Audit Committee Practices Report 2026
I like connecting findings from very different reports. Even when I have some doubts about respondents’ ability to assess their own maturity, or about conclusions drawn from management surveys, putting different perspectives together often reveals interesting patterns.
Photo: DilokaStudio na Magnific
The new Deloitte report is a good example. Again, Cybersecurity and AI are everywhere:
87% include cybersecurity among their top-three priorities
75% include AI Governance
54% say their committee has increased its focus on Emerging Risks
But what surprised me most was ERM. Among committees responsible for ERM oversight, 39% rank it as their No.1 priority and 77% place it in their top three.
After reading recent reports from internal audit, compliance, cybersecurity and risk functions, it is interesting to see ERM becoming such a major board-level topic. Apparently, emerging risks have become… emerging again.
I am curious whether five years ago we simply did not have emerging risks, or whether we were just less interested in looking for them.
What I genuinely appreciate in this report is that audit committees openly recognize weaknesses in their own capabilities. Only 56% express confidence in effective AI oversight, while 82% describe their AI governance oversight as limited or emerging. When asked what additional expertise would improve committee effectiveness:
Technology, including AI — 70%
Cybersecurity — 45%
ERM — 27%
That is quite telling. Still, this is where I would add my personal skepticism. I have the impression that boards often continue to overestimate their understanding of technology, cybersecurity and particularly the dependencies hidden in modern supply chains.
Another interesting message for auditors. When audit committees evaluate the independent auditor, their three leading expectations are surprisingly fundamental:
engagement team leadership, experience and continuity — 52%
execution excellence: responsiveness, timeliness and coordination — 50%
clear, candid communication and accountability — 42%
Additionally, 41% say higher-quality discussion and challenge during meetings would improve audit committee effectiveness. No revolutionary methodology. Experienced people. Good execution. Clear communication. And the ability to challenge.
Effective oversight still depends on very human capabilities:
understanding
critical questioning
clear communication
professional challenge
systems thinking
Author: Sebastian Burgemejster
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