PCAOB Issues Report on Initial Impact of CAM Requirements

Stinson - Corporate & Securities Law Blog

Stinson - Corporate & Securities Law Blog

The PCAOB released an interim analysis report and two accompanying white papers providing the PCAOB’s perspective on the initial impact of critical audit matter (CAM) requirements and insights learned from stakeholders.

The PCAOB performed an interim analysis of the CAM requirements to gain an initial understanding of audit firms’ and engagement teams’ responses to the requirements, investors’ use of CAM communications, and audit committee and preparer experiences related to CAM implementation. The key findings include the following:

  • Audit firms made significant investments to support initial implementation of CAM requirements.
  • Investor awareness of CAMs communicated in the auditor’s report is still developing, but some investors are reading CAMs and find the information beneficial.
  • The staff has not found evidence of significant unintended consequences from auditors’ implementation of CAM requirements for audits of large accelerated filers in the initial year.

This interim analysis represents the PCAOB’s first step in analyzing the CAM requirements. The PCAOB intends to continue to review the CAM requirements.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Stinson - Corporate & Securities Law Blog | Attorney Advertising

Written by:

Stinson - Corporate & Securities Law Blog

Stinson - Corporate & Securities Law Blog on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.