PCAOB offers more guidance on CAMs

By Michael Cohn for AccountingToday.com

The Public Company Accounting Oversight Board released two new documents and a video Thursday to provide more information to investors and audit committees about the new requirements for auditors to include a discussion of critical audit matters, or CAMs, in their audit reports.

The Insights for Investors document explains the origins of the CAMs requirements, the function of the auditor’s report, recent changes and the effective dates of the new standard, which began taking effect at the end of last month for the largest companies.

The Insights for Audit Committees document includes information about discussions between auditors and audit committees about CAMs, such as questions that audit committees should consider asking about CAMs, whether a data breach should be considered a CAM, and the difference between CAMs and key audit matters, or KAMs.

The YouTube video features Erin Dwyer, who joined the PCAOB in May as a direct point of contact for and liaison to investors, audit committees, and preparers. In the video, she shares additional information about her role and the PCAOB’s CAMs-related resources.