The stagnation and decline of audit committee disclosures were seen throughout many measures such as, for S&P 500 companies, the decrease to 38% from 39% in the disclosure of the annual evaluation of the external auditor,

These results are based on data from the 12th annual Audit Committee Transparency Barometer Report from The Center for Audit Quality (CAQ) and Ideagen Audit Analytics released on Dec. 4.

The dips in disclosures were also seen in the measures of considerations in appointing or (re)appointing the external auditor, stayed flat at 50%, and factors contributing to the selection of the audit partner, dipping to 16% from 17%. The report, conducted since 2014, examines audit committee disclosures of S&P 1500 companies. 

“When disruption accelerates, disclosures cannot stand still,” noted Julie Bell Lindsay, CEO of CAQ. “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."

Lindsay added that meaningful and investor-focused disclosure is one of the most powerful ways audit committees have in communicating their story and illustrating the importance of the audit 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,” she said.