Welcome to another edition of Capital Markets Pulse, a monthly newsletter from the Center for Audit Quality that brings you insights, resources, and tools on the latest issues impacting the capital markets.
I hope everyone had a lovely Thanksgiving! I was grateful to spend time with family and friends in Ohio, and thankful for the dedicated CAQ team and the public company audit profession’s continued diligence in strengthening trust and confidence in capital markets.
In November, our work continued to be centered on reinforcing trust. We hosted the Fraud Forum as part of Fraud Awareness Week, and I spotlighted the important role of auditors in the capital markets at the Axios BFD Summit in New York City.
As we near the end of the year, it is critical for the profession to remain alert for any changes in the regulatory landscape. Here at the CAQ, we will continue to share relevant updates as we enter the end of Q4.
Read on for the latest updates and insights from the profession.
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.
Profession Updates
Although the PCAOB’s day-to-day operations were largely unaffected by the federal government shutdown, regulatory activity slowed during the period, resulting in fewer formal updates from our standard-setters and oversight bodies. However, the accounting profession hasn’t been standing still.
Firms and professional organizations continue their steadfast work on behalf of the public interest, refining best practices and strengthening internal controls, while actively preparing for what’s ahead: a new PCAOB board and an SEC poised, by all accounts, to pursue significant regulatory reform.
CAQ Updates
CAQ Observes International Fraud Awareness Week
In November, we marked International Fraud Awareness Week, which served as a vital reminder for all participants in the financial reporting community to strengthen fraud deterrence and detection measures. To drive this dialogue, the CAQ, in partnership with the Anti-Fraud Collaboration (AFC), hosted our second annual Fraud Forum to spotlight the current and future state of the fraud risk landscape.
The conversation centered on a fundamental truth: preventing fraud begins long before red flags emerge. It starts with building a corporate culture rooted in trust and accountability. Our keynote speaker, Tyler Schultz — the Theranos whistleblower who demonstrated extraordinary courage in exposing the truth even when it seemed everyone, including his own family, was against him — exemplified why empowering employees to speak up is critical. When employees at every level feel empowered to speak up and ask questions, organizations create their strongest defense against fraudulent activity. In today’s complex capital markets environment, a culture of vigilance paired with continuous learning is essential to protecting stakeholder value and market integrity.
The CAQ will share more takeaways from the Fraud Forum on our website in the coming weeks.
Axios BFD Summit: Reinforcing Trust in a Volatile Market
In November, I took the stage at Axios’ BFD Summit in New York City. In our conversation, Nicholas Johnston and I talked about the role trust plays in capital markets. While the event focused on finance and dealmaking, my message was clear: investors rely on reliable financial information to make decisions, and the public company audit profession helps ensure that information is trustworthy.
In today’s volatile and complex economy, assurance acts as a critical anchor, giving investors independent verification of corporate data that cuts through market confusion. Increasingly, the foundation of trust from assurance extends beyond the balance sheet to areas like AI, cybersecurity, and climate risks. For investors, these areas represent material risks that demand the same rigor in verification as financial statements. Ultimately, quality audits are not just compliance checkboxes, but rather the trust infrastructure that keeps American capital markets the strongest and most reliable in the world.
Watch my conversation with Nicholas Johnston here.
CAQ Hosts External Auditor Assessment Webinar
Here at the CAQ, we know that an effective and informed external auditor evaluation is a core responsibility of the audit committee.
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, joined a panel of experts and shared guidance on how a robust, two-way dialogue can enhance the effectiveness of the auditors and audit committees. If you missed the live webinar, you can watch the takeaways on the CAQ website.
Findings from the Fall 2025 Audit Partner Pulse Survey
The Fall 2025 Audit Partner Pulse Survey is here! Our bi-annual survey captures the unique vantage point of audit partners and provides essential insights into how companies are navigating the economic and regulatory landscape. The results reveal a fascinating tension between caution and strategic adaptation. After a period of concern earlier in the year, economic sentiment is stabilizing, with pessimism dropping significantly. This tempered confidence is not translating into pure growth incentives; instead, companies are focusing on resilience-building and risk mitigation strategies.
The unpredictability of the environment is driving strategy, as regulatory ambiguity and trade tensions now top the list of risks identified by audit partners. In response, companies are proactively expanding disclosures in key areas, including business strategy (61%), financial performance (58%), and AI integration (48%). This inward-looking recalibration also underscores an ongoing shift toward cost discipline, with many companies reportedly pursuing a reduction in headcount (58%) and implementing tighter hybrid work policies.
However, within this landscape of caution, AI stands apart as the strategic exception. Even as organizations work to maintain or cut costs across nearly every function, AI investments continue to climb, viewed less as discretionary spending and more as essential for long-term efficiency and resilience. As AI embeds deeper into core business functions, the need for robust governance and assurance intensifies. This is where auditors come in to provide human oversight and elevate investors’ trust in this advanced technology.
As we look ahead, organizations need to balance pragmatism with strategic adaptation, pursuing innovation while effectively maintaining controls and transparency that stakeholders require. I encourage you to unpack the full results.
The Role of the Auditor: Professional Skepticism
In partnership with the Anti-Fraud Collaboration, the CAQ released The Role of the Auditor: Exercising and Maintaining Professional Skepticism. The report emphasizes that while auditing standards mandate the exercise of skepticism, their effective use is inherently judgment-based and situational. Auditors must employ the skepticism continuum to maintain a questioning mindset throughout all phases of the audit.
To stay alert in the fight against fraud, our collective focus must be on cultivating a culture that encourages and rewards this critical mindset, alongside training that equips auditors to recognize when something requires further attention. Furthermore, continuous learning and adaptability are essential, particularly as auditors must understand the changes and risks brought on by advancements in technology like AI.
Read the full report.
S&P 500 Analysis: Assurance Drives Credibility in New Disclosures
The latest Analysis of Information in S&P 500 Companies’ 10-Ks confirms that corporate reporting has fundamentally expanded to encompass critical, fast-moving areas like artificial intelligence (AI), digital assets, and climate-related information. This integrated research underscores the strong investor demand for transparency in these frontiers of corporate data: for instance, 99% of S&P 500 companies reported sustainability-related information in 2023, and our analysis of AI disclosures found that 72% of companies now disclose at least one material AI risk. These metrics show that while companies manage regulatory ambiguity, they are proactively engaging stakeholders on the risks and opportunities presented by emerging technology and climate issues.
In this new landscape, the role of auditors is more critical than ever, as we provide the confidence necessary for investors to act on this new data. Our research shows that most companies obtain assurance or verification over their sustainability metrics, reaching 73% of reporting companies in 2023.
Here at the CAQ, we all know that by leveraging our rigorous requirements for independence and professional skepticism, the audit profession enhances the reliability and credibility of the entire corporate disclosure package, ensuring these evolving reporting areas are anchored in trust.
Explore the AFC’s Q3 Newsletter
In a changing technological landscape, it is important to stay ahead of fraud risks. The Anti-Fraud Collaboration’s Q3 newsletter includes resources for auditors, audit committees, and management to manage fraud risks, and anti-fraud updates from AFC members. Read on for updates you might have missed.
Accounting+/Talent Update
EVERFI Events at Grant Thornton and Deloitte
Earlier this month, students from the High School of Economics and Finance visited Deloitte and Grant Thornton’s New York offices to explore careers in accounting. They connected with industry professionals, participated in career activities, delivered elevator pitches, and one student at each event received a $5,000 scholarship.
As the accounting profession continues to face a talent shortage amid growing complexity in our capital markets, expanding the pipeline has never been more critical. Programs like these strengthen our financial ecosystem by building a more diverse and skilled workforce for the future.
Learn more about how we’re bridging the gap and attracting new talent to the profession.
Football and Accounting
Accounting+ and the Pittsburgh Steelers hosted the second Steelers Showcase event of the 2025-2026 school year at the end of October, where representatives from CAQ member firms joined students from Penn Hills High School to “Crack the Case” and solve a fictional fraud scenario.
The activity and discussion, emceed by Steelers legend Chris Hoke, was followed by a tour of Acrisure Stadium and a special trip to the Steelers Pro Shop. We look forward to hosting our final event of the school year in December.
Julie Bell Lindsay
Chief Executive Officer, CAQ