Every month, the Snapshot highlights new resources from the CAQ, upcoming events, and keeps you updated on the latest developments impacting the public company auditing profession.
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March may have come in like a lamb, but this year is shaping up to be anything but. Kickoff the new season by forwarding this newsletter to a colleague.
SEC Proposes Mandatory Climate Disclosures
This month the SEC released its much-anticipated proposal on disclosure of climate-related risks by public companies. This represents a major step in giving both companies and investors clarity around information that investors have increasingly asked for and companies are in many respects already providing to the capital markets.
This is a major proposed change to corporate reporting in the United States and there are going to be many perspectives on how to move forward. Our CEO, Julie Bell Lindsay, reacts to the proposal.
Demonstrating the Value of Public Company Auditors: 2022 Outlook
Speaking of SEC proposals, 2022 is shaping up to be an important year for public company auditors. From ESG to the 20th anniversary of SOX, the CAQ sees several key areas of opportunity for the profession:
- Enhancing trust and transparency in public company auditors’ ability to produce high-quality audits
- Responding to increasing demand for assurance over climate-related and other environmental, social and governance information (ESG)
- Assisting all key stakeholders in the detection and deterrence of financial reporting fraud
- Building a more diverse pipeline of talent into accounting and auditing and foster best practices in retaining diverse auditors
This is all in furtherance of our mission: to promote-high quality performance by U.S. public company auditors.
Read our CEO Julie Bell Lindsay’s full outlook here.
Audit committees dealing with increased complexity, “scope creep”
A report from the CAQ and Deloitte’s Center for Board Effectiveness, Audit Committee Practices Report: Common Threads Across Audit Committees, provides an illuminating snapshot about how audit committee oversight is changing. In particular, the report shows that while nearly all respondents (96%) rank financial reporting and internal controls — including fraud risk – as their top priority, audit committees are also responsible for cybersecurity (53%), data privacy security (48%), ethics and compliance (48%), third-party risk (47%) and enterprise risk management (42%).
Audit quality remains high. The survey also demonstrates that audit quality among public companies remains high – 98% of respondent stated audit quality either increased or remained the same as the previous year – and that competence of the engagement team and strong communication between the engagement partner and the audit committee contribute most to audit quality.
Check out the full report to see what topics are on the agenda, what experts audit committees have and anticipate needing, how much time is spent on meetings, and how respondents are thinking about emerging topics such as ESG.
The CAQ Celebrates Women’s History Month
Women are helping to lead the way for public company auditors in our evolving profession. Hear from leaders at public company audit firms on how they’re helping the profession to evolve:
ESG in a Changing World
Maura Hodge, KPMG’s National ESG Assurance Leader, describes the role auditors can play in providing assurance on company-prepared ESG information.
The Importance of Diversity in Accounting
We spoke with two audit partners, Jackie Gordon at KPMG and Danica Dilligard at EY, about their journey to becoming partner and what diversity and inclusion within the public company audit profession means to them.
ICYMI: Leading the Headlines
- Cybersecurity increasingly on audit committee agendas, (CFO Dive)
- Audit quality stable amid pandemic, audit committee members say, (Journal of Accountancy)
- PwC’s Tim Ryan Tapped to Lead CAQ Governing Board, (CPA Practice Advisor)
- The SEC proposed a landmark climate disclosure rule. Here’s what to know, (Washington Post)
- Companies Brace for Higher Compliance Costs as SEC Proposes Climate Change Disclosures, (Wall Street Journal)
Recent Snapshot Alerts
In this edition:
- SEC Proposes Mandatory Climate Disclosures
- Demonstrating the Value of Public Company Auditors: 2022 Outlook
- Audit committees dealing with increased complexity, “scope creep”
- The CAQ Celebrates Women’s History Month
In this edition:
- CAQ Launches DEI, Talent Pipeline Initiatives
- Coverage of Bold Ambition
In this edition:
- COP26: Insights for Auditors
- PCAOB Releases Inspection Results, Sees New Members Appointed
- CAQ Issues Report on Audit Committee Disclosures
- International Fraud Awareness Week
- Auditor Independence: A Cornerstone of Audit Quality
In this recap, read a CAQ publication on illegal acts, learn more about why ESG disclosures are on the rise, and how to build trust and confidence in ESG reporting.
In this snapshot, read about the professions’ support for climate disclosures, the value of the audit, how fighting fraud remains a shared responsibility, finding balance in a career in audit, and leading headlines from the month.
In this edition, read the CAQ’s alert on SPACs, the PCAOB issues proposed rule for HFCAA (Holding Foreign Companies Accountable Act), and watch as the CAQ discusses the ongoing challenge of effective ESG reporting.
In this snapshot, companies turn to auditors for ESG assurance, the Senate confirms Gary Gensler as SEC Chairman, and learn more about fighting fraud with AI technology.
In this report, March Madness: ESG Edition, read the CAQ guide to PCAOB inspections, and discover three COVID-19 Non-GAAP Reporting Insights from Q4.
In this recap, see an exclusive interview with former SEC Chair, Jay Clayton, and the AICPA releases new ESG reporting and attestation roadmap.
In this update, a new report reveals common themes in SEC enforcement of Financial Statement Fraud, view a CAQ fraud Webcast, and the CAQ delivers a speech on the state of the auditing profession.
In this snapshot, watch webisodes on the SEC coronavirus steering committee, ongoing concerns in the COVID-19 environment, and Non-GAAP and COVID-19.
This CAQ Snapshot includes an exclusive interview with SEC Chief Accountant on COVID-19, a newly launched auditing documentary, and a list of comment letters and newsclips.
In this update, read about the Making It Balance documentary, data ethics and governance during COVID-19, additional COVID-19 resources, and see CAQ in the news.
This month, find a new auditor resource for COVID-19, mitigating fraud risk during COVID-19, a community where auditors can share their stories with fellow and future auditors to grow with each other, and see CAQ in the news.
This summary highlights the impact of corporate culture on fraud deterrence, the impact of SEC amendments to filer definitions, and the new addition to the CAQ team, Ben Edwards.
In this review, read about putting financial revisions and restatements in perspective, preview a powerful new documentary on audit careers, and learn more about blockchain’s anti-fraud potential.
In this edition, see the 2019 review highlighting CAQ’s impact, Financial Times perspective on auditing’s past and future, the AFC highlights the potential of RPA, and the CAQ’s Crystal Cooke talks about career paths in auditing.
This month, examine the evolving role of auditors in company-prepared information, the CAQ Executive Director discusses the state of the profession and what lies ahead, and watch the AFC’s Webcast on Assessing Culture.
In this recap, discover opportunities to enhance audit committee disclosure and Carolyn Hall joins the CAQ Professional Practice Team.
In this snapshot, read about #AuditorProud messages reaching millions worldwide, help guide career seekers into auditing, and watch BDO’s Tower on communicating the commitment to audit quality.
In this summary, confidence in US markets and public company auditors stays strong, the CAQ released a Profession in Focus video that features CAQ Executive Director Julie Bell Lindsay discussing why strong investor confidence is vital, and the CAQ highlights integrity and resiliency as core values for the public company and auditing profession.
In this issue, the CAQ Symposium explores the impact and implementation of new auditing standards, the CAQ files comment letters with the SEC, and the CAQ highlights dialogue and integrity as core values for the public company and auditing profession.
In this update, the CAQ preps investor relations pros for CAMs conversations, the CAQ provides views to IAASB on quality management, and readers can download CAQ-supported research.
In this article, Roadtrip Nation revs up, CAQ welcomes Andrew Zulauf as Professional Practice Fellow, the CAQ discussed a “New Pathway” into accounting at the HBCU Business Deans Event, and the CAQ highlights objectivity and independence as core values for the public company and auditing profession.
This month, the CAQ announces new rounds of research grants, the CAQ publishes a new tool to help audit committees oversee implementation of new credit losses standard, and the CAQ examines the use of emerging tech in financial reporting context.
In this summary, Julie Bell Lindsay is named as the CAQ Executive Director, the CAQ’s Teitelbaum provides views on audit evolution, and Cindy Fornelli provides perspective on how evolution and the embrace of change are key drivers of the success of US capital markets.
In this report, the CAQ weighs in on Earnings Releases and Quarterly Reports, watch highlights on the value of diversity in the boardroom, and Fornelli provides insights on amplifying women’s voices.
In this feature, recap a CAQ video featuring leading audit committee chairs sharing their perspectives on CAMs and the CAQ spotlights teamwork and diversity as core values for the public company and auditing profession.
In this snapshot, the CAQ year in review recaps activities in 2018, the CAQ framework can help accounting firms enhance disclosures about audit quality, and Fornelli reflects on building trust.