After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted new rules and related amendments to its auditing standards regarding the engagement partner and other accounting firms that took part in the audit (PCAOB 2015). The rules require disclosure of...

PCAOB AS 3101 requires the auditor to communicate in the audit report any critical audit matters (CAMs) identified during the planning or performance of the audit. One of the most common type of CAMs (revenue CAMs) relates to core earnings, which is fundamental to valuing a corporation (Penman 2001;...