Critical Audit Matters Guidance: The PCAOB Provides Guidance Regarding Implementation of Critical Audit Matter Requirements

Sullivan & Cromwell LLP - March 25, 2019

Last week, the Public Company Accounting Oversight Board (“PCAOB”) released three sets of staff guidance regarding the implementation of new critical audit matter (“CAM”) standards that auditors of large accelerated filers will be required to include in their audit reports for fiscal years ending on or after June 30, 2019. The guidance documents consist of:

  • an overview of the basics of the CAM requirements;
  • PCAOB staff observations from a review of audit firms’ CAM methodologies; and
  • a deeper dive on the determination of CAMs, including PCAOB staff FAQs.