Audit partners say economic uncertainty and geopolitical risks rise, while companies continue integrating AI to improve customer experience, according to latest survey.

Washington D.C., June 5, 2025 - The Center for Audit Quality (CAQ) has released its Spring 2025 Audit Partner Pulse Survey, providing insights from audit partners at the nation's leading public company audit firms. Now in its fourth year, the survey captures audit partners' views on the future of the U.S. economy, evolving business risks, and workforce trends. As trusted experts with a front-row seat to corporate strategy and performance, audit partners provide a unique lens into how U.S. companies are navigating a period marked by economic uncertainty, geopolitical tension, and rapid technological change.

Key findings from the report include:

Increasing Economic Pessimism

• The percentage of audit partners expressing pessimism about the U.S. economy surged from 10% in Fall 2024 to 44% today, while optimism dropped by more than half, from 38% to 15%.
• Fear of a potential recession, ongoing geopolitical instability and trade uncertainties have prompted companies to double down on financial performance, cost management, and risk mitigation strategies.

Shifting Workforce Strategies

• While many companies are reducing headcount, they are simultaneously investing in upskilling existing employees.
• Respondents also underscored the growing importance of strong anti-fraud cultures, especially as economic stressors heighten risk across industries.

Integration of New Technologies

• AI adoption continues to grow across industries, primarily to improve customer service and streamline internal operations.
• Despite increasing regulatory attention and high-profile initiatives like the SEC's new Crypto Task Force, audit partners report limited cryptocurrency-related investments among public companies.

"Audit partners offer a valuable window into today's complex business environment, helping us better understand the challenges companies face and the strategies they're using to move forward," said Julie Bell Lindsay, Chief Executive Officer, CAQ. "Despite economic uncertainty, it's encouraging to see companies investing in innovation, upskilling their workforce, and strengthening cultures of integrity as they build a foundation for long-term resilience and growth."

Download the Spring 2025 Audit Partner Pulse Survey to see the full results.

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About the Center for Audit Quality

The CAQ champions the public interest in the capital markets by:

• Elevating the quality, credibility, and transparency of public company audits;
• Advancing critical issues affecting public company audits;
• Driving innovation in assurance; and
• Providing a collaborative forum for capital market stakeholders to address evolving needs and challenges.

As the voice of the public company audit profession, we work to instill trust in corporate reporting and the integrity of the auditing process, ultimately empowering investors, companies, and society as a whole.