The Center for Audit Quality’s (CAQ) Audit Partner Pulse Survey, now in its fourth year, asked audit partners at the country’s leading public company audit firms about their views on the current business environment in the United States. Topics covered include U.S. economic health, challenges and risks facing businesses, and how they see business leaders adjusting their strategies in the current environment. Other topics covered include the accountant talent shortage, fraud risk response strategies, and the integration of new technologies like AI and crypto.
Public company auditors are uniquely positioned to develop specific insights on the industries in which the companies they audit function, which provides them with a thorough understanding of the current American business landscape. Their role requires both technical precision and a broad set of interpersonal and analytical skills that extend beyond traditional financial oversight.
Public company auditors’ outlook on the United States economy has shifted significantly since our Fall 2024 survey. As over 60 elections took place around the world last year, including the presidential election in the U.S., many businesses are working to navigate changing policy priorities that may impact their operations and growth strategies.
Companies across industries are shifting their approach to adapt to dynamic market forces while pursuing risk mitigation strategies amidst fear of a recession, geopolitical instability, and trade issues.
The combination of a potentially volatile global economy with threats like a 17% increase in cybersecurity attacks has led to a significant departure from 2024’s tentative optimism on the future of the economy. The percentage of respondents who indicated they were pessimistic about the future of the economy grew from 10% to 44%, and the percentage of optimistic responses shrank from 38% to just 15%.
Auditors remained consistent with their Fall 2024 predictions in listing overall financial performance, growth strategies, and cost management as top priorities for the next 12 months. A newly uncertain economic future has further cemented the focus on maintaining strong financial returns.
An area where cost management strategies and economic uncertainty can have an impact is human capital. Auditors see many companies reducing overall headcount while – consistent with our Fall 2024 survey results – focusing on upskilling existing employees. The Spring 2025 survey results follow an ongoing trend of other cost-reduction practices, including decreasing flexibility in workplace location and maintaining existing compensation levels.
While pursuing a reduction in headcount capacity, investing in employees, and maintaining current compensation levels may provide some financial security, it’s crucial that businesses promote a strong culture of anti-corruption and fraud prevention as the risk of fraud increases in times of economic instability.
Alongside unease of the continued economic downturn, many companies continue to feel the effects of the talent shortage within the accounting profession. Numerous strategies are being pursued to address these difficulties, including the CAQ’s Accounting+ campaign which aims to widen the talent pool and raise awareness about the vast opportunities and stability a career in accounting offers. Despite these efforts and signs of more students pursuing accounting, almost 80% of audit partner respondents indicated companies in the industries they audit have been somewhat affected or affected a great deal by the talent shortage.
Consistent with our Fall 2024 survey, audit partners report that many companies in the industries they audit are pursuing the use of AI to provide customer experience, service, and support, as well as to automate some work processes.
However, not all new technologies have proven to be as widely adopted as AI. Although cryptocurrencies and digital assets have been a major topic in financial news, with President Trump establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile and the SEC designating a Crypto Task Force to establish a standard regulatory framework, results of this survey and past surveys suggest that investing in and developing cryptocurrency-related systems remains niche in publicly traded companies, regardless of industry. The new Crypto Task Force at the SEC may change this dynamic if it provides companies with more clarity on the rules of the road.
Download the full report PDF for a detailed appendix of all survey questions and responses.