Audit partners feel more optimistic about economy

Economic pessimism is on the wane among audit partners, though they're not feeling as confident as they were last year, according to a new survey Tuesday from the Center for Audit Quality.

The CAQ's Fall 2025 Audit Partner Pulse Survey found that economic pessimism declined from 44% in the spring to 22% now, while economic optimism and neutrality both grew by more than 10 percentage points. However, economic sentiment hasn't yet returned to the level where it was last fall. Companies are concentrating more on building resilience and mitigating possible risks rather than pure growth strategies as they await the outcome of Washington's economic policies.

The top two risks identified by the audit partners who were surveyed are regulatory ambiguity (54%) and trade tensions (53%), as opposed to this past spring when recession fears topped the list. 

Companies are expanding their disclosures in three main areas: business strategy disclosures (61%), financial performance disclosures (58%), and artificial intelligence integration disclosures (48%). 

AI is perceived less as discretionary spending and more as essential to long-term efficiency and resilience, with AI adoption mainly focusing on process automation and customer support. 

Even as 58% of audit partners report companies are pursuing headcount reductions, 53% of the survey respondents said their companies are focusing on targeted upskilling, while 43% of the respondents indicated tighter hybrid work policies are being implemented, artificial intelligence investments continue to climb. 

A recent analysis by the CAQ of corporate 10-K filings found that 90% of S&P 500 companies now reference AI-related information, up nearly 25% since 2023. 

"The insights in this survey reflect what makes assurance so valuable: audit partners spend their careers deeply embedded in the operations, strategies and risk environments of the companies they audit," said CAQ CEO Julie Bell Lindsay in a statement Tuesday. "That depth of knowledge is invaluable to investors, policymakers and business leaders navigating today's changing economic and regulatory environment. They are providing not just accountability, but a perspective that helps all stakeholders navigate change with greater confidence."