Dear Audit Committee Member:
Yesterday, the PCAOB decided to adopt a new auditor reporting standard that includes the communication of critical audit matters (CAMs). The rules are subject to approval by the SEC.
A lengthy runway is provided before full compliance is required. Provisions other than those related to CAMs will take effect for audits for fiscal years ending on or after December 15, 2017. If your company is a large accelerated filer, provisions related to CAMs will apply starting with the audits for fiscal years ending on or after June 30, 2019. This means that a fiscal year-end large accelerated filer may first have CAMs included in the auditor report filed with the Form 10-K for the year ended December 31, 2019. Continue Reading