On the 2025 audit committee agenda

Audit committees can expect their company’s financial reporting, compliance, risk, and internal control environment to be put to the test in 2025. In addition to existing challenges—from global economic volatility, the wars in Ukraine and the Middle East to cyberattacks, preparations for US and global climate and sustainability reporting requirements, and advances in artificial intelligence (AI)—the change in administration could have a significant impact on the business and risk environment that companies must navigate. Audit committees should take a hard look at their skill sets and agendas. Does the committee have the leadership, composition, and agenda time to carry out its core oversight responsibilities—financial reporting and internal controls—along with the growing range and complexity of other risks?

Drawing on insights from our survey work and interactions with audit committees and business leaders, we highlight nine issues to keep in mind as audit committees consider and carry out their 2025 agendas:

• Stay focused on financial reporting and related internal control risks—job number one.
• Clarify the role of the audit committee in the oversight of generative AI (GenAI), cybersecurity, and data governance.
• Understand how technology is affecting the finance organization’s talent, efficiency, and value-add.
• Reinforce audit quality and stay abreast of changes to PCAOB auditing standards.
• Monitor management’s preparations for new climate reporting frameworks/standards.
• Make sure internal audit is focused on the company’s critical risks—beyond financial reporting and compliance—and is a valuable resource for the audit committee.
• Probe whether management has reassessed the company’s compliance and whistle-blower programs in light of the DOJ’s September Evaluation of Corporate Compliance Programs guidance.
• Stay apprised of tax legislative developments in Washington and the potential impact on the company and its operations.
• Take a fresh look at the audit committee’s composition and skill sets.