CPAB is Canada’s audit regulator, protecting the investing public’s interests. As a world-class audit regulator, focused on excellence, we deliver value to our various stakeholders through effective regulation and by promoting high-quality, independent auditing. As a champion of audit quality, CPAB contributes to public confidence in the integrity of financial reporting, which supports our capital markets.
We fulfil our mandate in two ways: through
inspections and by involving a broader range of
stakeholders in a discussion about and better understanding of the audit process. This requires a multi-faceted approach to stakeholder engagement and inspection methodology, including root-cause analysis, risk assessment and value-added recommendations.
CPAB’s governing document, the Canadian Securities Administrators’
National Instrument - 52-108 Auditor Oversight requires auditors of reporting issuers to be registered with CPAB as CPAB participants, and requires Canadian reporting issuers to issue financial statements audited only by CPAB participating firms.
At December 31, 2016, 281 audit firms were registered with CPAB. During 2016, CPAB inspected 45 firms in total (2015:39) and 167 engagement files (2015:179).
CPAB has a nine member
Board of Directors appointed by the
Council of Governors.
CPAB’s 2016-2018 strategic plan builds on our progress to further enhance the organization’s effectiveness. We want to address the more systemic barriers to audit quality to drive sustainable, high quality audits. To accomplish this, CPAB will focus on the following five strategic imperatives over the next three years:
To deliver on these imperatives, CPAB will continue to be organized in the following functional areas: Risk Management, Inspections, Thought Leadership and Stakeholder Engagement. To achieve our goals we will continue to focus on developing our people and to participate actively in discussing issues related to audit quality and audit policy internationally. Specific initiatives and planned action steps across each of these areas are outlined in our
2016-2018 Strategic Plan document.
CPAB’s inspection methodology is risk based. We primarily assess the quality of audits through the inspection of selected high-risk sections of audit files and an assessment of the six elements of quality control. We then work with audit firms to develop solutions in areas where audit quality should be improved.
To learn more about our inspections activity, visit our
CPAB is in a unique position to contribute to the state of audit quality, audit committee effectiveness and international audit regulatory development. CPAB can make a significant contribution to enhancing audit quality and investor protection by providing content that can help stakeholders have a significant impact on audit quality and perform their role more effectively.
Learn more about Thought Leadership’s work on the
Current and Emerging Issues page.
Audit firms and financial statement preparers are not the only players in the audit process. Audit committees, institutional investors and analysts also play important roles. CPAB believes there is an opportunity to enhance audit quality and investor protection by engaging in a dialogue and raising awareness about audit quality among stakeholders.
Information and publications are sorted by relevancy to stakeholders on our
CPAB employs approximately 50 professionals. For more information about working at CPAB, please visit our
Effective regulation - Proactively identify current and emerging risks to the integrity of financial reporting of public companies in Canada by assessing how auditors effectively respond to those risks, identifying root causes and requiring remediation of any audit firm quality issues, and engaging those charged with governance, regulators and standard setters to develop sustainable solutions to enhance audit quality.
To contribute to public confidence in the integrity of financial reporting of reporting issuers in Canada by effective regulation and promoting quality, independent auditing.