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  • Writer's pictureDaniel Goelzer

Read Any Good CAMs Lately? The PCAOB’s Investor Advisory Group Wants to Know

The PCAOB’s Investor Advisory Group (IAG) has requested nominations for the most decision-useful critical audit matter (CAM) or key audit matter (KAM) in a public company audit report filed with the SEC as part of a 2023 Form 10-K or Form 20-F.  The IAG will select the top three 2023 CAMs/KAMs and discuss them in a public report it will issue later this year. 


The PCAOB’s auditing standards require audit reports to include a description of any CAMs, defined as matters arising from the financial statement audit that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex auditor judgment.  KAMs are required in audit reports prepared under the International Standards on Auditing. KAMs are matters that, in the auditor’s professional judgment, were of the most significance in the financial statement audit and were communicated to those charged with governance.


The IAG invites nominations from the “general public, including from public company issuers (management and boards), auditors, financial analysts and investors.”  Nominations should not exceed 500 words and should explain why the CAM or KAM provides decision-useful information to investors.  Nominations should be emailed to allie@cii.org by June 30, 2024.


At the IAG’s suggestion, the PCAOB has added a review of CAMs, including whether there is a need for regulatory action to improve CAM reporting, to its research agenda.  See PCAOB Updates its Agendas and Adds a CAMs Review, November-December 2023 Update

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