Question: The PCAOB has recently adopted a new standard AS 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified

The PCAOB has recently adopted a new standard AS 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. This standard introduces a new section in the audit report: Critical Audit Matters (CAM) . (There is a parallel standard for KAMs for AICPA)

Considering potential advantages and disadvantages of this new requirement, in your opinion overall, do you believe that this new standard helps or hurts reporting?

Some things to consider include

The reasons why CAM was introduced
Potential challenges faced by auditors in implementing this new standard.
Impact on potential users of the financial statements

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The auditors report contains either an expression of opinion on the financial statements taken as a whole or an assertion that an opinion cannot be expressed This standard establishes requirements reg... View full answer

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