A critical audit matter (CAM)to be disclosed under PCAOB guidance meets which of the following criteria?
A)Any matter communicated or required to be communicated to the audit committee.
B)A matter that relates to accounts or disclosures that are material to the financial statements.
C)A matter involving especially challenging,subjective,or complex auditor judgment.
D)All of the above.

Question

Quizplus · Accepted Answer

A critical audit matter must meet all three criteria listed - it must have been communicated or required to be communicated to the audit committee, it must relate to accounts or disclosures that are material to the financial statements, and it must involve especially challenging, subjective, or complex auditor judgment. Therefore, the answer is choice D - all of the above.

A Critical Audit Matter (CAM)to Be Disclosed Under PCAOB Guidance