Current trends in audit committee reporting

A proxy statement analysis of companies in the S&P 100 index

In 2015, Deloitte analyzed proxy statements of the companies included in the S&P 100 index to identify trends in audit committee reporting. After noting that the S&P 100 companies uniformly comply with required disclosure requirements related to the audit committee, the review was focused on disclosures that either expanded or exceeded these requirements.

Explore current trends

Deloitte believes that transparency into the audit committee’s activities and performance can increase investors’ confidence in the audit committee.

Our analysis of proxy statements shows that many companies have voluntarily increased proxy disclosures related to the audit committee, including:

  • The composition of the audit committee
  • The role of the audit committee
  • Oversight of the financial reporting process
  • Oversight of the independent auditor

As audit committee disclosure continues to be a focus of regulators and investors, all audit committees should consider whether additional transparency, beyond required disclosures, would be beneficial.

"Disclosures that give insight into the audit committee’s process and rationale for appointing the external auditor can provide important insight not only into the auditor’s qualifications but also the audit committee’s level of engagement and oversight."

Deloitte’s September 2 Comment Letter to the SEC

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