Starting in the summer of 2019, auditors will be required to communicate CAMs in their auditor’s reports. Investors with questions about CAMs may turn to a company’s IR group for answers.

Review the publication on the CAQ's website.

The Brydon review is an independent review, established by the UK government in late 2018 and led by Sir Donald Brydon; it is looking at audits as a product and what audits should be in the future. It will address the audit expectation gap: the difference between what people think an audit does and what it actually does. It will also look at the scope of an audit, any changes that may need to be made to it and how it can better serve the public interest. The independent review will be supported by advisory groups that will provide advice and challenge emerging findings and recommendations.

Re­view the joint response on the IAASB’s website.

Re­view the overview of staff guidance  and the staff guidance specific to Rule 3526(b) on the PCAOB's web­site.

This document was informed by discussions with auditors regarding their experiences conducting dry runs of CAMs with their audit clients, the staff’s review of methodologies submitted by 10 U.S. audit firms that collectively audit approximately 85% of large accelerated filers, and other outreach efforts.

Review the staff guidance on the PCAOB's website.

The preview includes observations of U.S. and non-U.S. audit firms, inspected both annually and triennially.

Highlights of good practices observed include:

• Expanding accountability and revising training programs
• Establishing a network of specialized professionals to address emerging risks

Areas of deficiencies observed in 2018 include:

• Internal Controls of Financial Reporting and Revenue Risk Assessment
• Accounting estimates such as Allowance for Loan and Lease Losses (ALLL)

Review the Staff Preview on the PCAOB's website.

Auditors will soon be required to communicate CAMs in the auditor’s report under the standard, AS 3101, "The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion".

The staff guidance consists of the following:

1. a high-level overview of CAM requirements
2. thematic observations that arose from the Office of the Chief Auditor’s review of audit firms’ CAM methodologies
3. a deeper dive on the determination of CAMs

While these documents primarily offer insights for auditors, the high-level overview—“The Basics”—may also be of interest to preparers, audit committees, and investors.

Review the press release on the PCAOB's website.

The documents consist of a high-level overview, staff observations from a review of audit methodologies, and a deeper dive on the determination of CAMs.

These documents were informed by discussions with auditors regarding their experiences conducting dry runs of CAMs with their audit clients, the staff’s review of methodologies submitted by 10 U.S. audit firms that collectively audit approximately 85% of large accelerated filers, and other outreach efforts. The Board and staff will continue to monitor CAM implementation and determine if further guidance is needed.

Review the press release on the PCAOB’s website.

This Audit Committee Outlook provides an overview of what audit committees should expect from the PCAOB’s 2019 inspections as a supplement to the 2019 Inspections Outlook issued in December 2018.

Review the 2019 Staff Inspection Outlook for Audit Committees on the PCAOB's website.

There are a number of developments resulting from efforts by the AASB and others to enhance the trust and credibility of information reported outside of the financial statements.

This article discusses:

• What is driving the increased focus and discussion in this area?
• What’s the AASB doing about this?
• What else is happening in Canada?
• What’s next?

Review the article on the AASB's website.

In his speech, he discusses some of the current priorities of the PCAOB, a number of which are outlined in the Board's five year strategic plan.

The topics discussed are as follows:

Role of the Independent Auditor

• Investors are the Auditor's True Client
• Re-emergence of Concerns about Auditor Independence
• State of Audit Quality
• Improper Alteration of Audit Documentation
• PCAOB's Standard-Setting Activities
• Auditor's Reporting Model
• Technological Innovation in the Audit

In his conclusion, he encourages auditors to strive to improve audit quality, be vigilant in protecting independence from management, and not lose sight that the client is the investing public.

Review the speech on the PCAOB's website.