Audit Analytics’ critical audit matters (CAMs) report for 2023 filings is out now. Results show that while 68% of the registrants’ opinions contain CAMs, the average number of CAMs in those opinions continues to decline. This has the attention of the Center for Audit Quality (CAQ) and PCAOB as they continue to validate the existence of CAMs. A recent CAQ survey of 100 U.S. institutional investors revealed that 92% use CAMs in their investment decision-making process, with valuation of assets, goodwill and intangibles topping the list of example CAMs.

In this article, Audit Analytics further examines the decline of CAMs over a four-year period.