evolving workload, and how audit committees can improve their disclosures related to their oversight responsibilities.</p>
<p>In a statement, the researchers from the University of Tennessee and Virginia Tech said, “Our study is based on 2,200 minutes of interviews with audit committee chairs or members as well as other stakeholders. Forty percent of audit committee members interviewed described their audit committees as the ‘kitchen sink’ of the board given their increasing scope and workload. Audit committees are an essential component to the health of our financial reporting ecosystem and capital markets. It’s vital that they have the tools and resources they need, including peer insights and leading practices, to play an effective role in oversight and, ultimately, investor protection. This report provides a step-by-step guide for audit committee members to provide ideas for managing this evolving workload and enhancing their disclosures.”</p>
<p>Review the reports, <em>2022 Audit Committee Transparency Barometer</em>, <a href="https://www.thecaq.org/2022-barometer">here</a> and <em>Audit Committee: The Kitchen Sink of the Board</em>, <a href="https://www.thecaq.org/ac-kitchen-sink">here</a>.</p>
<p><strong>About The Center for Audit Quality</strong><br>
The Center for Audit Quality (CAQ) is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to the audits of public companies. The CAQ promotes high-quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions.</p>
<p><strong>About the Researchers</strong><strong><br>
</strong><strong>Lauren Cunningham, </strong>PhD, CPA (TN), is the Keith Stanga Professor of Accounting at the University of Tennessee, Knoxville, and the Director of Research for the C. Warren Neel Corporate Governance Center. <strong>Sarah Stein</strong>, PhD, CPA (CO), is an associate professor and the Deloitte Foundation Faculty Fellow in the Department of Accounting and Information Systems at Virginia Tech. <strong>Kimberly Walker</strong>, PhD, CPA (NC), is an assistant professor in the Department of Accounting and Information Systems at Virginia Tech. <strong>Karneisha Wolfe</strong>, CPA (NC), is a PhD candidate in the Department of Accounting and Information Systems at Virginia Tech.</p>
<p><strong>About the Neel Corporate Governance Center</strong><br>
The <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__haslam.utk.edu_neelcgc_&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=So1-B3ru8_7PInu5TegW4GShMOzRS7p68VOtC8bRd-I&amp;m=K4ibwYXB0zMtAgicpR_pS-qaSEb9_H-chLsrev4Wm9I&amp;s=lBy5N3XT8wiDMU7pk_DFyxW2v4-Zbug8HVLOCOW6HtA&amp;e=">Neel Corporate Governance Center</a> at the <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__utk.edu_&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=So1-B3ru8_7PInu5TegW4GShMOzRS7p68VOtC8bRd-I&amp;m=K4ibwYXB0zMtAgicpR_pS-qaSEb9_H-chLsrev4Wm9I&amp;s=fx5iVK4zPSMLBIsU-G2PS_LIG3TTnk-gcM7zulkxNXc&amp;e=">University of Tennessee, Knoxville’s</a> <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__haslam.utk.edu_&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=So1-B3ru8_7PInu5TegW4GShMOzRS7p68VOtC8bRd-I&amp;m=K4ibwYXB0zMtAgicpR_pS-qaSEb9_H-chLsrev4Wm9I&amp;s=kDTrl3rI8xBbalDQCePgQpN5kLXbPlgQ9Ux7Nsg_7bo&amp;e=">Haslam College of Business</a> was founded in 2003 following the wake of corporate scandals that preceded the Sarbanes-Oxley Act of 2002. The center’s mission is to conduct and disseminate nationally recognized research on corporate governance with a focus on public policy. Faculty members from Haslam’s accounting, economics and finance departments, as well as from UT’s&nbsp;<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__law.utk.edu_&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=So1-B3ru8_7PInu5TegW4GShMOzRS7p68VOtC8bRd-I&amp;m=K4ibwYXB0zMtAgicpR_pS-qaSEb9_H-chLsrev4Wm9I&amp;s=llsESX7HBXTP-UDHygWpPbrANvNS2x6Lgnvn1BZwS6c&amp;e=">College of Law</a>, collaborate to provide an interdisciplinary view on a variety of topics.</p>
<p><strong>About Pamplin College of Business<br>
</strong>Virginia Tech’s <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__pamplin.vt.edu_&amp;d=DwMGaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=So1-B3ru8_7PInu5TegW4GShMOzRS7p68VOtC8bRd-I&amp;m=6P0EkM-UeJmVsh3EvDm7kyHnIzmLg0WWCooJO6H-_II&amp;s=WpxJ1w91x44eo_QkNVQ7VpHLTTJycKSlT86CxckQx2g&amp;e=">Pamplin College of Business</a> is catalyzing the next generation of business leaders through its nationally ranked undergraduate and graduate academic programs in Blacksburg, the greater Washington, D.C., metro area, and across the commonwealth. Pamplin emphasizes technology and data analysis that improve business, entrepreneurship that leads to innovation, international opportunities for learning and research, and an inclusive collaborative community.</p>
<p><strong>About Audit Analytics&nbsp;</strong><strong>– An Ideagen Solution<br>
</strong>Audit Analytics is an independent research provider that enables the accounting, legal, and investment communities to analyze auditor market intelligence, public company disclosure trends, and risk indicators. For more information, email info@auditanalytics.com or call 508-476-7007.</p>
<p><strong>Press Contact:</strong><br>
Brad Jacklin<br>
Director of Communications<br>
<a href="mailto:Bjacklin@thecaq.org">Bjacklin@thecaq.org</a><br>
(202)-494-9560</p>
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Audit Committee Responsibilities, Disclosures, Continue to Expand According to Joint Reports

In this comment letter, the CAQ provides views to the FASB related to its proposed accounting standard update, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.

The CAQ supports the Proposed ASU...

In this comment letter, the CAQ provides views to the FASB related to its proposed accounting standard update, <a href="https://www.fasb.org/Page/ProjectPage?metadata=fasb-Accounting-for-and-Disclosure-of-Crypto-Assets">Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets</a>.

The CAQ supports the Proposed ASU as an initial step to improve the accounting for crypto assets that fall within the scope of the proposal (in-scope crypto assets). Specifically, we believe that the Proposed ASU is an improvement over the current model for accounting for in-scope crypto assets and that it can provide additional decision-useful information and transparency to financial statement users.

We believe that the financial reporting and disclosure requirements included in the Proposed ASU are auditable and that public company auditors have the requisite skills to audit crypto assets at fair value and related disclosures. We also encourage the Board to continue stakeholder outreach and monitoring to determine whether additional standard setting projects are needed as digital assets continue to evolve and may not fit neatly into the framework set forth in the Proposed ASU.

Read the full comment letter <a href="https://thecaqprod.wpenginepowered.com/wp-content/uploads/2023/06/caq_fasb_crypto_2023-06_signed.pdf">here</a>.

Comment Letter | File Reference No. 2023-ED200, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets

Comment Letter

Policymakers

Preparers/Issuers

As part of the Center for Audit Quality’s (CAQ) ongoing effort to keep members and stakeholders informed on significant public policy and accounting matters, we are pleased to offer the Public Policy and Technical Alert (PPTA). Each month, the PPTA...

Public Policy & Technical Alert | May 2023

Newsletter

PPTA

As part of the CAQ’s efforts to engage a broader array of stakeholders and serve as a prominent voice for the audit profession, KRC Research conducted qualitative research in the format of in-depth interviews with Institutional Investors and Audit Committee...

As part of the CAQ’s efforts to engage a broader array of stakeholders and serve as a prominent voice for the audit profession, KRC Research conducted qualitative research in the format of in-depth interviews with Institutional Investors and Audit Committee Members of publicly traded companies.
<ul>
 	<li>The research was designed to assess sentiment toward public company auditors, including:</li>
 	<li>Overall impressions, including recent trends.</li>
 	<li>The value, expertise, and independence of public company auditing.</li>
 	<li>The role public company auditors play in measuring GAAP and non-GAAP components of a business.</li>
 	<li>The role public company auditors play in evaluating environmental, social and governance (ESG) statements issued by publicly traded companies.</li>
</ul>
<a href="https://thecaqprod.wpenginepowered.com/wp-content/uploads/2023/06/caq_views-on-public-company-auditors_2023-06.pdf">Download the full report</a> now to explore insights into how institutional investors, who utilize the work of public company auditors, and audit committees, who oversee the work of auditors, perceive them.

Views on Public Company Auditors: Audit Committee Member and Institutional Investor Research Findings

Auditor Independence

Publications

Audit partners continue to be pessimistic about the outlook for the U.S. economy (hello, debt ceiling). For the first time, the PCAOB has inspection results for organizations from mainland China. We continue to monitor for the SEC’s final climate rule.

And...

The Center for Audit Quality

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