KPMG has also been criticized for its audit opinion failing to identify SVB’s unrealized losses on its bond portfolio as a critical audit matter, as reported by the Wall Street Journal. As noted in this Value Edge Advisors blog, PCAOB advisors are concerned that CAM disclosure in general has been less useful to investors than intended.
During a meeting of the PCAOB’s Standards and Emerging Issues Advisory Group on March 30, 2023, Jeffrey Mahoney, general counsel of the Council of Institutional Investors (CII), expressed concern that subsets of Auditing Standard (AS) 3101 aren’t being addressed in CAM disclosures—specifically, an indication of the outcome of the audit procedures with respect to the CAM and the auditor’s related key observations. Reuters also reports that the number of CAMs per audit has decreased over the years. With CAMs in the spotlight, perhaps that trend will reverse.
– Meredith Ervine