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.

The IAASB released a companion document, Overview of the ITC, which summarizes the key areas the IAASB is exploring and the direction it may take.

The IAASB’s Framework for Audit Quality, issued in 2014, explains the important role of auditors and their firms—as well as other stakeholders—in audit quality, and the contextual factors that affect it. It is an important reference document for this consultation.

Download the Invitation to Comment from the IAASB's Web site.