The article states that during a meeting at the end of March 2023, Public Company Accounting Oversight Board (PCAOB) advisers said that they are concerned about auditors not fully complying with the critical audit matter (CAM) reporting requirement.
The reason that advisers are worried is due to the PCAOB adopting rules in response to investor demand to make audit reports more useful and many CAM disclosures have not been as informative.
Choudhary noted that it would be useful for PCAOB staff to take a closer look at why there may be differences between CAMs and key audit matters (KAMs) because although similar, they are not identical.
“It would be helpful to understand whether those differences are intended or not,” says Choudhary. “I know the rules are different, but should they be different and are people behaving and responding the way you want them to?”
Choudhary joined the Eller College of Management as associate professor in 2017. Previously, she was assistant professor at Georgetown University. She earned her PhD in Accounting from Duke University in 2008. Prior to academia, she worked as an internal auditor for The Washington Post and in enterprise risk services with Deloitte. Her research focuses on capital markets financial accounting, financial reporting for taxes, recognition versus disclosure and financial reporting reliability.