Welcome back, Audit Insiders!
I hope you all were able to enjoy the Thanksgiving holiday and recharge for the race to the New Year. It is hard to believe that the traditional “busy season” is fast approaching.
My colleagues and I remain focused on providing the clarity and technical perspective necessary to support audit quality across the profession.
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.
PCAOB
Christina Ho to Depart the PCAOB
Board member Christina Ho announced that she will depart the PCAOB the earlier of January 31, 2026 or the date the SEC appoints a successor to her position. Ho’s term ended on October 24, 2025, and she chose to not apply for reappointment. I thank Board Member Ho for her service to the PCAOB since she was sworn in on November 9, 2021.
PCAOB SEIAG Hosts Meeting on Emerging Technologies
On November 5, the PCAOB’s Standards and Emerging Issues Advisory Group (SEIAG) held a meeting dedicated to technology. The discussion centered on two critical areas: AI and Cryptocurrency.
Acting Chair George Botic emphasized that the PCAOB cannot afford a “wait and see” approach to AI. He stated, “Our response must be principled, adaptive, and deliberate. In professional services, like auditing, where critical thinking and professional skepticism are non-negotiable, the adoption of AI demands a heightened understanding of its impact and consequences from all of us.”
The meeting also discussed the novel challenges crypto introduces to traditional audit procedures. SEIAG members discussed the AICPA Digital Assets Practice aid and encouraged any guidance from the PCAOB to start with guidance in that practice aid.
PCAOB Hosts Smaller Firm and Broker-Dealer Forum in Los Angeles
On November 12, Board Member Kara M. Stein hosted a forum on Auditing in the Small Business Environment and on Auditing Broker-Dealers in Los Angeles. This forum provided registered audit firms with timely information and updates on PCAOB activities for both the small business sector and broker-dealers, while also serving as an opportunity for PCAOB staff and Board Members to receive direct input on current issues impacting the profession. Learn more about the event.
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.
Role of the Auditor: Professional Skepticism
The consistent application of professional skepticism is the indispensable cornerstone of audit quality, particularly in periods of uncertainty and change. Recognizing that its application is inherently judgment-based and situational, the CAQ is actively driving the conversation on how auditors can cultivate and maintain a questioning mindset throughout all phases of the audit.
Our latest resource, in collaboration with the Anti-Fraud Collaboration (AFC), explores why this focus is essential as fraud risks evolve and financial reporting challenges grow more nuanced. Auditors must embrace continuous learning and adaptability to understand how advancements in technology, like Artificial Intelligence, impact their ability to effectively exercise skepticism. Our guidance helps practitioners hone their questioning mindsets, use tools like the skepticism continuum, and understand factors that could otherwise impede this critical judgment. I encourage you to explore the actionable insights and share them with your network.
Fighting Fraud
Celebrating International Fraud Awareness Week
In November, we celebrated International Fraud Awareness Week (November 16–22), which served as a vital global effort to combat fraud by promoting anti-fraud awareness and education. To participate in this celebration, the AFC hosted our second annual Fraud Forum to convene stakeholders in Washington, DC to discuss what all stakeholders in the financial reporting ecosystem can do to strengthen our fraud deterrence and detection.
Stay tuned for a summary of this forum in a future Audit Insider.
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.
10-K Analysis: Assurance Drives Credibility in New Disclosures
The most recent analysis of S&P 500 Companies’ 10-Ks, detailed further in my colleague Desiré Carroll’s latest blog, confirms that corporate reporting continues to evolve and incorporate disclosures on new and emerging topics. The research underscores the importance of transparency and disclosure to our capital markets.
In analyzing AI disclosures, we observed that 90% of S&P 500 companies referenced AI-related information in their 2024 10-K, demonstrating an increase of nearly 25% compared to the preceding year. Our first-ever analysis of digital assets found that 47 S&P 500 companies are reporting this information. Finally, reporting of climate-related information remains nearly universal, with 494 S&P 500 companies mentioning climate-related information in 2024.
Read Desiré’s blog to learn more about where in the 10-K we observe disclosures in these emerging areas. Spoiler alert, much of the information on these topics is not disclosed in the financial statements.
CAQ Releases the Fall 2025 Audit Partner Pulse Survey
The Fall Audit Partner Pulse Survey results are here! Fielded partly during the federal government shutdown, the survey provides a uniquely informed view of the U.S. business climate. Our findings confirm a significant shift toward economic pragmatism, as pessimism dropped substantially from 44% to 22%.
The risk landscape has also shifted. Regulatory ambiguity (54%) and trade tensions (53%) have now displaced recession fears as the top economic risks identified by audit partners. Reflecting this cautious environment, top priorities for public companies observed by audit partners are financial performance and cost management, with strategic AI investments ranking closely behind. In response to this focus on efficiency, companies are proactively increasing disclosures on business strategy, financial performance, and AI integration.
Spotlight on Fraud Deterrence and Detection
This month, I am pleased to feature Andi McNeal, Chief Training Officer at the Association of Certified Fraud Examiners (ACFE). I have had the privilege of working with Andi these last two years in the Anti-Fraud Collaboration. Andi’s commitment and passion for our profession and the work of anti-fraud professionals is so inspiring. I am so pleased I got to ask her about her career and the work of the ACFE.
What makes you passionate about your career as an auditor and the work you do at the Association of Certified Fraud Examiners?
That’s an easy one—it’s 100% the people. I started my career thinking I’d probably change jobs every few years because I tend to crave new adventures so much. But then I found myself at ACFE, working with people all over the world who are so dedicated to combatting fraud in all its forms and to promoting integrity and ethics in all they do, and I’ve been hooked ever since. My 21+ years at ACFE have been filled with meeting and learning from so many inspirational individuals—from our amazing members to world-renowned experts to some of the best coworkers on the planet—which continuously inspires me and fuels my passion for the work we do on a daily basis.
International Fraud Awareness Week turned 25 years old this month. What is Fraud Week, and why is it important to the profession?
International Fraud Awareness Week was established by the ACFE in 2000 as a dedicated time to raise awareness about fraud. Our research shows that employee tips are the top way that frauds are detected, and we know that raising awareness among those on the frontline greatly improves our fraud prevention and detection efforts. During Fraud Week, business leaders and anti-fraud professionals are encouraged to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education among their employees and the general public. To support them in doing so, the ACFE offers resources, events, and the opportunity for organizations and individuals to register as Official Supporters of Fraud Week to demonstrate their commitment to preventing and detecting fraud.
As the newest partner in the Anti-Fraud Collaboration, what motivated the ACFE to join the AFC?
We’ve been familiar with the great work the AFC does for quite a while, including how their mission overlaps significantly with that of the ACFE. So, the invitation to join the AFC as a partner provided a way to formally align the work both organizations were already doing and combine our efforts to better support the broader anti-fraud profession. We’ve been extremely proud of the initiatives we’ve been a part of so far as an AFC partner, and we’re looking forward to even more collaboration to improve our constituents’ fraud prevention and detection initiatives.
What advice do you have to my readers in the fight against fraud?
While AI and other technological advances mean we fraud fighters must keep upping our tech game, it’s important to remember that, at its heart, fraud is a human problem, and it requires human solutions. To effectively combat it, we need to keep our judgment and skepticism sharp, listen to and learn from the people involved, and incorporate psychological and behavioral considerations into our anti-fraud efforts—all things that humans still do better than technology can.
AICPA & CIMA Conference on SEC and PCAOB Developments
AICPA & CIMA Conference on SEC and PCAOB Developments
In December, our CEO, Julie Bell Lindsay, will be moderating a key session at the annual AICPA & CIMA Conference on SEC and PCAOB Developments. The session will feature SEC Chair Paul Atkins and Chief Accountant Kurt Hohl. This highly attended event offers a great opportunity to gain insight into the year’s biggest accounting, auditing, and regulatory developments directly from the officials who developed the standards. Additionally, the Anti-Fraud Collaboration (AFC) will be hosting a panel discussion during the conference to highlight the AFC resources available to auditors and company management in the fight against fraud.
I hope to see you there!
CAQ Hosts External Auditor Assessment Tool Webinar
In November, the CAQ and the National Association of Corporate Directors hosted a webinar on how audit committees and auditors can use our updated 2025 External Auditor Assessment Tool to maximize the evaluation process. My colleague, Vanessa Teitelbaum, Senior Director of Professional Practice, participated and shared guidance on how a robust, two-way dialogue can elevate the effectiveness of the auditors and audit committees. Watch the takeaways.
CAQ at the Axios BFD Summit
On November 18, our CEO, Julie Bell Lindsay, participated in the Axios BFD Summit in New York City. The event brought together the power players and focused on the strategies behind the year’s biggest deals in tech, finance, and M&A. In her conversation, Julie reinforced that assurance acts as the critical anchor in volatile markets, providing independent verification that cuts through market confusion.
Julie’s message underscored that the foundation of trust must now expand to cover material risks across the entire corporate reporting package. By ensuring the reliability of disclosures in these emerging areas, audits function as the trust infrastructure that keeps American capital markets the strongest and most reliable in the world.
Here at the CAQ, we will continue to share resources for the profession and highlight how auditors build the foundation of trust in the capital markets.
Dennis McGowan
Vice President, Professional Practice and Anti-Fraud Initiatives