The disclosure of critical audit matters (CAMs), as required by AS 3101, became effective for large accelerated filers with fiscal years ending on or after June 30, 2019, and on or after December 15, 2020, for all other required companies. This section of the auditor’s report will be an extremely useful tool for investors, shareholders and analysts when reading through financial statements.

In this article, Audit Analytics explains some of the ways CAMs, as disclosures of items related to important aspects of a company’s financial statements, will make it easier for investors to understand the whole picture.