Reflecting an ongoing trend toward increased voluntary disclosure about the audit committee's practices and accountability, EY's latest report: "Audit Committee Reporting to Shareholders in 2018" reveals these (among other) dramatic improvements in voluntary disclosure based on an analysis of Fortune 100 proxy statements filed since 2012:
- In 2018, 62% of companies disclosed the factors considered by the audit committee when assessing the external auditor's qualifications and work quality - up from 58% in 2017, and 18% in 2012.
- 78% of companies in 2018 disclosed that the audit committee was involved in the selection of the lead audit partner, compared to 75% last year and 0% in 2012.
- In 2018, 88% of companies stated that the audit committee is responsible for the appointment, compensation and oversight of the external auditor, up from 44% in 2012.
- 89% of companies in 2018 disclosed that the audit committee considers non-audit fees and services when assessing auditor independence, compared to just 12% in 2012.
- 37% of companies stated that the audit committee is responsible for fee negotiations with the auditor in 2018 - up from 34% in 2017 and 1% in 2012.
The table on pages 2-3 of the report details results by year. In addition, the report includes sample instructive disclosures on several key topics, and notes new auditor disclosure requirements (see "PCAOB Approves Audit Engagement Partner Disclosure Rules" and "PCAOB Adopts Expanded Auditor's Report Standard") that may trigger additional voluntary audit committee disclosures.