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ARTICLE · 20 DECEMBER 2018

Lessons Learned From CAM Dry Runs

Mayer Brown
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In 2017, the Public Company Accounting Oversight Board ("PCAOB") adopted a new standard for auditor's reports that requires a description ...

United StatesAccounting and Audit
Brian D. Hirshberg
Brian D. Hirshberg
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In 2017, the Public Company Accounting Oversight Board (“PCAOB”) adopted a new standard for auditor’s reports that requires a description of critical audit matters (“CAMs”) designed to provide investors with information that relates to accounts or disclosures that are material to a company’s financial statements and involve especially challenging, subjective or complex auditor judgment. The CAM standard will be required for audits for fiscal years ending on or after June 30, 2019 for large accelerated filers.

On December 10, 2018, in anticipation of the implementation of the CAM standard, the Center for Audit Quality released a paper titled “Lessons Learned, Questions to Consider, and an Illustrative Example” highlighting observations made from practice dry runs of the CAM standard. The paper seeks to identify and provide clarity on the numerous factors that can influence an auditor’s CAM decision. The paper reminds audit committees that the determination of CAMs,

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