The Canadian Public Accountability Board (CPAB) has published its 2025 regulatory report, setting out annual inspection outcomes for audit firms that audit Canadian reporting issuers and outlining expanded public disclosures, including the publication of individual firm inspection results. Across all firms, CPAB identified significant findings in 27 of 120 files inspected, a 23% findings rate compared with 24% in 2024. Inspection results diverged by firm segment. The aggregate findings rate at the four largest firms rose to 16% (10 of 62 files), with each of the four having at least one significant finding, while other annually inspected firms improved to 13% (four of 31 files). Non-annually inspected firms fell to 48% (13 of 27 files) but remained elevated; CPAB attributed higher prevalence at some firms to factors including lack of industry or audit-area experience and insufficient supervision and review. The report also highlights recurring themes driving findings, including risk assessment, audit evidence, accounting estimates and the growing use of technology, alongside CPAB’s quality management reviews under Canadian Standard on Quality Management 1, four restatements since the 2024 annual report, and ongoing constraints in cross-border inspections including denied access to a component auditor’s working papers in China. On enforcement, 20 firms were subject to enforcement actions in 2025 (18 in 2024), with no firms terminated during the year; one of the four largest firms faced increased requirements, and new enforcement actions were imposed on three non-annually inspected firms. CPAB indicates decisions will be made in 2026 on the easing or escalation of regulatory intervention for certain firms and on modifying or terminating some existing enforcement actions.
Canadian Public Accountability Board 2026-03-31
Canadian Public Accountability Board reports 23% significant findings in 2025 inspections and begins publishing firm-level inspection results
The Canadian Public Accountability Board has published its 2025 regulatory report on inspections of audit firms for Canadian reporting issuers and announced expanded public disclosures, including publication of individual firm inspection results. CPAB reported significant findings in 27 of 120 files (23%), with higher findings rates at non-annually inspected firms and recurring issues in risk assessment, audit evidence, accounting estimates and use of technology, as well as constraints in cross-border inspections involving China. Twenty firms were subject to enforcement actions, with CPAB signalling potential easing or escalation of certain interventions in 2026.