More audit partners have expressed pessimism regarding the US economy, the survey of the US Center for Audit Quality (CAQ) said.
The Spring 2025 Audit Partner Pulse Survey, now in its fourth year, captured audit partners’ perspectives on the future economic landscape, evolving business risks, and workforce trends.
The percentage of audit partners expressing pessimism about the US economy has surged from 10% in Autumn 2024 to 44% currently, while optimism has dropped significantly from 38% to 15%.
This shift reflected heightened concerns over potential recession, geopolitical instability, and trade uncertainties, prompting companies to focus on financial performance and risk mitigation strategies.
Despite many companies reducing headcount, there is a simultaneous investment in upskilling existing employees, the survey said.
Respondents emphasised the importance of strong anti-fraud cultures, especially as economic stressors increase risk across industries.
AI adoption continues to grow, primarily aimed at improving customer service and streamlining internal operations.
Audit partners also noted limited cryptocurrency-related investments among public companies, despite increased regulatory attention and initiatives like the SEC’s new Crypto Task Force. This indicated a cautious approach towards cryptocurrency amid regulatory scrutiny.
CAQ CEO Julie Bell Lindsay said: “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.
“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.”
“Audit partners increased pessimism over US economy” was originally created and published by The Accountant, a GlobalData owned brand.
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