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