Audit Quality Indicators

To date, there has been limited information available to audit committees to measure and evaluate the quality of an audit.  In response, there has been increased international activity around the use of audit quality indicators (AQIs), which are quantitative measures about the audit process.

In 2016, CPAB launched an AQI Pilot project (Pilot) with six Canadian audit committees, their external auditors and management to get feedback about the usefulness of AQIs and to support the broader national and international discussions.  CPAB’s Pilot is exploratory in nature and meant to encourage innovation in the way audit committees approach the use of AQIs.  In particular, CPAB sought feedback on:

  • Whether AQIs provide additional transparency into the audit that is useful for the audit committee
  • How to best leverage AQIs
  • How AQIs can be integrated into regular audit committee discussions in an effective and efficient way for all parties in the audit process, including audit firms, management and audit committees

Our observations suggest to us that AQIs could have significant potential to positively impact audit quality.  We are continuing the AQI Pilot Project in 2017 and invite Canadian reporting issuers to participate.  We encourage audit committees, management and audit firms to continue to explore how AQIs can be integrated into their audit processes. 

For more information about CPAB’s AQI Pilot Project, please contact Lindsay Colley, Director at lindsay.colley@cpab-ccrc.ca.

CPAB
2016 Audit Quality Indicators Pilot Project – Interim Report

This report outlines our current findings regarding AQIs based on observations of participants in CPAB’s 2016 AQI Pilot Project.  A summary is also available.

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Posted: 23/02/2017

CPAB
2016 Audit Quality Indicators Pilot Project – Summary Interim Report

​This summary highlights observations of participants in CPAB’s 2016 AQI Pilot Project. The full report is also available.

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Posted: 23/02/2017

PUBLICATION
Transparency into the Audit – Audit Quality Indicators and Transparency Reporting

​A discussion about two initiatives increasing transparency into the audit process - Audit Quality Indicators and Transparency Reporting.

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Posted: 31/03/2016

CPAB
CPAB Exchange: Audit Quality Indicators

​Join the conversation about audit quality matters and  key activities to enhance audit quality.

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Posted: 21/11/2014

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