Preeti Choudhary Shares Guidance on Tariff Disclosures

Preeti Choudhary, professor of accounting and Eller Fellow, was quoted in a recent Agenda article offering insight into how audit committees can approach disclosures related to new and proposed tariffs ahead of Q1 reporting deadlines.

With many of the tariffs set to take effect in June, Choudhary said it’s important for boards to understand how their company’s business model might be affected and reflect that in their disclosures. “The board should definitely be informed about how the business model is affected by tariffs and consider disclosures accordingly,” she said.

She noted that while many companies are using broad language in their filings—similar to early COVID-19 disclosures—investors benefit most from company-specific details.

Choudhary also recommended that audit committees work with management to ensure financial reporting accurately reflects any potential risks or changes, and that they consider asking auditors how peer companies are responding.