1. Familiarize yourself with the PCAOB's requirements for Critical Audit Matters (CAM) in the audit report as required by Auditing Standard 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion ("AS 3101"). a. Briefly describe the requirements of AS 3101 and the nature of items that audit should consider for disclosure as a CAM. 2. Identify the areas of the audit that may meet the requirements for disclosure as a CAM based on AS 3101 based on the current background of the audit client. Use the background in the case and the financial information to assist with determining those areas that may meet the requirements of the AS 3101. 3. Analyze the CAMS that have previously been disclosed as a CAM by competitors in the industry (SIC: 7370 Services-Computer Programming, Data Processing, Etc.). a. To analyze CAMS in the industry, you can search the www.sec.gov for 10-K filings of the competitors. See Exhibit 1 for a list of competitors to consider in the industry to the SEC website for each competitor's 10-K filing (You do not need to analyze each competitor listed). You may consider additional companies that could be competitors of your client. b. You should consider trends in the nature of the CAM disclosures for a subset of the industry as (i.e. those competitors of similar size using a measure of either market capitalization, revenues, and assets or the largest members of the industry).