The jointly-released CAQ/Ideagen Audit Analytics: “Audit Committee Transparency Barometer 2025” (online here) reveals, in addition to 10-year trend data, these (among other) upticks in voluntary audit committee disclosure practices and associated examples of effective disclosure based on S&P 1500 proxy statements filed from July 1, 2024 - June 30, 2025.
Cybersecurity oversight (Q10) — Cybersecurity oversight disclosure remained generally on par with 2024, with 64%, 55%, and 53% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosing in their 2025 proxies the audit committee's responsibility for cyber risk oversight - up from 39%, 28%, and 18%, respectively, in 2020. See disclosure examples 7, 8, and 9 on pages 20-22 in Appendix II.
Editor’s Note: For examples of committee charter language addressing the audit committee’s oversight of AI, see UnitedHealth Group’s Audit and Finance Committee Charter and MGM’s Audit Committee Charter.
Cybersecurity expertise (Q9) — Quickly becoming a new norm, 65%, 46%, and 44% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed that the board of directors has a cybersecurity expert, compared to 28%, 20%, and 8%, respectively, in 2020. See disclosure examples 7, 8, and 9 on pages 20-22 in Appendix II.
Audit committee's considerations in (re)appointing the external auditor (Q1) — Generally on par with last year, 50%, 34%, and 30% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed in their 2025 proxies the audit committee's considerations in (re)appointing the external auditor, up from 43%, 30%, and 23%, respectively, in 2020. See disclosure examples 1 and 2 on pages 14-16 in Appendix II.
Frequency of evaluation (Q7) — 38%, 23%, and 22% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed that the evaluation of the external auditor is conducted at least annually (best practice), up from 31%, 19%, and 16% for S&P 500, S&P MidCap, and S&P SmallCap companies respectively, in 2020. See disclosure example 1 on page 14 in Appendix II.
ESG expertise (Q11) — 60%, 47%, and 40% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed that the board has an ESG or sustainability expert, compared to 39%, 26%, and 18% in 2022 (which was the first year that question was asked). See disclosure example 11 on page 24 in Appendix II.
Appendix II of the report includes additional sample disclosures; Appendix III provides a sample “leading practice” audit committee matters and report disclosure; and Appendix IV includes questions for audit committees to consider in relation to enhancing disclosure in this area.