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Beginning with fiscal years ending on or after June 30, 2019, large accelerated filers will be required to disclose critical audit matters (CAMs) in the auditor's report. The PCAOB adopted this to inform financial statement users about significant matters in the audit and how the matters were addressed. Critical audit matters are intended to provide more meaningful information to all users of the financial statements. 

A critical audit matter is defined by the PCAOB as any matter arising from the audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

  • Relates to accounts or disclosures that are material to the financial statements; and
  • Involved especially challenging, subjective, or complex auditor judgment.

Disclosures of critical audit matters are required for all other filers to which the requirement applies for fiscal years ending on or after December 15, 2020.