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Enhancing public trust in the capital markets by promoting high-quality financial reporting.

<p>The Center for Audit Quality</p>

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Discover the latest insights, resources, and standards in auditing and accounting at the Center for Audit Quality (CAQ) website. Access valuable guidance, research, and tools to enhance your expertise and stay informed in the ever-evolving auditing landscape. 

Liz Barentzen is the Vice President, Operations and Talent Initiatives at the Center for Audit Quality, where she oversees day-to-day and long-term strategic operations, as well as leads and advances strategic profession-wide initiatives to attract and retain talent.

Previously, Barentzen was the Chief Culture Officer at Sol Systems LLC, a national solar finance, investment and development firm. In that role she worked to drive organizational effectiveness and helped manage change through a rapid period of growth, while overseeing all recruitment, learning, and retention initiatives. Prior to Sol Systems, Barentzen was the Director of Workforce Relations at the Overseas Private Investment Corporation, where she served as strategic and legal counsel to management and oversaw training and development, HRIS, benefits, total rewards, HR administration, performance management, and internal investigations.

Barentzen has 20 years of experience in Human Capital and is an Associate Certified Coach through the Georgetown Leadership Coaching program. A member of the New York Bar, she holds a JD from Brooklyn Law School and a BA in psychology from New York University.

Liz Barentzen

The accounting profession continues to face a significant talent pipeline challenge, in part due to common misperceptions about careers in audit and accounting. However, new data from the National Student Clearinghouse Research Center shows positive momentum, with undergraduate accounting enrollment...

The accounting profession continues to face a significant talent pipeline challenge, in part due to common misperceptions about careers in audit and accounting. However, new data from the National Student Clearinghouse Research Center shows positive momentum, with undergraduate accounting enrollment increasing 12% in both fall 2024 and spring 2025 – reaching 267,278 students in fall 2024, the highest level since fall 2020. This represents nearly 29,000 additional students compared to the previous year, proving that our profession's efforts to draw in new talent are attracting students to accounting.

At the Center for Audit Quality (CAQ), we know that a career in accounting leads to endless opportunities. We also know that to attract and retain the best talent, we must tackle long-held misconceptions about the profession and connect students to real-life professionals. Our <a href="https://www.joinaccountingplus.com/">Accounting+</a> campaign has been a platform for progress. Backed by our member firms and supported by a coalition of non-profits and state CPA societies, Accounting+ continues to reach students in the classroom and online with research-backed messages about the possibilities of a career in accounting. The CAQ is also advancing important conversations about the talent pipeline and how we can all play a role in driving change.

In 2024, we released our newest student research, published the Accounting+ Annual Report, hosted exciting events with our partners at EVERFI and the Pittsburgh Steelers, and met with other talent leaders to discuss the state of the talent pipeline. Read on for the latest updates on our efforts to attract the next generation of leaders in audit and accounting.
<h3><strong>Annual Student Research: Stability and Flexibility Remain Key</strong></h3>
The accounting profession is facing a pivotal moment. With a number of experienced professionals nearing retirement and a new generation of students lacking meaningful exposure to accounting, the talent pipeline has struggled to keep pace with demand.

When the CAQ launched <a href="https://www.joinaccountingplus.com/">Accounting+</a> in 2021, we set out to change perceptions, especially among high school and early college students, by showcasing the exciting, diverse, and high-reward career paths accounting offers. While momentum has grown in recent years – as evidenced by the National Student Clearinghouse data showing consecutive semesters of growth -- the work is far from done. In 2024, the CAQ conducted student research to re-examine where the pipeline stands—and how we can broaden it. Our latest publication on this research, <a href="https://www.thecaq.org/expanding-the-accounting-profession-pipeline">Expanding the Accounting Profession Pipeline</a><em>,</em> reveals critical insights.

We found that today’s students are choosing college majors earlier than ever- of the approximately 35% of students reporting having decided on their majors in high school, nearly a third of these students are making decisions <em>before</em> high school and 44% during their freshman or sophomore year of high school (this amounts to almost 75% of students deciding on their majors before their Junior year of high school). The window to reach them is narrowing, and the need for earlier exposure to careers in accounting is critical.

Students’ career priorities have also shifted. While passion and purpose remain key drivers, financial security and inclusive work environments are increasingly top of mind for today’s students. When we tested accounting-focused messaging, we found that long-term salary potential and job stability resonates powerfully in today’s uncertain economic climate.

Students also responded well to messaging that highlights how accounting can align with their broader career interests in fields like healthcare, tech, entertainment, and finance. When we help them connect the dots between accounting and the industries they already care about, we expand their view of what’s possible and the endless opportunities the profession offers. For additional takeaways and guidance on how to attract talent, take a look at <a href="https://www.thecaq.org/expanding-the-accounting-profession-pipeline">our research</a>.

[custom_quote text="While passion and purpose remain key drivers, financial security and inclusive work environments are increasingly top of mind for today’s students."]
<h3><strong>Accounting+ Annual Report: Continued Impact in 2024</strong></h3>
In <a href="https://www.thecaq.org/accounting-annual-report">2024,</a> the impact of Accounting+ continued to flourish. By spotlighting real-life accountant stories and the diverse career paths available in the profession, we received over 26 million website visits, garnered 48,000 new subscribers, and reached 122,000 students through classroom engagement programs. These numbers reflect more than just clicks—they represent growing curiosity and connection to a career that students may never have considered before.

We’re meeting students where they are, on digital platforms and in the classroom, with messaging that resonates with academic and career priorities Gen Z and Gen Alpha students care about most. Our campaign is also connecting them to tangible opportunities at our partner firms, including programs, internships, and scholarships, making Accounting+ a valuable resource to return to.

Our Accounting Careers: Limitless Opportunities course, developed in partnership with EVERFI, has engaged over 122,000 students and reached over 5,600 teachers since its inception. The impact of the course has been extraordinary. After completing the program, 67% of students reported an increased interest in pursuing accounting careers. Additionally, 70% recognized the value of accounting skills—an increase from 57% before taking the course. Most notably, 81% of students discovered accounting career paths they had not known about previously, and 89% agreed that accounting skills are essential for achieving their professional goals.

As we look ahead, one thing is certain: Accounting+ is driving real change. By continuing to evolve our messaging, deepen our partnerships, and create inclusive, student-led experiences, we are reimagining what the future of accounting can look like. I encourage you to explore our 2024 achievements and our goals for 2025 <a href="https://www.thecaq.org/accounting-annual-report">here</a>.

[custom_quote text="We’re meeting students where they are, on digital platforms and in the classroom, with messaging that resonates with academic and career priorities Gen Z and Gen Alpha students care about most."]
<h3><strong>Accounting for Your Future: In-Person Events</strong></h3>
As part of our partnership with EVERFI, we host a series of “Accounting for Your Future” signature events across the country during the school year. January’s events took place in Washington, D.C. and featured speakers from KPMG, BDO, and members of the Virginia Society of CPAs, giving students a chance to hear from and connect with accounting professionals.

Former NFL linebacker turned entrepreneur and philanthropist Dhani Jones moderated each event, and fireside chats with NFL players Jelani Jenkins, Cam Johnson, and Jehu Chesson II highlighted how accounting skills helped them transition from professional sports to business. These engaging and relatable speakers helped us reiterate the real-life impact of careers in accounting and the multitude of opportunities available in the profession.

We wrapped up the school year in Chicago and Indianapolis with Crowe, Grant Thornton, RSM, and members of the Indiana CPA Society, reaching even more students with our dynamic messaging and storytellers. And expanding these scaling efforts, we launched our inaugural Classroom Connect virtual event, featuring representatives from Becker, Crowe, and RSM, and reached nearly 200 high school classrooms and more than 3,600 students.

[custom_quote text="We launched our inaugural Classroom Connect virtual event and reached nearly 200 high school classrooms and more than 3,600 students."]
<h3><strong>Steelers Showcase: Exposing Pittsburgh Students to Accounting</strong></h3>
The second year of Accounting+’s partnership with the Pittsburgh Steelers informed and engaged a new group of Pittsburgh-area students about accounting and how it plays a role in the sports industry.

Our “Steelers Showcase” program, a series of 3 events during the school year, wrapped up in April at Acrisure Stadium. At this event, students were tasked with solving a financial mystery alongside representatives from our member firms, exposing them to what a career in forensic accounting could look like. For the first two events, students heard from our partners at the Steelers v. Ravens game and the Steelers’ practice facility about how to get started in accounting and prepare for academic and professional success. This partnership continues to help us spotlight diverse career paths in accounting, especially in industries students are passionate about.

You can watch our 2024-2025 wrap up video on the Steelers’ <a href="https://www.steelers.com/video/watch-2024-2025-steelers-showcase-program">website</a>.

[custom_quote text="Students heard from our partners at the Steelers v. Ravens game and the Steelers’ practice facility about how to get started in accounting."]
<h3><strong>The Power of Collaboration: Amplifying Our Impact</strong></h3>
The success of Accounting+ demonstrates the transformative power of strategic partnerships with over 60 partners spanning member firms, state CPA societies, educational institutions, and professional organizations. These collaborations allow us to reach students through multiple touchpoints and create a cohesive message about accounting opportunities.

Just this month, we interviewed more than 50 students and accounting professionals at the NABA Inc. Convention in Las Vegas, with content from these filmed interviews being developed for our social media channels. These conversations capture diverse perspectives on accounting careers and provide relatable content that resonates with prospective students, and we expect our partners will continue amplifying our content across their own networks and platforms, exponentially expanding our reach.

[custom_quote text="We expect our partners will continue amplifying our content across their own networks and platforms, exponentially expanding our reach."]
<h3><strong>A Look at the Talent Pipeline: Capital Markets Pulse Podcast</strong></h3>
The Bureau of Labor Statistics reports that there are more than 1.5 million open accountant positions as of 2023 and the demand for accountants will grow 6% through 2033, but job growth overall is only expected to grow at 4% during the same period. Professional organizations and state CPA societies have been working diligently to identify and address pipeline challenges, and the CAQ’s latest <a href="https://www.thecaq.org/podcast-capital-markets-pulse-episode-13">Capital Markets Pulse podcast</a> dives into some of these examples.

Our CEO, Julie Bell Lindsay, sat down with Sue Coffey, CEO of the American Association of Certified Public Accountants, and Anna Durst, CEO of the Nevada Society of CPAs, for this important conversation about how our profession can tackle the pipeline challenge and understand the evolving role of technology like AI in accounting.

As we look to the future, the path forward is clear: meet students earlier in their academic journey, connect with them where they are—in the classroom and on the platforms they use the most, continue to and help them foster relationships with professionals who can show them what’s possible. Whether on social media or in the classroom, we must continue to break down misconceptions and show the next generation what’s possible in accounting.

Follow the CAQ on <a href="https://www.linkedin.com/company/center-for-audit-quality">LinkedIn</a> and visit <a href="https://www.joinaccountingplus.com/">Accounting+</a> to stay up to date on our talent efforts.

[custom_quote text="Whether on social media or in the classroom, we must continue to break down misconceptions and show the next generation what’s possible in accounting."]

Strengthening the Accounting Pipeline: CAQ Talent Updates

Academics

Talent

Blog Post

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, Capital Markets Pulse dives into the latest key matters related to the capital markets featuring experts from across the corporate reporting world.

Don't see the player? Please refresh the...

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, Capital Markets Pulse dives into the latest key matters related to the capital markets featuring experts from across the corporate reporting world.

<strong><em>Don't see the player? Please refresh the page or listen <a href="http://www.buzzsprout.com/2192286/episodes/17102014-capital-markets-pulse-a-look-at-the-talent-pipeline-with-aicpa-s-sue-coffey-and-nevada-cpa-society-s-anna-durst">here</a>.</em></strong>
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<script src="https://www.buzzsprout.com/2192286/episodes/17102014-capital-markets-pulse-a-look-at-the-talent-pipeline-with-aicpa-s-sue-coffey-and-nevada-cpa-society-s-anna-durst.js?container_id=buzzsprout-player-17102014&player=small" type="text/javascript" charset="utf-8"></script>

Podcast | Capital Markets Pulse, Episode 13: Sue Coffey & Anna Durst

Auditors

Policymakers

Investors

Audit Quality

Podcast

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

Companies that swiftly transitioned to remote work during the pandemic are now exploring ways to bring employees back to the office full-time, implement hybrid models, or establish long-term remote work policies. These changes present new challenges in maintaining an ethical...

Companies that swiftly transitioned to remote work during the pandemic are now exploring ways to bring employees back to the office full-time, implement hybrid models, or establish long-term remote work policies. These changes present new challenges in maintaining an ethical organizational culture to proactively deter and detect fraud.

As a partner of the <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration (AFC),</a> the Center for Audit Quality (CAQ) advances discussions among all members of the financial reporting ecosystem about ways to strengthen fraud prevention, and corporate culture is a key pillar.

The AFC’s latest resource, <a href="https://antifraudcollaboration.org/the-impact-of-a-changing-work-environment-on-corporate-culture/"><em>The Impact of a Changing Work Environment on Corporate Culture</em></a>, offers valuable insights and actionable guidance for organizations looking to strengthen their culture and anti-fraud efforts while navigating an evolving work environment.

Keep reading for my key takeaways from the report.
<h3><strong>Adapting Corporate Culture in a Changing Work Environment</strong></h3>
An organization’s culture evolves alongside workplace expectations and business practices. As organizations navigate shifts in the work environment, many employees—including managers—may feel disconnected or uncertain about their roles. According to human resources and culture subject matter experts, employees are increasingly looking for flexibility, autonomy, and empathy in the workplace. It is critical for leaders to balance these expectations while preserving a strong corporate culture.

The prolonged period of remote work, combined with a new generation entering the workforce, has changed how employees perceive corporate culture. In a <a href="https://www.mckinsey.com/mgi/our-research/empty-spaces-and-hybrid-places">McKinsey &amp; Company study</a>, 10% of workers worldwide said they would likely quit their jobs if they were required to work at the office every day. They also agreed that they would forgo more than 20% of their compensation to work the right number of days at home.

Companies have faced pushbacks in response to return-to-office mandates, in some cases leading to increased turnover, lower job satisfaction, and other potential unforeseen consequences. It is important to recognize the considerable impact of demographics on employees’ attitudes and experiences with regards to remote, hybrid, and in-person work, and remain flexible when making workplace decisions for a broad employee base.

[custom_quote text="10% of workers worldwide said they would likely quit their jobs if they were required to work at the office every day."]
<h3><strong>Reinforcing Ethical Culture in a Hybrid Work Environment</strong></h3>
A strong ethical culture must be reinforced through deliberate actions, especially in a changing workplace.

A few of these strategies include revisiting the hiring process regularly to ensure it aligns with the work environment, assigning a peer mentor to help new employees navigate the company culture and foster connections virtually, and emphasizing achievements and employees’ positive impact on the organization, while avoiding micromanaging employees’ work.

Additionally, organizations should readily and continually assess the unique impact new working models have on their governance, risk management, and control processes to ensure that cultural integrity remains intact.

[custom_quote text="Assign a peer mentor to help new employees navigate the company culture and foster connections virtually."]
<h3><strong>How Changes in Work Environment Impact Fraud Risks</strong></h3>
As work environments continue to evolve, the risk of fraud can increase in unexpected ways. Employees who feel disconnected from their organizations while working remotely may be more likely to rationalize fraudulent behavior, and they may find it easier to perpetuate fraud or engage in misconduct without being caught.

According to the <a href="https://legacy.acfe.com/report-to-the-nations/2024/">Association of Certified Fraud Examiners (ACFE)</a>, the most common behavioral red flag for fraud is an employee living beyond their means. In a traditional office setting, coworkers and managers may notice signs such as expensive purchases or lavish vacations. In a remote environment, these warning signals are often more difficult to detect. The absence of casual, spontaneous in-person contact to build relationships among employees may also weaken employees' sense of connection to their company and its ethical culture.

Strengthening accountability, reinforcing ethical values, and fostering a culture of integrity—whether in-person or virtual—will be critical to identify and mitigate fraud risks in the modern workplace.

[custom_quote text="Employees who feel disconnected from their organizations while working remotely may be more likely to rationalize fraudulent behavior."]
<h3><strong>Fraud Prevention Through Culture and Risk Management</strong></h3>
An ethical corporate culture can mitigate the pressures that lead to fraud through strong risk management practices and appropriate incentives. However, in a time of constant disruption and changing work environments, management must regularly assess emerging risks and adjust their monitoring strategies accordingly.

Organizations should consider a variety of tools to enhance their culture and deter fraud and misconduct, including:
<ul>
 	<li>Robust internal controls, policies, and processes</li>
 	<li>Applying the elements of the fraud triangle in risk assessment</li>
 	<li>Employee surveys and culture metrics to measure sentiment</li>
 	<li>Leveraging technology for fraud detection</li>
 	<li>Encouraging teamwork and cross-functional collaboration</li>
 	<li>Setting a strong tone at the top</li>
 	<li>Implementing whistleblower and ethics hotlines</li>
 	<li>Effective change management strategies</li>
</ul>
There is not a one-size-fits-all approach to establishing a strong ethical culture, particularly in today’s eclectic work environment. However, by leveraging these tools and techniques, organizations can create a solid foundation that fosters, reinforces, and enhances ethical behavior across the workforce.

A strong ethical culture not only deters fraud but also strengthens trust among different stakeholder groups. By embracing flexibility, reinforcing core values, and implementing effective fraud prevention strategies, organizations can navigate the complexities of today’s business and regulatory landscape while upholding the highest standards of integrity.

As the fraud risk landscape continues to evolve, I encourage your organization to review how its risk management practices and incentives can be enhanced to foster a strong culture. Make sure to follow the <a href="https://antifraudcollaboration.org/">AFC</a> on <a href="https://twitter.com/antifraudcollab">X</a> and <a href="https://www.linkedin.com/company/antifraudcollaboration/">LinkedIn</a> to stay up to date on the latest resources to deter and detect fraud.

[custom_quote text="There is not a one-size-fits-all approach to establishing a strong ethical culture."]

The Future of Work: Enhancing Corporate Culture to Deter and Detect Fraud

Anti-Fraud

Vanessa Teitelbaum, CPA, is Senior Director, Professional Practice at the Center for Audit Quality. She joined the CAQ in 2016 and advocates for stakeholders in the audits of public companies.

As an in-house expert and resource on auditing and accounting practice issues, Vanessa leads task forces comprised of audit partners and technical experts from the public company audit profession related to proposed standards and other current issues facing the profession. Projects have included development of the CAQ’s <em>Audit Quality Disclosure Framework</em>, <em>Preparing for the New Credit Losses Standard: A Tool for Audit Committees</em>, and the <em>External Auditor Assessment Tool</em>, among other publications. Vanessa has facilitated responses to proposed standards and regulations related to quality management, supervision of other auditors, quarterly reporting, the accelerated filer definition, and independence.

Before joining the CAQ, Vanessa served as an audit senior manager at PricewaterhouseCoopers and Dixon Hughes Goodman, leading audit teams of both large and midsize companies in a variety of industries, including technology, manufacturing, and financial services. Vanessa has over 15 years of audit experience, specialized in SEC financial reporting, technical accounting, and internal control matters.

Vanessa is a Certified Public Accountant in Maryland. She holds a bachelor of arts in Asian studies from Williams College and a master of business administration in accounting and finance from New York University Stern School of Business.

Vanessa Teitelbaum, CPA

In an increasingly complex regulatory environment, and as organizations address new and ongoing challenges, the responsibilities of audit committees continue to grow.

These growing responsibilities are the focus of the  2025 Audit Committee Practices Report, a collaboration between the Center for...

In an increasingly complex regulatory environment, and as organizations address new and ongoing challenges, the responsibilities of audit committees continue to grow.

These growing responsibilities are the focus of the  <a href="https://www.thecaq.org/audit-committee-practices-report">2025<em> Audit Committee Practices Report</em></a><em>,</em> a collaboration between the Center for Audit Quality (CAQ) and Deloitte’s Center for Board Effectiveness, which sheds light on the latest trends, priorities, challenges, and practices to promote audit committee effectiveness according to survey results. Below are the main takeaways from this year’s report.
<h3><strong>What are the top priorities for audit committees?</strong></h3>
The demographics of survey respondents remain consistent year over year: Of the 237 participants, 89 percent were directors on US boards, with 86 percent serving on the boards of public companies and 72 percent serving on the boards of companies with more than $2 billion in market capitalization. Additionally, 27 percent serve on the boards of financial services companies.

The survey found that - beyond oversight of financial statements and internal control over financial reporting - the three top priority areas for audit committee chairs and members remain consistent with last year’s report: cybersecurity, enterprise risk management (ERM), and finance and internal audit talent.

[custom_quote text="The three top priority areas for audit committee chairs and members: cybersecurity, ERM, and finance and internal audit talent."]
<h3><strong>A Spotlight on Cybersecurity</strong></h3>
Ninety-three percent of survey respondents ranked cybersecurity as one of their top three priorities, with 50 percent of respondents ranking it as their number one audit committee priority for the year ahead. Furthermore, 71 percent of respondents reported that cybersecurity is on their committee agenda every quarter.

These findings are consistent with insights from the CAQ and Ideagen Audit Analytics <a href="https://www.thecaq.org/audit-committee-transparency-barometer"><em>Audit Committee Transparency Barometer 2024</em></a>. The Barometer report finds that 64 percent of S&amp;P 500 companies indicated their audit committees are responsible for oversight of cybersecurity risk, up from 59 percent the previous year. Furthermore, with the US Securities and Exchange Commission’s <a href="https://www.sec.gov/files/rules/final/2023/33-11216.pdf">Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure Rule</a> in effect, these findings also reflect the regulatory landscape. The CAQ’s <a href="http://thecaq.org/caq_audit-partner-pulse-survey-2024_2024-10"><em>2024 Audit Partner Pulse Survey</em></a> found that 47 percent of audit partners expected to see companies in their primary industry sector voluntarily increase or enhance cybersecurity disclosures over the next 12 months.

Given that cybersecurity is a top priority for audit committees, it is important for audit committees to have the right skill set for effective oversight. As such, nearly one-third (31%) of 2025 <em>Audit Committee Practices Report</em> respondents pointed to cybersecurity expertise as the top skill most likely to enhance the audit committee’s effectiveness. Half of respondents (50%) ranked cybersecurity expertise among the top three skills most likely to enhance the audit committee's effectiveness. Interestingly, not as many respondents from financial services companies (44%) ranked cybersecurity in their top three skills, indicating that these companies may have made an effort to add this skill to their boards in recent years.

Given the prevalence of cybersecurity threats, it is critical that the board or audit committee regularly engage with the chief information security officer (CISO) or equivalent leader. Similar to engaging with many C-suite executives, the audit committee chair should have a strong relationship with the CISO beyond committee meetings.

[custom_quote text="Ninety-three percent of survey respondents ranked cybersecurity as one of their top three priorities."]
<h3><strong>Why is ERM important?</strong></h3>
<strong> </strong>ERM is also a top priority for audit committees. This is consistent with the prior year’s 2024 <em>Audit Committee Practices Report</em> results as having effective ERM is crucial for achieving organizational objectives, safeguarding the company’s reputation and stakeholder relationships, and ensuring long-term success.

According to the 2025 <em>Audit Committee Practices Report</em>, 52 percent of survey respondents noted that the audit committee is responsible for the oversight of ERM, while 28 percent cited the full board and 19 percent cited the risk committee as responsible for this oversight. Interestingly, financial services companies were less likely to assign audit committees the primary role of overseeing ERM (21%) when compared to companies in other industries (63%). Instead, 48 percent of financial services respondents delegate this responsibility to a dedicated risk committee, with only 8 percent of nonfinancial services companies using a risk committee for oversight of ERM.

Eight percent of respondents identified ERM as the top skill, and 27 percent included it in their top three skills, when asked to rank the skills needed to enhance audit committee effectiveness over the next 12 months. Nearly half of all respondents reported that ERM is on the audit committee’s quarterly meeting agenda.

As boards and committee members continue to prioritize ERM, it is important to remain aware of emerging risks and ask management about how they are being considered in the ERM program. If they have not done so already, boards should request tools from management to help them assess risk.

From our experience, we know there are benefits to having directors with different backgrounds. In this case, the varied perspectives of directors can enhance the identification of risk and enable the board to perform its oversight responsibilities and support management.

[custom_quote text="Eight percent of respondents identified ERM as the top skill, and 27 percent included it in their top three skills."]
<h3><strong>The Importance of Finance and Internal Audit Talent</strong></h3>
In the 2025 <em>Audit Committee Practices Report</em>, talent expertise nudged out other top priorities, such as compliance and finance transformation, to round out the top three skills to enhance committee effectiveness.

Impressively, 92 percent of respondents indicated that finance and internal audit talent is the primary responsibility of the audit committee. This topic is on the audit committee agenda quarterly for 38 percent of respondents, semiannually for 18 percent of respondents, annually for 23 percent of respondents, and as needed for 21 percent of respondents.

According to the survey, 89 percent of respondents agreed that internal audit has a high level of understanding of business operations and 82 percent agreed that there is an opportunity to extract more value from internal audit.
<p style="text-align: center;">•••</p>
<p style="text-align: center;"><em>“As audit committee chair, build a strong relationship with your [chief financial officer] and chief audit executive, particularly if they are new to their roles. Serve as a mentor and ally, demonstrating your commitment to their success. Establishing trust and open communication during stable times creates a foundation that will prove invaluable when there are challenges. Moreover, meaningful mentoring relationships not only boost effectiveness but are personally rewarding as well.”</em></p>

<h5 style="text-align: center;"><em>—Sandra Helton, audit committee chair, OptiNose</em></h5>
<p style="text-align: center;">•••</p>
To this end, audit committees should continue to cultivate strong relationships with both the finance and internal audit leaders, in addition to focusing on succession planning for key team members. It is also important to consider the appropriateness of resource allocation to finance and internal audit functions so that appropriate investments can be made in long-term system and process improvements to support the company.

[custom_quote text="92 percent of respondents indicated that finance and internal audit talent is the primary responsibility of the audit committee."]
<h3><strong>Audit Committee Practices and Effectiveness: Key Insights</strong></h3>
It is equally important for audit committees to benchmark against best practices to measure their effectiveness. This year, respondents were asked to measure audit committee effectiveness during meetings and only 31 percent of respondents were satisfied with their performance, compared to 35 percent in last year’s survey, according to the 2025 <em>Audit Committee Practices Report</em>.

When asked how audit committees can improve their effectiveness, the top three responses were:
<ul>
 	<li>Improve the quality of presentations during meetings.</li>
 	<li>Increase discussion during meetings.</li>
 	<li>Improve the quality of pre-read materials.</li>
</ul>
These three opportunities are interconnected as the key point we often hear about is a desire to avoid lengthy presentations. For audit committees, we recommend creating effective executive summaries of presentations with details in appendices. This allows for additional time for questions and discussion, rather than presentations taking up most of the meeting.
<h3><strong>The Role of the Independent Auditor</strong></h3>
The 2025 <em>Audit Committee Practices Report</em> reveals that the most important considerations when assessing the quality of a company’s independent auditor include:
<ul>
 	<li>previous experience working with the auditor (53%),</li>
 	<li>the audit firm’s overall reputation (53%), and</li>
 	<li>audit quality indicators (53%).</li>
</ul>
Audit committees looking to enhance the effectiveness and oversight of their independent auditors should understand from their audit engagement partners the planned risk-based audit approach, if there is adequate engagement staffing and continuity, and if audit milestones are being achieved as planned. Furthermore, audit committees should tell their stories in their proxy statements regarding their oversight of the independent auditor.

<hr />

The views expressed in this article are the author's own and do not represent the perspective of NACD.

<em>CAQ is a NACD partner, providing directors with critical and timely information, and perspectives. CAQ is a financial supporter of the NACD.</em>

<strong><em>Vanessa Teitelbaum, CPA, is senior director on the Professional Practice team at the Center for Audit Quality. She joined the CAQ in 2016 and advocates for stakeholders in the audits of public companies.</em></strong>

<hr />

<span data-teams="true"><i>This article first appeared in </i><a href="https://www.nacdonline.org/all-governance/governance-resources/directorship-magazine/online-exclusives/2025/q1-2025/the-evolving-role-of-audit-committees-in-2025-and-beyond/"><i>NACD’s</i><i> </i>Directorship® </a><i>Online.</i></span>

The Evolving Role of Audit Committees in 2025 and Beyond

Audit Committee

Emerging Reporting Areas

In today’s rapidly evolving financial reporting and regulatory environment, fraud remains an ever-present threat, requiring vigilance and adaptation.

As the Director of Anti-Fraud Initiatives, I engage in meaningful conversations with a diverse group of stakeholders within the financial reporting ecosystem year-round...

In today’s rapidly evolving financial reporting and regulatory environment, fraud remains an ever-present threat, requiring vigilance and adaptation.

As the Director of Anti-Fraud Initiatives, I engage in meaningful conversations with a diverse group of stakeholders within the financial reporting ecosystem year-round to stay up to date on all issues related to fraud. At the Center for Audit Quality (CAQ), we recognize that the fight against fraud requires the collective effort of everyone within the financial reporting profession.

During the 2024 International Fraud Awareness Week, the CAQ, as a partner of the <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration (AFC)</a>, hosted its inaugural Fraud Forum. This multi-stakeholder dialogue brought together key players from across the financial reporting ecosystem, in addition to investors and regulators, to explore emerging fraud risks, discuss best practices, and strengthen fraud deterrence and detection.

Read on for my takeaways from this special event.
<h3><strong>The Evolving Fraud Risk Landscape</strong></h3>
The fraud risk landscape grows more complex every day. Emerging risks such as geopolitical instability, third-party vulnerabilities, and challenges within the talent pipeline present new concerns that require fresh perspectives. Approaching these holistically ensures that fraud deterrence and detection strategies evolve alongside the shifting landscape.

In our discussions at the Fraud Forum, we learned that while fraud risk is inherent in capital markets, massive fraud is not pervasive across corporate America. However, too much emphasis is often placed on the likelihood of fraud rather than its potential impact. Companies should instead consider the potential impact of fraud to strengthen their deterrence and detection efforts.

According to the Association of Certified Fraud Examiners (ACFE)’s <a href="https://www.acfe.com/-/media/files/acfe/pdfs/rttn/2024/2024-report-to-the-nations.pdf">Occupational Fraud 2024: A Report to the Nations</a>, public companies have a better chance of detecting fraud sooner compared to other organizations. Anti-fraud controls embedded in an organization’s policy and practices can help proactively protect against fraud, including:
<ul>
 	<li>Code of conduct</li>
 	<li>Management certification of financial statements</li>
 	<li>Hotline</li>
 	<li>Internal audit department</li>
</ul>
[custom_quote text="While fraud risk is inherent in capital markets, massive fraud is not pervasive across corporate America."]
<h3><strong>Fraud Prevention: The Human Element</strong></h3>
Throughout my conversations with colleagues and subject matter experts, one theme consistently stands out: The human element is crucial in the fight against fraud.

Fraud is not just an accounting or technical issue; it is fundamentally a human problem. Culture and ethics play a critical role in mitigating fraud risk. A company’s ethical environment must be cultivated from the top down, promoting transparency, accountability, and integrity across all levels.

Additionally, hotlines and reporting mechanisms are essential tools in detecting fraud and should be widely utilized. Companies can also encourage employees to speak up and use whistleblower data to effectively offer valuable insights into risk areas. Consequently, organizations with strong internal reporting mechanisms tend to experience better business outcomes and lower fraud risks.

[custom_quote text="Hotlines and reporting mechanisms are essential tools in detecting fraud and should be widely utilized."]
<h3><strong>Strengthening Fraud Detection and Response</strong></h3>
Investor expectations regarding fraud detection are evolving. According to the CAQ’s 2024 <a href="https://www.thecaq.org/institutional-investor-survey-q4-2024">Institutional Investor Survey</a>, over half of investors believe that fraud goes undetected in the U.S. corporate reporting ecosystem.

Enhancing communication between investors and auditors, refining fraud-related procedures, and leveraging technology in fraud detection are vital steps. At the Fraud Forum, participants shared some practical steps to bolster fraud detection, including:
<ul>
 	<li>Enhancing fraud brainstorming sessions by involving forensic experts regularly.</li>
 	<li>Strengthening fraud inquiries with more open-ended questioning to uncover potential misconduct.</li>
 	<li>Investing in technology and data analytics to improve fraud detection and response times.</li>
 	<li>Assessing and utilizing hotline data more effectively to identify risk patterns and inform audit procedures.</li>
 	<li>Improving training and education to equip accounting and auditing professionals with the knowledge and skills needed to recognize fraud risks.</li>
</ul>
[custom_quote text="Investor expectations regarding fraud detection are evolving."]
<h3><strong>The Road Ahead</strong></h3>
The fight against fraud requires a collective effort from all members of the financial reporting ecosystem. While regulation and enforcement play crucial roles, transparency and collaboration are equally important.

The CAQ and AFC remain dedicated to convening these essential multi-stakeholder dialogues and driving meaningful change. As we look ahead, organizations must stay proactive, continually assess fraud risks, and implement innovative strategies to further strengthen fraud deterrence and detection.

The productive dialogue from the inaugural Fraud Forum is just the beginning. We invite financial reporting ecosystem stakeholders, regulators, and investors to join us in this ongoing effort to uphold the integrity of our capital markets. Together, we can build a stronger, more fraud-resilient future.

I encourage you to follow the <a href="https://antifraudcollaboration.org/">AFC </a>on <a href="https://twitter.com/antifraudcollab">X</a> and <a href="https://www.linkedin.com/company/antifraudcollaboration/">LinkedIn</a> to stay up to date on the latest anti-fraud issues and developments.

<span data-teams="true">You can read the full Fraud Forum summary <a href="https://antifraudcollaboration.org/fraud-forum-summary/">here</a>.</span>

Strengthening Fraud Deterrence and Detection: Key Insights from the AFC Fraud Forum

Audit Committee Effectiveness: A Webinar Series | Episode 7
Welcome to Audit Committee Effectiveness: a webinar series brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from...

<h4>Audit Committee Effectiveness: A Webinar Series | Episode 7</h4>
<em>Welcome to Audit Committee Effectiveness: a webinar series 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. Stay tuned to this page for information about topics, participants, and how to register for upcoming webinars.</em>

<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" />

Join us for a discussion about the fourth edition of the Audit Committee Practices Report, a collaboration between Deloitte’s Center for Board Effectiveness and the Center for Audit Quality. Based on survey findings, this webinar offers audit committee members and those who work with them an opportunity to hear about committee priorities, challenges, and opportunities, as well as leading practices around audit committee effectiveness.

<em><strong>Note</strong>: This webcast was eligible for 1 CPE credit to those who attended the webcast live.</em>

2025 Audit Committee Practices Report

Webinar

Event

<h4>Audit Committee Effectiveness: A Webinar Series | Episode 7</h4>
<em>Welcome to Audit Committee Effectiveness: a webinar series 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. Stay tuned to this page for information about topics, participants, and how to register for upcoming webinars.</em>

<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" />

In our initial AI 101 for Audit Committees <a href="https://www.thecaq.org/artificial-intelligence-ai-101-for-audit-committees">webinar</a>, we tackled how recent advancements, powered by the likes of OpenAI’s ChatGPT and Google’s Gemini, has captured the attention of corporate leaders around the world.  Corporate boards are focusing on better understanding the technology and establishing guardrails to ensure risks of information security, data quality, hallucinations, and other areas are appropriately managed.

Now, in the second of a 2-part series, speakers <a href="https://www.ey.com/en_us/people/richard-jackson">Richard Jackson</a> (Global Artificial Intelligence Assurance Leader, EY) and <a href="https://www.linkedin.com/in/hrncirik/">Cory Hrncirik</a> (Modern Finance Lead, Microsoft) join us again with <a href="https://www.nacdonline.org/philadelphia/philadelphia-leadership/tom-petro/">Tom Petro</a> (Managing Partner, Capital Partners &amp; Audit Committee Member) to discuss how things have evolved in just the past 8 months.

We’ll discuss the evolving role of the audit committee, including oversight of both management and the external auditor. We’ll dive into such questions as:
<ul>
 	<li>Does the company have the requisite expertise to select, develop, deploy, and monitor genAI technologies?</li>
 	<li>Who (individual or group) in the company is responsible for oversight of the use of genAI?</li>
 	<li>Does the company have a process to track and monitor the use of genAI throughout the company, including use by third-party service providers?</li>
 	<li>What is the auditor’s understanding of the financial reporting implications of the company’s use of genAI technologies?</li>
 	<li>Does the company’s use of genAI technologies have a significant impact on the planned audit scope?</li>
 	<li>Has the auditor identified any fraud risks related to the company’s use of genAI technologies? How has the auditor addressed such risks in the audit?</li>
</ul>
<strong><em>Note</em></strong><em>: CPE available only to participants who joined the live webcast. </em>

<em>See the CAQ’s resources for more information: <a href="https://www.thecaq.org/wp-content/uploads/2024/04/caq_auditing-in-the-age-of-generative-ai__2024-04.pdf">Auditing in the Age of Generative AI</a> and  <a href="https://www.thecaq.org/ac-oversight-in-the-age-of-genai">Audit Committee Oversight in the Age of Generative AI</a>.</em>

Artificial Intelligence (AI) 101 For Audit Committees - Part II

This hour-long webcast will showcase emerging issues facing public companies and their auditors. It will feature Christine Gunia, Director of the PCAOB’s Division of Registration and Inspections, and representatives from the public company auditing profession. Panelists will discuss PCAOB inspection...

This hour-long webcast will showcase emerging issues facing public companies and their auditors. It will feature Christine Gunia, Director of the PCAOB’s Division of Registration and Inspections, and representatives from the public company auditing profession. Panelists will discuss PCAOB inspection findings and areas of focus as well as audit firm best practices.

<em><strong>Note</strong>: CPE available only to participants who joined the live webcast.</em>

Audit Insider Webinar | October 2024

Audit Committee Effectiveness: A Webinar Series | Episode 6
Welcome to Audit Committee Effectiveness: a webinar series brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from...

<h4>Audit Committee Effectiveness: A Webinar Series | Episode 6</h4>
<em>Welcome to Audit Committee Effectiveness: a webinar series 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. Stay tuned to this page for information about topics, participants, and how to register for upcoming webinars.</em>

<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" />

Enterprise Risk Management (ERM) is essential for audit committee members, offering insights into identifying, assessing, and mitigating risks that impact organizational objectives. Join the CAQ, NACD and our panel of experts for a discussion on how audit committees can fulfill their oversight responsibilities related to ERM through the lens of frameworks, regulatory expectations, and best practices for effective risk oversight. Participants will learn how to enhance risk reporting, improve decision-making, and ensure alignment with strategic goals.

<em><strong>Note</strong>: CPE available only to participants who joined the live webcast.</em>

Enterprise Risk Management for Audit Committees

This hour-long webcast will showcase regulatory and practice developments of interest to public companies and their auditors. Panelists include staff from the SEC’s Division of Corporation Finance and the SEC’s Office of the Advocate for Small Business Capital Formation. Panelists...

This hour-long webcast will showcase regulatory and practice developments of interest to public companies and their auditors. Panelists include staff from the SEC’s Division of Corporation Finance and the SEC’s Office of the Advocate for Small Business Capital Formation. Panelists will discuss comments issued on SEC filings and lessons learned from the 2023 reporting cycle. Panelists will also discuss the role of the Office of the Advocate for Small Business Capital Formation, including the resources they offer small businesses and the firms that serve them.

<em><strong>Note</strong>: CPE available only to participants who joined the live webcast.</em>

Audit Insider Webinar | July 2024

Washington D.C., June 5, 2025 – The Center for Audit Quality (CAQ) has released its Spring 2025 Audit Partner Pulse Survey, providing insights from audit partners at the nation’s leading public company audit firms. Now in its fourth year, the...

<strong>Washington D.C., June 5, 2025</strong> – The Center for Audit Quality (CAQ) has released its Spring 2025 Audit Partner Pulse Survey, providing insights from audit partners at the nation’s leading public company audit firms. Now in its fourth year, the survey captures audit partners’ views on the future of the U.S. economy, evolving business risks, and workforce trends. As trusted experts with a front-row seat to corporate strategy and performance, audit partners provide a unique lens into how U.S. companies are navigating a period marked by economic uncertainty, geopolitical tension, and rapid technological change.

Key findings from the report include:

<strong>Increasing Economic Pessimism</strong>
<ul>
 	<li>The percentage of audit partners expressing pessimism about the U.S. economy surged from 10% in Fall 2024 to 44% today, while optimism dropped by more than half, from 38% to 15%.</li>
 	<li>Fear of a potential recession, ongoing geopolitical instability and trade uncertainties have prompted companies to double down on financial performance, cost management, and risk mitigation strategies.</li>
</ul>
<strong>Shifting Workforce Strategies</strong>
<ul>
 	<li>While many companies are reducing headcount, they are simultaneously investing in upskilling existing employees.</li>
 	<li>Respondents also underscored the growing importance of strong anti-fraud cultures, especially as economic stressors heighten risk across industries.</li>
</ul>
<strong>Integration of New Technologies</strong>
<ul>
 	<li>AI adoption continues to grow across industries, primarily to improve customer service and streamline internal operations.</li>
 	<li>Despite increasing regulatory attention and high-profile initiatives like the SEC’s new Crypto Task Force, audit partners report limited cryptocurrency-related investments among public companies.</li>
</ul>
“Audit partners offer a valuable window into today’s complex business environment, helping us better understand the challenges companies face and the strategies they’re using to move forward,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “Despite economic uncertainty, it’s encouraging to see companies investing in innovation, upskilling their workforce, and strengthening cultures of integrity as they build a foundation for long-term resilience and growth.”

Download the <a href="https://www.thecaq.org/audit-partner-pulse-survey">Spring 2025 Audit Partner Pulse Survey</a> to see the full results.

+++

<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.

Audit partners say economic uncertainty and geopolitical risks rise, while companies continue integrating AI to improve customer experience, according to latest survey.

In collaboration with Edge Research, the Center for Audit Quality released a new report exploring shifts in student perceptions of accounting and identifying messaging strategies to broaden the talent pool. The findings build on research conducted from 2021 to 2023...

<em>In collaboration with Edge Research, the Center for Audit Quality released a new report exploring shifts in student perceptions of accounting and identifying messaging strategies to broaden the talent pool. The findings build on research conducted from 2021 to 2023 and offer key insights into today’s educational landscape.</em>

<strong>Washington D.C., April 28, 2025</strong> – In recent years, the accounting profession has undertaken a rebranding initiative aimed at dispelling common misperceptions among students and highlighting the breadth, impact, and relevance of careers in accounting. Several years after the Center for Audit Quality (CAQ) launched its Accounting+ campaign to fight this bias and inform students of the myriad opportunities an accounting career can offer, new research assesses the campaign’s progress and the new challenges it has uncovered.

The CAQ partnered with Edge Research on the report, <a href="https://www.thecaq.org/expanding-the-accounting-profession-pipeline">Expanding the Accounting Profession Pipeline: 2024 Update</a>, to better understand high school and early college students’ academic and professional motivations and to identify the most successful strategies to attract the next generation of accountants.

<em>“This research is an important step toward understanding both the persistent challenges and the emerging opportunities in building a strong accounting talent pipeline. It’s encouraging to see growing interest among students. This is proof that when we listen, learn, and adapt, we can positively impact the talent pipeline.”</em> - Julie Bell Lindsay, CEO, the Center for Audit Quality.

Some key findings from the report include:
<ul>
 	<li>Significant improvements have been made in how students view accounting careers with notable increases in seeing accounting as a career that is meaningful and provides value, has strong long-term earning potential, and a good work-life balance. These positive shifts indicate the professions’ collective efforts to transform accounting’s image are gaining traction.</li>
 	<li>Practical, benefit focused messaging drives interest with students, especially messages that highlights accounting’s strong salary potential, career flexibility, and job security, and emphasizing these points as strengths within the accounting profession resonated strongly amongst all demographics in the study.</li>
 	<li>Direct exposure to accounting strongly correlates with interest in accounting. With many students lacking personal connections to accountants, the profession must continue meeting students where they are – both in classrooms and on social media. Accounting professionals can maximize their impact by using Accounting+ evidence-based messaging on salary potential, career flexibility and job security- approaches shown to significantly increase student interest.</li>
</ul>
<em>“In a time of economic uncertainty, young people are making deliberate choices to prioritize stability and flexibility in their careers like never before. This presents a challenge, but also a tremendous opportunity for the accounting profession. For students, especially those from underserved communities, this isn’t just about employment. It’s about building a future and creating generational wealth."</em> - Liz Barentzen, Vice President, Talent, the Center for Audit Quality.

According to the <a href="https://www.thecaq.org/accounting-annual-report">Accounting+ 2024 annual report</a>, many of these key messaging and outreach strategies deeply resonated with student populations. Accounting+ reached students more than 2 billion times via paid advertising, social media, and other digital platforms, leading to 26 million website visits in 2024 (an 86% increase from 2023) and 8 million new users (a 100% increase from 2023). The updated research shows encouraging progress in shifting the perception of accounting careers among students; however, significant roadblocks remain in translating this perception into increased enrollment numbers. A continued profession-wide, comprehensive approach is crucial to engage new students and provide educators with the resources they need to build a stronger, more competitive talent pool.

Download the full report <a href="https://www.thecaq.org/expanding-the-accounting-profession-pipeline">here</a> to learn more about the results.

<strong>About the Research</strong>

The CAQ commissioned Edge Research to perform a comprehensive follow-up on their <a href="https://thecaqprod.wpenginepowered.com/wp-content/uploads/2023/07/caq_increasing-diversity-in-the-accounting-profession-pipeline_2023-07.pdf">2023 report</a> to assess the progress of initiatives like Accounting+, identify new engagement opportunities, and understand the evolving student mindset in “Expanding the Accounting Profession Pipeline.”

Edge Research employed a mixed-methods approach combining quantitative and qualitative methodologies to gain comprehensive insights into students’ perceptions of accounting careers. The quantitative component consisted of an online survey with 3,487 high school and college students across the United States, including substantial samples of Black/African American, Hispanic, AAPI, and White students. This survey tracked key metrics against baseline data from 2021 to 2022 and examined college and career decision journeys, accounting perceptions, barriers to entry, and messaging effectiveness across various educational levels. After this broad data collection, Edge Research conducted four virtual focus groups in January 2025 with high school students (divided between freshmen/sophomores and juniors/seniors) to explore these themes in greater depth. All focus group participants were college bound and open to business careers, with diverse representation across gender, region, and school types.

+++

<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.

CAQ Releases Updated Research Exploring Key Trends in Accounting Career Pipeline

Press Releases

The Center for Audit Quality (CAQ) congratulates Chair Paul Atkins on his swearing-in to lead the U.S. Securities and Exchange Commission. Chair Atkins’ deep experience with the SEC and long-standing commitment to investor protection position him well to lead the...

<span data-contrast="auto">The Center for Audit Quality (CAQ) congratulates Chair Paul Atkins on his swearing-in to lead the U.S. Securities and Exchange Commission. Chair Atkins’ deep experience with the SEC and long-standing commitment to investor protection position him well to lead the Commission at a time of rapid change in the capital markets and corporate reporting.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:276}"> </span>

<span data-contrast="auto">The CAQ shares Chair Atkins’ belief in the critical role that independent assurance plays in fostering trust in our financial system.  We look forward to working with him and the full Commission to support policies that strengthen disclosures, elevate transparency, and advance the integrity and resilience of our capital markets.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:276}"> </span>

<span data-contrast="auto">“Strong capital markets depend on strong investor confidence — and investor confidence depends on the credibility of the information they rely on,” said Julie Bell Lindsay, CEO of the Center for Audit Quality. “We welcome Chair Atkins’ leadership and look forward to working together to advance thoughtful, forward-looking policymaking that recognizes the vital role of assurance in protecting investors and reinforcing the integrity of our markets.”</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:276}"> </span>

<span data-contrast="auto">+++</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:480}"> </span>

<b><span data-contrast="auto">About the Center for Audit Quality</span></b><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span>

<span data-contrast="auto">The CAQ champions the public interest in the capital markets by:</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span>
<ul>
 	<li 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;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">Elevating the quality, credibility, and transparency of public company audits;</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span></li>
</ul>
<ul>
 	<li 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;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">Advancing critical issues affecting public company audits;</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span></li>
</ul>
<ul>
 	<li 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;}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Driving innovation in assurance; and</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span></li>
</ul>
<ul>
 	<li 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;}" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1"><span data-contrast="auto">Providing a collaborative forum for capital market stakeholders to address evolving needs and challenges.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span></li>
</ul>
<span data-contrast="auto">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.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240}"> </span>

Statement on the Swearing-In of Paul Atkins as Chairman of the U.S. Securities and Exchange Commission

Statements

Company Management

SEC Regulations

AI governance rose on the list of issues committees are considering
NEW YORK, Feb. 12, 2025 — As digital threats continue to mount across industries, cybersecurity remains the top priority for audit committees at public companies, outside of financial reporting and...

<p style="text-align: center;"><em>AI governance rose on the list of issues committees are considering</em></p>
NEW YORK, Feb. 12, 2025 — As digital threats continue to mount across industries, cybersecurity remains the top priority for audit committees at public companies, outside of financial reporting and internal controls, according to survey findings released in the “<a href="http://www.thecaq.org/audit-committee-practices-report">Audit Committee Practices Report: Common Threads Across Audit Committees</a>,” a joint effort between Deloitte’s Center for Board Effectiveness and the Center for Audit Quality (CAQ).

On a broader scale, enterprise risk management (ERM), critical to achieving organizational objectives and safeguarding the company’s reputation and stakeholder relationships, is ranked as the second highest priority for audit committees. Finance and internal talent remain the third-highest priority for audit committees.

The report also shows how artificial intelligence (AI) governance is growing in importance as an audit committee consideration, reflective of the rapid adoption of transformative digital technologies that have ushered in a new era of business risk.

A total of 237 respondents participated in this year’s survey, primarily on boards of U.S. (89%) public (86%) companies with $2 billion or more in market cap (72%). Directors on boards of financial services companies made up 27% of the respondents.

<strong>Cybersecurity is the chief priority for audit committees</strong>
The survey found that 93% of respondents ranked cybersecurity as one of their top three priorities, with 50% ranking it as the leading priority for the audit committee. Further, 71% report cybersecurity is on their agenda on a quarterly basis. Cybersecurity has consistently been ranked as the top priority of audit committees in each of the four years the survey has been conducted, a clear indication that complex and evolving risk will continue to be a focus for audit committees in years to come.

"Cybersecurity remains atop audit committees’ agendas because the stakes have never been higher," said Vanessa Teitelbaum, senior director, Professional Practice, Center for Audit Quality. "With the increasing sophistication of cyber threats and the potential for significant financial, operational, and reputational harm, it’s critical for audit committees to stay ahead. Their continued focus and evolving expertise are essential to protecting organizations in this heightened risk environment."

<strong>Audit committee effectiveness remains a priority</strong>
In the current economic and geopolitical environment, the corporate reporting landscape is constantly evolving. When presented with various strategies to enhance audit committee effectiveness, more than two-thirds of respondents (69%) felt meetings might be improved by implementing one or more of the following strategies:
<ul>
 	<li>Forty percent of respondents want to improve the quality of presentations during meetings. This jumped from third last year to the top area of improvement this year.</li>
 	<li>Thirty-four percent of respondents want more engagement and discussion from committee members during meetings.</li>
 	<li>While most respondents feel that they have enough time to cover agenda items, some (12%) suggested they could use more time.</li>
</ul>
“As I work with audit committees, enhancing meeting effectiveness remains a top priority. In the face of new and evolving risks, the ability to better prioritize agendas, access comprehensive and timely information, and engage in open and candid discussions are critical factors that will drive efficiency and overall effectiveness,” said Krista Parsons, Audit &amp; Assurance managing director and Governance and Audit Committee Program leader, Center for Board Effectiveness.

<strong>Enhanced focus on AI governance</strong>
The survey also found an increased emphasis on understanding the impact and usage of AI technologies throughout the organization by the C-suite and board. The number of respondents who identified AI governance as a priority grew year over year, jumping to 35% from 20% last year. A growing portion of audit committees are taking on primary oversight of AI governance (up to 20% from 14% last year). Still, oversight mostly falls with the full board (58%).

Additionally, survey results suggest that work has been done to develop governance structures for AI oversight, with fewer respondents (6%) acknowledging they “don’t know” where AI oversight falls within their organization this year versus last year (17%). Amid ongoing conversations around how organizations govern AI, the question of who should be responsible for primary oversight continues to evolve.

<a href="http://www.thecaq.org/audit-committee-practices-report">Read the report</a>.

<strong>About the Survey</strong>
The fourth edition of the “Audit Committee Practices Report,” like prior editions, is based on a survey of audit committee members. A total of 237 respondents participated in this year’s survey, primarily on boards of U.S. (89%) public (86%) companies with $2 billion or more in market cap (72%). Those on boards of financial services companies made up 27% of respondents.

<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.</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.

<strong>About Deloitte’s Center for Board Effectiveness</strong>
Deloitte’s Center for Board Effectiveness helps directors deliver value to the organizations they serve through a portfolio of high-quality, innovative experiences throughout their tenure as board members. Whether an individual is aspiring to board participation or has extensive board experience, the Center’s programs enable them to contribute effectively and provide focus in the areas of governance and audit, strategy, risk, innovation, compensation and succession.

<strong>About Deloitte</strong>
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an <a href="https://www2.deloitte.com/us/en/pages/about-deloitte/articles/purpose-at-deloitte-us.html">impact that matters</a> by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they <a href="https://www2.deloitte.com/us/en/pages/about-deloitte/articles/technology-consulting-engineering-advantage.html">build their future</a>. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 460,000 people worldwide connect for impact at <a href="http://www.deloitte.com/">www.deloitte.com</a>.

###

<strong>Contact</strong>

Kerry Lee
Public Relations
Deloitte Services LP
+1 916 298 8031
kerlee@deloitte.com

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see <a href="http://www.deloitte.com">www.deloitte.com/</a>about to learn more about our global network of member firms.

Cybersecurity, Enterprise Risk Management, and Meeting Effectiveness Are Top Priorities for Audit Committees, According to Deloitte, Center for Audit Quality Survey

Cybersecurity

Washington, DC (November 18, 2024) – Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics – an Ideagen Solution, released the 11th iteration of the annual Audit Committee Transparency Barometer Report. The report, which has been conducted annually...

<strong>Washington, DC (November 18, 2024) – </strong>Today, the Center for Audit Quality (CAQ) and Ideagen Audit Analytics – an Ideagen Solution, released the 11th iteration of the annual Audit Committee Transparency Barometer Report. The report, which has been conducted annually since 2014, analyzes audit committee disclosures of companies in the S&amp;P 1500.

Given audit committees face emerging risks and new areas of oversight responsibility, investors are interested in understanding the board’s composition and expertise. This years’ Barometer shows that disclosures related to expanded disclosure areas – particularly around audit committee oversight of and expertise in cybersecurity and ESG – have increased. Tracked for the first time, this year’s report also found that most boards are disclosing a skills matrix.

“The Transparency Barometer continues to provide insights into the deliberations of audit committees and how they exercise their expanding responsibilities,” said Michael Nohrden Vice President of Strategy for Ideagen. “It serves as an important tool for boards and the public to track and compare audit committee disclosures in the S&amp;P 1500.”

However, the report identifies several disclosure areas that have plateaued. These results demonstrate a continued opportunity for audit committees to enhance their disclosures on key matters to effectively tell their story.

“We continue to hear from investors that they would like more information – not boilerplate disclosures – around audit committees’ important responsibilities and processes,” said Julie Bell Lindsay, CEO, CAQ. “While we are pleased to see that audit committees are increasingly disclosing information about new oversight areas and their expertise, we hope they will take a fresh look and consider further enhancing their disclosures to ‘tell their story’ and the important work they do.”

Some key toplines of the report include:
<ul>
 	<li>The majority of S&amp;P 500 companies (85%) and S&amp;P midcap companies (75%) disclosed the board of directors’ skills matrix.</li>
 	<li>64% of S&amp;P 500 boards disclosed the audit committee is responsible for cybersecurity oversight while 34% of S&amp;P 500 boards disclosed the audit committee is responsible for oversight of ESG information.</li>
 	<li>60% of S&amp;P 500 boards disclosed they have a cybersecurity expert compared with 51% in 2023. ESG or sustainability expertise on the boards of S&amp;P 500 companies also increased by five percentage points since 2023 to 59%.</li>
 	<li>A plateau in disclosure rates was observed across several measures, including considerations in appointing or (re) appointing the external auditor, considerations of the length of tenure, and considerations around how the audit committee evaluates audit fees in relation to audit quality.</li>
</ul>
The full report is available to read <a href="https://www.thecaq.org/audit-committee-transparency-barometer">HERE</a>.

###

<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.

<strong>About <u>Ideagen </u>Audit Analytics</strong><strong> – An Ideagen Solution</strong>

<u>Ideagen </u>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 <a href="mailto:info@auditanalytics.com">info@auditanalytics.com</a> or call 508-476-7007.

Annual Audit Committee Disclosure Barometer Finds Increase in Disclosure of Areas of Oversight and Expertise

The CAQ looked at sustainability reports, company websites, completed CDP Climate Change Questionnaires, and third-party assurance or verification reports for 2023 period end data from S&P 500 companies to understand what they disclosed about sustainability reporting standards and frameworks, GHG...

The CAQ looked at sustainability reports, company websites, completed CDP Climate Change Questionnaires, and third-party assurance or verification reports for 2023 period end data from S&P 500 companies to understand what they disclosed about sustainability reporting standards and frameworks, GHG emissions, assurance or verification over the sustainability information, and net zero or carbon neutral commitments. 


S&P 500 Sustainability Reporting and Assurance Analysis

Publications

As part of the CAQ’s efforts to engage a broader array of stakeholders of company prepared information and serve as a prominent voice for the audit profession, KRC Research conducted a survey among institutional investors in the U.S. This research...

As part of the CAQ’s efforts to engage a broader array of stakeholders of company prepared information and serve as a prominent voice for the audit profession, KRC Research conducted a survey among institutional investors in the U.S. This research focused on opinions and preferences related to the use of GenAI in public company audits and opinions on the use of GenAI in portfolio companies among institutional investors.

This survey was conducted online from May 15-28, 2025 among 102 investors.

Qualified respondents were screened to ensure they are:
<ul>
 	<li>Currently employed as a professional investor in the U.S.</li>
 	<li>Serve in roles as Director+</li>
 	<li>At companies managing at least +500M in assets, and where U.S. is the primary market of focus</li>
 	<li>Have at least 6 years of professional investment experience</li>
</ul>
<a class="button" href="https://thecaq.wpenginepowered.com/wp-content/uploads/2025/06/caq_institutional-investor-survey-ai_2025-06.pdf">Read the survey</a>

Institutional Investor Survey | Research Findings, Artificial Intelligence

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...

Public Policy and Technical Alert | May 2025

Newsletter

PPTA

The Center for Audit Quality’s (CAQ) Audit Partner Pulse Survey, now in its fourth year, asked audit partners at the country’s leading public company audit firms about their views on the current business environment in the United States. Topics covered...

The Center for Audit Quality’s (CAQ) Audit Partner Pulse Survey, now in its fourth year, asked audit partners at the country’s leading public company audit firms about their views on the current business environment in the United States. Topics covered include U.S. economic health, challenges and risks facing businesses, and how they see business leaders adjusting their strategies in the current environment. 


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