Lesson 4 (Exam 1)

PCAOB Required Changes to Audit Report (5):

1. Identify CAMs

2. Describe what led to CAM

3. Describe how it was addressed

4. Refer to relevant F/S accounts/disclosures

5. Tenure disclosure

IAASB Required Changes to Audit Report (2):

1. Communicate CAMs

2. Disclose name of engagement partner

AICPA Required Change to Audit Report:

Reporting is optional

What is a CAM?

A matter communicated or required to be communicated to the audit committee that **relates to accounts or disclosures** that are **material** to the financial statements, and **involve especially challenging, subjective or complex auditor judgements**

What is a KAM

A matter communicated to those charged with governance, they are **matters that are of the most significance to the audit**

What are Required CAM disclosures?

Anything that is material to the financial statements, or involve complex judgements