In short
Critical audit matters (CAMs) are matters in a public company audit that were communicated, or required to be communicated, to the audit committee, relate to material accounts or disclosures, and involved especially challenging, subjective or complex auditor judgment.
Key takeaways
- They are required in reports under Public Company Accounting Oversight Board (PCAOB) standards, with some exceptions, such as emerging growth companies.
- For each, the report describes why it was critical and how the audit addressed it.
- In private-company audits, the similar concept is key audit matters, reported only when the auditor is engaged to do so.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Critical audit matters (CAMs) are reported in the audit reports of: