“We’re excited to launch this first-of-its-kind survey of the U.S. public company audit industry that will offer a bird’s-eye view of the state of the economy that only auditors can provide,” said CAQ Chief Executive Julie Bell Lindsay. “We intend for this survey to be a regular initiative by CAQ.”
Here are highlights of the survey’s findings:
State of the economy: Most audit partners are not feeling optimistic about the economy over the next 12 months, with 84 percent responding they are pessimistic or neutral. The survey was conducted in the second half of May 2022, at a time when the S&P 500 was experiencing its lowest performance since early 2020. The Covid-19 pandemic, changes in demand and spending, and the war in Ukraine have led to rising inflation; 75 percent of partners believe inflation will be a factor beyond the next 12 months, and 77 percent expect companies to raise consumer prices in response.
The top economic risks facing companies identified in the study were inflation (62 percent), labor shortages (52 percent), and supply shortages and supply chain disruptions (50 percent).
To respond to these economic risks, the top corporate priorities…
