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.
In This Issue
Crypto Task Force Roundtable on Financial Surveillance and Privacy Postponed
The SEC announced that its Crypto Task Force postponed its October 17, 2025, roundtable on financial surveillance and privacy. Due to a lapse in appropriations, this roundtable will be rescheduled for a later date.
PCAOB Publishes New Edition of Data Points on Auditors of SPACs at IPO and Financial Statements and Auditor Turnover
- The PCAOB released a new edition of Data Points in Auditors of SPACs at IPO. From January 2015 through August 2025, 1,291 special purpose acquisition company initial public offerings were listed on U.S. exchanges. At the time of their IPO, over 90% of these SPACs were audited by firms outside the six largest global accounting firm networks, with two such firms auditing more than 75% of these SPACs.
- The PCAOB released a new edition of Data Points: Financial Restatements and Auditor Turnover.
Board Member Stein to Host Forum in Los Angeles for Auditors of Small Businesses and Auditors of Broker-Dealers
The PCAOB announced that Board Member Kara M. Stein will host an in-person forum on auditing in the small business environment and on auditing broker-dealers on November 12, 2025. The one-day event – part of a series of 2025 forums – will take place in Los Angeles at Loyola Marymount University. There is no fee to attend the Los Angeles forum, but advance registration is required. A recording of the event will be made available on the PCAOB’s website.
PCAOB Concludes 2025 Conference on Auditing and Capital Markets
The PCAOB concluded its 12th annual Conference on Auditing and Capital Markets on October 17, 2025. Research papers presented addressed:
- Auditing and management disclosures
- Private equity investment in accounting firms
- The labor market for auditors
- Auditor independence
- The impact of regulation on non-capital market audits
The conference agenda is available on the PCAOB website with links to the working papers.
PCAOB Welcomes Global Partners to 17th International Institute on Audit Regulation
The PCAOB concluded its two-day 2025 International Institute on Audit Regulation, in Washington, D.C., on October 29, 2025. Under the theme of “A Firm’s System of Quality Control: The Foundation of Audit Quality,” the Institute included sessions with PCAOB Board Members and staff, leaders from non-U.S. regulatory bodies, and representatives from key stakeholder groups across auditing and financial reporting.
PCAOB Holds November 5, 2025, Meeting of Its Standards and Emerging Issues Advisory Group
The PCAOB held a virtual meeting of its Standards and Emerging Issues Advisory Group on Wednesday, November 5, 2025, at 10:00 a.m. ET. A recording is available on the event page.
Accounting Firms Report Strong Hiring Outlook, AICPA Report Finds
The AICPA announced the findings of its biennial report on trends related to accounting graduation rates, the CPA Exam and hiring demand by accounting firms. Accounting firms have a strong hiring outlook this year, with three-in-four of those that recruited new staffers in 2024 indicating plans to hire the same amount or more in 2025.
Financial Reporting Council (FRC) Highlights Latest Trends in Accountancy and Audit
The FRC released the 23rd edition of its Key Facts and Trends report, offering a comprehensive overview of the U.K. accountancy and audit landscape. The report shows continued growth in the accountancy profession, with membership increasing both in the United Kingdom and worldwide, though there was a minimal decline in student numbers. In the audit market, the report notes an ongoing trend of consolidation, with a decrease in the overall number of registered audit firms.
FRC Publishes Key Findings and Good Practice Report
The FRC published a report setting out the key findings and good practice the FRC has identified in the 2023-24 and 2024-25 inspection cycles related to the audits of the twelve largest audit firms.
October 2025 International Accounting Standards Board (IASB) Agenda and Meeting Papers Now Available
The International Financial Reporting Standards (IFRS) Foundation announced that the agenda, papers, and meeting summary of the October 2025 IASB meeting are now available.
Now Available: International Ethics Standards Board for Accountants (IESBA) Handbook 2025 Edition
The IESBA released the 2025 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). This handbook incorporates the tax planning pronouncement that became effective for tax planning services and activities beginning after June 30, 2025.
IESBA Conference 2025 Videos and Speeches Now Available, Marking Global Ethics Day 2025
The IESBA announced that all speeches and session videos from the IESBA Ethics and Independence Conference 2025 are now available on the conference website, offering open access to the key discussions and insights shared.
International Organization of Securities Commissions (IOSCO) Reviews Implementation of Recommendations for Crypto and Digital Asset Markets
The IOSCO published its Final Report on its Thematic Review Assessing the Implementation of IOSCO Recommendations for Crypto and Digital Asset Markets. The review highlights both the progress made in regulating crypto-asset markets and the key areas for continued progress, such as promoting greater consistency in implementation, reducing risks of regulatory arbitrage, and strengthening enforcement practices.
External Auditor Assessment Webinar: Who, Why, What, When, and How
The CAQ announced that Episode 8 of Audit Committee Effectiveness: A Webinar Series is scheduled for November 20, 2025. 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. The webcast will offer a discussion from both sides of the aisle – audit committee members and the auditor – about how to effectively perform this assessment. The CAQ will discuss the just released 2025 update of the CAQ’s External Auditor Assessment Tool for Audit Committees.
External Auditor Assessment Tool: A Tool for Audit Committees
The CAQ shared a new resource, External Auditor Assessment Tool: A Tool for Audit Committees. This assessment questionnaire is a tool audit committees can use to perform their evaluation of the external auditor. Sample questions are organized to help audit committees related to four specific areas:
- quality of services and sufficiency of resources provided by the engagement team;
- quality of services and sufficiency of resources provided by the audit firm;
- communication and interaction with the external auditor; and
- auditor independence, objectivity, and professional skepticism.
The publication covers what the evaluation should encompass.
The Role of the Auditor in AI: Present & Future
The CAQ published “The Role of the Auditor in AI: Present & Future,” a publication that discusses how auditors can build on their existing expertise to bring increased trust and transparency to the use of artificial intelligence (AI) at public companies. The publication addresses:
- The use of AI at public companies today, and the challenges associated with its use
- How auditors are well-positioned to provide new assurance services on AI to help bridge the AI trust gap
- Considerations and questions for boards to exercise their oversight of the company’s use of AI
The CAQ also posted an article written by Erin Cromwell, CPA, Senior Manager, Professional Practice, on why trust will be essential as public companies invest in artificial intelligence. Cromwell provides her key takeaways about how auditors’ tried-and-true approach and evolving skillset supports this ever-changing landscape.
Analysis of S&P 500 Companies’ 10-Ks
The CAQ analyzed the most recent S&P 500 company filings to better understand how public companies are addressing climate, AI, and digital asset-related information in their disclosures. These three resources provide a snapshot of what S&P 500 companies typically disclose and where they disclose that information within the 10-K. This analysis looks at the most recent SEC Form 10-Ks for S&P 500 companies available as of June 2025.
The Role of the Auditor: Exercising and Maintaining Professional Skepticism
A report by the Anti-Fraud Collaboration explores the importance of cultivating a questioning mindset and attitude, and using guides and scenarios to exercise professional skepticism effectively and understand the behavioral and environmental factors that can either support or hinder its effective use. Read the full report.
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 www.thecaq.org.
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.
Questions and comments about the Public Policy & Technical Alert can be addressed to Donnie Heinerichs, Manager, Professional Practice (dheinerichs@thecaq.org) or Annette Schumacher, Senior Director, Professional Practice (ashumacher@thecaq.org).