Welcome back to another edition of Audit Insider!
May has been a busy month for the profession! From the CAQ’s comment letters to the OCC and the PCAOB to regulatory updates from the SEC and PCAOB, the work continues!
Plus, we also have takeaways from the team’s most recent speaking engagements, the latest on fraud technology, and a look ahead at an upcoming webinar on audit committee effectiveness. I can’t wait to hear about your plans to decompress and recharge as we head into the summer.
In the meantime, 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 Semiannual Reporting
The debate over public company reporting frequency continues to develop. Earlier this month, the SEC put out a call for comments on their recent proposal to permit an optional shift from quarterly to semi-annual reporting. The CAQ’s position remains consistent: Auditors are equipped to provide high-quality, independent assurance under any framework regulators establish, and the CAQ will continue to engage constructively as that conversation develops. We are analyzing the proposal and preparing our comment letter response. We encourage stakeholders to submit comment letters too. Comments can be submitted to the SEC by July 6th here.
SEC Registered Offerings and Filer Status and Emerging Growth Company Reforms
The SEC also released proposals seeking to modernize registered offerings and amend filer status definitions along with emerging growth company (EGC) accommodations. These proposals could represent significant changes for current and new public companies. We are still reading these proposals but encourage stakeholders to submit their perspectives to the SEC. Comments for these proposals are due by July 20th and can be submitted here for registered offerings or here for filer status and EGC reforms.
CAQ Comment Letters: GENIUS Act and PCAOB Strategic Priorities
The CAQ submitted two comment letters this month.
The first, submitted on May 1st, responds to proposed rulemaking to implement the GENIUS Act, which establishes a federal framework for payment stablecoin issuers. As digital assets become more embedded in the financial system, the CAQ’s letter addresses what sound oversight and disclosure requirements should look like, and the role of auditors in supporting and maintaining market confidence.
The second letter, submitted on May 15th, responds to the PCAOB’s request for comments on its strategic priorities. As we noted last month, Chair Logothetis has indicated a commitment to stakeholder engagement in setting the Board’s agenda, and this comment process is an opportune moment for the profession to weigh in. Our letter reflects member firm perspectives on where the PCAOB’s resources and attention will matter most over the next several years.
ACC Comment Letter to the PCAOB on Strategic Priorities
The Audit Committee Council also submitted a letter to the PCAOB in response to the strategic priorities consultation. The ACC’s letter brings an audit committee perspective to the Board’s planning process, reflecting the governance community’s stake in a well-functioning, appropriately resourced standard-setter.
Read more here.
PCAOB Investor Advisory Group and Standards and Emerging Issues Advisory Group Meetings
The PCAOB’s Investor Advisory Group (IAG) and Standards and Emerging Issues Advisory Group (SEIAG) both met recently, covering topics like inspection reporting, strategic priorities, artificial intelligence, and standard setting. These are the Board’s two standing advisory groups, and their meetings are open to the public.
The meetings of IAG and SEIAG are particularly notable given where the PCAOB is in its strategic planning process. Input from the various stakeholder groups on inspections, strategic priorities, and emerging technology feeds directly into how the Board sets its priorities, and the breadth of the agenda reflects how much is currently in motion for the profession.
Fighting Fraud
The 2026 Anti-Fraud Technology Benchmarking Report
The ACFE’s 2026 Anti-Fraud Technology Benchmarking Report, a resource the CAQ and the Anti-Fraud Collaboration are highlighting for practitioners and governance professionals, paints a picture of an industry in transition. Only 7% of organizations feel more than moderately prepared to detect and prevent AI-powered fraud, and just 16% report using generative AI in their anti-fraud programs. Budget constraints remain the most common barrier, affecting 83% of organizations.
For auditors, the findings on AI model oversight stand out: 75% of respondents consider bias or lack of fairness a key factor in adopting AI tools, but only 18% actually test their models for it. As AI becomes more embedded in financial reporting and fraud detection, that gap has direct implications for audit quality and risk assessment.
Read more here.
Takeaways from the Milken Institute Global Conference
The CAQ participated in a roundtable at the Milken Institute Global Conference, engaging with investors, executives, and policymakers on questions central to the profession: the reliability of financial information, the expanding scope of assurance, and the role of independent audit in maintaining market trust. Conversations at Milken tend to surface what institutional investors and senior business leaders are actually focused on, and this year’s roundtable was no different.
We will have more to share from those discussions in the coming weeks, but the takeaway was consistent with what we hear across channels: the value of independent assurance is well understood at the leadership level.
We Need Your Perspectives: Audit Committee Practices Survey
As you wrap up this issue, we invite you to share your perspective through this year’s Audit Committee Practices Survey. Your input helps identify evolving oversight priorities and highlight leading practices across audit committees and includes a new focus on artificial intelligence (AI) oversight, reflecting its growing importance in the boardroom.
If you currently serve on an audit committee, the CAQ and Deloitte’s Center for Board Effectiveness encourage you to take 10 minutes to participate.
The Audit Effect: The Evolving Role of the Auditor
Finalizing the Inspection Report Process for Broker-Dealer Audits
The SEC’s Chief Accountant has urged the PCAOB to establish a permanent broker-dealer audit inspection program, a development the CAQ has been engaged in. The existing inspection framework for broker-dealer audits has operated on a temporary basis since 2011. The CAQ supports a well-designed, permanent inspection framework and will continue to engage with the PCAOB as this process moves forward.
Upcoming: Audit Committee Effectiveness Webinar
Keep an eye out for our upcoming webinar on audit committee effectiveness. Details on speakers and registration will be available shortly. For background on the issues the webinar will address, the Audit Committee Practices Report and the Audit Committee Resource Center are good places to start.
Dennis McGowan
Vice President, Professional Practice and Anti-Fraud Initiatives