The PCAOB released a report Wednesday, Dec. 7, analyzing the impact of a 2017 standard requiring the identification and reporting of critical audit matters (CAMs) in audit reports.
The interim analysis report, focused on auditors of non-large, accelerated filers and their implementation of PCAOB Auditing Standard 3101, found that the average number of CAMs per audit report has declined over time.
The report also found investor awareness and use of CAMs continues to develop while no significant unintended consequences have arisen.
Audit engagement partners reported teams spend an average of 1% to 2% of total audit hours on CAM-related activities. The average audit report in the analysis featured 1.42 CAMs. Read more.