The Canadian Public Accountability Board (CPAB) published an enforcement report imposing a restriction, requirements and a public censure on Abu-Farah Professional Corporation after an investigation found 26 violation events across two reporting issuer audit files. The enforcement actions took effect on July 17, 2025 after the firm did not petition for a review hearing. CPAB’s findings focused on significant breaches of audit documentation and audit execution requirements under Canadian Auditing Standards and Canadian Standard on Quality Management 1, including audit working papers finalized or added after the audit report date, insufficient documentation to demonstrate what work was completed before report release, and shortcomings in substantive testing and fraud-related procedures. The measures include a ban on accepting any new reporting issuer audit engagements, completion of a detailed root cause analysis and a targeted Audit Quality Action Plan for fiscal 2025, a client and audit risk assessment of the reporting issuer portfolio as of April 30, 2025, a review of engagement team portfolio allocation, 50 hours of external training for reporting issuer assurance partners and staff, and enhancements to client acceptance and continuance and the firm’s system of quality management. Ongoing oversight requirements include bi-monthly meetings with CPAB and bi-monthly written status reports, plus mandatory notification to audit committees (or those charged with governance) of affected reporting issuers and delivery of a summary of CPAB’s investigative findings for each relevant engagement. The firm must also pay a monetary assessment to recover CPAB’s costs of enhanced regulatory oversight and has paid approximately USD 50,000 in CPAB investigation costs.
Canadian Public Accountability Board 2025-08-08
Canadian Public Accountability Board prohibits Abu-Farah Professional Corporation from accepting new reporting issuer audit engagements and orders audit quality remediation
The Canadian Public Accountability Board (CPAB) imposed enforcement actions on Abu-Farah Professional Corporation, including restrictions, requirements, and a public censure, following 26 violations in audit files. Key breaches involved audit documentation and execution under Canadian Auditing Standards, leading to a ban on new audit engagements and mandatory corrective measures. The firm must engage in ongoing oversight, including bi-monthly meetings with CPAB and notification to audit committees, and has paid approximately USD 50,000 in investigation costs.