Current and Emerging Issues

​CPAB participates in public policy issues affecting audit firms, investors, and reporting issuers through identifying and analysing current and emerging audit quality issues. This includes tracking current trends affecting audit firms and their audit clients, monitoring relevant academic research, and analyzing information derived from our inspections. Using this information, we engage stakeholders on issues critical to audit quality, and foster discussion and collaboration with individuals and organizations. Listed below are key current and emerging issues.

CPAB supports the need for more transparency with respect to auditor reporting. Auditors need to provide greater value by sharing more information related to the audit directly with financial statement users.

There has been significant international discussion about the merits of mandatory audit firm rotation and tendering in enhancing auditor independence, objectivity and professional skepticism. CPAB does not support mandatory firm rotation or tendering because we are concerned that either approach could result in a deterioration of audit quality.
CPAB has been monitoring the extent to which Canadian reporting issuers have operations in foreign jurisdictions.  Foreign operations present challenges to the performance of high-quality audits of financial statements. 

Starting in 2016, CPAB has been running an audit quality indicators (AQI) pilot project with interested audit committees and their external auditors and management. To date, there has been limited information available to measure and evaluate the quality of an audit and AQIs have been identified as a potential tool to help provide additional information and enhance the discussion of audit quality between stakeholders.
      
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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
Audit Committee Oversight of IT Risk

​Audit committee concerns related to IT risks and the role the external auditor and others could play in assisting the audit committee.

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Posted: 31/03/2016

PUBLICATION
Transparency into the Audit – Enhanced Auditor Reporting and Audit Committee Reporting

​A discussion about two initiatives increasing transparency into the audit process -  Enhanced Auditor Reporting and Audit Committee Reporting.

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Posted: 31/03/2016

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

NEWS
Supplemental CPAB Response on Auditor Reporting

​CPAB’s supplemental response to the Invitation to Comment on the Auditing and Assurance Standards Board (AASB)’s “Implementation considerations for New Auditor Reporting Standards”.

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Posted: 24/02/2016

NEWS
CPAB’s Response to the Exposure Draft on The Auditor’s Responsibility Relating to Other Information

​CPAB’s response to the Exposure Draft on the “The Auditor’s Responsibility Relating to Other Information: Canadian Amendments”.

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Posted: 24/02/2016

NEWS
CPAB’s Response to the Canadian AASB’s Invitation to Comment on Auditor Reporting
CPAB’s response to the Invitation to Comment on the Auditing and Assurance Standards Board (AASB)’s “Implementation considerations for New Auditor Reporting Standards”.
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Posted: 22/02/2016

NEWS
Thoughts on the Future of External Auditing by James Goodfellow FCPA

​Audit regulators and the profession continue to enhance the reliability of statutory auditing. But is external auditing losing its relevance?

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Posted: 15/07/2015

NEWS
IFIAR examines current trends in the audit industry

​This paper considers current trends in six key areas, with a particular focus in some areas on the global Big Four network firms.

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Posted: 15/07/2015

PUBLICATION
Comprehensive Review of the Auditor – What Audit Committees are Saying

​CPAB speaks with audit committee chairs about observations and lessons learned on performing or planning to perform a comprehensive review.

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Posted: 02/04/2015

CPAB
CPAB Special Report 2015: Auditing in Foreign Jurisdictions

​CPAB special report on inspections of audits of companies with operations in foreign jurisdictions, general improvement noted.

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Posted: 31/03/2015

NEWS
CPAB, CPA Canada and ICD weigh in on European audit reform

​CPAB, CPA Canada and ICD weigh in on European audit reform

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Posted: 16/05/2014

REPORT
CPAB Exchange: Changes to Auditor Reporting
CPAB supports the need for more transparency with respect to auditor reporting
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Posted: 31/03/2014

NEWS
CPAB Exchange: Minimum Term Limits
CPAB recommends that audit committees consider the merits of minimum auditor term limits
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Posted: 31/03/2014

REPORT
CPAB Exchange: The Two Envelope Approach
CPAB recommends audit committees adopt the Two Envelope Approach to reviewing proposals
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Posted: 31/03/2014

CPAB
CPAB’s Response to the IAASB’s Exposure Draft, Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing
CPAB’s Response to the IAASB’s Exposure Draft, Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing
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Posted: 16/12/2013

REPORT
EAQ Initiative: Enhancing Audit Quality: Conclusions and Recommendations
EAQ Initiative: Enhancing Audit Quality: Conclusions and Recommendations
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Posted: 30/05/2013

REPORT
EAQ Initiative: Auditor Independence Summary of Responses to Discussion Paper and Conclusions of the Auditor Independence Working Group
EAQ Initiative: Auditor Independence Summary of Responses to Discussion Paper and Conclusions of the Auditor Independence Working Group
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Posted: 28/05/2013

REPORT
EAQ Initiative: Auditor Reporting Model Summary of Responses to Discussion Paper and Conclusions of the Auditor Reporting Working Group
The EAQ Auditor Reporting Model Working Group supports the inclusion of auditor commentary in the auditor’s report because it can give users useful information, and may lead to positive changes to financial statement disclosures and audit quality.
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Posted: 30/04/2013

PUBLICATION
CPAB’s response to the Consultation Paper on Emerging Market Issuers issued by the Toronto Stock Exchange and TSX Venture Exchange
CPAB’s response to the Consultation Paper on Emerging Market Issuers issued by the Toronto Stock Exchange and TSX Venture Exchange
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Posted: 28/02/2013

REPORT
CPAB’s Auditing in Foreign Jurisdictions Special Report (2012)
CPAB’s Auditing in Foreign Jurisdictions Special Report (2012)
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Posted: 21/02/2012

CPAB
CPAB’s response to the PCAOB’s Concept Release on Auditor Independence and Audit Firm Rotation, PCAOB Rulemaking Docket Matter No. 37
CPAB’s response to the PCAOB’s Concept Release on Auditor Independence and Audit Firm Rotation, PCAOB Rulemaking Docket Matter No. 37
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Posted: 19/12/2011

CPAB
CPAB’s response to the PCAOB’s Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements and Related Amendments to PCAOB Standards, PCAOB Rulemaking Docket Matter No. 34
CPAB’s response to the PCAOB’s Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements and Related Amendments to PCAOB Standards, PCAOB Rulemaking Docket Matter No. 34
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Posted: 06/10/2011

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