The SEC updated its pass-fail model for audit reports last year. Under the revised model, auditors must report critical audit matters (CAMs) that warrant attention from stakeholders. The change goes into effect for audits of fiscal years ending on or after 1) June 30, 2019, for large accelerated filers, and 2) Dec. 15, 2020, for smaller public companies. The Center for Audit Quality recently issued a guide to help auditors identify challenging, subjective or complex matters in the coming fiscal year. Contact us for additional information about CAMs.
