The PCAOB released two new resources on CAMs - one for investors and one for audit committees. The investor resource addresses the recent changes to the auditor's report and CAMs specifically, and includes investor-focused staff FAQs that may also inform companies' communications with their investors, such as a Q&A on the relationship between CAMs and the company's critical accounting estimate disclosures.
The audit committee resource includes a decision tree that captures the key questions auditors will need to consider to determine if a matter is a CAM and - if so - how it will be communicated. As is the case with the investor resource, this resource includes staff FAQs that the PCAOB deems particularly relevant to audit committees, such as if/how the new requirement impacts the audit committee communications requirements and the audit committee's role in identifying and signing off on CAM communications. The resource also includes questions audit committees may consider asking their auditors about the new requirements.
Access additional resources on our Audit Committees, Auditing & Audit Firms, and PCAOB pages. This post first appeared in the weekly Society Alert!