CAQ Staff and Ideagen Audit Analytics Staff

Public companies have been operating in a state of transformation driven by the explosion of artificial intelligence, changing macroeconomic conditions, and evolving regulatory priorities. In response, oversight responsibilities of the audit committee are evolving to include emerging risk areas, in...

Public companies have been operating in a state of transformation driven by the explosion of artificial intelligence, changing macroeconomic conditions, and evolving regulatory priorities. In response, oversight responsibilities of the audit committee are evolving to include emerging risk areas, in addition to oversight of financial reporting and the external auditor.

Now in its 12th year, the <a href="https://www.thecaq.org/audit-committee-transparency-barometer">2025 Audit Committee Transparency Barometer</a>, produced in collaboration with Ideagen Audit Analytics, provides a comprehensive look at how audit committees of S&amp;P 1500 companies are communicating their oversight responsibilities to investors. By analyzing these disclosure trends and layering sentiments from audit committee members themselves captured in the <a href="https://www.thecaq.org/audit-committee-practices-report"><em>Audit Committee Practices Report</em></a>, a distinct theme emerges: while audit committees play an essential role in overseeing key areas, their proxy disclosures are largely stagnating. This “transparency gap” presents an opportunity for audit committees to better tell their story.

[custom_quote text="Oversight responsibilities of the audit committee are evolving to include emerging risk areas, in addition to oversight of financial reporting and the external auditor."]
<h3><strong>Oversight of the External Auditor: The Need for Tailored Disclosures</strong></h3>
Investors want to understand how the audit committee oversees the external auditor including audit firm selection, compensation, evaluation and supervision, and engagement partner selection. However, tailored disclosures in this area have plateaued.

The following data from the Barometer highlights this stagnation in a few key areas:
<ul>
 	<li>50% of S&amp;P 500 companies discuss considerations for appointing the external auditor, a figure that remains unchanged from 2024.</li>
 	<li>Disclosure of audit committee involvement in selecting the external audit partner remained stagnant year-over-year at 53%.</li>
</ul>
Tailored disclosure is always important, but during disruption and rapid change, committees should be especially transparent.

<em>“The persistence of standard language may stem from a combination of legal conservatism and resource constraints. However, by defaulting to standard language, audit committees miss the opportunity to highlight the robust, tailored evaluation processes that committees are conducting behind closed doors.”</em>
<h6 style="text-align: right;">- Marie Pupecki, Ideagen Audit Analytics</h6>
[custom_quote text="Tailored disclosure is always important, but during disruption and rapid change, committees should be especially transparent."]
<h3><strong>Where Disclosure Matches Audit Committee Priorities</strong></h3>
While disclosures regarding core oversight areas have somewhat plateaued, disclosure rates related to audit committee oversight of emerging risk areas remain consistent with audit committee priorities. This is an example of one area where the “transparency gap” is closing.

The <a href="https://www.thecaq.org/audit-committee-practices-report"><em>Audit Committee Practices Report</em></a> singles out cybersecurity as the number one priority for audit committees over the next 12 months. The report also noted that 62% of audit committees had primary oversight of cybersecurity risk.

This priority is reflected in disclosures. In the report, 64% of S&amp;P 500 companies explicitly state that the audit committee is responsible for cybersecurity oversight. Disclosing whether it is the audit committee’s responsibility to oversee cybersecurity provides investors with further transparency into how the company approaches governance of this risk area.

[custom_quote text="64% of S&amp;P 500 companies explicitly state that the audit committee is responsible for cybersecurity oversight."]
<h3><strong>The “Skills Matrix” as a Standard</strong></h3>
A positive trend in governance disclosure is the prevalence of the board skills matrix, which provides insights into both board composition and competency.

90% of S&amp;P 500 companies disclose a skills matrix, up from 85% in 2024 and is responsive to investors’ desire to understand the composition of the board and the expertise that each member brings.

<em>“What makes the skills matrix particularly effective is that it transforms abstract claims about board expertise into concrete, comparable data points. The template is now established for future competency categories, and AI governance is the obvious next addition. As companies face increasing investor questions about AI strategy, risk management, and ethical deployment, boards will need to explicitly demonstrate who brings AI-relevant expertise to these critical oversight discussions.”</em>
<h6 style="text-align: right;">- Marie Pupecki</h6>
[custom_quote text="90% of S&amp;P 500 companies disclose a skills matrix."]
<h3><strong>Looking Ahead</strong></h3>
Here at the CAQ, we know that transparency builds <a href="https://www.thecaq.org/AuditEffect">trust in capital markets</a>. As audit committees navigate 2026 and beyond, the proxy statement remains an excellent opportunity to tell their story.

<em>“The most effective audit committees treat disclosure as a strategic communication opportunity, not a compliance burden. Data-driven benchmarking allows boards to move beyond guesswork and understand where they stand relative to peers on critical transparency measures. Whether it’s auditor oversight, risk management, or emerging issues like <a href="https://www.thecaq.org/rota-ai">AI governance</a>, committees that use benchmarking data can make informed decisions about where to enhance their disclosure and ensure they’re telling their governance story as effectively as they’re doing the work.”</em>
<h6 style="text-align: right;">- Marie Pupecki</h6>
Explore more data from the <a href="https://www.thecaq.org/audit-committee-transparency-barometer">Audit Committee Transparency Barometer</a> and dive deeper into what the data reveals about today’s evolving governance landscape. For additional support for audit committee members, check out our <a href="https://www.thecaq.org/audit-committee-resource-center">Audit Committee Resource Center</a> for the latest updates.

Closing the Transparency Gap: Aligning Audit Committee Actions with Disclosures

Blog Post

Director, Anti-Fraud Initiatives

Lucy Wang is Director, Anti-Fraud Initiatives at the Center for Audit Quality. In this role since 2019, Wang serves as a subject matter expert on issues related to fraud deterrence and detection. Wang is responsible for leading technical and policy-oriented projects while working closely with representatives from the Anti-Fraud Collaboration, task forces, and the broader profession. Wang manages the development of thought leadership, reports, and other resources that address current financial reporting fraud issues.

Before joining the CAQ, Wang served as Manager at PwC’s Forensic Services practice based in Washington, DC and Shanghai, China, where she assisted Fortune 500 companies with their global compliance programs, cross-border M&amp;A transactions, large scale risk assessments, regulatory investigations, and litigation support. Wang executed complex investigations involving cases such as financial statement fraud, misappropriation of assets, bribery, and corruption. Wang also led numerous anti-corruption and fraud risk assessments globally, including in Asia Pacific, Africa, and Europe.

Wang is a Certified Fraud Examiner, and she holds a BS in finance and accounting from New York University’s Leonard N. Stern School of Business.

Lucy Wang, CFE

The fraud risk landscape continues to evolve as external threats and new innovations impact businesses. All members of the financial reporting ecosystem play a critical role in deterring and detecting fraud, but what contributes to fraud risk and how can...

The fraud risk landscape continues to evolve as external threats and new innovations impact businesses. All members of the financial reporting ecosystem play a critical role in deterring and detecting fraud, but what contributes to fraud risk and how can companies stay vigilant in an ever-changing landscape?

This Fall, the <a href="http://www.antifraudcollaboration.org">Anti-Fraud Collaboration</a> (AFC) hosted a <a href="https://antifraudcollaboration.org/the-impact-of-fraud-on-u-s-public-companies-webcast/">webinar</a> to discuss the prevalence of fraud at U.S. public companies and how organizations can strengthen their anti-fraud efforts using key findings from the Association of Certified Fraud Examiners (ACFE) and AFC’s benchmarking survey on t<a href="https://antifraudcollaboration.org/the-impact-of-fraud-at-us-public-companies-2025-benchmarking-report/">he Impact of Fraud at U.S. Public Companies</a> and the <a href="https://www.thecaq.org/wp-content/uploads/2025/07/caq_institutional-investor-survey-fraud_2025-07.pdf">CAQ’s 2025 Institutional Investor Survey</a>.

I moderated a panel of diverse stakeholders including Andi McNeal, Chief Training Officer at the ACFE, Theodore (Theo) Bunting Jr., Independent Director, and Chris Ekimoff, Principal at  WithumSmith+Brown, PC, who each brought a unique perspective on leading efforts to deter and detect fraud as we discussed the survey results.

Read on for top insights from our discussion.

[custom_quote text="All members of the financial reporting ecosystem play a critical role in deterring and detecting fraud."]
<h3><strong>The Reality of Fraud Losses: Perception vs. Data</strong></h3>
The ACFE and AFC benchmarking report compiled findings from a survey of financial reporting stakeholders who work for or do substantial work with U.S. public companies, asking about their companies’ fraud losses in recent years, factors that contribute to fraud, and how their companies are managing various types of fraud risks. The respondents had direct visibility into the total revenue and the actual amount of known losses from <em>all forms of fraud</em> for 2023 and 2024.

The <a href="https://legacy.acfe.com/report-to-the-nations/2024/">ACFE’s 2024 Report to the Nations</a> estimated that organizations lose an average of 5% of their annual revenue to fraud. However, data from our latest benchmarking report specific to U.S. public companies paints a more nuanced picture of the issue.

<img class="alignnone wp-image-17089 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_AiA_AFC-Webinar_Image-1.png" alt="" width="352" height="295" />
<h6><em>Fig. 1, <a href="https://www.acfe.com/fraud-resources/the-impact-of-fraud-at-us-public-companies">The Impact of Fraud at U.S. Public Companies Benchmarking Report</a></em></h6>
<ul>
 	<li><strong>Known Losses</strong>: Survey respondents reported that the median percentage of annual revenue lost due to <em>all forms of</em> <em>known</em> <em>fraud</em> at U.S. public companies was 1.07% and 1.06% for 2023 and 2024, respectively.</li>
 	<li><strong>Estimated Losses</strong>: When asked to estimate the loss due to fraud at a <em>typical</em>S. public company (accounting for undetected fraud), estimates rose to a median estimate of 2.5%, of which employees and investors estimated fraud losses of 3% of annual revenue, and external roles estimated 4%.</li>
</ul>
While 1% may sound minimal, 1% of the Fortune 500’s revenue translates to roughly $200 billion annually. However, it is important to contextualize the amount on a micro-level that is unique to organizations and their specific types of fraud risks and risk profile. Therefore, it is important to reframe the 1% statistic by considering what is an appropriate margin for error for large multinational companies that operate in multiple jurisdictions.

The speakers also described a "NIMO" (Not In My Organization) phenomenon. While many financial reporting stakeholders recognize that fraud is a persistent problem, few choose to believe that fraud is occurring within their own organizations. This mindset can be dangerous for companies. It is important for organizations and stakeholders to stay vigilant so they can assess and respond to fraud risks appropriately.

[custom_quote text="While many financial reporting stakeholders recognize that fraud is a persistent problem, few choose to believe that fraud is occurring within their own organizations."]
<h3><strong>The Shifting Fraud Risk Landscape: External Threats Take Center Stage</strong></h3>
The ACFE and AFC survey results highlighted a distinct shift in how organizations determine their greatest fraud risks. While internal control over financial reporting remains vital, the most probable and significant fraud risks identified were largely external.

<img class="alignnone wp-image-17087 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_AiA_AFC-Webinar_Image-2.png" alt="" width="519" height="461" />
<h6><em>Fig. 3, <a href="https://www.acfe.com/fraud-resources/the-impact-of-fraud-at-us-public-companies">The Impact of Fraud at U.S. Public Companies Benchmarking Report</a></em></h6>
As illustrated in the heat map, the risks that have the highest likelihood of occurring, according to survey respondents, include:
<ol>
 	<li>Cyberfraud (rated as the highest likelihood and highest significance)</li>
 	<li>Fraud by vendors and sellers</li>
 	<li>Customer payment fraud</li>
</ol>
Interestingly, traditional “internal” threats, such as financial statement fraud and asset misappropriation, were viewed as less likely to occur, though its impact is still viewed as significant. This suggests that while companies’ internal controls are improving, their defenses are continuously being threatened by external risks.

[custom_quote text="While internal control over financial reporting remains vital, the most probable and significant fraud risks identified were largely external."]
<h3><strong>The “Why”: Contributing Factors and The Culture Gap</strong></h3>
Each role within an organization views fraud differently depending on their unique perspective. This divergence was clear in the AFC’s benchmarking report when respondents were asked to rank the significance of ten factors in contributing to the current level of fraud.

Employees and external respondents (consultants, advisors, external auditors, and government agencies) cited the regulatory environment, external pressures, and organizational culture as top contributing factors. Governance responses highlighted the quality of external audits, technological advancements, and maturity of anti-fraud programs as most significant. The only factor in all groups' top five ranking was economic conditions, highlighting that all stakeholders are impacted by economic uncertainty and believe it could contribute to a heightened fraud risk environment.

This data emphasizes the need for stronger internal communication. As noted during the panel, employees on the front lines feel the pressure of compliance and the economy, while boards rely heavily on assurance providers. To bridge this gap, organizations must prioritize culture.

Panelists highlighted that while technology, including artificial intelligence (AI), is a valuable tool, it is ultimately "human behaviors and communications" that drive outcomes. A strong tone at the top, flowing from management to the board of directors, is critical for fostering trust. Without that culture of trust, essential detection mechanisms such as whistleblower programs cannot function effectively.

[custom_quote text="Employees on the front lines feel the pressure of compliance and the economy, while boards rely heavily on assurance providers."]
<h3><strong>Looking Ahead: Vigilance is Key</strong></h3>
As we look forward, the majority of survey respondents anticipate that the fraud risk environment will become even more challenging, likely due to emerging technologies such as AI and a shifting regulatory landscape.

<img class="alignnone wp-image-17088 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_AiA_AFC-Webinar_Image-3.png" alt="" width="642" height="220" />
<h6><em>Fig. 6, <a href="https://www.acfe.com/fraud-resources/the-impact-of-fraud-at-us-public-companies">The Impact of Fraud at U.S. Public Companies Benchmarking Report</a></em></h6>
As seen in the graph and discussed during our webinar, 66% of survey respondents expect the level of fraud to increase (either slightly or significantly) over the next two years. Investors share this concern, with 65% expecting fraud levels to increase.

How can financial reporting stakeholders strengthen our defenses against fraud? Survey respondents in governance roles suggested three areas for improvement:
<ol>
 	<li><strong>Proactive and Continuous Monitoring</strong>: Moving from reactive investigation to real-time detection.</li>
 	<li><strong>Technology and AI</strong>: Leveraging tools to proactively identify anomalies in large datasets.</li>
 	<li><strong>Fraud Awareness and Culture</strong>: Training employees to maintain a "fraud lens" and exercise professional skepticism.</li>
</ol>
Whether you are an external auditor, an internal auditor, management, or a board member, you have a role to play in the fight against fraud. The fraud risk landscape is dynamic, but by leveraging technology, fostering a culture of skepticism, and breaking down silos within your organization, all members of the ecosystem can better protect the integrity of financial reporting and the U.S. capital markets.

I encourage you to watch the <a href="https://antifraudcollaboration.org/the-impact-of-fraud-on-u-s-public-companies-webcast/">replay of the AFC webinar</a> and download the full<a href="https://antifraudcollaboration.org/the-impact-of-fraud-at-us-public-companies-2025-benchmarking-report/"> AFC Benchmarking Report</a> and<a href="https://www.thecaq.org/institutional-investor-survey-fraud-2025"> CAQ Investor Survey</a>. Follow the AFC on <a href="https://www.linkedin.com/company/antifraudcollaboration/">LinkedIn</a> for the latest insights on fraud deterrence and detection.

[custom_quote text="Whether you are an external auditor, an internal auditor, management, or a board member, you have a role to play in the fight against fraud."]

Culture Technology, and Vigilance: How the Fraud Risk Landscape is Evolving

Anti-Fraud

As part of the Center for Audit Quality’s (CAQ) ongoing effort to keep members and stakeholders informed on significant public policy and accounting matters, we are pleased to offer the Public Policy and Technical Alert (PPTA). Each month, the PPTA...

<img class="aligncenter wp-image-13848" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/2023_06_PPTA_HEADER.png" alt="Public Policy &amp; Technical Alert" width="600" height="150" />

As part of the Center for Audit Quality’s (CAQ) ongoing effort to keep members and stakeholders informed on significant public policy and accounting matters, we are pleased to offer the Public Policy and Technical Alert (PPTA). Each month, the PPTA highlights and examines the regulatory, standard-setting, legislative, and broader financial reporting developments impacting the public company audit profession. Please note that the PPTA is intended as general information and should not be relied upon as being definitive or all-inclusive. The CAQ encourages member firms to refer to the rules, standards, guidance, and other resources in their entirety at the hyperlinks provided below. All entities should carefully evaluate which requirements apply to their respective organizations.
<h2>In This Issue</h2>
<img class="alignnone wp-image-13854" src="https://www.thecaq.org/wp-content/uploads/2023/06/PPTA_Section-Header_SEC.png" alt="SEC" width="350" height="44" />
<h3><strong>SEC Division of Examinations Announces 2026 Priorities</strong></h3>
The SEC's Division of Examinations <a href="https://www.sec.gov/newsroom/press-releases/2025-132-sec-division-examinations-announces-2026-priorities">released</a> its 2026 examination priorities. For fiscal year 2026, in addition to conducting examinations in core areas such as fiduciary duty, standards of conduct, and the custody rule, the Division will also examine for compliance with new rules, such as the 2024 amendments to Regulation S-P.
<h3><strong>SEC Announces New Date and Time for Roundtable on Financial Surveillance and Privacy</strong></h3>
The SEC's Crypto Task Force <a href="https://www.sec.gov/newsroom/press-releases/2025-134-sec-announces-new-date-time-roundtable-financial-surveillance-privacy">rescheduled</a> its Financial Surveillance and Privacy Roundtable, previously scheduled for October, to Monday, Dec. 15, 2025. The roundtable will be held at the SEC's headquarters. The event will be open to the public and webcast live on the SEC's website.
<h3><strong>SEC Investor Advisory Committee Meeting on Regulatory Changes in Corporate Governance, the Tokenization of Equity Securities</strong></h3>
The SEC's Investor Advisory Committee <a href="https://www.sec.gov/newsroom/press-releases/2025-135-sec-investor-advisory-committee-host-dec-4-meeting-regulatory-changes-corporate-governance">held</a> a virtual public meeting on December 4, 2025. The committee hosted two panels:
<ul>
 	<li>Regulatory Changes in Corporate Governance</li>
 	<li>Tokenization of Equities: How Issuance, Trading, and Settlement Would Work with Existing Regulation</li>
</ul>
The full <a href="https://www.sec.gov/about/advisory-committees/investor-advisory-committee/iac120425-agenda">agenda</a> is available on the committee's webpage.

<img class="alignnone wp-image-13851" src="https://www.thecaq.org/wp-content/uploads/2023/06/PPTA_Section-Header_FASB.png" alt="FASB" width="350" height="44" />
<h3><strong>FASB Improves Guidance on Purchased Loans</strong></h3>
The FASB <a href="https://fasb.org/news-and-meetings/in-the-news/fasb-improves-guidance-on-purchased-loans-423314">published</a> an Accounting Standards Update (ASU) that improves the accounting for purchased loans. The new ASU expands the population of acquired financial assets accounted for using the gross-up approach. The ASU, including transition and effective date information, is available at www.fasb.org.
<h3><strong>Financial Accounting Standards Advisory Council (FASAC) Meeting Recap: September 18, 2025</strong></h3>
The FASB <a href="https://www.fasb.org/Page/PageContent?PageId=/about-us/advisory-groups/fasac/fasac-meeting-materials/fasac-meeting-recap-september-18-2025.html">posted</a> the recap of FASAC’s most recent quarterly meeting, held on Thursday, September 18, 2025. At the meeting, the FASB Chair provided highlights on FASB activities, and staff members from the SEC and PCAOB, and the AICPA Auditing Standards Board Chair commented on current issues and activities. Council members also discussed the <em>Agenda Consultation</em> and the <em>Post-Implementation Review — Current Expected Credit Losses</em>.
<h3><strong>FASB Issues Post-Implementation Review Report for Its Leases Standard (Leases PIR)</strong></h3>
The FASB <a href="https://fasb.org/news-and-meetings/in-the-news/fasb-issues-post-implementation-review-report-for-its-leases-standard-423362">issued</a> the report on <em>Post-Implementation Review: Leases (Topic 842)</em>. The report discusses how the FASB staff conducted the Leases PIR process and, using what was learned during the PIR process, describes improvements that were made to the leases standard and, more broadly, areas of improvement for future standard-setting.
<h3><strong>FASB Issues New Standard to Improve Hedge Accounting Guidance</strong></h3>
The FASB <a href="https://fasb.org/news-and-meetings/in-the-news/fasb--issues-new-standard-to-improve-hedge-accounting-guidance-423381">published</a> an ASU to clarify and improve hedge accounting guidance. The ASU enables entities to apply hedge accounting to a greater number of highly effective economic hedges in the following five areas:
<ul>
 	<li>Similar Risk Assessment for Cash Flow Hedges</li>
 	<li>Hedging Forecasted Interest Payments on Choose-Your-Rate Debt Instruments</li>
 	<li>Cash Flow Hedges of Nonfinancial Forecasted Transactions</li>
 	<li>Net Written Options as Hedging Instruments</li>
 	<li>Foreign-Currency-Denominated Debt Instrument as Hedging Instrument and Hedged Item (Dual Hedge)</li>
</ul>
The ASU, including transition and effective date information, is available at <a href="https://fasb.org/">fasb.org</a>.

<img class="alignnone wp-image-13849" src="https://www.thecaq.org/wp-content/uploads/2023/06/PPTA_Section-Header_AICPA.png" alt="AICPA" width="350" height="44" />
<h3><strong>AICPA, State CPA Societies Urge Department of Education to Recognize Accounting Programs as Professional Degree Programs</strong></h3>
The AICPA and state CPA societies strongly <a href="https://www.aicpa-cima.com/news/article/aicpa-state-cpa-societies-urge-department-of-education-to-recognize">oppose</a> any proposal that fails to recognize accounting as a professional degree program. The organizations are calling on the U.S. Department of Education to explicitly include accounting programs in the regulatory definition of "professional degree programs."

<img class="wp-image-13852 alignnone" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/PPTA_Section-Header_International.png" alt="International" width="400" height="50" />
<h3><strong>Financial Reporting Council (FRC) Takes Steps to Support Quality and Consistency in the Assurance of Sustainability Reporting</strong></h3>
The FRC <a href="https://www.frc.org.uk/news-and-events/news/2025/11/frc-takes-steps-to-support-quality-and-consistency-in-the-assurance-of-sustainability-reporting/">issued</a> International Standard on Sustainability Assurance (ISSA) (UK) 5000, <em>General Requirements for Sustainability Assurance Engagements</em>, which provides U.K. companies, investors, and assurance providers with a consistent, internationally aligned assurance standards for voluntary use in sustainability assurance engagements. ISSA (UK) 5000 is a U.K. version of the global benchmark standard for sustainability assurance, developed by the International Auditing and Assurance Standards Board (IAASB).
<h3><strong>FRC Publishes Practical Insights to Help Smaller Listed Companies Improve Corporate Reporting Quality</strong></h3>
The FRC <a href="https://www.frc.org.uk/news-and-events/news/2025/11/frc-published-insights-on-reporting-by-large-private-uk-companies-after-first-year-of-assuming-governance/">published</a> practical insights to help smaller listed companies improve the quality of their corporate reporting and make the most of their resources. <em>Thematic review: Reporting by the U.K.'s smaller listed companies</em> focuses on four key areas where investors pay close attention and where the FRC has historically identified room for improvement:
<ul>
 	<li>Revenue recognition</li>
 	<li>Cash flow statements</li>
 	<li>Impairment of non-financial assets</li>
 	<li>Financial instruments</li>
</ul>
<h3><strong>IAASB Publishes New Illustrative Reports to Support ISSA 5000 Implementation</strong></h3>
The IAASB <a href="https://www.iaasb.org/news-events/2025-11/iaasb-publishes-new-illustrative-reports-support-issa-5000-implementation">published</a> a new set of illustrative practitioner's assurance reports to further support the implementation of International Standard on Sustainability Assurance (ISSA) 5000, <em>General Requirements for Sustainability Assurance Engagements</em>. While ISSA 5000 includes four illustrative reports that reflect the baseline requirements of the standard, this new publication provides more specific examples to help practitioners apply the standard in real-world scenarios.
<h3><strong>October 2025 International Accounting Standards Board (IASB) Update and Podcast Now Available</strong></h3>
The International Financial Reporting Standards (IFRS) Foundation <a href="https://www.ifrs.org/news-and-events/news/2025/11/october-2025-iasb-update-and-podcast-now-available/">announced</a> that the October 2025 IASB update and podcast are now available.
<h3><strong>November 2025 IASB Agenda, Meeting Papers, and Summary Now Available</strong></h3>
The IFRS Foundation <a href="https://www.ifrs.org/news-and-events/calendar/2025/november/international-accounting-standards-board/">announced</a> that the agenda, papers, and meeting summary of the November 2025 IASB meeting are now available. The IASB update and podcast are also available <a href="https://www.ifrs.org/news-and-events/news/2025/11/november-2025-iasb-update-and-podcast-now-available/">here</a>.
<h3><strong>December 2025 IASB Agenda and Meeting Papers Now Available</strong></h3>
The IFRS Foundation <a href="https://www.ifrs.org/news-and-events/calendar/2025/december/international-accounting-standards-board/">announced</a> that the agenda, papers, and meeting summary of the December 2025 IASB meeting are now available.
<h3><strong>IASB Issues Amendments for Translating Financial Information Into Hyperinflationary Currencies</strong></h3>
The IASB <a href="https://www.ifrs.org/news-and-events/news/2025/11/iasb-issues-amendments-ias-21/">issued</a> amendments that clarify how companies should translate financial statements from a non-hyperinflationary currency into a hyperinflationary one. These narrow-scope amendments aim to improve the usefulness of the resulting information in a cost-effective manner. The amendments to IAS 21, <em>The Effects of Changes in Foreign Exchange Rates,</em> are effective for annual periods beginning on or after January 1, 2027. Companies can choose to apply them earlier.
<h3><strong>IASB Issues Illustrative Examples on Reporting Uncertainties in Financial Statements</strong></h3>
The IASB <a href="https://www.ifrs.org/news-and-events/news/2025/11/iasb-issues-illustrative-examples-reporting-uncertainties-financial-statements/">issued</a> illustrative examples demonstrating how companies can apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements. The examples use climate-related scenarios as practical illustrations, but the underlying principles apply more broadly to all uncertainties.
<h3><strong>International Organization of Securities Commissions (IOSCO) Board Meets in Madrid; Issues Four New Publications</strong></h3>
The IOSCO <a href="https://www.iosco.org/news/pdf/IOSCONEWS775.pdf">published</a> the following reports:
<ul>
 	<li>Final Report on Pre-Hedging;</li>
 	<li>Final Report on Environmental, Social and Governance (ESG) Indices as Benchmarks;</li>
 	<li>Consultation Report on Recommendations for Secondary Market Disclosure;</li>
 	<li>Statement on the Importance of High-Quality Valuation Information in Financial Reporting</li>
</ul>
These publications are products of the 2025 workplan and part of the outcomes of the recent board meeting that took place in Madrid.
<h3><strong>IOSCO Publishes Final Report on Financial Asset Tokenization</strong></h3>
The IOSCO <a href="https://www.iosco.org/news/pdf/IOSCONEWS778.pdf">published</a> its Final Report on the Tokenization of Financial Assets. Key findings include:
<ul>
 	<li>Tokenization is growing but remains nascent.</li>
 	<li>Efficiency gains are uneven.</li>
 	<li>Risks are familiar but evolving.</li>
 	<li>Regulatory approaches vary.</li>
</ul>
<h3><img class="wp-image-13850 alignnone" style="font-size: 16px;" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/PPTA_Section-Header_CAQ.png" alt="CAQ" width="400" height="50" /></h3>
<h3><strong>Fall 2025 Audit Partner Pulse Survey</strong></h3>
The CAQ <a href="https://www.thecaq.org/audit-partner-pulse-survey">posted</a> the results of its Fall 2025 Audit Partner Pulse Survey. Highlights of the report include:
<ul>
 	<li>Economic Outlook: Economic Sentiment Stabilizing, but Cautious</li>
 	<li>Business Trends: Regulatory Uncertainty Reshaping Strategy and Artificial Intelligence as an Opportunity Amid Austerity</li>
</ul>
<strong> </strong>

<hr />

The Center for Audit Quality is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to audits of public companies. The CAQ promotes high quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of CPAs. For more information, visit <a href="https://www.thecaq.org/">www.thecaq.org</a>.

The CAQ Public Policy and Technical Alert (PPTA) is intended as general information and should not be relied upon as being definitive or all-inclusive. As with all other CAQ resources, this is not authoritative and readers are urged to refer to relevant rules and standards. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The CAQ makes no representations, warranties, or guarantees about, and assumes no responsibility for, the content or application of the material contained herein and expressly disclaims all liability for any damages arising out of the use of, reference to, or reliance on such material. This publication does not represent an official position of the CAQ, its board, or its members.

<em>Questions and comments about the Public Policy &amp; Technical Alert can be addressed to <a href="https://www.thecaq.org/about-us/our-people/donnie-heinerichs-cpa">Donnie Heinerichs</a>, Manager, Professional Practice (</em><a href="mailto:vteitelbaum@thecaq.org"><em>dheinerichs@thecaq.org</em></a><em>) or <a href="https://www.thecaq.org/about-us/our-people/annette-schumacher-cpa-cgma">Annette Schumacher</a>, Senior Director, Professional Practice (</em><a href="mailto:ashumacher@thecaq.org"><em>ashumacher@thecaq.org</em></a><em>).  </em>

Public Policy and Technical Alert | November 2025

Auditors

Newsletter

PPTA

Welcome back, Audit Insiders!

I hope you all were able to enjoy the Thanksgiving holiday and recharge for the race to the New Year. It is hard to believe that the traditional “busy season” is fast approaching.

My colleagues and I remain...

<img class="aligncenter wp-image-13840" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Header_DM_WEBSITE-VERSION.png" alt="Audit Insider with Dennis McGowan" width="650" height="163" />

Welcome back, Audit Insiders!

I hope you all were able to enjoy the Thanksgiving holiday and recharge for the race to the New Year. It is hard to believe that the traditional “busy season” is fast approaching.

My colleagues and I remain focused on providing the clarity and technical perspective necessary to support audit quality across the profession.

Read on for what I’m tracking.

<em>Please note that these perspectives are my own. If this email was forwarded to you, <a href="https://go.thecaq.org/l/834983/2020-04-22/fskb">subscribe </a>here so that you never miss a public company auditing update.</em>

<hr />

<img class="aligncenter wp-image-13839" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Header_DM_1200x400_600x200_WhatsNewinAudit.png" alt="What's new in public company audit" width="650" height="163" />
<h2>PCAOB</h2>
<h3><strong>Christina Ho to Depart the PCAOB</strong></h3>
<span style="font-size: 16px;">Board member Christina Ho <a href="https://pcaobus.org/news-events/speeches/speech-detail/board-member-christina-ho-announces-resignation-from-pcaob-and-reflects-on-her-tenure">announced</a> that she will depart the PCAOB the earlier of January 31, 2026 or the date the SEC appoints a successor to her position. Ho’s term ended on October 24, 2025, and she chose to not apply for reappointment. I thank Board Member Ho for her service to the PCAOB since she was sworn in on November 9, 2021.  ​​​​</span>
<h3><strong>PCAOB SEIAG Hosts Meeting on Emerging Technologies</strong></h3>
<span style="font-size: 16px;">On November 5, the PCAOB’s Standards and Emerging Issues Advisory Group (SEIAG) held a <a href="https://pcaobus.org/news-events/speeches/speech-detail/artificial-intelligence-and-cryptocurrency--the-seiag-s-broad-perspectives-are-necessary-in-a-changing-audit-landscape">meeting</a> dedicated to technology. The discussion centered on two critical areas: AI and Cryptocurrency.</span>

<span style="font-size: 16px;">Acting Chair George Botic emphasized that the PCAOB cannot afford a "wait and see" approach to AI. He <a href="https://pcaobus.org/news-events/speeches/speech-detail/artificial-intelligence-and-cryptocurrency--the-seiag-s-broad-perspectives-are-necessary-in-a-changing-audit-landscape">stated</a>, “Our response must be principled, adaptive, and deliberate. In professional services, like auditing, where critical thinking and professional skepticism are non-negotiable, the adoption of AI demands a heightened understanding of its impact and consequences from all of us.” </span>

<span style="font-size: 16px;">The meeting also discussed the novel challenges crypto introduces to traditional audit procedures. SEIAG members discussed the AICPA Digital Assets Practice aid and encouraged any guidance from the PCAOB to start with guidance in that practice aid.</span>
<h3><strong>PCAOB Hosts Smaller Firm and Broker-Dealer Forum in Los Angeles</strong></h3>
<span style="font-size: 16px;">On November 12, Board Member Kara M. Stein hosted a forum on Auditing in the Small Business Environment and on Auditing Broker-Dealers in Los Angeles. This forum provided registered audit firms with timely information and updates on PCAOB activities for both the small business sector and broker-dealers, while also serving as an opportunity for PCAOB staff and Board Members to receive direct input on current issues impacting the profession. Learn more about <a href="https://pcaobus.org/news-events/events/event-details/forum-on-auditing-in-the-small-business-environment-and-on-auditing-broker-dealers-2025">the event</a>.​​</span>
<h2>The Audit Effect: The Evolving Role of the Auditor</h2>
As investor demand evolves, so does the role of public company auditors. The CAQ is dedicated to providing resources to keep you up-to-date on trending topics in corporate reporting.
<h3><strong>Role of the Auditor: Professional Skepticism</strong></h3>
The consistent application of professional skepticism is the indispensable cornerstone of audit quality, particularly in periods of uncertainty and change. Recognizing that its application is inherently judgment-based and situational, the CAQ is actively driving the conversation on how auditors can cultivate and maintain a questioning mindset throughout all phases of the audit.

Our <a href="https://antifraudcollaboration.org/rota-fraud-exercising-and-maintaining-professional-skepticism/">latest resource</a>, in collaboration with the <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration (AFC)</a>, explores why this focus is essential as fraud risks evolve and financial reporting challenges grow more nuanced. Auditors must embrace continuous learning and adaptability to understand how advancements in technology, like Artificial Intelligence, impact their ability to effectively exercise skepticism. Our guidance helps practitioners hone their questioning mindsets, use tools like the skepticism continuum, and understand factors that could otherwise impede this critical judgment. I encourage you to explore the <a href="https://antifraudcollaboration.org/rota-fraud-exercising-and-maintaining-professional-skepticism/">actionable insights</a> and share them with your network.
<h2>Fighting Fraud</h2>
<h3><strong>Celebrating International Fraud Awareness Week</strong></h3>
In November, we celebrated International Fraud Awareness Week (November 16–22), which served as a vital global effort to combat fraud by promoting anti-fraud awareness and education. To participate in this celebration, the AFC hosted our second annual Fraud Forum to convene stakeholders in Washington, DC to discuss what all stakeholders in the financial reporting ecosystem can do to strengthen our fraud deterrence and detection.

Stay tuned for a summary of this forum in a future <em>Audit Insider</em>.

<img class="aligncenter wp-image-13838" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Header_DM_1200x400_600x200_FromtheCAQ.png" alt="From the CAQ" width="650" height="163" />
<h2>Audit Quality</h2>
Audit quality in the U.S. remains strong, but with new technologies, evolving regulatory priorities, and shifting market risks, staying ahead requires continuous attention. The CAQ is actively engaging with stakeholders, providing resources, and leading conversations to help practitioners navigate these changes. Read on for recent news, tools, and upcoming events shaping the profession.
<h3><strong>10-K Analysis: Assurance Drives Credibility in New Disclosures</strong></h3>
The most recent <a href="https://www.thecaq.org/sp500-companies-10K-analysis?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">analysis</a> of S&amp;P 500 Companies' 10-Ks, detailed further in my colleague <a href="https://www.thecaq.org/aia-ai-digital-assets-and-sustainability?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">Desiré Carroll's latest blog</a>, confirms that corporate reporting continues to evolve and incorporate disclosures on new and emerging topics. The research underscores the importance of transparency and disclosure to our capital markets.

In analyzing <a href="https://www.thecaq.org/sp-500-and-ai-reporting?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">AI disclosures</a>, we observed that 90% of S&amp;P 500 companies referenced AI-related information in their 2024 10-K, demonstrating an increase of nearly 25% compared to the preceding year. Our first-ever analysis of <a href="https://www.thecaq.org/sp-500-and-digital-asset-reporting?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">digital assets</a> found that 47 S&amp;P 500 companies are reporting this information. Finally, reporting of climate-related information remains nearly universal, with 494 S&amp;P 500 companies mentioning <a href="https://www.thecaq.org/sp-500-10k-climate?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">climate-related information</a> in 2024.

Read Desiré’s <a href="https://www.thecaq.org/aia-ai-digital-assets-and-sustainability?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">blog</a> to learn more about where in the 10-K we observe disclosures in these emerging areas. Spoiler alert, much of the information on these topics is not disclosed in the financial statements.
<h3><strong>CAQ Releases the Fall 2025 Audit Partner Pulse Survey</strong></h3>
The <a href="https://www.thecaq.org/audit-partner-pulse-survey?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">Fall Audit Partner Pulse Survey</a> results are here! Fielded partly during the federal government shutdown, the survey provides a uniquely informed view of the U.S. business climate. Our findings confirm a significant shift toward economic pragmatism, as pessimism dropped substantially from 44% to 22%.

The risk landscape has also shifted. Regulatory ambiguity (54%) and trade tensions (53%) have now displaced recession fears as the top economic risks identified by audit partners. Reflecting this cautious environment, top priorities for public companies observed by audit partners are financial performance and cost management, with strategic AI investments ranking closely behind. In response to this focus on efficiency, companies are proactively increasing disclosures on business strategy, financial performance, and AI integration.

<img class="aligncenter wp-image-14537" src="https://www.thecaq.org/wp-content/uploads/2024/03/Header_DM_1200x400_600x200_This-Months-AI-1024x256.png" alt="" width="650" height="163" />
<h3><strong>Spotlight on Fraud Deterrence and Detection</strong></h3>
<img class="alignright" src="https://go.thecaq.org/l/834983/2025-12-03/3skjl6/834983/1764786829U4yRL2yn/Andi_McNeal_2025.jpg" alt="" width="150" height="150" align="left" border="0" />This month, I am pleased to feature Andi McNeal, Chief Training Officer at the <a href="https://www.acfe.com/">Association of Certified Fraud Examiners (ACFE)</a>. I have had the privilege of working with Andi these last two years in the Anti-Fraud Collaboration. Andi’s commitment and passion for our profession and the work of anti-fraud professionals is so inspiring. I am so pleased I got to ask her about her career and the work of the ACFE.

<em><u>What makes you passionate about your career as an auditor and the work you do at the Association of Certified Fraud Examiners?</u></em>

That’s an easy one—it’s 100% the people. I started my career thinking I’d probably change jobs every few years because I tend to crave new adventures so much. But then I found myself at ACFE, working with people all over the world who are so dedicated to combatting fraud in all its forms and to promoting integrity and ethics in all they do, and I’ve been hooked ever since. My 21+ years at ACFE have been filled with meeting and learning from so many inspirational individuals—from our amazing members to world-renowned experts to some of the best coworkers on the planet—which continuously inspires me and fuels my passion for the work we do on a daily basis.

<em><u>International Fraud Awareness Week turned 25 years old this month. What is Fraud Week, and why is it important to the profession? </u></em>

International Fraud Awareness Week was established by the ACFE in 2000 as a dedicated time to raise awareness about fraud. Our research shows that employee tips are the top way that frauds are detected, and we know that raising awareness among those on the frontline greatly improves our fraud prevention and detection efforts. During Fraud Week, business leaders and anti-fraud professionals are encouraged to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education among their employees and the general public. To support them in doing so, the ACFE offers resources, events, and the opportunity for organizations and individuals to register as Official Supporters of Fraud Week to demonstrate their commitment to preventing and detecting fraud.

<em><u>As the newest partner in the Anti-Fraud Collaboration, what motivated the ACFE to join the AFC? </u></em>

We’ve been familiar with the great work the AFC does for quite a while, including how their mission overlaps significantly with that of the ACFE. So, the invitation to join the AFC as a partner provided a way to formally align the work both organizations were already doing and combine our efforts to better support the broader anti-fraud profession. We’ve been extremely proud of the initiatives we’ve been a part of so far as an AFC partner, and we’re looking forward to even more collaboration to improve our constituents’ fraud prevention and detection initiatives.

<u><em>What advice do you have to my readers in the fight against fraud? </em></u>

While AI and other technological advances mean we fraud fighters must keep upping our tech game, it’s important to remember that, at its heart, fraud is a human problem, and it requires human solutions. To effectively combat it, we need to keep our judgment and skepticism sharp, listen to and learn from the people involved, and incorporate psychological and behavioral considerations into our anti-fraud efforts—all things that humans still do better than technology can.

<img class="aligncenter wp-image-13977" src="https://www.thecaq.org/wp-content/uploads/2023/06/Header_DM_1200x400_600x200_Additional_V2.png" alt="Additional Resources and Events" width="650" height="163" />
<h3><strong>AICPA &amp; CIMA Conference on SEC and PCAOB Developments</strong></h3>
AICPA &amp; CIMA Conference on SEC and PCAOB Developments
In December, our CEO, Julie Bell Lindsay, will be moderating a key session at the annual <a href="https://www.aicpa-cima.com/cpe-learning/conference/aicpa-conference-on-current-sec-and-pcaob-developments">AICPA &amp; CIMA Conference on SEC and PCAOB Developments</a>. The session will feature SEC Chair Paul Atkins and Chief Accountant Kurt Hohl. This highly attended event offers a great opportunity to gain insight into the year's biggest accounting, auditing, and regulatory developments directly from the officials who developed the standards. Additionally, the Anti-Fraud Collaboration (AFC) will be hosting a panel discussion during the conference to highlight the AFC resources available to auditors and company management in the fight against fraud.

I hope to see you there!
<h3><strong>CAQ Hosts External Auditor Assessment Tool Webinar</strong></h3>
In November, the CAQ and the National Association of Corporate Directors hosted <a href="https://www.thecaq.org/event/event-external-auditor-assessment?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">a webinar</a> 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, participated and shared guidance on how a robust, two-way dialogue can elevate the effectiveness of the auditors and audit committees. Watch <a href="https://www.thecaq.org/event/event-external-auditor-assessment?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">the takeaways</a>.
<h3><strong>CAQ at the Axios BFD Summit</strong></h3>
On November 18, our CEO, Julie Bell Lindsay, participated in the Axios BFD Summit in New York City. The event brought together the power players and focused on the strategies behind the year's biggest deals in tech, finance, and M&amp;A. <a href="https://www.youtube.com/live/t647EWQst5A?si=IGutVjcr5O95YLa0&amp;t=2850">In her conversation</a>, Julie reinforced that assurance acts as the critical anchor in volatile markets, providing independent verification that cuts through market confusion.

Julie's message underscored that the foundation of trust must now expand to cover material risks across the entire corporate reporting package. By ensuring the reliability of disclosures in these emerging areas, audits function as the trust infrastructure that keeps American capital markets the strongest and most reliable in the world.

Here at the CAQ, we will continue to share resources for the profession and highlight <a href="https://www.thecaq.org/AuditEffect?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit%20Insider&amp;utm_content=November">how auditors build the foundation of trust</a> in the capital markets.

&nbsp;

<hr />

<h3 style="text-align: center;"><em>Dennis McGowan</em></h3>
<p style="text-align: center;"><em>Vice President, Professional Practice and Anti-Fraud Initiatives </em></p>

Audit Insider | November 2025

Washington DC (December 4, 2025) – Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics released the 12th annual Audit Committee Transparency Barometer Report. The report, which has been conducted since 2014, analyzes audit committee disclosures of companies...

<b><span data-contrast="auto">Washington DC (December 4, 2025)</span></b><span data-contrast="auto"> – Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics released the 12th annual Audit Committee Transparency Barometer Report. The report, which has been conducted since 2014, analyzes audit committee disclosures of companies in the S&amp;P 1500.</span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">As audit committees navigate emerging risks including economic disruption and the rapid integration of artificial intelligence, investors need insights into board composition, expertise, and oversight processes. This year’s Barometer shows that while skills matrix disclosure continues at high rates and disclosure of cybersecurity expertise on boards has grown, most disclosure areas have stagnated or declined, providing audit committees with an opportunity to enhance transparency about their evolving oversight responsibilities.</span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">Key findings of the report include: </span><span data-ccp-props="{&quot;335559739&quot;:0}"> </span>
<ul>
 	<li aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">90% of S&amp;P 500 companies disclosed the board of directors' skills matrix, an increase from 85% in 2024. S&amp;P MidCap companies (80%) and S&amp;P SmallCap companies (70%) also showed slight increases.</span><span data-ccp-props="{&quot;335559739&quot;:0}"> </span></li>
</ul>
<ul>
 	<li aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">65% of S&amp;P 500 boards disclosed they have a cybersecurity expert—representing a 5-percentage point increase from 2024.</span><span data-ccp-props="{&quot;335559739&quot;:0}"> </span></li>
</ul>
<ul>
 	<li aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Stagnation and decline of audit committee disclosures were observed across several measures, including (for S&amp;P 500 companies): disclosure of the annual evaluation of the external auditor (decreased from 39% to 38%); considerations in appointing or (re)appointing the external auditor (remained flat at 50%); and factors contributing to the selection of the audit partner (decreased from 17% to 16%).</span><span data-ccp-props="{&quot;335559739&quot;:0}"> </span></li>
</ul>
<span data-contrast="auto">"When disruption accelerates, disclosures cannot stand still," said Julie Bell Lindsay, CEO of the Center for Audit Quality. "Audit committees perform a key role in our capital markets, from overseeing the external auditor to monitoring company financial reporting and internal controls and serving as an effective check on management.  Meaningful, investor-focused disclosure is one of the most powerful tools audit committees have to tell their story and demonstrate this important role. Each proxy season presents an important opportunity for audit committees to more clearly communicate how they oversee risk and uphold audit quality, strengthening investor confidence in a rapidly changing environment."</span><span data-ccp-props="{&quot;335559739&quot;:0}"> </span>

<span data-contrast="auto">"As audit committee responsibilities continue to expand, the Audit Committee Transparency Barometer provides critical insights into how committees are adapting their disclosures and where there is room for improvement," said Michael Nohrden, VP Strategy Audit and Risk for Ideagen. "Our ongoing collaboration with the CAQ ensures audit committees have access to robust data and peer comparisons across the S&amp;P 1500, empowering them to strengthen their communications with stakeholders. With emerging risks like AI adoption and cybersecurity threats reshaping oversight responsibilities, transparent disclosure has never been more important."</span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">The full report is available to read </span><a href="https://www.thecaq.org/audit-committee-transparency-barometer"><span data-contrast="none">here</span></a><span data-contrast="auto">. </span><span data-ccp-props="{}"> </span>

+++

<strong>About the Center for Audit Quality</strong>

The CAQ champions the public interest in the capital markets by:
<ul>
 	<li>Elevating the quality, credibility, and transparency of public company audits;</li>
 	<li>Advancing critical issues affecting public company audits;</li>
 	<li>Driving innovation in assurance; and</li>
 	<li>Providing a collaborative forum for capital market stakeholders to address evolving needs and challenges.</li>
</ul>
As the voice of the public company audit profession, we work to instill trust in corporate reporting and the integrity of the auditing process, ultimately empowering investors, companies, and society as a whole.

<b><span data-contrast="auto">About Ideagen Audit Analytics</span></b> <span data-ccp-props="{}"> </span>

<span data-contrast="auto">Ideagen Audit Analytics is an independent research provider that enables the accounting, legal, and investment communities to analyze auditor market intelligence, public company disclosure trends, and risk indicators. For more information, email info@auditanalytics.com or call 508-476-7007.  </span><span data-ccp-props="{}"> </span>

Annual Audit Committee Disclosure Barometer Reveals Stagnation in Key Disclosure Areas Despite Period of Disruption

Since 2014, the Center for Audit Quality (CAQ), in partnership with Audit Analytics – an Ideagen solution, has analyzed public company audit committee disclosures of companies in the Standard & Poor’s (S&P) Composite 1500 (S&P 1500), which is comprised of...

Since 2014, the Center for Audit Quality (CAQ), in partnership with Audit Analytics – an Ideagen solution, has analyzed public company audit committee disclosures of companies in the Standard & Poor’s (S&P) Composite 1500 (S&P 1500), which is comprised of the S&P 500 large-cap companies (S&P 500), the S&P MidCap 400 (S&P MidCap), and the S&P SmallCap 600 (S&P SmallCap). 


Audit Committee Transparency Barometer

Audit Committee

Publications

Audit Quality

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...

<img class="aligncenter wp-image-13866" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Header_JBL_1200x400_600x200_FINAL_Website.png" alt="Capital Markets Pulse with Julie Bell Lindsay" width="650" height="163" />

<strong>Welcome to another edition of Capital Markets Pulse</strong>, 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 <a href="https://axiosbfdsummitnewyork2025.splashthat.com/">Axios BFD Summit</a> 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.

<em>Please note that these perspectives are my own. If this email was forwarded to you, <a href="https://go.thecaq.org/l/834983/2020-04-22/fskb">subscribe here</a> so that you never miss a public company auditing update. </em> ​​​

<img class="aligncenter wp-image-13867" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2023/06/Header_JBL_1200x400_600x200_RADAR-1024x256.png" alt="On my radar" width="600" height="150" />
<h2>Profession Updates</h2>
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.
<h2>CAQ Updates</h2>
<h4><strong>CAQ Observes International Fraud Awareness Week</strong></h4>
In November, we marked <a href="https://www.thecaq.org/anti-fraud?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">International Fraud Awareness Week</a>, 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 <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration (AFC)</a>, 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.
<h4><strong>Axios BFD Summit: Reinforcing Trust in a Volatile Market </strong></h4>
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 <a href="https://www.thecaq.org/AuditEffect?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">trust plays in capital markets</a>. 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 <a href="https://www.thecaq.org/rota-ai?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">AI</a>, 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 <a href="https://www.youtube.com/live/t647EWQst5A?si=IGutVjcr5O95YLa0&amp;t=2850">here</a>.
<h4><strong>CAQ Hosts External Auditor Assessment Webinar</strong></h4>
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 href="https://www.thecaq.org/event/event-external-auditor-assessment?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">a webinar</a> 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 <a href="https://www.thecaq.org/event-external-auditor-assessment?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">the takeaways on the CAQ website</a>.
<h4><strong>Findings from the Fall 2025 Audit Partner Pulse Survey</strong></h4>
The <a href="https://www.thecaq.org/audit-partner-pulse-survey?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">Fall 2025 Audit Partner Pulse Survey</a> 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 <a href="https://www.thecaq.org/rota-ai?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">auditors come in</a> 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.
<h4><strong>The Role of the Auditor: Professional Skepticism </strong></h4>
In partnership with the Anti-Fraud Collaboration, the CAQ released <a href="https://antifraudcollaboration.org/rota-fraud-exercising-and-maintaining-professional-skepticism/">The Role of the Auditor: Exercising and Maintaining Professional Skepticism</a>. 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 <a href="https://caqantifraprod.wpenginepowered.com/wp-content/uploads/2025/10/caq_afc_rota-exercising-and-maintaining-professional-skepticism_2025-10.pdf">full report</a>.
<h4><strong>S&amp;P 500 Analysis: Assurance Drives Credibility in New Disclosures</strong></h4>
The latest <a href="https://www.thecaq.org/sp500-companies-10K-analysis?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">Analysis of Information in S&amp;P 500 Companies' 10-Ks</a> confirms that corporate reporting has fundamentally expanded to encompass critical, fast-moving areas like <a href="https://www.thecaq.org/sp-500-and-ai-reporting?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">artificial intelligence (AI)</a>, <a href="https://www.thecaq.org/sp-500-and-digital-asset-reporting?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">digital assets</a>, and <a href="https://www.thecaq.org/sp-500-10k-climate?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">climate-related information</a>. This integrated research underscores the strong investor demand for transparency in these frontiers of corporate data: for instance, 99% of S&amp;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 <a href="https://www.thecaq.org/AuditEffect?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">the reliability and credibility</a> of the entire corporate disclosure package, ensuring these evolving reporting areas are anchored in trust.
<h4><strong>Explore the AFC's Q3 Newsletter</strong></h4>
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. <a href="https://antifraudcollaboration.org/afc-newsletter-october-2025/">Read on</a> for updates you might have missed.
<h2>Accounting+/Talent Update</h2>
<h4><strong>EVERFI Events at Grant Thornton and Deloitte</strong></h4>
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.

<a href="https://www.thecaq.org/aia-bridging-the-gap?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=capital%20markets%20pulse">Learn more</a> about how we’re bridging the gap and attracting new talent to the profession.
<h4><strong>Football and Accounting</strong></h4>
<a href="https://www.joinaccountingplus.com/">Accounting+</a> 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.

<hr />

<h3 style="text-align: center;">Julie Bell Lindsay</h3>
<p style="text-align: center;"><em>Chief Executive Officer, CAQ</em></p>

Capital Markets Pulse | November 2025

Policymakers

Investors

Auditor Independence

Company Management

Senior Director, Professional Practice

Desiré Carroll, CPA, CA(SA) is a Senior Director, Professional Practice at the Center for Audit Quality. Her role involves advancing technical and policy-oriented projects to identify, develop, and seek consensus on issues affecting the public company auditing profession. This includes engaging with senior leaders across the financial reporting ecosystem, drafting comment letter responses to regulators, and developing thought leadership publications.

Before joining the CAQ, Desiré served as Associate Director – Sustainability Assurance at the American Institute of Certified Public Accountants (AICPA). Prior to that, she spent over 11 years at Deloitte primarily in their New York M&amp;A Transaction Services group and initially in their Audit practice. Desiré is a CPA and a South African Chartered Accountant.

Desiré Carroll, CPA, CA(SA)

We analyzed S&amp;P 500 companies’ SEC Form 10-Ks to understand what leading companies are disclosing about these fast-moving topics and where in the 10-K companies are relaying this information to investors. Our findings show that AI, digital assets, and sustainability-related...

We analyzed <a href="https://www.thecaq.org/sp500-companies-10K-analysis">S&amp;P 500 companies’ SEC Form 10-Ks</a> to understand what leading companies are disclosing about these fast-moving topics and where in the 10-K companies are relaying this information to investors. Our findings show that AI, digital assets, and sustainability-related disclosures have grown or remained strong compared to previous years’ 10-K filings.

It’s critical that companies clearly communicate how these topics are impacting operations, from potential risks to possible financial statements impacts, to foster investor and public trust in their disclosures.

Keep reading for my top takeaways from our 10-K analysis and how auditors can support these evolving disclosures.

[custom_quote text="Our findings show that AI, digital assets, and sustainability-related disclosures have grown or remained strong compared to previous years’ 10-K filings."]
<h3><strong>The Rapid Rise of AI Disclosures</strong></h3>
AI is rapidly being integrated into business operations, accelerating the need for companies to disclose how they are using the technology. <a href="https://www.thecaq.org/sp-500-and-ai-reporting">Our analysis</a> found that 90% of S&amp;P 500 companies (448 companies) mentioned AI-related information in their 2024 10-K – marking a nearly 25% increase from 359 companies in 2023. This growth confirms that transparency in AI is a key focus for management and investors.

<img class="alignnone wp-image-17039 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_AI-Related-Information-Mentioned-in-10-K.png" alt="" width="2400" height="1254" />

In our analysis, the implications of AI are most frequently cited by companies as part of introducing risks (Item 1A. Risk Factors) of which investors should be aware and business operations and strategy (Item 1. Business) in the 10-K.

Public company auditors can <a href="https://www.thecaq.org/rota-ai">play a key role</a> in enhancing confidence in a company’s governance and controls over AI. There is a clear need for trust in AI, and auditors can help bridge this gap.

<img class="alignnone wp-image-17044 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_Section-of-10-K-AI-is-Mentioned-1.png" alt="" width="2400" height="1254" />

We also observed an over 50% increase in AI-related mentions related to the financial statements (Item 8 in the 10-K). Our <a href="https://www.thecaq.org/institutional-investor-survey-artificial-intelligence">Institutional Investor Survey</a> found that most investors support the use of AI in the audit process, with 90% saying the technology would increase their trust in the results by improving accuracy and reducing errors. Auditors are utilizing AI to improve the efficiency of audits in an ever-changing economy and will continue upskilling to leverage the technology to its full potential.

[custom_quote text="We also observed an over 50% increase in AI-related mentions related to the financial statements (Item 8 in the 10-K)."]
<h3><strong>Digital Assets Introduce New Blind Spots</strong></h3>
This year, we performed our first-ever analysis of <a href="https://www.thecaq.org/sp-500-and-digital-asset-reporting">digital asset-related disclosures</a> in S&amp;P 500 companies’ 10-Ks. We observed that only 47 S&amp;P 500 companies, or approximately 9%, mentioned digital asset-related information in their latest 10-K, with most mentions tied to potential areas of risk (Item 1A. Risk Factors).

This aligns with our Fall 2025 <a href="https://www.thecaq.org/audit-partner-pulse-survey">Audit Partner Pulse Survey</a>, where 78% of respondents indicated that companies in their primary industry have no exposure to cryptocurrency, and only 6% indicate they’re having conversations with their clients about the potential accounting and reporting implications of the use of cryptocurrency.

<img class="alignnone wp-image-17045 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_Section-of-10-K-Digital-Assets-are-Mentioned.png" alt="" width="2400" height="1254" />

The primary risks described in digital assets related disclosures were regulatory uncertainty, market volatility, and technological adaptation costs. Companies specifically noted that the uncertain and evolving nature of the regulatory landscape could lead to costly future compliance. Additionally, the volatility of the digital asset market was highlighted as a risk that could impact companies, whether they are directly or indirectly invested.

While this new technology often promises transparency, as shown in our latest <a href="https://partnerswsj.com/caq-auditing-cryptos-blind-spots/p/1">Wall Street Journal article</a>, it does not eliminate risks that lurk in off-chain information and private key management. Auditors can help identify and address these risks and ensure that even in decentralized environments, companies maintain accountability and financial integrity.

[custom_quote text="The volatility of the digital asset market was highlighted as a risk that could impact companies, whether they are directly or indirectly invested."]
<h3><strong>Sustainability-Related Disclosures Remain Largely Consistent</strong></h3>
The latest S&amp;P 500 companies’ 10-Ks reflect ongoing investor demand for <a href="https://www.thecaq.org/sp-500-10k-climate">sustainability-related information</a>, with a consistent number of 494 companies disclosing sustainability related information in 2023 and 2024 filings.

Most disclosures continued to relate to potential risks and business operations (Items 1A and 1). Climate-related mentions in financial statements increased by 18% with most mentions continuing to fall within significant accounting policies, commitments and contingencies or litigation, debt or borrowing arrangements, and income taxes.

<img class="alignnone wp-image-17046 size-full" src="https://www.thecaq.org/wp-content/uploads/2025/12/2025_12_Climate-Related-Information-Mentioned-in-10-K.png" alt="" width="2400" height="1254" />

From 2023 to 2024, there was a roughly 16% decrease in companies that disclosed net zero or carbon neutral commitments and a 5% decrease in companies that mentioned scope 1, 2, or 3, greenhouse gas emissions information in their Form 10-K’s.

We observed that roughly 21% of S&amp;P 500 companies mentioned the European Union Corporate Sustainability Reporting Directive in some way (a 9% increase from the prior year), and 18% mentioned the California Climate Laws (a 3% increase from the prior year), demonstrating that despite the maturity of sustainability-related disclosures, the regulatory landscape demands that leading companies continuously evaluate how evolving disclosure requirements may impact business risks or operations.

[custom_quote text="From 2023 to 2024, there was a roughly 16% decrease in companies that disclosed net zero or carbon neutral commitments."]
<h3><strong>The Future of the Profession</strong></h3>
A key takeaway from our analysis of 10-Ks is that much of what companies are disclosing about AI, digital assets, and sustainability is largely being disclosed in sections of the 10-K that are not the financial statements. This means that the information is not being audited as part of the financial statement audit. That is because in an audit of the financial statements, the auditor has a limited responsibility for information disclosed in sections of the 10-K that are not the financial statements. Professional standards require the auditors to “read and consider” that information. However, “reading and considering” information involves substantially less work than an <span data-teams="true">audit</span>.

The good news, as CAQ CEO Julie Bell Lindsay recently said at an Axios event, “auditors are not one trick ponies.” As the reliability of information presented outside of the financial statements continues to become more critical to investors, the audit profession stands ready to bring the same trust to this information as they have brought to financial statements for many years. In fact, we see this happening: <a href="https://www.thecaq.org/sp-500-and-esg-reporting">73% of S&amp;P 500 companies</a> that report standalone sustainability information already obtain assurance over certain of that information in an assurance engagement that is separate and apart from the audit of the financial statements.

The CAQ will continue to monitor how leading companies are disclosing key information and how auditors can play a role in building trust in this data, and we encourage <a href="https://www.thecaq.org/audit-committee-resource-center">audit committees</a> and <a href="https://www.thecaq.org/stakeholders-investors">investors</a> to understand how these disclosure trends can support well-informed decisions that shape our economy.

For the latest insights on corporate reporting trends, explore more <a href="https://www.thecaq.org/resource-hub">resources</a> and follow the CAQ on <a href="https://www.linkedin.com/company/center-for-audit-quality">LinkedIn</a>.

AI, Digital Assets, and Sustainability: What Form 10-Ks Tell Us About Reporting Trends

Emerging Reporting Areas

Audit Committee Effectiveness: A Webinar Series
Audit committees should regularly (at least annually) evaluate the external auditor in fulfilling their duty in order to make an informed recommendation to the board whether to retain the external auditor. Robust, two-way dialogue that...

<h4>Audit Committee Effectiveness: A Webinar Series</h4>
Audit committees should regularly (at least annually) evaluate the external auditor in fulfilling their duty in order to make an informed recommendation to the board whether to retain the external auditor. Robust, two-way dialogue that includes constructive feedback to the external auditor may improve audit quality and enhance the relationship between the audit committee and the external auditor.

Join us for a discussion from both sides of the aisle – audit committee members and the auditor – about how to effectively perform this assessment. We’ll discuss the just released 2025 update of the CAQ’s External Auditor Assessment Tool for Audit Committees.

<strong>Note</strong>: This webcast is eligible for 1 CPE credit to those who attend the webcast live.

<img class=" wp-image-12997 alignnone" src="https://thecaq.wpenginepowered.com/wp-content/uploads/2022/11/CAQ_NACD_400x150.png" alt="CAQ NACD" width="200" height="75" />

<em>Audit Committee Effectiveness: A Webinar Series is brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from leaders in the financial reporting ecosystem alongside resources developed to aid audit committees and public company board members.</em>

External Auditor Assessment Webinar: Who, Why, What, When and How

Video

Webinar

Event

hs_trevor-barton

https://www.thecaq.org/wp-content/uploads/2025/10/HS_Trevor-Barton.webp

HS_Trevor Barton

Trevor Barton 

Managing Partner – Quality, Risk & Regulatory, Deloitte & Touche LLP

As we mark Fraud Awareness Week, it’s an opportunity to reflect on the important role auditors play in safeguarding the integrity of our capital markets. At Deloitte, we recognize that the assurance provided by our audit professionals is not just...

As we mark Fraud Awareness Week, it’s an opportunity to reflect on the important role auditors play in safeguarding the integrity of our capital markets. At Deloitte, we recognize that the assurance provided by our audit professionals is not just a regulatory requirement—it’s a cornerstone of trust for investors, boards, and the broader financial ecosystem.
<h3><strong>Integrity, Ethics, and Experience: The Foundation of Audit Quality</strong></h3>
Our audit teams are guided by unwavering ethics, integrity, and a wealth of experience—attributes that are fundamental to delivering quality, value, and trust through our work. This isn’t just about checking boxes—it’s about understanding the complex economic environment and business processes, identifying risk factors, and applying decades of industry knowledge to every engagement.

Schemes to perpetrate fraud continuously evolve—exploiting new technologies and vulnerabilities as they emerge. Our auditors undergo continuous training to stay ahead of emerging threats, including those posed by evolving technologies. By applying advanced analytics and professional skepticism as well as the support of dedicated forensic specialists and other experienced resources, coupled with our deep industry experience and independent mindset, we are better equipped to detect anomalies and patterns that may signal fraudulent activity. This rigor is what drives audit quality and enables us to provide assurance that financial information is materially accurate and complete.

[custom_quote text="Schemes to perpetrate fraud continuously evolve—exploiting new technologies and vulnerabilities as they emerge."]
<h3><strong>The Value of Assurance: Confidence for the Capital Markets</strong></h3>
Ultimately, the work of public company auditors is about instilling confidence. When investors, policymakers, and boards see that financial statements have been audited by independent, credentialed professionals, they can place greater trust and reliance on the financial information shared. This trust is vital to the functioning of our capital markets and the broader economy.

As we observe Fraud Awareness Week, I am proud of the role Deloitte’s auditors play in safeguarding the integrity of our capital markets from fraud and that we remain a leader in the pursuit of quality, transparency, and integrity.

[custom_quote text="Ultimately, the work of public company auditors is about instilling confidence."]

Stay Connected.