The Canadian Public Accountability Board submitted comments on the International Auditing and Assurance Standards Board and International Ethics Standards Board for Accountants joint stakeholder survey for their 2028 to 2031 strategies and work plans. CPAB’s main message is that the two standard setters should coordinate more closely with each other, accounting standard setters, securities regulators and oversight bodies, and focus on the issues it sees as most likely to affect audit quality and public trust in Canada. It identified five main trends for the next strategy period: digital transformation and emerging technologies, faster standard setting, greater use of non-professional accountants and specialists in firms, alternative ownership structures, and growth in non-assurance services. It also highlighted materiality for audits and firm culture and governance as areas needing focused attention. Drawing on its oversight work, CPAB said some auditors are not applying existing principle-based standards consistently in technology-driven audits and called for timely practical guidance on technology-enabled environments, clearer expectations for audit evidence obtained through automated tools, and consideration of oversight or certification mechanisms for audit tools. It also backed greater use of non-authoritative guidance, narrowly scoped projects, scalable requirements for smaller and less complex entities, and timely post-implementation reviews. On firm structures, it urged coordinated IAASB and IESBA work on risks from private equity investment and other alternative ownership models, and asked the IESBA to review non-assurance services and related fee provisions. For specific projects, CPAB said ISA 320 is outdated and no longer fit for purpose because materiality benchmarks and percentages are being applied inconsistently in practice. On firm culture and governance, it supported a principles-based, scalable approach aligned with International Standard on Quality Management 1 rather than adding a broad new mandatory framework.
Canadian Public Accountability Board2026-05-12
Canadian Public Accountability Board urges IAASB and IESBA to prioritise technology guidance materiality reform and coordinated work on firm governance
The Canadian Public Accountability Board commented on the IAASB’s and IESBA’s 2028–2031 strategies, urging closer coordination with other standard setters and regulators and a focus on issues affecting audit quality and public trust in Canada. CPAB highlighted digital transformation, faster standard setting, changing firm structures and staffing, and growth in non-assurance services, and called for clearer guidance on technology-enabled audits, scalable and timely standard-setting, and a principles-based approach to firm culture and governance aligned with International Standard on Quality Management 1.