Critical audit matters (CAMs) are matters which arise during the audit, that are communicated or required to be communicated with the audit committee; are material to the financial statements; and involve especially challenging, subjective or complex auditor judgment. Though these matters are required to be communicated with the audit committee, the audit committee has no role in determining or approving CAMs.

In this article, Audit Analytics shares its findings on S&P companies that have disclosed the audit committee’s role in CAMs and suggests questions for audit committees to discuss with their independent auditors.