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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. 

This year marks the 10th year publication of the Audit Committee Transparency Barometer. Released by the Center for Audit Quality (CAQ), the Barometer provides investors and stakeholders with unique insight into the disclosures made by audit committees in proxy statements...

This year marks the 10<sup>th</sup> year publication of the A<a href="https://www.thecaq.org/2023-Barometer">udit Committee Transparency Barometer</a>. Released by the Center for Audit Quality (<a href="https://www.thecaq.org/">CAQ</a>), the Barometer provides investors and stakeholders with unique insight into the disclosures made by audit committees in proxy statements each year since 2014.

Compiled and published in partnership with <a href="https://www.auditanalytics.com/">Ideagen Audit Analytics</a>, the Barometer measures year-over-year comparison of disclosures for S&amp;P 500, S&amp;P MidCap, and S&amp;P SmallCap companies in distinct key areas, including audit committee duties and composition, auditor evaluation and oversight, audit firm and lead partner selection, auditor compensation, cybersecurity and ESG.

The Barometer highlights disclosure trends from eight questions pertaining to transparency in audit committee proxy statements from 2014 and 2023, illustrating the changes in disclosure rates over time. The report also highlights room for disclosure growth in specific areas, with the focus on improving audit quality and increasing transparency to stakeholders. Additionally, there are several questions added more recently due to emerging risk areas (cybersecurity and ESG).
<h3><strong>10 Years of Data</strong></h3>
This report marks the 10<sup>th</sup> year of collaboration between the Center for Audit Quality and Ideagen Audit Analytics to provide detailed analysis on audit committee transparency. The current barometer utilizes the comparative data to show disclosure trends across eight categories  over those 10 years.

Notably, there were increases in the S&amp;P 500 disclosures in the areas of discussion of Audit Committee considerations in appointing the external auditor, stating that the evaluation of the external auditor is at least an annual event and explicitly stating that the Audit Committee is involved in the selection of the audit engagement partner.

&nbsp;
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&nbsp;

Through tracking these metrics, we have seen promising improvements in transparency within audit committee disclosures. Six of the eight questions tracked over the ten years have shown improvements in disclosure rates since 2014. The CAQ explains the importance of transparency from audit committees, especially given current political and economic unrest.
<h3><strong>Auditor Tenure and Audit Partner Selection</strong></h3>
At the heart of the audit committee responsibilities is their oversight of the external auditor. By providing robust disclosures regarding the external auditor, the audit committee creates a clear connection between their oversight and audit quality.

While disclosure trends have gone up there remains room for improvement, particularly surrounding auditor tenure and audit partner selection. Specifically, while 73% in the S&amp;P 500 disclose the length of time the auditor has been engaged, only 11% in the S&amp;P 500 include disclosure related to a discussion about how the audit committee considers length of tenure. Similar proportions can be seen in the S&amp;P Midcap and S&amp;P Smallcap.

Additionally, 53% of S&amp;P 500 companies explicitly state that the audit committee is involved in the selection of the audit engagement partner, however, only 16% go into detail regarding how the audit committee is involved in the selection. This gap demonstrates that while boilerplate disclosures are more common, there is generous room for audit committees to provide more detailed disclosures about their processes  when selecting the engagement partner.

&nbsp;
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&nbsp;
<h3><strong>Audit Fees</strong></h3>
Fee transparency is another area of improvement for audit committee disclosures. Since 2014, the number of disclosures regarding audit fees, and their connection to audit quality, has decreased from 13% to 6% in 2023 from the S&amp;P 500.  Audit committee disclosures on fee negotiations can provide stakeholders insights into the oversight the committee has to ensure auditors are appropriately compensated - both from a scope and price perspective.

Of equal importance is appropriate disclosure surrounding changes in audit fees. It is standard practice for the audit committee to include the fees paid to the external auditor in the proxy, however only 25% of disclosures from the S&amp;P 500 provide explanation as to why there is a change in fees paid year over year. By disclosing what caused an increase or decrease in fees, the audit committee demonstrates its consideration of audit quality and helps investors understand what contributes to the audit fee.

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&nbsp;
<h3><strong> </strong><strong>Audit Committee Composition</strong></h3>
Over the years, the audit committee’s areas of oversight have grown beyond just that of the external auditor and financial reporting. Cybersecurity and ESG create heightened areas of risk and many audit committees have absorbed risk oversight of these two areas. In 2023, 59% of the S&amp;P 500 disclosed that the audit committee is responsible for oversight of cybersecurity risk and 29% disclosed that the audit committee is responsible for oversight of ESG, demonstrating an increase in disclosure when compared to 2022 (54% and 18%, respectively).

With audit committees assuming responsibility for cybersecurity and ESG, the composition of the audit committee becomes an interesting area to investigate. In the S&amp;P 500, more than 50% disclosed that the board of directors had a cybersecurity expert and more than 53% disclosed that the board of directors had an ESG or sustainability expert in 2023. It is increasingly important for companies to disclose board expertise, particularly the audit committee because of its risk oversight, as new areas of risk emerge.  In doing so, they demonstrate their ability and commitment to the oversight of emerging risk areas. Notably, the increase in audit committee responsibilities regarding cybersecurity and ESG risk may also be affected by new requirements by the SEC. In July, the SEC adopted the new <a href="https://www.sec.gov/news/press-release/2023-139">Cybersecurity Disclosure rule</a> and is continuing work on a new <a href="https://www.sec.gov/news/press-release/2022-46">Climate Disclosure rule</a>.

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&nbsp;
<h3><strong>In Conclusion</strong></h3>
In the last 10 years, the progress of audit committee disclosures in proxy statements should reassure investors and stakeholders of audit committee efforts to increase transparency. However, there are opportunities for audit committees to promote clear, open communication of their responsibilities and processes regarding oversight of the external auditor and other key financial reporting topics. Explore more of the latest findings from this year’s <a href="https://www.thecaq.org/2023-Barometer">Audit Committee Transparency Barometer</a>.

&nbsp;

<hr />

<strong>Author</strong>: Carolyn Noren, Senior Research Analyst, Audit Analytics

<em>Views and opinions expressed are those of the author and do not necessarily represent those of the Center for Audit Quality.</em>

Highlights from the 2023 Audit Committee Transparency Barometer

Audit Committee

Audit Quality

Blog Post

In March 2023, the Public Company Accounting Oversight Board (PCAOB) issued a proposed new standard - AS 1000, General Responsibilities of the Auditor in Conducting an Audit. The CAQ analyzed the comment letters submitted to the PCAOB while the PCAOB...

In March 2023, the Public Company Accounting Oversight Board (PCAOB) issued a proposed new standard - <a href="https://assets.pcaobus.org/pcaob-dev/docs/default-source/rulemaking/docket-049/pcaob-release-no.-2023-001-as-1000---proposed.pdf?sfvrsn=28304d26_2">AS 1000, General Responsibilities of the Auditor in Conducting an Audit</a>. The CAQ analyzed the comment letters submitted to the PCAOB while the PCAOB works toward adopting a final standard in 2024.

<strong>What is AS 1000?</strong>

Since AS 1000 was adopted two decades ago the auditing environment has evolved to include changes to auditing requirements, new or revised independence requirements, and rapid advancements in technology affecting electronic audit tools and software.

Currently, the general principles and responsibilities are addressed across four standards:
<ul>
 	<li>AS 1001, Responsibilities and Functions of the Independent Auditor;</li>
 	<li>AS 1005, Independence;</li>
 	<li>AS 1010, Training and Proficiency of the Independent Auditor; and</li>
 	<li>AS 1015, Due Professional Care in the Performance of Work.</li>
</ul>
These standards have not been updated since they were adopted on an interim basis in 2003 at the PCAOB’s inception. Since then, the auditing environment has evolved to include changes to auditing requirements, new or revised independence requirements, and rapid advancements in technology affecting electronic audit tools and software.

The proposal would combine the general principles and responsibilities into one standard while adding updates to reflect developments in the auditing environment. The proposal sets out to eliminate outdated and inconsistent language and incorporates updates to make the standards more timely, relevant, and easier to understand and apply.

Do we support the proposal? The objectives – definitely. But, we expressed concern about some of the details and so did other stakeholders based on our review of comment letters.

<strong>The CAQ’s Perspective on AS 1000</strong>

In<a href="https://www.thecaq.org/comment-letter-pcaob-as-1000"> our comment letter to the PCAOB</a><u>,</u> we include the following comments:
<ul>
 	<li>The proposed standard and related amendments will result in more significant changes than what the Board describes within the release text. Certain aspects of the proposed AS 1000 go beyond current standards and expand the auditor’s responsibilities.</li>
</ul>
What do we mean here? The Board states clearly that AS 1000 is not fundamentally changing the general responsibilities of auditors. We disagree. If the intent is to fundamentally change the auditor’s general responsibilities, we can have a debate on that. We agree with the Board’s stated intent, which is to update and modernize the current standards.
<ul>
 	<li>We agree with the auditor’s fundamental role to serve the public interest within the financial reporting ecosystem and enhance the confidence and trust of investors in financial reporting. However, the auditor’s role should not be confused with a legal duty owed to investors.</li>
</ul>
AS 1000 creates a new legal duty and new liability for auditors. Auditors are certainly held responsible for their work and stand behind it.
<ul>
 	<li>It is not appropriate for the auditor to be required to make an evaluation of fairness that goes beyond the evaluation of whether the financial statements are presented in conformity with the applicable financial reporting framework.</li>
</ul>
It seems innocuous to suggest that the auditor should make this evaluation at first blush. The audit report currently states that the financial statements present fairly, in all material respects, the financial position of the company and the results of its operations, etc. in conformity with GAAP. Is this “clarification” meaningful? We think it is. The term “fairness” could be misconstrued to go beyond the current financial reporting framework. We don’t think that’s what is intended and, to promote consistency, we suggest keeping the requirements anchored to the financial reporting framework.
<ul>
 	<li>We support the Board’s proposed amendment to accelerate the documentation completion date by reducing the maximum period of time to assemble a complete and final set of audit documentation for retention from 45 days to 14 days from the report release date.</li>
</ul>
What is the documentation completion date? A complete and final set of audit documentation should be assembled for retention as of a date not more than 45 days after the report release date. What does this mean in practice? Nowadays, the report release date is generally the audit report date. For a public company, this is often the date the Form 10-K is filed.  Most firms use automated audit software systems and once the audit is complete, the database or electronic binder is “archived.” When archived, it’s frozen in time and no alterations can be made. In my experience, the best practice here is for the audit file to be completely done and dusted on that audit report date. Push the archive button and you’re done. Auditors have 45 days to finalize and assemble workpapers. We think shortening the period from 45 days to 14 days is a good idea. If this isn’t already a firm’s practice, it could take some changes in culture or behavior to adjust, but ultimately, it’s easier to  complete the file in real-time, to the extent possible.

<strong>Comments from Stakeholders on AS 1000 </strong>

As of November 2, 2023, the PCAOB received <a href="https://pcaobus.org/about/rules-rulemaking/rulemaking-dockets/docket-049-responsibilities-auditor-conducting-audit/comment-letters">28 comment letters</a> submitted in response to the AS 1000 proposal. In <a href="https://www.thecaq.org/comment-letter-analysis-as-1000">our analysis</a><u> of these comment letters</u>, we found that more than half are from accounting firms and related groups. Four letters are from investors and three from academics. The “other” group includes the U.S. Chamber of Commerce, the American Bar Association, and three individuals.

<img class="alignnone size-full wp-image-14183" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/11/AS-1000-Blog-Post-Picture-1.png" alt="" width="266" height="288" />

Key themes include:
<ul>
 	<li>The proposal expands the auditor’s responsibilities in contrast to the Board’s stated intent. The U.S. Chamber stated,<em>In its current form, the Chamber cannot support the Proposal as fit for purpose. The Chamber strongly urges the PCAOB to withdraw it and substantially reconsider, recraft, and re-expose a revised proposed standard on the general responsibilities of the auditor in conducting an audit.</em></li>
 	<li>The proposal eliminates key concepts and principles from the extant standards which are important to retain.</li>
 	<li>The proposal creates confusion about the auditor’s role and will have other unintended consequences. Investors are highly supportive that the language should be further specified regarding the roles and responsibilities of the auditors.</li>
 	<li>Accounting firms and related groups, among other commenters, oppose the clarification of the meaning of fair presentation and state it is important that the auditor’s evaluation of the presentation of the financial statements be applied within the applicable financial reporting framework. Investors strongly support the amendments to clarify the meaning of present fairly; however, they express that additional guidance may be needed for auditors to meet this responsibility.</li>
 	<li>Accelerating the document completion date:
<ul>
 	<li>Accounting firms and related groups are largely supportive of the accelerated documentation completion date; however, some recommend that additional time should be provided for smaller firms to comply with the requirement.</li>
 	<li>Investors also support accelerating the documentation completion date, but some recommend that it should be further accelerated to two days.</li>
 	<li>Academics are not supportive of the accelerated documentation completion timeline, noting that costs for firms (not already in compliance) would be nontrivial.</li>
</ul>
</li>
</ul>
For additional information and to read the full CAQ analysis, click <a href="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/11/caq_comment-letter-analysis-as-1000_2023-11.pdf">here</a>. As the PCAOB considers the next steps of the AS 1000 proposal, the CAQ will continue to monitor and engage where necessary. Stay tuned and follow us on <a href="https://twitter.com/TheCAQ">Twitter</a>, <a href="https://www.linkedin.com/company/2859773">LinkedIn</a>, and <a href="https://www.facebook.com/thecaq/">Facebook</a> for the latest updates.

&nbsp;

<hr />

<strong>Author</strong>: <a href="https://www.thecaq.org/about-us/our-people/vanessa-teitelbaum-cpa">Vanessa Teitelbaum, CPA</a>, Senior Director, Professional Practice

What You Need to Know About the PCAOB’s AS 1000 Proposed Rule

Emerging Reporting Areas

In a rapidly evolving fraud risk landscape, fighting fraud is more important and more challenging than ever.

To mark this year’s International Fraud Awareness Week (November 12-18), the Center for Audit Quality (CAQ) is partnering with the Association of Certified Fraud...

<img class="wp-image-14170 alignright" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/11/Fraud-Week-2023-Vertical-Logo-908x998-1-1024x880.png" alt="International Fraud Awareness Week" width="350" height="301" />In a rapidly evolving fraud risk landscape, fighting fraud is more important and more challenging than ever.

To mark this year’s International Fraud Awareness Week (November 12-18), the Center for Audit Quality (CAQ) is partnering with the <a href="https://www.acfe.com/">Association of Certified Fraud Examiners (ACFE</a>) to help members of the financial reporting ecosystem fight fraud. As a partner of the Anti-Fraud Collaboration (AFC), the CAQ and the AFC collaborated to create a wide range of resources to assist in deterring and detecting financial fraud.

As the Director of Anti-Fraud Initiatives, I work closely with representatives from the Anti-Fraud Collaboration, task forces, and the broader profession on issues related to fraud deterrence and detection. What I can say is this: fighting fraud is a shared responsibility among all members of the financial reporting ecosystem.

It’s never too late to learn how to better detect and deter fraud in your line of work. I have compiled a list of resources for you to enhance your anti-fraud skillsets today:

<strong>International Fraud Awareness Week
</strong>As organizations across the globe are increasing their anti-fraud efforts, I encourage you to explore ways that you can further enhance your anti-fraud skillset. <a href="https://antifraudcollaboration.org/international-fraud-awareness-week-2023">Explore resources</a> from a range of topics.

<strong>Designing and Executing a Strong Fraud Risk Management Program
</strong>The AFC has published a new resource this week that explores how organizations can address emerging fraud risks through the design and implementation of a strong fraud risk management (FRM) program. The resource dives into how to analyze vulnerable areas and respond to risks and continue to evaluate FRM programs to ensure they are effective. <a href="https://antifraudcollaboration.org/designing-and-executing-a-strong-fraud-risk-management-program/">Download</a> the resource today.

<strong>Fighting Fraud for Two Decades
</strong>The Sarbanes-Oxley Act altered the landscape of our financial reporting system by increasing public company management’s accountability for fraud prevention and the external auditors’ independence. Auditors are fulfilling their responsibility to fight fraud under US auditing standards, but fraud deterrence and detection is a shared responsibility. To understand how the U.S. has one of the strongest financial reporting systems in the world, discover the <a href="https://www.thecaq.org/fighting-fraud-for-two-decades">history of fighting fraud</a> today.

<strong>Anti-Fraud Resources from the CAQ
</strong>A the CAQ, we are always taking necessary steps to focus on fraud deterrence, detection, and risk management. Visit our <a href="https://www.thecaq.org/anti-fraud">Fraud Resources page</a> and explore resources to learn how to strengthen anti-fraud efforts in your organization.

<strong>Explore the Anti-Fraud Collaboration
</strong>The key to protecting companies from fraud is for all members of the financial reporting ecosystem to demonstrate vigilance, a resolve to exercise professional skepticism, focus on culture and attention to risk. In 2010, the CAQ, along with <a href="https://www.financialexecutives.org/">Financial Executives International</a>, <a href="https://www.theiia.org/">The Institute of Internal Auditors</a>, and the <a href="https://www.nacdonline.org/">National Association of Corporate Directors</a> founded the Anti-Fraud Collaboration. The <a href="https://antifraudcollaboration.org/">AFC</a> provides a comprehensive list of resources, case studies, and self-study online courses for all members of the financial reporting ecosystem. Explore resources focused on <a href="https://antifraudcollaboration.org/category/culture/">culture</a>, <a href="https://antifraudcollaboration.org/category/risk/">risk</a>, <a href="https://antifraudcollaboration.org/category/skepticism/">skepticism</a>, and <a href="https://antifraudcollaboration.org/category/technology/">technology</a>.

This International Fraud Awareness Week, I urge you to stay engaged and seek out the latest resources to help protect your organization. I also encourage you to follow the AFC on <a href="https://twitter.com/antifraudcollab">Twitter</a> and <a href="https://www.linkedin.com/company/antifraudcollaboration/">LinkedIn</a> to stay up to date on the latest anti-fraud resources.

&nbsp;

<hr />

<strong>Author</strong>: <a href="https://www.thecaq.org/about-us/our-people/lucy-wang">Lucy Wang, CFE</a>, Director, Anti-Fraud Initiatives

International Fraud Awareness Week: Are You Prepared to Fight Fraud?

Anti-Fraud

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.

Subscribe for the latest episodes on Spotify,...

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.

Subscribe for the latest episodes on <a href="https://open.spotify.com/show/0Eom56jIKUbXXufaJ98yBX">Spotify</a>, <a href="https://podcasts.apple.com/us/podcast/capital-markets-pulse/id1690673211">Apple Podcasts</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5idXp6c3Byb3V0LmNvbS8yMTkyMjg2LnJzcw==">Google Podcasts</a> or <a href="https://music.amazon.com/podcasts/a9d37ab7-2e09-4ce9-93a5-bc0399d25fae">Amazon Music</a>.
<div id="buzzsprout-player-13878243"></div>
<script src=https://www.buzzsprout.com/2192286/13878243-episode-4-the-state-of-audit-quality.js?container_id=buzzsprout-player-13878243&player=small type="text/javascript" charset="utf-8"></script>

Podcast | Capital Markets Pulse, Episode 4

Auditors

Policymakers

Investors

Podcast

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.

Subscribe for the latest episodes on <a href="https://open.spotify.com/show/0Eom56jIKUbXXufaJ98yBX">Spotify</a>, <a href="https://podcasts.apple.com/us/podcast/capital-markets-pulse/id1690673211">Apple Podcasts</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5idXp6c3Byb3V0LmNvbS8yMTkyMjg2LnJzcw==">Google Podcasts</a> or <a href="https://music.amazon.com/podcasts/a9d37ab7-2e09-4ce9-93a5-bc0399d25fae">Amazon Music</a>.
<div id="buzzsprout-player-13830447"></div>
<script src=https://www.buzzsprout.com/2192286/13830447-episode-3-the-talent-pipeline-addressing-the-accountant-shortage-feat-guylaine-sainte-juste-and-mark-taylor.js?container_id=buzzsprout-player-13830447&player=small type="text/javascript" charset="utf-8"></script>

Podcast | Capital Markets Pulse, Episode 3

This hour-long webcast will showcase emerging issues facing public companies and their auditors. It will feature representatives from the SEC and PCAOB, followed by discussion panels consisting of public company auditors. Panelists will discuss the development, issuance and implementation of...

This hour-long webcast will showcase emerging issues facing public companies and their auditors. It will feature representatives from the SEC and PCAOB, followed by discussion panels consisting of public company auditors. Panelists will discuss the development, issuance and implementation of auditing standards that are currently underway at the PCAOB. Panelists will also discuss current projects that are the focus of the staff in the SEC’s Office of Chief Accountant.

<iframe title="YouTube video player" src="https://www.youtube.com/embed/Saf_Mnz1E3Y?si=ygLI4TiOTq5TK7QA" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
<h4>Participants</h4>
<ul>
 	<li>Anita Doutt, Senior Associate Chief Accountant, U.S. Securities and Exchange Commission</li>
 	<li>Barbara Vanich, Chief Auditor, PCAOB</li>
 	<li>Liz Gantnier, Regional Accounting &amp; Auditing Director, FORVIS</li>
 	<li>Mark Shannon, Partner, SEC Regulatory Matters, Crowe,</li>
 	<li>Rohit Elhance, Partner, SEC Regulatory Matters, Grant Thornton LLP</li>
 	<li>Dennis McGowan, Vice President, Professional Practice, CAQ</li>
 	<li>Annette Schumacher, Senior Director, Professional Practice, CAQ</li>
</ul>
<strong>Note: CPE available only to participants who joined the live webcast on October 18, 2023.</strong>

Audit Insider Webinar

Event

Join the Center for Audit Quality for a free CPE-eligible webinar focused on emerging issues facing public companies and their auditors. During the webinar, you will hear from leaders in public company auditing and its regulatory bodies, including keynote addresses...

Join the Center for Audit Quality for a free CPE-eligible webinar focused on emerging issues facing public companies and their auditors. During the webinar, you will hear from leaders in public company auditing and its regulatory bodies, including keynote addresses from leaders at the U.S. Securities and Exchange Commission and the Public Company Accounting Oversight Board.

The discussion will provide preparer and public company auditor perspectives on issues impacting auditors in today’s regulatory environment. Join this session to learn about the key themes arising in comment letters on filings from the most recent reporting cycle, and overarching themes in recent PCOAB inspection findings, including areas of concern highlighted by the PCAOB staff and observations and best practices from public company auditors.

&nbsp;

<iframe title="YouTube video player" src="https://www.youtube.com/embed/RGBVRsPwWHg" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
<h4></h4>
<h4><strong>Keynote Speakers Announced:</strong></h4>
<img class="alignnone wp-image-13965" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Headshot_Lindsay-McCord.jpg.png" alt="Lindsay McCord" width="100" height="100" />
<strong>Lindsay McCord</strong>
Chief Accountant, Division of Corporate Finance
U.S. Securities and Exchange Commission

<img class="wp-image-13964 alignnone" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Headshot_George-Botic.jpg.png" alt="George Botic" width="100" height="100" />
<strong>George Botic</strong>
Director of Registration and Inspections
Public Company Accounting Oversight Board
<h4><strong>Panelists:</strong></h4>
<ul>
 	<li>Rohit Elhance, Grant Thornton</li>
 	<li>Liz Gantnier, Forvis</li>
 	<li>Mary T. Hoeltzel, CIGNA</li>
 	<li>Dennis McGowan, Center for Audit Quality</li>
 	<li>Annette Schumacher, Center for Audit Quality</li>
 	<li>Mark Shannon, Crowe</li>
</ul>
<em><strong>Note</strong>: CPE available only to participants who joined the live webcast on July 19, 2023.</em>

Earn 1 CPE Credit

In partnership with ISSB, join us for a live broadcast from the New York Stock Exchange close to the expected launch of the IFRS Sustainability Disclosure Standards as part of a series of events taking place around...

<b>Earn 1 CPE Credit</b>

<span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">In partnership with ISSB, join us for a live broadcast from the New York Stock Exchange close to the expected launch of the IFRS Sustainability Disclosure Standards as part of a series of events taking place around the world. We'll be joining the International Sustainability Standards Board (ISSB) and other panelists to discuss the significance of the new standards, S1 and S2, in creating a global baseline of high-quality sustainability information for investors, and to corporate reporting and assurance in North America and around the world.</span>

<b><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Speakers include:</span></b>
<ul>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Emmanuel Faber, Chair International Sustainability Standards Board</span></li>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Barry Melancon, CPA, CGMA, CEO at Association of International Certified Professional Accountants; President &amp; CEO at American Institute of CPAs</span></li>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Julie Bell Lindsay, CEO of the Center for Audit Quality</span></li>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Pamela Steer, President &amp; CEO of CPA Canada</span></li>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Elizabeth King, President, Sustainable Finance &amp; Chief Regulatory Officer at Intercontinental Exchange</span></li>
 	<li><span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">Additional speakers to be announced.</span></li>
</ul>
<span data-darkreader-inline-bgcolor="" data-darkreader-inline-bgimage="">This virtual event is designed for accounting, finance, and audit/assurance professionals as well as investor relations professionals and sustainability professionals in the U.S. and abroad.</span>

ISSB Standards Launch Summit

Preparers/Issuers

Audit Committee Effectiveness: A Webinar Series
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...

<h4>Audit Committee Effectiveness: A Webinar Series</h4>
<em>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.</em>

<img class="alignnone wp-image-12997" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2022/11/CAQ_NACD_400x150.png" alt="CAQ NACD" width="200" height="75" />

<hr />

<h4>Episode 3:</h4>
<h2>The Audit Committee Blueprint</h2>
Public company boards are dealing with more than ever before. In an increasingly unpredictable future, this episode of the Audit Committee Effectiveness series discusses principles from the <a href="https://www.nacdonline.org/insights/publications.cfm?ItemNumber=74901">Audit Committee Blueprint</a>, developed by the NACD in partnership with KPMG’s Board Leadership Center. The Audit Committee Blueprint centers on 10 key principles that boards can use and adapt to ensure they are prepared for the future, with a focus on audit quality, internal audit, and audit committee focus and effectiveness. The webinar will focus on four key topics from the Blueprint report:
<ul>
 	<li>Talent in the organization’s finance function</li>
 	<li>Audit quality</li>
 	<li>Internal audit’s value</li>
 	<li>Compliance and culture</li>
</ul>
<iframe title="YouTube video player" src="https://www.youtube.com/embed/HY5dRtS1oBU" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
<h4>Panelists:</h4>
<ul>
 	<li><a href="https://www.linkedin.com/in/lfseidman/">Leslie Seidman</a>, Director, Moody’s and Janus Henderson</li>
 	<li><a href="https://www.theiia.org/globalassets/site/2022_aug_anthony_pugliese_full_bio_2.pdf">Anthony Pugliese</a>, President &amp; CEO, The Institute of Internal Auditors</li>
 	<li><a href="https://www.kpmg.us/bios/a/allen-claudia-h.html">Claudia Allen</a>, Senior Advisor, KPMG Board Leadership Center</li>
</ul>
<h4>Moderator:</h4>
<ul>
 	<li><a href="https://www.thecaq.org/about-us/our-people/vanessa-teitelbaum-cpa">Vanessa Teitelbaum</a>, Senior Director, Professional Practice at the CAQ</li>
</ul>
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<em><strong>Note</strong>: CPE available only to participants who joined the live webcast on August 22, 2023.</em>

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<h5>Watch previous episodes in this series:</h5>
<a href="https://www.thecaq.org/event-audit-committee-effectiveness-episode-1">Episode 1: Audit Committee: The Kitchen Sink of the Board</a>

<a href="https://www.thecaq.org/event-audit-committee-effectiveness-episode-2">Episode 2: 2023 Audit Committee Practices: Priorities and Committee Composition</a>

The Audit Committee Blueprint

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:
<ul>
 	<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

Washington, DC (November 30, 2023) – Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics released the 10th annual Audit Committee Transparency Barometer Report. While Audit Committees continue the trend of increasing disclosures in key areas of traditional...

<strong>Washington, DC (November 30, 2023) –</strong> Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics released the 10th annual Audit Committee Transparency Barometer Report. While Audit Committees continue the trend of increasing disclosures in key areas of traditional financial oversight, as well as in emerging areas of responsibility, room for improvement remains.

Because this year marks the 10th anniversary of the annual report, the data gathered provides a macro-level view of public company transparency over the last decade, as well as disclosure trends in evolving areas such as cybersecurity and ESG.

“Ten years in, the Transparency Barometer continues providing insights into the deliberations of audit committees and how they exercise their responsibilities,” said Marie Pupecki, CPA Senior Accounting Research Analyst, Ideagen Audit Analytics. “This report serves as an important tool for boards and the public to track and compare audit committee disclosures in the S&amp;P 1500.”

While the report finds improvement in disclosure on a host of important issues, it also argues for increased disclosures to improve audit committee transparency for investors and other capital market stakeholders. This year, the report identifies several opportunities for audit committees to enhance disclosures regarding audit fees, particularly the audit committee’s responsibility for fee negotiations and, as well as how audit committees consider auditor tenure and engagement partner selection.

“Improved audit committee disclosures serve an important role in promoting audit quality and auditor independence as well as meeting investor expectations,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “We are pleased to see disclosure trends increasing but also encourage audit committees to do more in sharing how they approach their important oversight responsibilities.”

Some key toplines of the report include:
<ul>
 	<li>Disclosures of the fact that audit committees are responsible for cybersecurity risk oversight and ESG rose by as much as 50% in the last year.</li>
 	<li>These new responsibilities also require expanded skill sets from audit committee members. Notably, we have seen changes in the audit committee’s composition, in terms of members and expertise, and responsibilities.</li>
 	<li>Areas with room for improved disclosures include how the audit committee considers the tenure of the external auditor, how audit committees are involved in selecting the external audit engagement partner, and discussions of audit fees.</li>
</ul>
The full report is available to read <a href="http://www.thecaq.org/2023-barometer">HERE</a>.
<p style="text-align: center;">###</p>
<strong>About The Center for Audit Quality</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.

<strong>About Ideagen Audit Analytics
</strong>Ideagen 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 <a href="mailto:info@auditanalytics.com">info@auditanalytics.com</a> or call 508-476-7007.

<strong>Contact
</strong>Brad Jacklin (CAQ)
<a href="mailto:bjacklin@thecaq.org">bjacklin@thecaq.org
</a>

Audit Committee Transparency Barometer Shows Continued Positive Disclosure Trends, Room to Improve

Press Releases

October 10, 2023, Pittsburgh, - The Pittsburgh Steelers announced today a multi-year partnership with the Center for Audit Quality’s (CAQ) Accounting+, a first-of-its-kind, multi-stakeholder nationwide campaign to attract a new generation of diverse students into the accounting talent pipeline.  The CAQ...

<strong>October 10, 2023, Pittsburgh, -</strong> The Pittsburgh Steelers announced today a multi-year partnership with <a href="https://www.thecaq.org/">the Center for Audit Quality</a>’s (CAQ) <a href="https://www.joinaccountingplus.com/">Accounting+</a>, a first-of-its-kind, multi-stakeholder nationwide campaign to attract a new generation of diverse students into the accounting talent pipeline.  The 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 core focus of this partnership is the ‘Steelers Showcase’ program, which will launch this fall. This program will expose students from across Western Pennsylvania to the field of accounting, with the committed goal of increasing the diversity of the accounting profession’s talent pipeline. At Steelers Showcase events, students will have the opportunity to network with members of the Steelers’ Finance Department and local industry executives.

We are thrilled to partner with an organization like the Pittsburgh Steelers, who have long championed diversity and inclusion”, said Julie Bell Lindsay, CAQ’s Chief Executive Officer. “We’re grateful to the Steelers for providing students with opportunities to network with leaders in accounting with this partnership, which we hope will propel our shared mission of increasing diverse student representation in accounting.”

To kick off the partnership, CAQ developed a <a href="https://www.youtube.com/watch?v=tLD4IZn4ICs&amp;feature=youtu.be">video with Omar Khan</a>, the Steelers’ General Manager. He won Super Bowls XL and XLIII as an executive with the team and is one of eight minority GMs in the NFL.

“As an organization, we pride ourselves on diversity, equity, and inclusion on and off the field”, said Khan. “We were instrumental in establishing the NFL’s Rooney Rule policy in 2003, and now we are impacting students of diverse backgrounds in this partnership with CAQ. The Steelers Showcase program will help pave the way for the next generation of industry leaders.”

<strong>Contact
</strong>Burt Lauten (Steelers)
(412) 432-7821

Brad Jacklin (CAQ)
<a href="mailto:bjacklin@thecaq.org">bjacklin@thecaq.org
</a>202-494-9560

Steelers Announce Partnership with the Center for Audit Quality to Introduce Students to Accounting

August 2, 2023, Washington D.C., - Prat Bhatt, former Chief Accounting Officer at Cisco, has been appointed to the CAQ’s Governing Board, effective August 1, 2023.

The CAQ’s Governing Board is comprised of chief executive officers from eight of the largest...

<strong>August 2, 2023, Washington D.C., - </strong>Prat Bhatt, former Chief Accounting Officer at Cisco, has been appointed to the CAQ’s Governing Board, effective August 1, 2023.

The CAQ’s Governing Board is comprised of chief executive officers from eight of the largest public company auditing firms and the American Institute of CPAs, as well as three independent board members. The Governing Board provides oversight for the CAQ and leads the development of the organization’s strategic agenda.

“Through his expansive experience with finance initiatives at Cisco and his public company board service, Prat has a deep understanding of our capital markets,” said Julie Bell Lindsay, CEO, CAQ. “As the financial reporting landscape in the U.S. continues to evolve, Prat’s expertise will be invaluable to our Governing Board as we continue to fulfill our mission of building and maintaining investor trust in our capital markets.”

“High-quality audits are what drives investor-decision making, and in turn, the smooth operation of our capital markets,” said Bhatt. “I’m pleased to join the CAQ’s Governing Board as they continue to work with the public company audit profession to maintain the highest standards for audit quality.”

<strong>About the Center for Audit Quality
</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.

<strong>Contact
</strong>Brad Jacklin
<a href="mailto:bjacklin@thecaq.org">bjacklin@thecaq.org
</a>202-494-9560

Cisco’s Former Chief Accounting Officer Prat Bhatt Appointed to CAQ’s Governing Board

Company Management

Despite barriers identified, students are open to accounting and opportunities exist to drive them to pursue the degree 

Washington D.C., July 24, 2023 – Amid a shortage of accountants, undergraduate business students report encountering obstacles to pursuing a degree in...

<em>Despite barriers identified, students are open to accounting and opportunities exist to drive them to pursue the degree </em>

<strong>Washington D.C., July 24, 2023 – </strong>Amid a shortage of accountants, undergraduate business students report encountering obstacles to pursuing a degree in accounting, according to a recent report from the Center for Audit Quality (CAQ).

The report, <a href="https://www.thecaq.org/increasing-diversity-in-the-accounting-profession-pipeline"><em>Increasing Diversity in the Accounting Profession Pipeline: Challenges and Opportunities, July 2023</em></a>, builds upon the CAQ’s <a href="https://www.boldambition.org/ResearchReport">research</a> from January 2022.  Specifically, the CAQ again commissioned Edge Research to gain deeper insight into why undergraduate business students do or do not choose accounting, and why accounting majors and graduates do or do not pursue CPA licensure.

Some of the interesting findings from the research include:
<ul>
 	<li>While openness to accounting exists at the undergraduate business school level, the most significant reasons for not choosing accounting as a major included a lack of interest or passion for the major (driven in part by negative experiences with introductory accounting classes), higher starting salaries in other majors and students not wanting to pursue the 150 academic credit hours required for CPA licensure. The 150 credit hour requirement was more pronounced for Black and Hispanic accounting majors.</li>
 	<li>The CPA license is highly regarded by both accounting majors and graduates. However, a variety of structural supports are correlated with plans to pursue the license, including encouragement of a professor/mentor and whether a student’s college offered a 150 credit hour program (i.e., an accelerated undergraduate program covering 150 credit hours or a 5-year Masters in Accounting program). Black and Hispanic majors and graduates reported less access to such structural supports.</li>
 	<li>The research further shows that for majors and graduates who are planning to pursue CPA licensure and have already met the 150 credit hour requirement, the time required to study for the CPA exam and the difficulty of the exam content were the top obstacles. For those majors and graduates that have not yet completed the 150 hour requirement, the additional cost and time needed to reach it were the biggest obstacles to CPA licensure.</li>
 	<li>For recent accounting graduates, overall work satisfaction shows room for improvement, with higher income earners, those in public accounting firms (including the Big 4) and those with the CPA license most satisfied, and those not pursuing the CPA license and lower income earners least satisfied. Black recent graduates were significantly less satisfied with organizational culture.</li>
</ul>
“In discussion with interested stakeholders, we sought to build on our prior research to better understand why business school students were – or were not – pursuing accounting and the obstacles to CPA licensure,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “It is important to understand the perspectives of students who were interested in accounting but ultimately did not pursue the career.  We also need to recognize not all potential career accountants are starting from the same place.”

“This report is a part of our broader effort to increase diversity within accounting and highlight for our stakeholders actions that can be taken to attract new talent to the profession,” said Liz Barentzen, Vice President, Operations and Talent Initiatives, CAQ. “The data shows we have much more work to do around awareness and perceptions of an accounting career, and with our multi-year, collaborative, data-driven Accounting+ campaign, I am confident we can address this aspect of the continuing accounting pipeline challenges.”

Download the <a href="https://www.thecaq.org/increasing-diversity-in-the-accounting-profession-pipeline">full report</a> to learn more about these results.

<strong>About the Report</strong>

The CAQ once again partnered with Edge Research to conduct qualitative and quantitative research in two phases. In total, Edge Research heard from more than 1,800 students and recent graduates between October 2022 and May 2023.

In the qualitative phase, Edge Research conducted in-depth interviews (IDIs) with business students and recent accounting graduates. Within the business student groups, nine identified as Black, six as Hispanic, and nine as White/other. Out of these twenty-four students, seven were accounting majors while seventeen were non-accounting business majors. The recent accounting graduate group consisted of fourteen IDIs, of whose participants six identified as Black, six as Hispanic, and nine as White/other.

The quantitative phase consisted of a national survey sample of 1,400 business students at four-year and community colleges and 400 recent accounting graduates employed as accounting professionals.

<strong>About the Center for Audit Quality </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.

Significant Barriers Deter Students from Pursuing a Degree in Accounting, According to CAQ Report

Academics

CAQ in the News

The CAQ applauds the International Sustainability Standards Board (ISSB) for launching its first two sustainability disclosure standards. These standards are a significant milestone on the path to delivering a comprehensive global baseline of sustainability-related financial disclosures that will bring investors...

The CAQ applauds the International Sustainability Standards Board (ISSB) for launching its first two sustainability disclosure standards. These standards are a significant milestone on the path to delivering a comprehensive global baseline of sustainability-related financial disclosures that will bring investors consistent, comparable sustainability-related financial information.

“Investors continue to demand high-quality, accurate, reliable information on climate,” said Julie Bell Lindsay, Chief Executive Officer, Center for Audit Quality. “We are pleased with the ISSB’s newly-launched standards, which will not only help preparers provide sustainability-related financial disclosures to investors but also provide a basis for auditors to deliver credible and reliable assurance over information prepared in accordance with these standards.”

CAQ Statement of Support for ISSB’s S1 and S2 Standards

Statements

Since 2014, the Center for Audit Quality (CAQ), together with Ideagen Audit Analytics, has analyzed audit committee disclosures of companies in the Standard &amp; Poor’s (S&amp;P) Composite 1500 (S&amp;P 1500), which is composed of the S&amp;P 500 large-cap companies (S&amp;P 500), the S&amp;P MidCap 400 (S&amp;P MidCap), and the S&amp;P SmallCap 600 (S&amp;P SmallCap).

2023 Audit Committee Transparency Barometer

Publications

In an effort to engage capital market stakeholders and better understand their information expectations, the CAQ commissioned KRC Research to conduct qualitative research with institutional investors whose portfolio consists primarily of equities in North America, working in a range of...

In an effort to engage capital market stakeholders and better understand their information expectations, the CAQ commissioned KRC Research to conduct qualitative research with institutional investors whose portfolio consists primarily of equities in North America, working in a range of investment settings from family offices to pensions and large banks.

The research was primarily designed to:
<ul>
 	<li>Understand what information institutional investors seek regarding public company auditing and the audit process, and</li>
 	<li>Explore attitudes toward potential standards and regulations related to additional reporting or audit requirements.</li>
</ul>
This research was also commissioned to understand how institutional investors perceive the state of corporate reporting and what they are looking for when it comes to existing and emerging types and sources of information.

<a href="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/11/caq_perspectives-on-corporate-reporting-the-audit-and-regulatory-environment_2023-11.pdf">Download the full report</a> now to explore perspectives of institutional investors, who utilize the work of public company auditors, on corporate reporting, audit quality, and potential standard setting topics.

The Center for Audit Quality

2023 Audit Committee Transparency Barometer

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