ESG oversight highlighted in annual audit committee transparency report
Public companies continue to increase the overall level of audit committee disclosures in proxy statements, though there is room to improve quality by providing more tailored disclosures and transparency, according to the latest annual report jointly issued by the Center for Audit Quality (CAQ) and Audit Analytics.
The 2022 Audit Committee Transparency Barometer is in its ninth year of reporting the S&P 1500’s disclosures related to audit committee oversight of auditors and matters related to public company audits. The report includes categories of proxy disclosures filed during the period July 1, 2021, through June 30, 2022, and examples of effective disclosures companies and their audit committees can consider for future proxy statements.
“We know audit committee disclosures are correlated with enhanced audit quality and auditor independence, and we’re pleased to observe a continued positive trend of these disclosures in proxy statements,” said Julie Bell Lindsay, chief executive officer of the CAQ. “We encourage audit committees to consider how they can provide even more detailed disclosures in areas such as the execution of oversight responsibility to give investors insight into the processes, considerations, and decisions made by the audit committee.”