Welcome back, Audit Insiders!
As we near the end of the year, regulatory bodies and the profession have been busy discussing key issues, from the oversight of emerging technologies like AI to major shifts in regulatory leadership. As we close out 2025 and prepare for 2026, our focus remains on reinforcing the trust that underpins the capital markets.
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 & PCAOB
PCAOB to Host Open Meeting on 2026 Budget
On Friday, December 19, 2025, the PCAOB will host an open meeting to consider the adoption of the PCAOB’s Fiscal Year 2026 budget. Section 109 of Sarbanes-Oxley requires the PCAOB to adopt and approve a budget that then goes on to the Securities and Exchange Commission for approval. Friday will be the meeting where the PCAOB votes on whether to adopt the budget. Once approved, the PCAOB will send the budget to the Securities and Exchange Commission for approval.
CAQ Attends the Annual AICPA & CIMA Conference on Current SEC and PCAOB Developments
Earlier this month, my colleagues and I attended the annual AICPA & CIMA Conference on Current SEC and PCAOB Developments here in our nation’s capital. Regulators and standard-setters discussed a broad range of auditing, accounting, financial reporting, and regulatory matters. Three key takeaways:
- Make IPOs Great Again: SEC leadership emphasized the importance of materiality and reducing unnecessary reporting and regulatory complexities and a desire to get back to basics, including materiality.
- International Coordination: SEC Chief Accountant Hohl discussed a need for greater coordination between U.S. and international accounting and auditing standard-setters to reduce complexity.
- Emerging Risks from AI: AI was discussed on a number of panels. SEC staff emphasized the need for registrants be focused on the governance in place to manage the implementation and use of AI. Auditors were reminded of the need to understand and document the model’s design and the importance of maintaining human oversight in AI-driven internal controls. Here at the CAQ, we have shared resources for auditors and audit committees when it comes to AI integration into financial reporting processes.
SHOUTOUT: This conference is planned by members of the CAQ’s SEC Regulations Committee. A huge thank you to my colleague Annette Schumacher, and Conference Chair, Kyle Moffatt, Conference Vice Chair, Mark Shannon,and the rest of the planning committee who made this conference possible.
SEC Chair Paul Atkins Delivers Remarks at the New York Stock Exchange
On December 2, SEC Chairman Paul Atkins spoke at the New York Stock Exchange. His remarks, “Revitalizing America’s Markets at 250,” signaled a significant policy shift aimed at reversing the 40% decline in public company listings. The core of his plan is to reduce the compliance burden for issuers by strictly enforcing materiality as the benchmark for disclosures
Here at the CAQ, we know the important role that auditors play in protecting the capital markets and will continue to share resources as the regulatory landscape evolves.
SEC Crypto Task Force Addresses Surveillance and Privacy
On December 15, Commissioner Hester M. Peirce led the SEC Crypto Task Force in a roundtable focusing on the intersection of surveillance and user privacy. The event focused on the conflict between using surveillance to stop financial crime and protecting user privacy in decentralized finance.
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.
Fraud Forum Summary
During this year’s Fraud Awareness Week, the Anti-Fraud Collaboration (AFC) hosted its second Fraud Forum. The event focused on the evolving fraud risk landscape, emphasizing the need for a corporate culture of integrity and accountability. For auditors, audit committees, and management, the mandate is clear: effective fraud deterrence begins with a corporate culture that empowers and protects those who speak up. Keynote speaker Tyler Shultz reinforced the critical role of whistleblowers, calling employee empowerment the strongest defense against fraudulent activity. The forum highlighted the increasing sophistication of fraud schemes leveraging AI and deepfakes, requiring continuous learning and a heightened level of professional skepticism from auditors. A summary of the event is available here.
As we continue our shared fight against fraud, I encourage you to discover additional AFC resources to help protect your organization.
AFC Update from AICPA Conference
At the annual AICPA Conference on Current SEC and PCAOB Developments, I moderated a session on efforts to strengthen financial fraud prevention across the reporting ecosystem through the Anti-Fraud Collaboration. Alongside fellow CAQ panelists Erin Cromwell, Manager, Professional Practice, and Lucy Wang, Director, Anti-Fraud Initiatives, we explored the AFC’s four core priorities: understanding emerging fraud risks through benchmarking research, building strong ethical cultures that defend against the fraud triangle, maintaining professional skepticism despite barriers like time pressure and complacency, and leveraging technology including AI and generative AI to detect and prevent fraud.
Visit the AFC’s website to explore tools you can use in your own oversight and fraud prevention work.
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.
CAQ Releases the 2025 Audit Committee Transparency Barometer
Earlier this month, the CAQ released the 12th annual Audit Committee Transparency Barometer. The report revealed a stagnation in many key disclosure areas. While disclosure of the board’s skills matrix reached high rates (90% for S&P 500 companies) and disclosure of cybersecurity expertise on boards increased, other key disclosures, such as the annual evaluation of the external auditor and the factors considered in their reappointment, either remained flat or slightly declined. The report emphasized that this plateau represents a missed opportunity for audit committees to enhance transparency about their evolving oversight responsibilities, particularly regarding emerging risks like AI adoption. Discover further observations here.
Audit Insider: Vanessa Teitelbaum
As 2025 comes to a close, I was happy to sit down with Vanessa Teitelbaum, Senior Director, Professional Practice at the CAQ to reflect on her career and time at the Center for Audit Quality.
- What led you to a career in accounting and auditing?
I was an Asian Studies major at Williams college. I didn’t really know what I wanted to do as a career. I took an accounting night class and then I got a job at PwC, such that I was employed and participated in a Master’s in Accounting program at NYU that was geared for liberal arts graduates. I thought that I would like accounting, and I was right. The structured career progression at a public accounting firm appealed to me. I stayed at PwC for 14 years. - You have been at the CAQ for almost 10 years. What do you enjoy most about your work at the CAQ?
When I joined the CAQ, it was a leap of faith. I was ready to try something different, but I didn’t really know what the job would entail. I like the people I work with – both internally and externally. We have a great team at the CAQ and wonderful stakeholders – committee and task force members who are dedicated to this profession. I enjoy the public-facing nature of our work. I like networking and meeting new people. I also find our work very intellectually stimulating. We work on interesting problems and solutions that impact the broad ecosystem of financial reporting and auditing. - What is your advice to auditors preparing for their very first busy season?
Be responsive and overcommunicate. I think this alleviates some of the stress during busy season. When someone asks you to do something, acknowledge the request. Tell your supervisor that you are working on something. Let them know if something is taking longer than you expected. Be resourceful but also don’t be afraid to ask for help. If you have a personal or family emergency, talk to your team. And, be the person who helps others. Busy season can be very rewarding when you have good teamwork. - Outside of work, you are an accomplished runner, swimmer, and biker. What do you enjoy most about training for marathons, triathlons, and ultra runs?
I love training for a race. Whether it’s a 5-mile trail run or a bigger event like a half-Ironman, it’s fun to have a goal. I especially like training for races with friends. Having a goal keeps me motivated and gets me to the pool or the gym. I love race day. It’s often early in the morning. There is a fun race-day vibe and lots of enthusiasm. I have three goals on race day: finish with a smile, stay out of the medic tent, and make friends along the way. And so far, I always have!
Dennis McGowan
Vice President, Professional Practice and Anti-Fraud Initiatives