Audit Analytics’ new Critical Audit Matters (CAMs) database makes it easier than ever to search, track, analyze, and understand CAMs.
A 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, as well as items that involved challenging, subjective, or complex judgment.
The disclosure of critical audit matters (CAMs), as required by AS 3101, became effective for large accelerated filers with fiscal years ending on or after June 30, 2019. Since then, we have collected over 200 CAMs from the audit reports of more than 100 companies.
Navigating CAMs using our new Critical Audit Matters online search interface enables users to discover even more about these new disclosures, with features including the ability to search by specific topic, keyword, or auditor.
The table below displays the top 20 companies (by market cap), as well as the auditor and the number of CAMs reported.
Perhaps unsurprising, the Big Four account for all of these top companies.
Overall, KPMG leads the way in terms of count, with 52 CAMs disclosed within the audit reports of 22 companies – averaging 2.4 CAMs per opinion.
Looking at CAM counts across auditor locations, we see that firms located in the U.S. are reporting an average of 1.9 CAMs per opinion, while firms located in Canada are averaging 1.5 CAMs per opinion. Auditors outside of these regions are reporting an average of 3.0 CAMs per opinion.
Stay tuned for posts that continue to identify, analyze, compare and monitor CAMs and their trends.
This analysis was created using the Critical Audit Matters database powered by Audit Analytics. For more information on CAMs, or for subscription information, please contact us.