Welcome back, Audit Insiders!
It’s hard to believe we are closing in on the end of summer, but the last month has been plenty busy here at the CAQ.
My colleagues and I have stayed active, weighing in on tech and assurance developments, spotlighting the value of auditor independence in the Wall Street Journal, and prepping for key conversations at the upcoming Axios AI+ Summit and NACD’s annual summit in October.
Read on for what I’m tracking.
Please note that these perspectives are my own. If this email was forwarded to you, subscribe here so that you never miss a public company auditing update.
SEC
SEC Seeks Applicants for Five PCAOB Board Seats
The SEC is seeking nominations for all five seats on the Public Company Accounting Oversight Board (PCAOB). Nominees must be individuals of integrity and reputation who are committed to investor protection and the public interest, and who have a strong understanding of the responsibilities for and nature of public company financial disclosures. Applications are due by August 25, and I encourage qualified candidates to consider this opportunity to contribute to the oversight of the audit profession.
PCAOB
George Botic Named Acting Chair
Following the resignation of Erica Williams, the SEC named George R. Botic to serve as Acting Chair of the PCAOB. As a CPA and longtime PCAOB leader, Acting Chair Botic previously led the Division of Registration and Inspections and has served in senior roles across the Board, including as Director of the Office of International Affairs. We welcome Acting Chair Botic and look forward to working with him in advancing the PCAOB’s mission to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports.
The Audit Effect: The Evolving Role of the Auditor
As investor demand evolves, so does the role of public company auditors. The CAQ is dedicated to providing resources to keep you up-to-date on trending topics in corporate reporting.
PwC Unveils First-of-Its-Kind AI Assurance Solution
As firms look to integrate AI into their workstream, PwC has launched Assurance for AI, a first-to-market offering aimed at helping businesses gain independent assurance over their AI systems. The new service blends deep technical understanding with audit and risk frameworks to evaluate AI systems for fairness, transparency, and operational effectiveness. Learn more.
Deterring and Detecting Fraud
As investor demand evolves, so does the role of public company auditors. The CAQ is dedicated to providing resources to keep you up-to-date on trending topics in corporate reporting.
Benchmarking Fraud Risk in 2025
The Association of Certified Fraud Examiners (ACFE), in partnership with the Anti-Fraud Collaboration (AFC), released a new benchmarking report, The Impact of Fraud at U.S. Public Companies. Based on a 29-question survey, the study explores fraud losses, contributing factors, and how organizations are prioritizing prevention in an evolving risk environment. The AFC also released a summary of an executive workshop held to facilitate a multi-stakeholder discussion of the findings in the benchmarking report.
The CAQ’s latest Institutional Investor Survey, conducted in collaboration with KRC Research, found that eight in ten U.S. institutional investors view fraud at public companies as a medium-to-high risk, and cyberfraud ranked as both the most likely and potentially most damaging, followed by customer payment fraud and vendor or seller fraud. The findings also highlight that investors see the most potential for improvement is from greater transaction monitoring, including the use of AI, to strengthening ethical leadership and corporate culture. Read the full survey results.
Audit Quality
Audit quality in the U.S. remains strong, but with new technologies, evolving regulatory priorities, and shifting market risks, staying ahead requires continuous attention. The CAQ is actively engaging with stakeholders, providing resources, and leading conversations to help practitioners navigate these changes. Read on for recent news, tools, and upcoming events shaping the profession.
The CAQ Joins Axios’ AI+ Summit
We’ll be joining government, tech, and finance leaders at the Axios AI+ Summit in Washington, D.C., to discuss how assurance can help bridge the trust gap in a rapidly changing AI landscape.
Sign up for the event updates.
The Latest on Sustainability Reporting
At the CAQ, we believe trust and transparency are essential to healthy capital markets. When companies engage public company auditors to provide assurance, they help build confidence in the sustainability information stakeholders depend on. In an Audit in Action blog, my colleague, Desiré Carroll, Senior Director of Professional Practice at the CAQ, shares insights from our 2023 S&P 500 Sustainability Reporting and Assurance Analysis.
Our research shows a steady rise in assurance activity, with 73% of companies that reported sustainability information obtaining some form of assurance, which is up from 70% in 2022. Most companies focus assurance on greenhouse gas (GHG) emissions along with one to three other sustainability metrics. Notably, 24% turned to public company auditors for this work, reinforcing the market’s demand for independent, investor-grade reviews.
As investor expectations continue to evolve, the CAQ will monitor developments and provide insights to support high-quality, reliable reporting in a changing landscape. Unpack more takeaways.
Upcoming Event: CAQ at NACD Summit
On October 14, my colleague, Vanessa Teitelbaum, will be at the NACD Directors Summit for a panel discussion titled Navigating Priorities: What Audit Committees Need to Know. The session will cover regulatory developments in cybersecurity, data, and financial reporting, and how audit committees can engage effectively with auditors to oversee emerging risks. Be sure to register, and I hope to see you there!
ICYMI: July’s Public Policy and Technical Alert (PPTA)
Our latest Public Policy and Technical Alert rounds up developments that could shape the audit environment in the months ahead. Highlights include the SEC’s roundtable on DeFi and crypto assets, the PCAOB’s broker-dealer audit inspection results, FASB’s progress on government grants, and AICPA exposure drafts on attest engagements and stablecoin controls. On the international front, the FRC issued its first guidance on using AI in audits, while the IFRS Foundation published new resources on sustainability disclosures, transition plans, and reporting uncertainties. Take a look.
Dennis McGowan
Vice President, Professional Practice and Anti-Fraud Initiatives