The Canadian Public Accountability Board has continued, with modifications, restrictions and audit quality requirements imposed on Kingston Ross Pasnak LLP after its 2025 inspection identified one significant finding across two reporting issuer audit files. Although the results improved from previous inspections, the regulator determined that the firm had not yet demonstrated the sustained improvement needed to substantially ease enforcement measures. The finding involved violations of Canadian Auditing Standards on risk assessment and audit evidence. Kingston Ross Pasnak remains barred from accepting new medium and high risk reporting issuers, while a designated partner remains prohibited from leading new reporting issuer engagements. The firm must retain an external engagement quality reviewer for all reporting issuer audits, arrange external training, complete a root cause analysis and implement an audit quality action plan, with quarterly regulatory meetings continuing. The board terminated separate requirements covering a portfolio assessment and testing of selected controls after the firm completed them to its satisfaction.
2026-07-03Canadian Public Accountability Board
Canadian Public Accountability Board continues restrictions on Kingston Ross Pasnak after significant audit finding
The Canadian Public Accountability Board has continued restrictions and audit quality requirements for Kingston Ross Pasnak after finding a significant deficiency in one of two reporting issuer audits inspected in 2025. The firm remains restricted from taking on new medium and high risk reporting issuers and must maintain external review, training and remediation measures until it demonstrates sustained improvement.