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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. 

An audit is only as reliable as the auditor's ability to understand what's happening inside the company being examined. That sounds straightforward – but failing to maintain that reliability carries real consequences.

As companies adopt new technologies, take on novel risks,...

An audit is only as reliable as the auditor's ability to understand what's happening inside the company being examined. That sounds straightforward – but failing to maintain that reliability carries real consequences.

As companies adopt new technologies, take on novel risks, and operate in constantly evolving complex environments, an audit profession that stands still gradually loses its footing. The procedures stay the same, while company operations don't. The result is an audit reflective of yesterday's business environment, leaving investors, audit committees, and policymakers in the dark about how to navigate today's decisions. Staying ahead of the curve isn't a professional aspiration; it's the condition needed to execute a meaningful audit.

Audit firms continuously develop their auditors’ expertise to ensure they can interpret complex, fast evolving business practices with accuracy, apply professional skepticism in unfamiliar contexts, and deliver insights that reflect the realities of today’s economy. That development begins on day one and continues throughout their careers, building a skill set that evolves alongside the needs of decision-makers.
<p class="pf0"><span class="cf0">[custom_quote text="As companies adopt new technologies, take on novel risks, and operate in constantly evolving complex environments, an audit profession that stands still gradually loses its footing."]</span></p>

<h3><strong>Building Expertise from Day One</strong></h3>
Quality audits start with highly trained, knowledgeable people. The public company audit profession has fundamentally rethought how that expertise is built and maintained. Firms have moved beyond traditional classroom instruction toward integrated, continuous learning models that reflect how the work gets done: professional judgment and skepticism developed in practice, not just in training programs.

Central to this shift is the recognition that technical knowledge alone doesn't make an auditor effective. What distinguishes a strong auditor is the ability to reason through ambiguity by knowing which risks matter, which questions to press on, and seeing when something that looks routine might not be so routine. That kind of judgment comes from experience, mentorship, and continuous learning.
<h5><em>“We invest heavily in developing our people through firmwide learning programs, leadership development initiatives, and hands-on collaboration across industries and geographies to help teams stay ahead of evolving business and regulatory environments.”</em></h5>
<h6 style="text-align: right;">— Andrea Castle, Crowe Audit Partner</h6>
&nbsp;

That investment extends to building organizational structures that enable cross-functional collaboration and keep audit teams current across industries, geographies, and the regulatory environment to strengthen outcomes for capital markets and their stakeholders.
<h5><em>"Our apprenticeship culture fosters on-the-job learning opportunities, allowing team members to hone their judgment by observing how seasoned auditors approach issue identification, management, and resolution."</em></h5>
<h6 style="text-align: right;">— Deanna Byrne, PwC US Assurance Leader</h6>
&nbsp;

Together, these approaches reflect a profession-wide commitment to ensuring that knowledge moves from senior to junior team members, building a collective and durable judgment that no single training program can replicate.

<span class="cf0">[custom_quote text="The public company audit profession has fundamentally rethought how that expertise is built and maintained."]</span>
<h3><strong>Keeping Pace with Technology and Risk</strong></h3>
Expertise today is not defined by only accounting standards and audit methodology. Auditors are equipped to understand the systems, data, and risks that shape how companies operate and report across industries. This requires a different approach to professional development: one that is continuous, forward-looking, and closely aligned with how the economy is evolving.

Firms are training auditors to <a href="https://www.thecaq.org/rota-ai">lead with AI</a>, embedding it into audit workflows while reinforcing critical thinking and preparing teams for risks that have not yet fully arrived. AI is transforming how audits are performed, accelerating manual tasks and enabling auditors to pair professional judgment with advanced technology. Together, this combination enhances the depth and relevance of insights that capital markets depend on.
<h5><em>"We are training our team to lead with AI through the Learning Collective, our premier development environment, and we are embedding AI in our workflows and encouraging our team to think critically, learn through practice, and stay ahead of future trends."</em></h5>
<h6 style="text-align: right;">— Deanna Byrne, PwC US Assurance Leader</h6>
&nbsp;

Alongside AI capabilities, firms are investing in expertise that spans emerging accounting standards, data analytics, cybersecurity, and risk assessment. The goal is to combine this knowledge with the right technology to strengthen audit quality and deliver insights that decision-makers can rely on, especially in an increasingly complex and fast-changing risk environment.
<h5><em>"By pairing experienced professionals with advanced technologies and continuous skills development, we strengthen audit quality and deliver more insightful, risk-focused audits for our clients."</em></h5>
<h6 style="text-align: right;">— Andrea Castle, Crowe Audit Partner</h6>
&nbsp;

While the tools and risks auditors face continue to evolve, sustained investment in people is essential to maintaining the high-quality audits that underpin trust in capital markets.

<span class="cf0">[custom_quote text="Alongside AI capabilities, firms are investing in expertise that spans emerging accounting standards, data analytics, cybersecurity, and risk assessment."]</span>
<h3><strong>The Connection to Audit Quality</strong></h3>
When auditors combine technical depth and industry knowledge with emerging technology skills, they are better positioned to identify the information that matters most, ask sharper questions, and deliver assurance that reflects the most significant risks and realities facing the companies they audit – providing investors and other stakeholders with clearer, more decision-useful information.

As corporate reporting continues to expand into areas such as AI and cybersecurity, the profession’s commitment to continuous development remains essential to sustaining the quality and trust that investors expect. This chain of impact, from auditor expertise to reliable reporting to more confident decision-making in capital markets, defines the Audit Effect.

Learn more about the <a href="https://www.thecaq.org/AuditEffect">Audit Effect</a> and follow the CAQ on <a href="https://www.linkedin.com/company/center-for-audit-quality/">LinkedIn</a> for the latest updates on the public company audit profession.

How Auditor Expertise Strengthens U.S. Capital Markets

Auditors

Audit Quality

Blog Post

Erin Cromwell, CPA is a Senior Manager, Professional Practice at the Center for Audit Quality. Joining the CAQ in 2022, Cromwell manages and supports technical and policy-oriented projects through working groups and task forces with senior audit leaders.

Prior to joining the CAQ, Cromwell worked in KPMG’s audit practice, focusing on both integrated and non-integrated audit engagements for companies in the telecommunications and aerospace and defense industries. She also spent time with KPMG’s environmental, social, and governance (ESG) team, KPMG IMPACT, focusing on ESG attestation and other non-audit services for audit clients.

Cromwell is a Certified Public Accountant in Virginia and holds a bachelor’s degree in accounting from the University of Richmond.

Erin Cromwell, CPA

We’re experiencing an era of rapid technological adoption that is reshaping day-to-day business operations and how we transact with each other. With innovation comes opportunity and risk for financial reporting professionals, especially as it relates to anti-fraud efforts.

Emerging technologies including...

We’re experiencing an era of rapid technological adoption that is reshaping day-to-day business operations and how we transact with each other. With innovation comes opportunity and risk for financial reporting professionals, especially as it relates to anti-fraud efforts.

Emerging technologies including generative AI (genAI) and digital assets are shaping the financial reporting fraud landscape. GenAI is being used to streamline financial reporting as well as external audit processes by handling routine tasks and allowing humans to focus on more complex evaluations. Despite the benefits associated with genAI, bad actors are also using

It is important to stay vigilant to identify and fight fraud as technology evolves. As a member of the <a href="https://antifraudcollaboration.org/">Anti-Fraud Collaboration (AFC)</a>, the CAQ is at the forefront of examining how technology may give rise to new fraud risks and how it can help strengthen anti-fraud efforts and financial reporting integrity. The AFC’s <a href="https://antifraudcollaboration.org/category/priorities/technology/">Fraud and Emerging Tech series</a> is designed to help all members of the financial reporting ecosystem stay ahead and learn how to respond to emerging risks.

Keep reading to learn how technology is impacting the fraud risk landscape and how stakeholders across the financial reporting ecosystem can respond.
<h3><strong>GenAI: Technology That Cuts Both Ways</strong></h3>
<span class="cf0">[custom_quote text="GenAI continues to evolve. Organizations should understand how the latest developments can enhance AI-driven processes and mitigate associated fraud risks."]</span>

Audit firms and public companies have invested billions to integrate <a href="https://antifraudcollaboration.org/fraud-and-emerging-tech-gen-ai/">genAI</a> into their workflows in recent years. One area where organizations are embedding genAI is into fraud prevention and detection programs.

GenAI is strengthening organizations’ fraud mitigation efforts in several ways, including augmenting fraud risk assessment to help identify potential fraud scenarios and areas of heightened risk, detecting potentially anomalous transactions within large datasets, and freeing employees for work that requires human judgment and oversight.

However, at the same time, genAI also introduces new fraud risks for organizations to be aware of. Fraudsters are using this technology to:
<ul>
 	<li>Create deepfake text, image, audio and video;</li>
 	<li>Falsify documents and accounting records; and</li>
 	<li>Carry out scams at a scale and speed that wasn't previously achievable.</li>
</ul>
Deepfakes are a growing financial and reputational risk for organizations that can directly threaten business operations. According to a 2025 Gartner

The AFC's <a href="https://antifraudcollaboration.org/deepfakes/">newest resource</a> explores deepfakes in more detail, including potential fraud risks arising from them, and provides insights on how the financial reporting ecosystem can play a role in preventing deepfake-related fraud.
<h3><strong>Digital Assets: A Regulatory Priority in 2026</strong></h3>
<span class="cf0">[custom_quote text="Deepfake attacks can target any member of an organization, from junior staff to seasoned executives and board members. Accordingly, effective mitigation is a shared responsibility."]</span>

<a href="https://antifraudcollaboration.org/fraud-and-emerging-tech-digital-assets/">Digital assets,</a> including crypto assets and stablecoins, are of growing interest to public companies. Regulatory agencies and Congress are prioritizing providing regulatory clarity in this space for market participants. Congress recently passed the

The U.S. Securities and Exchange Commission (SEC) is also focused on providing clarity on the application of securities law to specific types of digital asset transactions. Recently, the SEC published an <a href="https://www.sec.gov/newsroom/press-releases/2026-30-sec-clarifies-application-federal-securities-laws-crypto-assets">interpretation</a> of how federal securities laws apply to certain crypto assets. This regulatory clarity is a positive development in the digital asset ecosystem, but it continues to be important for stakeholders in the financial reporting ecosystem to stay vigilant and adaptable as the ecosystem evolves.

High profile fraud cases in the digital asset ecosystem illustrate what can happen when there’s a lack of strong internal controls related to digital asset activities and emphasize the need for members of the financial reporting ecosystem to evaluate new fraud risks that may emerge as a result of engaging with digital assets. Digital asset-related fraud risks include:
<ul>
 	<li>Hacks and scams targeting blockchain vulnerabilities;</li>
 	<li>Asset misappropriation if an organization has weak security and custody controls; and</li>
 	<li>Improper use by third-party custodians when there are weak controls.</li>
</ul>
The AFC’s <a href="https://antifraudcollaboration.org/fraud-and-emerging-tech-digital-assets/">digital assets resource</a> provides examples to strengthen controls against these risks, specifically controls related to the appropriate safeguarding of digital assets.

GenAI, deepfakes, and digital assets are not separate phenomena – they are part of a broader trend of how innovative technologies are changing our capital markets. Maintaining a focus on the impact of technology on businesses is a key part of what it means to conduct rigorous anti-fraud efforts that protect investors and maintain financial reporting quality.

To learn more, I encourage you to explore the AFC's <a href="https://antifraudcollaboration.org/category/priorities/technology/">emerging technology series</a> and subscribe to the AFC’s <a href="https://go.thecaq.org/l/834983/2020-07-22/3wq95?_ga=2.34586017.1490242233.1777302479-1242316527.1774273226&amp;_gl=1*6v364z*_ga*MTI0MjMxNjUyNy4xNzc0MjczMjI2*_ga_EDKZM223XE*czE3NzczMDI0NzgkbzgkZzAkdDE3NzczMDI0NzgkajYwJGwwJGgw">newsletter</a> for the latest anti-fraud resources and insights.

AI, Deepfakes, & Digital Assets: Fighting Fraud in an Era of Emerging Technologies

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, the Capital Markets Pulse Podcast 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...

Hosted by Julie Bell Lindsay, CEO of the Center for Audit Quality, the <em>Capital Markets Pulse Podcast</em> 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="https://www.buzzsprout.com/2192286/episodes/18865239">here</a>.</em></strong>
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You can also subscribe to this podcast on <a href="https://podcasts.apple.com/us/podcast/capital-markets-pulse/id1690673211">Apple Podcasts</a> or <a href="https://open.spotify.com/show/0Eom56jIKUbXXufaJ98yBX?si=f2bea768da894173">Spotify</a> to stay updated on the latest episodes.

Podcast | Capital Markets Pulse, Episode 14: Dennis McGowan & Liz Barentzen

Policymakers

Investors

Podcast

Amy O’Connor is the Vice President, Public Affairs at the Center for Audit Quality. In this role, she oversees and implements the CAQ's strategy regarding external and internal communications, design, marketing, and outreach to capital markets stakeholders including investors, public company audit committees, issuers, and others.

O’Connor's experience includes founding Move the Shakers, a communications and public affairs consultancy. Previously, she served as Vice President at the Business Roundtable, where she implemented a digital public affairs and communications transformation that included rebranding the organization, establishing new digital initiatives and capabilities, and launching advocacy campaigns tied to sustainability and other key policy priorities. During her tenure at the Business Roundtable, the organization won a Public Affairs Council Innovation Award for communications innovation.

Prior to the Business Roundtable, O’Connor was Eli Lilly’s Senior Director for Communications, Digital &amp; Social Media. In that role, she specialized in engaging audiences, creating digital platforms designed to strengthen stakeholder experience and public trust, building third-party partnerships, and developing the company’s global capabilities in public affairs and crisis management. In 2014, O’Connor was named “40 Under 40” by <em>PR Week </em>magazine.

Amy is a graduate of University of Notre Dame and Georgetown’s McCourt School of Public Policy.

Amy O'Connor

Investor confidence in the audit is a result of a specific set of measurable conditions: independence, rigor, oversight, and comparability.

The CAQ's 2025 Institutional Investor Survey emphasizes this landscape. While 91% of investors trust the accuracy of audited financial statements, today,...

Investor confidence in the audit is a result of a specific set of measurable conditions: independence, rigor, oversight, and comparability.

The CAQ's <a href="https://www.thecaq.org/annual-institutional-investor-survey">2025 Institutional Investor Survey</a> emphasizes this landscape. While 91% of investors trust the accuracy of audited financial statements, today, they are evaluating whether the same rigor will be applied to assurance in emerging domains of corporate disclosures like AI and data privacy. For a profession that understands the importance of trust in our capital markets, these considerations point to where the next decade of credibility will be won or lost.

Here are the top three areas that the profession should consider to continue securing investor confidence.
<h3><strong>1. 35% of institutional investors express concern about auditor independence
</strong></h3>
Independence is one of the profession’s most valuable assets, yet a meaningful share of investors is not fully confident it’s being protected.

Investors regularly consider the audit firm’s relationship to management and the company when evaluating the value and reliability of disclosures, and they expect stringent independence rules to be in place to validate the credibility of this information.

Deliberate policy choices made through decades of public debate and rulemaking enacted the independence rules we have today. <a href="https://www.thecaq.org/aia-how-sox-reshaped-audit-quality">The landmark Sarbanes-Oxley Act</a> enhanced internal controls and elevated the role of the audit committee to hire, manage, and compensate the external auditor rather than company management. These requirements preserve objectivity and strengthen investor confidence in assurance.

<img class="alignnone wp-image-17384 size-full" src="https://www.thecaq.org/wp-content/uploads/2026/03/2026_03_AiA-Investor-survey_Chart-1.jpg" alt="" width="1597" height="709" />

Despite these safeguards, 35% of respondents in our investor survey are concerned about the independence of audit firms from company management. The profession must continue to emphasize its independence and objectivity as we move into new assurance domains while navigating the current climate of skepticism in institutions. Independence is not a compliance checkbox; it is a rigorous discipline that investors can rely on to make decisions that shape capital allocation.

[custom_quote text="Deliberate policy choices made through decades of public debate and rulemaking enacted the independence rules we have today."]
<h3><strong>2. Over 85% of investors want to see improvements in AI, cybersecurity, and other corporate disclosures.</strong></h3>
Investor appetite for consistent, comparable corporate disclosures outside of the financial statements continues to grow. Public companies are increasingly reporting on topics like AI usage and cybersecurity risk, yet our survey found that around 85% of investors believe improvements in these areas are still needed.

<img class="alignnone wp-image-17385 size-full" src="https://www.thecaq.org/wp-content/uploads/2026/03/2026_03_AiA-Investor-survey_Chart-2.jpg" alt="" width="1741" height="730" />

Other corporate information plays a critical role in helping investors form a holistic view of a company’s operations, risks, and strategy. Auditors are steeped in the values that bring credibility and transparency to decision-useful information, and the profession has a history of bringing trust to <a href="https://www.thecaq.org/corporate-reporting-trends">emerging reporting areas</a>.

By engaging public company auditors on other corporate disclosures, public companies gain the same rigor, independence, and expertise that build investor trust in financial reporting.

[custom_quote text="Investor appetite for consistent, comparable corporate disclosures outside of the financial statements continues to grow."]
<h3><strong>3. Over 95% of investors report that regulatory oversight increases their confidence in audits. </strong></h3>
Support for oversight is nearly universal among institutional investors, and investors outline specific expectations about what oversight should accomplish. Over 95% of respondents draw a direct line between regulatory oversight and audit confidence; nearly one-third also believe the current regulatory burden on auditors is too high. Investors want a framework that effectively enhances audit quality, not compliance volume for its own sake.

<img class="alignnone wp-image-17386 size-full" src="https://www.thecaq.org/wp-content/uploads/2026/03/2026_03_AiA-Investor-survey_Chart-3.jpg" alt="" width="1390" height="645" />

As the profession leads across expanding landscapes like cybersecurity and AI governance, regulatory frameworks that evolve alongside assurance will keep investor confidence stable.

The profession has an opportunity to help shape what those changes will look like. Strong engagement with policymakers and regulators now will ensure expanded assurance contributes to the trust that underpins well-functioning capital markets.

[custom_quote text="Support for oversight is nearly universal among institutional investors, and investors outline specific expectations about what oversight should accomplish."]
<h3><strong>What This Means for the Profession</strong></h3>
Existing independence safeguards, expanded areas of assurance, and extended regulatory frameworks are top of mind for investors, and the profession is well equipped to address these needs and continue providing trust solutions to capital markets. The path forward requires a vocal commitment to objectivity, transparency into how the scope of assurance is changing, and engagement with regulators to build standards that support the gold standard of audit quality the U.S. is known for.

Read the full <a href="https://www.thecaq.org/annual-institutional-investor-survey">Institutional Investor Survey</a> for more insights into how investors view the audit.

What the 2025 Institutional Investor Survey Says About Trust

The digital asset ecosystem is rapidly evolving, and trust is critical in shaping the future of these innovations.

While the use of digital assets at U.S. public companies remains relatively limited, their prevalence in certain segments of the financial system is...

The digital asset ecosystem is rapidly evolving, and trust is critical in shaping the future of these innovations.

While the use of digital assets at U.S. public companies remains relatively limited, their prevalence in certain segments of the financial system is accelerating. In an analysis of 10-Ks, the CAQ found that <a href="https://www.thecaq.org/sp-500-and-digital-asset-reporting">9% of S&amp;P 500</a> companies mentioned digital asset-related information in their 2024 filings (filed in 2025). Our research has indicated that more than half of those companies are in the financial services sector; the remainder span across industries as companies are beginning to explore new opportunities with digital assets.

More recently, in our <a href="https://www.thecaq.org/audit-partner-pulse-survey">Fall 2025 Audit Partner Pulse Survey</a>, 22% of audit partners indicated that companies in their primary industry sector have exposure to digital assets (up from 11% reported in <a href="https://thecaq.wpenginepowered.com/wp-content/uploads/2025/06/caq_audit-partner-pulse-survey-spring-2025_2025-06.pdf">Spring 2025</a>). We are also seeing an increasing number of digital asset exchanged-traded funds (ETFs), reflecting growing interest in this asset class from investors.

At the same time, regulatory frameworks for digital assets are still emerging. Congress recently passed legislation establishing a regulatory framework for stablecoins (the GENIUS Act) and is now focused on passing a broader digital asset market structure bill. Regulatory agencies, like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have prioritized providing clarity regarding their oversight of digital assets, including the application of securities law to specific types of digital asset transactions.

This is all happening at a time of price volatility in the digital asset markets, highlighting the importance of market participants having the information that they need to make informed investment decisions. At the CAQ, we know that auditors have a critical role to play in the flow of reliable information to stakeholders for decision-making. Our latest publication, <a href="https://www.thecaq.org/rota-digital-assets"><em>The Role of the Auditor in Digital Assets: Present and Future</em></a>, explores the current digital assets landscape, why auditors are well-positioned to meet stakeholder needs, and what the future of trust could look like.

[custom_quote text="22% of audit partners indicated that companies in their primary industry sector have exposure to digital assets."]
<h3><strong>Challenges in an Evolving Ecosystem</strong></h3>
As the digital asset ecosystem matures, so are the business models of companies engaging with digital assets. The use of digital assets varies from company to company and many different types of companies support a robust digital asset ecosystem, ranging from companies that hold digital assets for investment purposes, companies that participate in digital asset mining and staking activities, companies that issue digital assets (like stablecoins), and companies that provide digital asset-related services including providing custody solutions, operating exchanges, and providing staking as a service. Additionally, we are seeing some financial entities begin to explore tokenization of financial instruments.

Companies face unique risks depending on their use of digital assets, but there are some universal challenges that cut across the digital asset ecosystem. In our <a href="https://www.thecaq.org/audit-partner-pulse-survey">Fall 2025 Audit Partner Survey</a>, audit partners identified regulatory uncertainty and a lack of expertise as key challenges facing companies that use digital assets for investment, operational, or transactional purposes. Additionally, we continue to see focus from digital asset market participants on transparency, including the information needs of investors, customers, and other stakeholders, and safeguarding of digital assets.

As the digital asset ecosystem continues to mature, it will be important for companies to consider how to provide increased trust and transparency for stakeholders on these key topics. As companies explore enhanced disclosure, public company auditors can play an important role in enhancing the reliability of information and mitigating potential information imbalances between external and internal stakeholders.

Audits and attestation engagements are already well-established mechanisms for building trust in financial and non-financial information reported by companies, and these services can be extended to digital asset market participants.

[custom_quote text="Companies face unique risks depending on their use of digital assets, but there are some universal challenges that cut across the digital asset ecosystem."]
<h3><strong>The Role of the Auditor</strong></h3>
Auditors are long-standing experts in verifying information reported by public companies, and their dedication to bringing trust to decision-useful information is why the U.S. is the gold standard for audit quality.

Auditors have a proven history of applying their rigor and expertise beyond financial reporting to emerging areas of our economy. Increasingly, auditors are being called upon to provide assurance on emerging topics like climate and cybersecurity.

In the digital asset ecosystem, auditors are already playing an important role in enhancing trust in company-reported information. One example of this is the requirement in the GENIUS Act for permitted payment stablecoin issuers to obtain an examination, performed by an auditor, of their monthly reserve reporting.

Auditors bring several unique strengths:
<ul>
 	<li><strong>Deep expertise in understanding business processes. </strong>Auditors are skilled at understanding various business processes and assessing and responding to risks within those processes.</li>
 	<li><strong>Experience in reporting on adherence to standards and frameworks.</strong> Auditors have extensive experience reporting on management’s assertions about compliance with various standards and frameworks.</li>
 	<li><strong>Compliance with independence and rigorous professional standards. </strong>Auditors follow strict independence rules and adhere to continuing professional education, ethics, and experience requirements.</li>
</ul>
Just as they verify a company’s financial information, auditors' tried-and-true assurance brings clarity to emerging disclosure areas impacting the capital markets.

[custom_quote text="Auditors have a proven history of applying their rigor and expertise beyond financial reporting to emerging areas of our economy."]
<h3><strong>The Future of Trust</strong></h3>
Digital asset attestation engagements continue to evolve to meet stakeholder needs. As companies and retail customers increasingly become involved in the digital asset ecosystem and engage the services of digital asset service providers, those customers are seeking greater trust and transparency in service providers’ operations.

Currently, several prominent digital asset companies that provide custody services to customers obtain Service Organization and Controls (SOC) 1 Type 2 reports, which are available to institutional customers and provide information relevant to a customer’s system of internal control. However, these reports aren’t available to individual retail customers. As the digital asset ecosystem continues to expand, there may come a point when retail customers desire greater trust and transparency about a digital asset service provider’s internal controls. At some point in the future, we may see new types of attestation engagements emerge to meet this need.

The profession is ready to engage with standard-setters, companies, and users of attestation reports to ensure that future attestation engagements deliver a clear and reliable picture of digital asset activities. It is important that future attestation engagements are clearly defined and that there is an appropriate framework enabling the performance of consistent and high-quality engagements.

This is the auditor's role: applying decades of expertise, rigor, and independence to emerging topics, contributing to continued innovation and growth in the U.S. economy. The CAQ will continue to monitor the evolving digital asset landscape and the profession’s role in building trust in these innovations.

[custom_quote text="The profession is ready to engage with standard-setters, companies, and users of attestation reports to ensure that future attestation engagements deliver a clear and reliable picture of digital asset activities."]

<strong><em>Explore the Full Resource:</em></strong><em> To see our full analysis of the evolving digital asset landscape,</em> <a href="https://www.thecaq.org/rota-digital-assets"><em>download the report here</em></a><em>.</em>

Bringing Trust to the Digital Asset Ecosystem

Emerging Reporting Areas

This hour-long webcast showcases regulatory reporting issues facing public companies and their auditors. It features Kurt Hohl, SEC Chief Accountant and Heather Rosenberger, Chief Accountant in the SEC’s Division of Corporation Finance. Panelists discuss current initiatives underway at the SEC,...

This hour-long webcast showcases regulatory reporting issues facing public companies and their auditors. It features Kurt Hohl, SEC Chief Accountant and Heather Rosenberger, Chief Accountant in the SEC’s Division of Corporation Finance. Panelists discuss current initiatives underway at the SEC, including recent regulatory proposals.

<strong>This webcast was eligible for 1 CPE credit to those who attended the webcast live.</strong>

Audit Insider Webinar | July 2026

Webinar

Event

This webinar is for audit committee members and those who work with and support audit committees in their financial reporting oversight role continues our journey in exploring the evolution of AI in financial reporting and the audit.

 	How is AI...

This webinar is for audit committee members and those who work with and support audit committees in their financial reporting oversight role continues our journey in exploring the evolution of AI in financial reporting and the audit.
<ul>
 	<li>How is AI being used in financial reporting?</li>
 	<li>How is the use of AI in financial reporting impacting the audit?</li>
 	<li>How are auditors using AI in the audit?</li>
 	<li>How is the use of AI in financial reporting and the audit impacting audit committee oversight?</li>
</ul>

AI in Financial Reporting and Audit – What Audit Committees Need to Know

Audit Committee

Artificial Intelligence

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

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

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

Join the Anti-Fraud Collaboration (AFC) in our webcast to explore the pervasiveness and impact of fraud at U.S. public companies and gain insights into recent survey findings that shed light into the current fraud risk environment and leading practices for...

Join the Anti-Fraud Collaboration (AFC) in our webcast to explore the pervasiveness and impact of fraud at U.S. public companies and gain insights into recent survey findings that shed light into the current fraud risk environment and leading practices for fraud deterrence and detection. A panel of multi-stakeholder experts will discuss findings from a joint survey from ACFE-AFC on The Impact of Fraud at U.S. Public Companies and CAQ’s 2025 Institutional Investor Survey, and provide insights into the current level of fraud and fraud losses experienced by U.S. public companies, factors that contribute to and can mitigate the most prevalent fraud risks faced by companies in the current environment, identifying and assessing the likelihood and significance/magnitude of those factors, and areas of focus for enhancing the effectiveness of fraud deterrence and detection.

<a href="http://www.antifraudcollaboration.org"><img class="alignnone size-full wp-image-9863" src="https://www.thecaq.org/wp-content/uploads/2020/05/AFC-Logo_35px.png" alt="Anti-Fraud Collaboration Logo" width="265" height="35" /></a>

<em><strong>Note</strong>: The virtual event was eligible for 1 CPE credit.
</em>

The Impact of Fraud on U.S. Public Companies

Anti-Fraud

Audit Committee Effectiveness: A Webinar Series
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...

<h4>Audit Committee Effectiveness: A Webinar Series</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

The CAQ’s Julie Bell Lindsay announced her decision to step down following seven years as CAQ’s CEO. “I’m incredibly proud of everything we’ve accomplished to advance the quality, integrity, and trust in public company audits and in the audit profession....

The CAQ’s Julie Bell Lindsay announced her decision to step down following seven years as CAQ’s CEO. “I’m incredibly proud of everything we’ve accomplished to advance the quality, integrity, and trust in public company audits and in the audit profession. It’s been an honor for me to work with the amazing team at the CAQ over the last seven years, and I am confident in their ability to build on the momentum we have created and continue to represent the public company audit profession and its important role in our capital markets. But, after much contemplation, I believe the timing is right to begin a new chapter in my career and life.”

The CAQ Governing Board has appointed fellow board member Mark Koziel, CEO of AICPA, as temporary, interim CEO, effective immediately. Julie will be working with Mark through the end of April to aid in the transition. Koziel praised Lindsay’s tenure: “Julie has helped ensure CAQ is a leading voice in advancing excellence, transparency, and trust in the public audit profession. The CAQ board joins me in thanking Julie for her years of service. Her work has made a lasting and positive impact in elevating audit quality and our profession.”

Through his role on the Governing Board, Mark has deep familiarity with the CAQ and is a passionate advocate for its role in the public company audit profession. Koziel added, “I look forward to working with the CAQ team during this transition to ensure organizational continuity and supporting the CAQ board in the search process. The CAQ’s mission to advance audit quality and investor confidence continues uninterrupted.”

Statement on CAQ Leadership Transition

Statements

The Center for Audit Quality (CAQ) congratulates the newly appointed and returning members to the Public Company Accounting Oversight Board. We look forward to working collaboratively with the PCAOB as they carry out their work. The CAQ remains committed to...

The Center for Audit Quality (CAQ) congratulates the newly appointed and returning members to the Public Company Accounting Oversight Board. We look forward to working collaboratively with the PCAOB as they carry out their work. The CAQ remains committed to engaging constructively with the PCAOB to support a robust audit environment that serves investors, public companies, and the capital markets.

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About the Center for Audit Quality

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.

Statement on Incoming PCAOB Chair

SEC Regulations

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

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

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

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

Talent

Welcome back to another edition of Audit Insider!

Summer is officially here, and that means the World Cup is well underway (with the U.S. being one of the hosts for the tournament!), holiday travels, and days at the pool.

June has been...

<img class="wp-image-17321 aligncenter" src="https://www.thecaq.org/wp-content/uploads/2026/02/2026_Emails_Headers_Audit-Insider_V1.png" alt="" width="800" height="200" />
<table id="templateBody" border="0" width="100%" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="bodyContent" align="left" valign="top"><b>Welcome back to another edition of Audit Insider!</b>

Summer is officially here, and that means the World Cup is well underway (with the U.S. being one of the hosts for the tournament!), holiday travels, and days at the pool.

June has been a busy month for the profession, and there’s more ahead. The PCAOB voted unanimously to propose targeted amendments to QC 1000 and, for the first time, issued a public request for comment on its standard-setting and research agendas; comment deadlines are approaching on two major SEC proposals, and the ACFE's Report to the Nations is out with findings worth your attention.

It doesn’t stop here. Next week, my colleague Annette Schumacher and I are sitting down with SEC leaders for a special <a href="https://www.thecaq.org/event/audit-insider-webinar-july-2026?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit_Insider">Audit Insider webinar</a>. So far, this is a summer for the books!

Read on for what I'm tracking.

<em>Please note that these perspectives are my own. If this email was forwarded to you, <a href="https://go.thecaq.org/l/834983/2020-04-22/fskb">subscribe here</a> so that you never miss a public company auditing update.</em>

<img src="https://go.thecaq.org/l/834983/2026-01-21/3sy8vj/834983/1769009821CeObYtK5/2026_Emails_Headers_Audit_Insider_Whats_New_V1.png" alt="What's new in public company audit" width="600" height="100" border="0" />
<h3>SEC Semiannual Reporting</h3>
The debate over public company reporting frequency continues to develop. Earlier this month, the SEC put out a call for comments on their recent <a href="https://www.sec.gov/newsroom/press-releases/2026-42-sec-proposes-amendments-permit-optional-semiannual-reporting-public-companies">proposal</a> to permit an optional shift from quarterly to semi-annual reporting. The CAQ's position remains consistent: Auditors are equipped to provide high-quality, independent assurance under any framework regulators establish, and the CAQ will continue to engage constructively as that conversation develops.
<h3>SEC Proposals: Comment Deadlines Approaching</h3>
Two SEC proposals have comment deadlines in July, and we want to make sure stakeholders have time to weigh in. The SEC's proposal to allow optional semiannual reporting, where companies could file a new Form 10-S instead of quarterly 10-Qs, had a comment deadline of July 6, but stakeholders can still submit comments. The CAQ's position remains consistent: auditors are prepared to provide high-quality, independent assurance under whatever framework regulators establish. Our comment letter can be found <a href="https://www.thecaq.org/comment-letter-proposed-rule-on-semiannual-reporting-file-number-s7-2026-15">here</a>, and we encourage stakeholders to<a href="https://www.sec.gov/rules-regulations/2026/05/s7-2026-15"> submit their perspectives directly to the SEC</a>.

Separately, the SEC proposed amendments to update <a href="https://www.sec.gov/files/rules/proposed/2026/33-11419.pdf">filer status definitions and emerging growth company accommodations</a>. These could represent significant changes for current and new public companies, and if the amendments went into effect, a significant number of U.S. public companies would no longer be subject to Section 404(b) and would not be required to have auditor attestation on internal controls. We encourage stakeholders to review both proposals and submit comments <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__go.thecaq.org_e_834983_05-2Ds7-2D2026-2D18-2D33-2D11419proposed_3vbjcd_2726762993_h_asZ7oF0ngV9AS27qIhggHXb8Uik86JId5rdf0lAnzaU&amp;d=DwMDaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=TOmdwBPHd3Ovlre4Uwm195oNv8KhqUXDmM_VKZuIPUE&amp;m=CrNF8G_6FrguqWFjFE_6S_e8iXYLAcEWJ_y3p-3QgrW3Rf4gNQVK2kwumdpLMnfk&amp;s=tDMhZuZQkMmIQst8P19bCgu2g9PTB9bGqWnFmUFUz_o&amp;e=">here</a>, which are due July 20th.
<h3>CAQ Comment Letter to the FDIC on the GENIUS Act</h3>
The CAQ submitted a <a href="http://www.thecaq.org/comment-letter-fdic-proposed-rulemaking-to-implement-the-genius-act?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit_Insider">comment letter</a> to the FDIC in response to its proposed rulemaking implementing the GENIUS Act, which establishes a federal framework for permitted payment stablecoin issuers. The CAQ supports the FDIC's objective to enhance transparency, reliability, and accountability in the stablecoin market, and our comments focus specifically on the aspects of the proposed rulemaking that affect public company auditors.

Key recommendations include clarifying which entities are subject to PCAOB versus AICPA auditing standards, specifying that monthly examination engagements be performed in accordance with AICPA attestation standards at the reasonable assurance level, and encouraging the FDIC to explore an annual attestation engagement over internal controls as an additional mechanism for enhancing market confidence. The CAQ also encourages the FDIC to consider existing auditor oversight mechanisms, including the AICPA Peer Review program, when designing its oversight framework for stablecoin issuers.
<h3>PCAOB Chair Shares Priorities for the Next Chapter</h3>
<a href="https://pcaobus.org/news-events/speeches/speech-detail/pcaob-chairman-logothetis-delivers-remarks-at-usc-sec-financial-reporting-conference">Speaking</a> at the USC SEC Financial Reporting Conference, PCAOB Chair Demetrios Logothetis outlined his vision for a more modern, stakeholder-focused PCAOB. A central theme of his remarks was "reclaiming the voice of the profession," emphasizing the importance of incorporating the experience of practitioners into the Board's work while continuing to advance investor protection and audit quality. He also highlighted priorities including inspection modernization, technology and AI, enhanced stakeholder engagement, and strengthening confidence in the financial reporting ecosystem.<b> </b>​​​​​
<h3>PCAOB Proposes Targeted Amendments to QC 1000</h3>
On June 9, the PCAOB voted unanimously to seek public comment on a <a href="https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-issues-proposed-amendments-to-qc-1000-and-seeks-public-comment">targeted set of proposed amendments</a> to QC 1000 and related PCAOB forms and reporting rules. The stated goal is to improve coherence with other quality management standards and potentially reduce compliance costs without compromising the PCAOB's investor protection mission.

Key proposed changes include rescinding the "design-only" requirement and the External QC Function requirement for the largest firms, providing increased flexibility in filling certain roles in the QC system, reducing the documentation retention period from seven to five years, allowing firms to choose their evaluation date, and aligning more closely with the international standard, ISQM 1. QC 1000 remains slated to take effect on December 15, 2026.

The CAQ <a href="https://www.thecaq.org/comment-letter-to-the-pcaob-on-qc-1000-targeted-amendments?utm_source=Newsletter&amp;utm_medium=Email&amp;utm_campaign=Audit+Insider+June+2026">submitted a comment letter</a> to the PCAOB earlier this week sharing our perspective.
<h3>Voices from the PCAOB Board on QC 1000</h3>
Alongside the supplemental proposal, several PCAOB board members released individual statements that offer useful insight into the ongoing discussion around QC 1000.

While <a href="https://pcaobus.org/news-events/speeches/speech-detail/supplemental-request-for-comment--proposed-amendments-to-qc-1000--a-firm%27s-system-of-quality-control">Chair Logothetis</a>, Board Members <a href="https://pcaobus.org/news-events/speeches/speech-detail/advancing-audit-quality-through-balanced-regulation--statement-in-support-of-supplemental-request-for-comment-on-proposed-amendments-to-qc-1000">Calabria</a> and <a href="https://pcaobus.org/news-events/speeches/speech-detail/inviting-broader-stakeholder-perspectives-on-proposed-amendments-to-qc-1000--a-firm-s-system-of-quality-control">Botic</a> generally express support for the proposal, <a href="https://pcaobus.org/news-events/speeches/speech-detail/statement-on-proposed-amendments-related-to-qc-1000---pursuing-a-more-moderate-and-sustainable-course">Board Member Laughton's statement</a> provides an additional perspective on the challenges and opportunities associated with implementation. Viewed together, the statements highlight a board working through important questions about how to strengthen audit quality while ensuring new requirements can be implemented effectively across firms of different sizes and structures.

The CAQ has consistently emphasized the importance of a QC 1000 framework that is both rigorous and workable, and we will continue to engage as the comment process unfolds.
<h3>Requests for Public Comment on PCAOB Standard-Setting</h3>
The PCAOB has issued a <a href="https://assets.pcaobus.org/pcaob-dev/docs/default-source/standards/standard-setting-agenda-request-for-comment/request-for-public-comment-on-pcaob-standard-setting.pdf?sfvrsn=4cf12519_2">Request for Public Comment</a> seeking feedback on its standard-setting and research agendas, its overall approach to standard setting, and the potential impact of the SEC’s recent proposal to allow optional semiannual reporting. The request is part of the Board’s effort to increase transparency and ensure future standard-setting priorities reflect the views of investors, audit committees, preparers, auditors, and other stakeholders.

Among the topics the PCAOB is considering for future standard-setting or research activity are data and technology, fraud, critical audit matters (CAMs), noncompliance with laws and regulations (NOCLAR), firm and engagement performance metrics, and auditor independence.

The CAQ encourages stakeholders to review the request and consider sharing their perspectives directly with the PCAOB. Comments are due August 7, 2026.
<h3>Leadership Updates at the PCAOB</h3>
The PCAOB has announced several notable leadership developments in recent weeks. Most significantly, Chief Auditor Barbara Vanich has <a href="https://pcaobus.org/news-events/news-releases/news-release-detail/chief-auditor-barbara-vanich-to-depart-the-pcaob">announced her departure from the Board</a> on July 15. We appreciate Barbara's contributions to the PCAOB's standard-setting efforts and her engagement with stakeholders across the profession, and we wish her continued success in her next chapter.

The Board has also <a href="https://pcaobus.org/news-events/news-releases/news-release-detail/dr.-ying-li-compton-named-pcaob-chief-economist-and-director-of-its-office-of-economic-and-risk-analysis">named Ying Compton as its Chief Economist</a>. We congratulate Ying on her new role and look forward to continuing our engagement with the PCAOB's Office of Economic and Risk Analysis as the Board advances its policy, research, and standard-setting priorities.

These developments come as the PCAOB continues to build out key leadership positions, including openings in the Chair's Office for a <a href="https://pcaobus.wd503.myworkdayjobs.com/en-US/PCAOB/details/Special-Adviser-for-Technology-Modernization-and-Innovation_R1273-1">Special Advisor for Technology</a> and <a href="https://pcaobus.wd503.myworkdayjobs.com/en-US/PCAOB/details/Head-of-Strategic-Communications-to-the-Chairman_R1241">Head of Strategic Communications</a> as well as the upcoming search for a new <a href="https://pcaobus.wd503.myworkdayjobs.com/en-US/PCAOB/details/XMLNAME---Chief-Auditor-and-Director--Professional-Standards-_R1281">Chief Auditor</a>. We encourage interested professionals to consider these exciting opportunities and stay engaged with the Board's evolving work.
<h2>Fighting Fraud</h2>
<h3>ACFE's Occupational Fraud 2026: A Report to the Nations</h3>
The ACFE released its <a href="https://www.acfe.com/rttn">2026 Report to the Nations</a>, the 14th edition of what remains the most comprehensive global study on occupational fraud. This year's edition carries additional significance: 2026 marks 30 years since the very first edition of the report was published, and the new edition compares data and trends against findings from 1996, providing a unique window into how the occupational fraud landscape has evolved over three decades.

The findings this year paint a consistent picture, with some notable data points for auditors. Cases analyzed caused more than $3.4 billion in losses, with a median loss of $104,000 per case. Tips were again the most frequently used detection method, accounting for 43% of cases, with more than half of those coming from employees. On the controls side, organizations with effective anti-fraud controls in place, including management review, proactive data monitoring, and surprise audits, consistently experienced lower losses and faster detection.

For auditors, the findings are a useful calibration point for fraud risk assessment and the design of audit procedures. <a href="https://antifraudcollaboration.org/">The Anti-Fraud Collaboration</a> will have more to share on the report's implications for practitioners and governance professionals in the coming weeks.

<img src="https://go.thecaq.org/l/834983/2026-01-21/3sy8t4/834983/1769009327mRO1QBVq/2026_Emails_Headers_Audit_Insider_From_CAQ_V1.png" alt="From the CAQ" width="600" height="100" border="0" />
<h2>The Audit Effect: The Evolving Role of the Auditor</h2>
<h3>CAQ Hosts Second Annual PPEC Summit</h3>
In June, we convened thought leaders from across the profession for our second annual Professional Practice Executive Committee Summit (PPEC) for a full day of dialogue focused on the most pressing issues facing the profession.

The Summit brought together a diverse group of professionals, including national office leaders and subject-matter experts from our member firms for keynote remarks and panel discussions. Keynote discussions with current and former regulators provided insight into how regulators set priorities and engage with stakeholders to drive changes. Throughout the event, leaders from our member firms shared views on the work we have done around current topics like quality control, auditor independence, PCAOB inspections, and generative AI.

As the profession continues to navigate change, the PPEC remains committed to fostering collaboration and advancing dialogue on the issues that matter most.

<img src="https://go.thecaq.org/l/834983/2026-01-21/3sy8t1/834983/1769009327191ZcUyR/2026_Emails_Headers_Audit_Insider_Additional_V1.png" alt="Additional Resources &amp; Events" width="600" height="100" border="0" />
<h3>Audit Insider Webinar, July 2026</h3>
If you're tracking regulatory reporting developments, this one is worth your time. On <b>July 13 at 2:00 PM ET,</b> I'll be talking with SEC Chief Accountant Kurt Hohl and Heather Rosenberger, Chief Accountant in the SEC's Division of Corporation Finance, along with my CAQ colleague Annette Schumacher Barr. The conversation will focus on the regulatory reporting issues public companies and their auditors are navigating right now. We'll cover current SEC initiatives and recent regulatory proposals — the kind of developments that are shaping decisions in boardrooms and audit committees today.

<a href="https://www.thecaq.org/event/audit-insider-webinar-july-2026?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Audit_Insider">Reserve your spot here </a>and earn 1 CPE credit for attending.
<h3>37th Annual ACFE Global Fraud Conference, Boston</h3>
The<a href="https://www.fraudconference.com/"> 37th Annual ACFE Global Fraud Conference</a> takes place July 12-17 in Boston, with the main conference running July 13-15 in person and virtually. The event is expected to draw more than 5,500 attendees across 90+ educational sessions and 100+ speakers. Featured speakers include AI and deepfake detection expert Dr. Hany Farid, OCCRP co-founders Drew Sullivan and Paul Radu, and whistleblower and advocate Noelle Webb, among others. The CAQ and ACFE will be co-hosting a roundtable on the sidelines. If you're planning to attend, I hope to see you there.</td>
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<strong>—</strong>
<h3><em>Dennis McGowan</em></h3>
<em>Vice President, Professional Practice and Anti-Fraud Initiatives</em>

<strong>​​​​​​
—</strong>

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Audit Insider | June 2026

Newsletter

The CAQ and KRC Research conduct periodic surveys among institutional investors in the U.S. to engage a broader array of stakeholders of company prepared information. 
...

The CAQ and KRC Research conduct periodic surveys among institutional investors in the U.S. to engage a broader array of stakeholders of company prepared information. 


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Company Management

The CAQ continues to support the objective of QC 1000. A firm’s system of quality control (QC system) is foundational to audit quality, and a rigorous, risk-based, and well-operating QC system can help promote consistent execution of quality audits. At...

The CAQ continues to support the objective of QC 1000. A firm’s system of quality control (QC system) is foundational to audit quality, and a rigorous, risk-based, and well-operating QC system can help promote consistent execution of quality audits. At the same time, requirements that are unclear, insufficiently scalable, or difficult to operationalize may divert resources from activities that most directly support audit quality.

Accordingly, we support the targeted refinements proposed by the PCAOB in its supplemental request for comment on proposed amendments to QC 1000, <em>A Firm’s System of Quality Control</em>. These proposed amendments will improve coherence with other quality management standards, reduce unnecessary implementation complexity, and maintain accountability for achieving the reasonable assurance objective of the QC system.

The proposed amendments are balanced and responsive to many implementation challenges our member firms have experienced. In particular, we support rescinding the design-only requirement for PCAOB registered firms that do not perform PCAOB engagements; providing additional flexibility in assigning and dividing specified QC roles; rescinding the External QC Function (EQCF) requirement; narrowing and clarifying certain communication requirements relating to metrics; refining the evaluation of engagement deficiencies and the definition of QC deficiency; allowing firms to select their annual QC system evaluation date; revising the evaluation conclusions to align more closely with other quality management standards while retaining a structured evaluation process; clarifying documentation retention requirements and reducing the retention period to five years; and maintaining the current effective date.

We continue to encourage the Board to provide additional written implementation guidance, including potential FAQs, to support consistent application of QC 1000. Firms have engaged in ongoing discussions with Board staff regarding implementation questions, and those conversations may provide valuable insights into areas where additional clarification could be helpful. Publishing FAQs that reflect common questions and observations arising through implementation would help promote consistency across firms and ensure broader access to interpretive guidance. We welcome the opportunity to support the Board’s efforts. Providing additional opportunities for practitioner input and two-way dialogue, including before the final release, would further facilitate effective and consistent implementation of the standard.

Read the full comment letter <a href="https://www.thecaq.org/wp-content/uploads/2026/07/caq_comment-letter_pcaob_qc1000-targeted-amendments_2026-07.pdf">here</a>.

Comment Letter to the PCAOB on QC 1000 Targeted Amendments

Comment Letter

In this comment letter the CAQ shares our views and provide input on the Securities and Exchange Commission’s (“Commission” or “SEC”) File No. S7-2026-15, Proposed Rule on Semiannual Reporting (the “Proposed Rule” or “Proposal”), which would provide all companies subject...

In this comment letter the CAQ shares our views and provide input on the Securities and Exchange Commission’s (“Commission” or “SEC”) File No. S7-2026-15, Proposed Rule on Semiannual Reporting (the “Proposed Rule” or “Proposal”), which would provide all companies subject to reporting obligations under Exchange Act Section 13(a) or 15(d) (“Exchange Act reporting companies”) that file quarterly reports the option to file interim reports on a semiannual basis.

This letter represents the observations of the CAQ based upon feedback and discussions with certain of our member firms, but not necessarily the views of any specific firm, individual, or CAQ Governing Board member.

Read the full comment letter <a href="https://www.thecaq.org/wp-content/uploads/2026/07/Semiannual-Reporting-CL-FINAL-7-6-26-1131am-pdf.pdf">here</a>.

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