The Canadian Public Accountability Board (CPAB) released an interim report on its 2026 audit quality assessments completed to date, highlighting findings on accounting judgments, audit processes and auditor reporting. Inspection themes include accounting estimates amid heightened uncertainty and the rebuttal of the presumed risk of fraud in revenue recognition. Findings also concern auditors’ understanding of information systems and highly automated processes, alongside perpetual inventory systems and cycle counts. Reporting themes include key audit matters and transparency in auditor reporting. CPAB will publish its final assessment of 2026 file inspections in March 2027.
Canadian Public Accountability Board reports 2026 interim audit findings on accounting estimates and revenue recognition
The Canadian Public Accountability Board’s interim 2026 inspection report highlights accounting estimates under uncertainty, rebutting the presumed fraud risk in revenue recognition, and systems and inventory processes. Findings also cover key audit matters and transparency in auditor reporting. The final assessment of 2026 file inspections is due in March 2027.