In 2017, the Public Company Accounting Oversight Board adopted a new auditing standard: Auditing Standard 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified. The first phase of the new standard was implemented for 2017 year-end reporting. The next phase, which is the most significant change as a result of the new standard, is the requirement to communicate critical audit matters (CAMs) in the auditor’s report. Audit firms have been performing “dry runs” of the CAM requirements. This panel will explore the new requirements and share experiences from the dry runs.
Obtain an understanding of the definition of a CAM, components of a CAM communication, and effective date.