• Register
Return to: Home > News > New resources from PCAOB on CAMs for audit committees, investors

New resources from PCAOB on CAMs for audit committees, investors

The US Public Company Accounting Oversight Board (PCAOB) has released a new resource for audit committees and for investors about critical audit matters (CAMs). The PCAOB’s standard requires an auditor to determine CAMs using a principles-based framework.

A CAM is any matter arising from the audit of a company’s financial statements that meets all of the following criteria: ?

  • A matter that was communicated or is required to be communicated to the audit committee; ?
  • A matter that relates to accounts or disclosures that are material to the financial statements; and ?
  • A matter that involved especially challenging, subjective, or complex auditor judgment.

CAM requirements are effective for fiscal years ending on or after 30 June 2019. For audits of all other companies to which they apply, CAM requirements are effective for fiscal years ending on or after December 15, 2020.

The new requirement for CAMs is a result of the PCAOB’s 2017 standard AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, which made significant changes to the auditor’s report. The standard is intended to make the auditor’s report more informative and relevant to investors and other financial statement users by shedding light on areas of the audit requiring especially challenging, subjective, or complex auditor judgment. 

For investors CAMs are intended to provide tailored information specific to the audit – from the auditor’s point of view – on matters that require especially challenging, subjective, or complex auditor judgment. Investors may find CAM information useful when considered among other information regarding a company’s financial statements.

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.