October 7, 2022

key audit matters

Critical Audit Matters: The Games Are On

As a guest here recently I took a look at the accumulating experience with extended auditors’ reports—the additional paragraphs that under international standards describe key audit matters (aka critical audit matters under the Public Company Accounting Oversight Board’s standards in the United States). There I noted a major gap—nobody has yet asked whether investors actually […]

Critical Audit Matters: Does Anybody Care?

As if the standard auditor’s opinion weren’t already sleep-inducing enough. Standards in the United States now require auditors to identify critical audit matters (CAMs) in their reports on the financial statements of large public companies—things that, in the language of Auditing Standard 3101.11 of the Public Company Accounting Oversight Board, involved “especially challenging, subjective, or […]