The Sarbanes-Oxley Act of 2002 was passed by Congress to better protect investors. Section 404 of this act (SOX 404) requires companies to review their internal controls over financial reporting (ICFR) and declare whether they are “effective” or “ineffective”. In … Continue reading
Monthly Archives: September 2019
The History of Critical Audit Matters
The implementation of PCAOB Auditing Standard 3101 (AS 3101): The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, adopted on June 1, 2017, makes significant changes to the auditor’s opinion. Among the new requirements is … Continue reading
What Can We Learn About CAMs from KAMs?
In the United States, audit firms of large accelerated filers with fiscal years ending on or after June 30, 2019 are required to disclose Critical Audit Matters (CAMs) in their audit reports. For 53 of these large accelerated filers that … Continue reading
Auditor Tenure Disclosure
The requirement to disclose tenure became effective for audits of fiscal years ending on or after December 15, 2017. PCAOB Auditing Standard 3101 – The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses and Unqualified Opinion … Continue reading
Importance of Critical Audit Matters (CAMs) for Investors
As defined by the PCAOB, a critical audit matter (CAM) is any matter that the auditor communicated or was required to communicate to the company’s audit committee, and is related to items that are material to the company’s financial statements, … Continue reading