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Audit Committee Practices Report, 5th edition
Are audit committees ready for what comes next?
The fifth edition of the Audit Committee Practices Report, a joint initiative of Deloitte’s Center for Board Effectiveness and the Center for Audit Quality, draws on close to 250 responses from audit committee chairs and members.
Three priorities are shaping audit committee agendas
As the complexity of the risk environment increases, audit committees are expanding their focus, helping shape AI governance, and strengthening the dialogue that supports effective oversight.
Emerging risks are broadening the agenda
Audit committees are devoting more attention to emerging risks. Enterprise risk management now ranks first among committees with responsibility for its oversight, while cybersecurity shows up on more committees’ priority lists overall.
AI governance is still taking shape
AI governance is a top-three priority, although many committees remain in the early stages of their oversight journey. Committees are working on building the visibility, capabilities, and reporting needed for effective oversight.
Engagement strengthens effectiveness
Higher-quality discussion, informed challenge, and consistent communication are central to effective oversight and the committee’s assessment of the independent auditor’s performance.
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Emerging risks reshape the priority list
Enterprise risk management (ERM) ranks first among committees with responsibility for its oversight, while cybersecurity remains the most broadly cited top-three priority.
AI governance is a top priority, but readiness is still developing
of respondents
describe their AI governance oversight as emerging or limited.
of respondents
identify technology, including AI, as the skill most needed to enhance audit committee effectiveness.
High-quality engagement and consistent communication are setting the standard for effectiveness
Higher-quality discussion and challenge in meetings was identified as the leading opportunity to improve audit committee effectiveness, with 41% selecting it among their top three opportunities.
When assessing the independent auditor, 52% selected engagement team leadership, experience, and continuity among their top three considerations. Effective audit committee meeting practices support candid communication, meaningful engagement, and sound oversight.
Christine Davine
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Take a look back
Explore previous editions of the Audit Committee Practices Report