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 enter fall, I’ve been reflecting on the momentum across the profession and what it signals for the months ahead. At the CAQ, we are working with leaders across the profession to advance the conversations that build trust and will shape the future of financial reporting.
Read on for what’s on my radar this month.
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
Convening Capital Market Voices
The U.S. capital markets are the global leader in attracting investment not only because of their scale and depth, but also because of the ongoing dialogue among the many stakeholders who shape them. When regulators, investors, public companies, auditors, and governance experts come together, they bring diverse perspectives that help balance competing priorities, strengthen transparency, and build investor confidence. That dynamic conversation is part of what keeps our markets strong, resilient, and trusted around the world.
At the CAQ, we’ve made it a priority over the past several years to convene these conversations in a variety of settings. Recently, we hosted a salon dinner that brought together leaders from across industries and institutions to exchange views on regulatory priorities, emerging technologies, and the pressures shaping their work. These candid exchanges deepen understanding and help ensure that, even as the environment evolves, the U.S. market system remains grounded in collaboration and committed to integrity.
PCAOB Updates
Spotlight on Innovation: PCAOB Technology Working Group Releases Recommendations
The PCAOB finally released the Technology Innovation Alliance Working Group’s recommendations for supporting responsible technology use in public company audits. The group called for greater AI fluency, wider use of structured data, and the creation of a PCAOB innovation lab. These recommendations recognize the importance of regulators keeping pace with rapid developments in auditing.
CAQ Updates
The Axios AI+ DC Summit
Axios recently held its AI+ Summit in Washington, D.C., where the CAQ was proud to serve as a sponsor. I joined Katie Harbath, Founder of Anchor Change, for a discussion on building trust in an evolving AI landscape, and we also convened an Executive Roundtable with leaders from government, industry, and the media to examine how governance and oversight can support responsible AI use. I was especially pleased to hear participants on stage and around the table highlight the value of third-party assurance in building trust and transparency in AI systems. While there is no one-size-fits-all approach — given the different types of risks involved — it is essential that policymakers and the public see the kind of transparency that can instill confidence in the innovative AI products being built and deployed.
Auditors bring a vital perspective to this conversation. Our profession has adapted time and again to meet market demands — from cybersecurity to sustainability — and we are now applying that same independent rigor to AI. At the CAQ, we believe assurance is not a brake on innovation, but a catalyst, helping ensure that new technologies earn the confidence of investors, policymakers, and the public. That’s the audit effect.
September Audit Committee Insights: Oversight in a Changing Environment
Audit committees are gearing up for a busy season filled with new challenges and opportunities. In this month’s Audit Committee Insights, we provide a comprehensive update on the latest developments shaping audit oversight. You’ll find timely analysis on regulatory updates, advancements in audit technology, including AI and digital assets, and practical guidance to help committees enhance their oversight and sustain public trust. Key topics include the PCAOB’s recent decisions and studies, evolving expectations around AI governance, and important new legislative updates such as the GENIUS Act.
Pensions & Investments: Strengthening Confidence
In a recent conversation with Pensions & Investments, I discussed how the audit profession is helping investors navigate a capital market that is marked by rapid change. With AI, cybersecurity, and climate reporting now part of the information investors rely on alongside traditional financial statements, independent audits are essential to building and maintaining confidence.
Auditors combine industry expertise with advanced analytics to test and evaluate full data sets, providing investors with a more comprehensive understanding of both performance and risk. In our discussion, we discussed the importance of oversight keeping pace with innovation. Effective oversight, much like assurance, is an innovation enabler by giving companies the confidence they need to move forward. The Sarbanes-Oxley Act continues to serve as the foundation for audit quality, but standard-setting and inspection processes must reflect the evolving perspectives of investors, audit committees, and auditors themselves. A greater focus on firm-level quality control systems will strengthen the system further.
The takeaway is clear: technology can enhance the audit, but it cannot replace human judgment and skepticism. The profession’s role, and the CAQ’s broader priority, is to ensure that as tools change and data expands, trust in capital markets remains strong.
Boardroom Questions for PCAOB Inspections
In a blog for NACD Directorship, Vanessa Teitelbaum, our Senior Director of Professional Practice, highlights five focused questions that audit committees can ask their external auditors to better understand PCAOB inspection findings. Because inspection reports do not name specific issuers, these questions help committees connect firm-wide inspection results to their company’s unique risks and audit engagement. This framework supports deeper oversight by encouraging committees to explore how audit firms respond to deficiencies and whether those findings affect the auditors working with their company.
These questions also prompt audit committees to compare inspection results across different firms and to consider how evolving PCAOB trends reflect emerging risks, such as cybersecurity and sustainability reporting. By using this approach, committees can translate complex inspection data into practical insights that inform audit oversight and strengthen transparency. Explore the article.
What Students Really Think About Accounting
The accounting profession faces a talent pipeline shortage as many CPAs retire and student exposure to accounting careers remains limited. That’s why the Center for Audit Quality’s Accounting+ campaign focuses on reaching high school and early college students through education, mentorship, and career connections to bridge the talent gap.
Through our partnership with EVERFI, a creator of digital curriculum, we created Accounting Careers: Limitless Opportunities, a digital course that reached over 96,000 students nationwide during the 2024-2025 school year. Post-course surveys show that early exposure significantly boosts student interest. For example, 81% of students discovered new accounting career paths, and overall interest increased by 20%.
Our research confirms that early, relevant engagement helps students recognize accounting skills as more than just math; they see them as a pathway to financial security, career flexibility, and meaningful opportunities across a range of industries.
Liz Barentzen, our Vice President of Operations and Talent Initiatives, further explores these insights in her recent Audit in Action blog, underscoring how representation and tailored education are critical to building a diverse, resilient talent pipeline.
Accounting+ continues to evolve, aiming to engage students before important education decisions and promote a profession that offers stability and opportunity for all.
Accounting+ Featured in Teen Vogue
When it comes to attracting the next generation of talent, we need to meet students where they are. Accounting+ was recently featured in Teen Vogue, showcasing seven unexpected ways young professionals are using accounting skills to make an impact in areas like climate action, AI governance, and even fashion compliance.
The article paints a fresh picture of accounting as a versatile and creative profession, far beyond traditional perceptions. At the CAQ, we’re proud to continue this work by providing students with resources, mentorship, and real-world stories that invite them to explore the limitless possibilities within accounting.
Julie Bell Lindsay
Chief Executive Officer, CAQ