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.