PCAOB IAG seeks nominations for best CAMs

The Public Company Accounting Oversight Board Investor Advisory Group is accepting public nominations for the most decision-useful critical audit matter or key audit matter of 2023.

The announcement is part of the PCAOB's efforts to improve the quality of information communicated to investors in audit opinions. Nominations may come from the general public, including public company issuers, auditors, financial analysts, and investors. The CAMs or KAMs must be contained in public company audit reports included in the 2023 Form 10-Ks and Form 20-Fs.

Courtesy of PCAOB

CAMs were implemented by the PCAOB in 2019 and require auditors to disclose areas of the audit that involve especially challenging, subjective or complex judgements. Previously, the reports did not convey this information, resulting in a disconnect between auditors and investors. In 2022, nearly two-thirds of auditor opinions contained CAMs, according to a report by Ideagen that analyzed over 22,000 audit reports.

Nominations may be submitted anonymously and should include an explanation (less than 500 words long) of why the nomination provides decision-useful information to investors. All nominations should be emailed to allie@cii.org by June 30.

The nominations will be reviewed by the IAG. The top three decision-useful CAMs or KAMs will be shared in an IAG report later this year.