The jointly-released CAQ/Ideagen Audit Analytics: “Audit Committee Transparency Barometer 2024” (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, 2023 - June 30, 2024.
Cybersecurity oversight—Consistent with heightened risk and stakeholder scrutiny, cybersecurity oversight disclosure continued to measurably increase. 64%, 53%, and 50% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed in their 2024 proxies the audit committee's responsibility for cyber risk oversight - up from 39%, 28%, and 18%, respectively, in 2020. See disclosure examples 7 and 8 on pages 23-24 in Appendix II.
Audit committee's considerations in (re)appointing the external auditor—50%, 35%, and 29% of S&P 500, S&P MidCap, and S&P SmallCap companies, respectively, disclosed in their 2024 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 15-19 in Appendix II.
Frequency of evaluation—39%, 22%, and 20% 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 examples 1 and 2 on pages 15-19 in Appendix II.
ESG expertise—59%, 50%, and 39% 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 26 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.