May 3, 2024
PCAOB Investor Advisory Group Asks “What’s Your Favorite Critical Audit Matter?”
Last spring, I blogged that the requirement for auditors to identify “critical audit matters” (CAMs) has not been living up to the PCAOB’s hopes & dreams. As part of its continuing effort to ensure that audit opinions communicate decision-useful information to investors (something that’s surprisingly been questioned as of late), the PCAOB’s Investor Advisory Group has recently announced that it’s soliciting public input from investors, analysts, issuers and auditors on the most “decision-useful” CAMs from public company audit reports in 2023 10-Ks and 20-Fs. The IAG asks that all “nominations” be submitted by June 30 and accompanied by an up to 300-word explanation.
The IAG will select its top 3 and report out publicly later this year. It’ll be interesting to see how these stack up to the most common CAMs!
– Meredith Ervine