Critical Audit Matters: Recurring, Nonrecurring, and Intermittent

IF 2.2 4区管理学 Q2 BUSINESS, FINANCE

Accounting Horizons Pub Date : 2024-03-01 DOI:10.2308/horizons-2022-188

Brooke D. Beyer, Binod Guragai, Eric T. Rapley

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引用次数: 0

Abstract

The Public Company Accounting Oversight Board (PCAOB) Auditing Standard (AS) 3101 requires auditor’s reports to include the communication of critical audit matters (CAMs). This study investigates the recurrence of CAM topics following the standard’s implementation to determine which CAM topics could be considered recurring, nonrecurring, and intermittent. We provide descriptive evidence that the average number of CAMs reported by auditors decreased over the first three years and then show occurrence patterns for CAM topics during our sample period (June 2019 to June 2022). Using the occurrence rates and the PCAOB’s descriptions in the CAM implementation guidance, we propose a method for classifying CAM topics as recurring, nonrecurring, and intermittent. Based on our proposed CAM topic recurrence categorization, we find that approximately 68 percent of auditor’s reports include at least one recurring CAM topic. Our findings should help practitioners and other financial reporting stakeholders refine expectations for the recurrence of CAMs. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48.

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关键审计事项：经常性、非经常性和间歇性

美国公众公司会计监督委员会（PCAOB）的审计准则（AS）3101 要求审计师报告中包含关键审计事项（CAM）的沟通。本研究调查了准则实施后 CAM 主题的重复性，以确定哪些 CAM 主题可被视为重复性、非重复性和间歇性。我们提供了描述性证据，证明审计师报告的 CAM 平均数量在前三年有所减少，然后展示了样本期间（2019 年 6 月至 2022 年 6 月）CAM 主题的发生模式。利用发生率和 PCAOB 在 CAM 实施指南中的描述，我们提出了一种将 CAM 主题分为经常性、非经常性和间歇性的方法。根据我们提出的 CAM 题目重复性分类，我们发现约 68% 的审计师报告包含至少一个重复性 CAM 题目。我们的研究结果应有助于从业人员和其他财务报告利益相关者完善对 CAM 复发性的预期。数据可用性：数据可从文中引用的公共来源获取。JEL 分类：M42; M48.

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来源期刊

Accounting Horizons BUSINESS, FINANCE-

CiteScore

3.80

自引率

4.00%

发文量

期刊介绍： Accounting Horizons is one of three association-wide journals published by the American Accounting Association AAA. This journal seeks to bridge academic and professional audiences with articles that focus on accounting, broadly defined, and that provide insights pertinent to the accounting profession. The contents of Accounting Horizons, therefore, should interest researchers, educators, practitioners, regulators, and students of accounting.