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.
As we move into the final quarter of the year, the pace of change across the capital markets continues to accelerate – regardless of the ongoing federal government shutdown. From navigating ongoing policy debates in the regulatory environment to ensuring the profession is equipped to audit AI-integrated systems, the focus remains on trust and transparency.
Here at the CAQ, my colleagues and I are actively engaging with leaders across the financial reporting ecosystem to ensure we are ready to meet these evolving demands.
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
The Ongoing Debate on Quarterly Reporting
The conversation around the frequency of corporate financial reporting continues to be a central topic among U.S. policymakers. President Trump recently renewed his call to do away with “quarterly reporting” by U.S. public companies, arguing that the change would cut costs and discourage shortsightedness. The SEC has since made this proposal a priority, with Chairman Atkins stating the agency will propose a rule change that would allow companies to decide on the appropriate reporting cadence.
In a recent NPR’s The Indicator from Planet Money interview, I noted that the issue really boils down to this: investors need timely, reliable information they can act on. The key is ensuring that investor trust and access to key information is maintained while not overloading companies, which can stifle long-term growth. Regardless of where the policy lands, auditor assurance remains extremely valuable to all market participants. Uniquely, the profession is used to navigating regulatory changes, and we stand ready to provide assurance on company earnings information no matter the form or the frequency.
CAQ Updates
The Audit Impact Series: The Audit’s Expanding Scope
The final article of our three-part series with the Wall Street Journal is here! As conversations on crypto regulation continue, Auditing Crypto’s Blind Spots is a must-read. This piece reinforces the auditor’s expanding role, focusing on the complex digital asset ecosystem and why the value of assurance extends beyond the balance sheet. While digital asset companies promise transparency through public ledgers, our analysis reveals that blockchain technology alone doesn’t equal complete financial transparency.
As part of the Audit Effect, auditors use professional skepticism, risk assessment, and technical expertise to uncover critical risks, such as poor private key management practices, that go unseen by the blockchain. This work shows that the rigor of an independent audit is essential for financial accountability and investor protection, ensuring that technological promises don’t obscure the fundamental requirement for sound risk management.
Axios NYC Event
This November, the CAQ is sponsoring Axios’ BFD event in New York. For those who may not have heard about BFD, it is Axios’ annual summit spotlighting the players behind the year’s biggest deals in the business, finance, and tech space. At the CAQ, we work to strengthen audit quality, promote transparency, and help build investor confidence in our capital markets and this event highlights the latest issues and trends across finance, regulation, technology and investor protection — areas where auditors play a central and evolving role.
I will be speaking at BFD in conversation to highlight the role that assurance plays in providing stability and transparency to our capital markets and how the profession is responding to an ever-evolving business climate. I encourage you to tune in to the live stream on November 18 or sign up for updates on the event here.
Audit Committee Insights: Oversight in a Dynamic Environment
The latest edition of Audit Committee Insights provides a comprehensive update for committees navigating a complex oversight landscape. Vanessa Teitelbaum, our Senior Director of Professional Practice, unpacks key developments, including:
- CAQ Releases an Updated External Auditor Assessment Tool: We released our updated External Auditor Assessment Tool, which includes a four-part framework with several focus areas in each part, paired with sample discussion questions for audit committees to consider when evaluating the external auditor.
- Q3 Audit Committee Meeting: We detail the eight important topics that the audit committee should consider when preparing for this quarter’s meeting.
The Role of the Auditor in AI: Present and Future
As AI becomes increasingly integrated into the workstreams, our new publication, The Role of the Auditor in AI: Present and Future, provides insights on how auditors can approach this advanced technology. The resource explores how auditors can build on their existing expertise to bring increased trust and transparency to the use of AI at public companies.
We firmly believe auditors are uniquely positioned to provide assurance services that address stakeholder demand for confidence in AI systems’ reliability, transparency, security, and integrity. The rigor of the audit, including adherence to professional standards and the requirement for independence, is essential for maximizing the potential benefits of AI investments. I encourage you to take a deep dive.
Accounting+ Spotlight: Leveraging Data to Build the Pipeline
The accounting profession, like many others, continues to navigate a growing workforce shortage. The Accounting+ program has been helping address the profession’s talent challenges by reaching students early on in their academic journey.
At the recent EVERFI Impact Summit in Austin, Texas, we met with social impact leaders to discuss the benefits of introducing students to the accounting field early on. This engagement followed the release of our new report with EVERFI, Career Interest and Perceived Value of Accounting, which offers key insights into attracting the next generation. The latest findings found that:
- The effectiveness of early exposure efforts, like Accounting+ students who took the digital course, saw a 20% increase in their average interest in an accounting career.
- Critically, Black and Hispanic students reported learning the most about new accounting career options, which is vital as these groups generally report lower interest in accounting careers.
This data validates our strategy of demonstrating the limitless opportunities within accounting to students at an early stage. I encourage you to explore the takeaways and learn more about how you can play a role in reaching the next generation of talent.
Julie Bell Lindsay
Chief Executive Officer, CAQ