Critical Audit Matters

Summary

This practice note will discuss Critical Audit Matters (CAMs), specifically their definition and scope, CAM-related disclosures, and steps to be taken by the board of directors and audit committee. When a company engages an accounting firm to audit its financial statements, the auditor must identify and disclose in its audit report any CAMs pertaining to the period covered by those statements. CAMs compliance began with fiscal years ending June 30, 2019 (for large accelerated filers' audit reports) and December 15, 2020 (for the audit reports of all other companies required to comply).