Assessing Initial Implementation of CAMs
PCAOB staff will conduct an interim analysis in 2020 to gain an initial understanding of: (1) how auditors responded to the CAM requirements, (2) whether and how investors are using CAM communications, and (3) audit committee and preparer experiences.
The staff will also evaluate whether early evidence from the implementation of CAM requirements is suggestive of significant costs, benefits, or unintended consequences.
To inform the analysis, the staff is conducting surveys and targeted interviews of impacted stakeholders including auditors, preparers, audit committee members, investors, and other financial statement users.
The staff has also issued a request for comment to collect information from stakeholders on initial experiences with CAM implementation.
The PCAOB expects to produce a report in the fourth quarter of 2020 to communicate findings and provide stakeholders with early insights into initial CAM implementation.
Evaluating Overall Impact
After a reasonable period of time following full implementation of the standard, the PCAOB will conduct a post-implementation review to analyze the effectiveness of the new requirements.
The staff will reevaluate the costs and benefits of the new standard, including any unintended consequences, to understand the overall impact on the audit profession, public companies, and users of financial statements.