New Audit Report & CAMs: 1. Are you in favor of the PCAOBs new audit report?...

New Audit Report & CAMs:

1. Are you in favor of the PCAOBs new audit report?

2. Do you see any issues with including CAMs in the audit report?

Expert Solution

1. YES. The PCAOB'S new audit report sets forth the most signifiant changes to the auditors report in the last 70 years. The new PCAOB's audit report requies dislosures of the CAM ( critical audit matters), so that the auditors report contains all the information relevant to the investors and is very easily understood so that the investors are aware of all the financial information about a company which generally the auditors are aware of but choose not to disclose.

2. Yes there are a numebr of issue with including CAMS.

management and audit commitee should engage in a dialogue to determine which matters are CAMS,based on the company's facts and circumstances. Management and audit commitee may want to disclose such matters ahead of the new auditor reporting.
CAMS are matters that arise in the audit that are challenging and subjective and that contains material disclocures in the financial statements .although they provide the stakeholders a deper understanding ofthe financial statements from the perspective of the audit, but they bring about a set of challenges.

jeff jeffy answered 2 years ago

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