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PCAOB Requires Auditor Reporting of CAMs

By Stephen Barlas
September 1, 2017
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New requirements from the Public Company Accounting Oversight Board (PCAOB) institute auditor reporting on critical audit matters (CAMs), which are matters arising from the audit that required especially challenging, subjective, or complex auditor judgment.

 

Auditors will have to include CAMs for audits for fiscal years ending on or after June 30, 2019, for large, accelerated filers, and for fiscal years ending on or after December 15, 2020, for all other companies to which the requirements apply. Other provisions, which go into effect for audits for fiscal years ending on or after December 15, 2017, require the auditor’s report to include the phrase “whether due to error or fraud” when describing the auditor’s responsibility under PCAOB standards to obtain reasonable assurance about whether the financial statements are free of material misstatements.

 

Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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