What's Happening?
The Center for Audit Quality (CAQ) and Deloitte have published a new report focusing on the effectiveness and priorities of audit committees. This report builds on the findings from the 2025 Audit Committee Practices Report, which involved a survey of 27
audit committee chairs and members. The report emphasizes the growing importance of cybersecurity, with many audit committee members seeking relevant training. It also highlights the need for effective oversight strategies, including better engagement at the board level and maximizing management discussions. The report notes that while internal audits are often operationally focused, there is potential for them to support external audits more robustly. Additionally, the oversight of artificial intelligence is becoming more common, though quantum computing remains a less addressed topic.
Why It's Important?
The report underscores the critical role of audit committees in navigating complex issues like cybersecurity and artificial intelligence. As these areas become increasingly significant, the ability of audit committees to effectively oversee and manage these risks is crucial for corporate governance. The findings suggest that while audit committees are making strides in these areas, there is still room for improvement, particularly in leveraging internal audits and managing presentation time during meetings. This has implications for how companies prepare for and respond to technological advancements and cyber threats, potentially affecting their operational resilience and compliance with regulatory standards.
What's Next?
Audit committees are likely to continue prioritizing cybersecurity and may increase their reliance on specialized consultants to keep pace with the rapidly evolving landscape. The report suggests that audit committees should focus on enhancing their engagement strategies and time management during meetings to ensure meaningful discussions. As artificial intelligence oversight becomes more prevalent, audit committees may need to expand their expertise in this area. Additionally, the potential for internal audits to support external audits could lead to changes in how these functions are structured and utilized within organizations.
