Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

Want to save this page for later?

Most Popular Content

Report: Audit Committees Increasingly Disclose Oversight Related to Cybersecurity and ESG

S.J. Steinhardt
Published Date:
Nov 30, 2022


Audit committees are increasingly including disclosures about oversight related to cybersecurity and to environmental, social governance (ESG) issues in proxy statements, according to a new report from the Center for Audit Quality (CAQ) and Audit Analytics, which focused on S&P 500 companies.

The 2022 Audit Committee Transparency Barometer report found increased cybersecurity disclosures. Fifty-four percent of the S&P 500 audit committees disclosed that the audit  committee is responsible for cybersecurity risk oversight, an increase of 8 percentage points from last year.

The report attributed this upward trend to the continuing specter of cyberthreats and expected it to continue.

“As the risk environment evolves, it’s important for boards to monitor the skillset composition of committee members,” the report read. “We also continue to see cybersecurity oversight responsibilities are delegated to the audit committee for many public companies.”

Increased awareness of and interest in ESG reporting was also reflected in this year’s report. It found that 39 percent of audit committees disclosed that they have an ESG or sustainability expert. Eighteen percent disclosed they have responsibility for ESG oversight.

“Similar to cybersecurity, ESG is a multi-faceted emerging risk,” the report read. “How the Board considers oversight of this risk among its committees is helpful information for stakeholders.”

“Audit committees will likely continue to have an increased role in ESG oversight given their expertise and experience in oversight of internal controls and financial reporting,” it added. “As ESG information continues to make its way into SEC filings, audit committee disclosures around this topic will become increasingly important."