cAMP functions by activating a group of enzymes known as protein kinase A (PKA). When a signaling molecule binds to a receptor on the cell surface, it activates an enzyme called adenylyl cyclase. This enzyme converts ATP to cAMP, which then activates PKA. Activated PKA phosphorylates target proteins, altering their function and thereby affecting cellular processes. These pathways are crucial for maintaining homeostasis and can be disrupted by toxic substances.