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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. 

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 The proposal sets out to eliminate outdated and inconsistent language and incorporates updates to make the standards more timely, relevant, and easier to understand and apply.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://thecaqprod.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://thecaqprod.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

Audit Quality

Emerging Reporting Areas

Blog Post

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://thecaqprod.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

The accounting talent pipeline is a topic getting attention in the media, at firms, and in colleges around the country. What's often missing from these public discussions is a look at what accounting offers today's students. Accounting is a people-centric...

<span data-contrast="none"><span class="ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak" dir="ltr">The accounting talent pipeline is a topic getting attention in the media, at firms, and in colleges around the country. What's often missing from these public discussions is a look at what accounting offers today's students.</span> Accounting is a people-centric field that involves working on high-impact projects in teams, honing skills in business, technology, and operations.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}"> </span>

<span data-contrast="none">I was drawn into accounting because of the profession’s purpose to serve the public interest and the flexibility the field offered.  </span>

<span data-contrast="none">Like other professions, we are always working to shape the future, define our relevance, and meet the expectations of our talent. Addressing barriers to entry like the 150-hour rule, as referenced in your article, could help recruit new people to accounting. But there are other barriers. More than 90% of high school and college students say that the current regulatory environment is another reason they pass up accounting. </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}"> </span>

<span data-contrast="none">There are good reasons to go into accounting. The sense of purpose and flexibility that attracted me, the chance to play a pivotal role in the success of a business, and the broad business acumen gained from a degree in accounting are just a few. </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}"> </span>

<span data-contrast="none">The profession is working to bring students back into the accounting pipeline with efforts like my organization’s <a href="https://www.joinaccountingplus.com/">Accounting+</a> campaign, a coalition initiative shedding light on what accounting is, and isn’t, for high school and college students. As a first-generation college graduate who decided to pursue a career in accounting when I was exposed to it in high school, I understand the value of talking to students early about what it’s really like to be an accountant. </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}"> </span>

<span data-contrast="none">Accounting has been a rewarding career for me. It can be for today’s students as well.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}"> </span>

&nbsp;

<hr />

<strong>Author</strong>: <a href="https://www.thecaq.org/about-us/our-people/dennis-mcgowan-cpa">Dennis McGowan, CPA</a>, Vice President, Professional Practice and Anti-Fraud Initiatives

The Possibilities in an Accounting Career

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://thecaqprod.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://thecaqprod.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

Audit Committee

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://thecaqprod.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>

</div>
</div>
</div>
</div>
</div>

<hr />

<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

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

Press Releases

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

 
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.

Cybersecurity

Non-GAAP

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://thecaqprod.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.

Perspectives on Corporate Reporting, the Audit, and Regulatory Environment: Institutional Investor Research Findings

Global

Publications

Broker Dealers

The CAQ appreciates the opportunity to share some high-level observations related to the Securities and Exchange Commission (SEC), Notice of Filing of Proposed Rule Change to Amend the NYSE Listed Company Manual to Adopt Listing Standards for Natural Asset Companies...

The CAQ appreciates the opportunity to share some high-level observations related to the Securities and Exchange Commission (SEC), <a href="https://www.sec.gov/files/rules/sro/nyse/2023/34-98665.pdf">Notice of Filing of Proposed Rule Change to Amend the NYSE Listed Company Manual to Adopt Listing Standards for Natural Asset Companies</a> (Proposed Rule Change or Release). Our comments focus on the proposed requirements regarding 1) examination and attestation by independent reviewers and 2) corporate governance. Given the limited timeframe to evaluate the specifics of the reporting framework, and the fact that this will represent a new type of company with novel license arrangements, we believe additional questions could arise as entities begin to apply the Reporting Framework. We recommend the NYSE continue to monitor developments, including relating to the operability of the reporting and examination requirements, and propose changes to the Reporting Framework should the need arise. As noted in the proposal, such changes would be considered changes to the listing standards and thus would be subject to approval by the SEC.

Read the full comment letter <a href="https://thecaqprod.wpenginepowered.com/wp-content/uploads/2023/11/NYSE-NAC-Comment-Letter-for-Filing-10-25-23_Final_Signed.pdf">here</a>.

Comment Letter | File Number SR-NYSE-2023-09; Notice of Filing of Proposed Rule Change to Amend the NYSE Listed Company Manual to Adopt Listing Standards for Natural Asset Companies

Comment Letter

Auditor Independence

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...

The Center for Audit Quality

Explore the CAQ’s Resources on Noncompliance with Laws and Regulations (NOCLAR)

Trending Resources

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