Audit Committees Continue to Improve Transparency of External Oversight
For the fourth consecutive year, audit committees are improving transparency regarding their external auditor oversight. The news was revealed by the Center for Audit Quality (“CAQ”) and Audit Analytics’ new report, Audit Committee Transparency Barometer (“Barometer”), which stated that audit committees are voluntarily increasing the information disclosed to investors and stakeholders.
This year’s Barometer report features year-over-year comparisons of significant audit committee disclosure areas for various-sized companies, including:
- 37 percent of S&P 500 companies’ proxy statements have increased discussion of the audit committee’s considerations in endorsing the selection of the audit firm (13 percent rise from 2014);
- 24 percent of mid-cap companies have increased discussion of the audit committee’s considerations in endorsing the selection of the audit firm (10 percent rise from 2014), compared to 17 percent of small-cap companies (8 percent rise from 2014); and
- 38 percent of S&P 500 companies share the criteria considered when reviewing the audit firm (8 percent rise from 2014).
A press release on the Barometer is available on the CAQ website.