The Canadian Public Accountability Board (CPAB) has publicly censured RSM Canada LLP and imposed remediation, training and monetary requirements after finding that the firm violated auditing and quality control standards governing audit workpaper signoffs. CPAB identified 54 instances of signoff backdating across 20 reporting issuer audit files and one affiliate file, including 21 instances after the audit report date. The settlement does not include an admission or denial by RSM Canada. From at least 2017 until September 2023, RSM Canada’s workpaper system allowed personnel to replace automatically generated signoff dates with earlier dates, obscuring when audit work or reviews occurred. The firm did not monitor the practice until late 2022, and CPAB found its subsequent review too narrow and its follow-up inadequate. RSM Canada removed the manual date override functionality in September 2023 and enhanced procedures for retaining signoff and access histories. The order requires RSM Canada to review and strengthen its policies and monitoring procedures within 120 days and provide four additional hours of training to all professionals involved in Canadian reporting issuer audits. The firm must certify compliance within 150 days, pay an unspecified assessment covering CPAB’s anticipated monitoring costs and has paid the investigation costs.
Canadian Public Accountability Board censures RSM Canada and orders remediation over 54 workpaper signoff backdating instances
The Canadian Public Accountability Board censured RSM Canada after identifying 54 instances of audit workpaper signoff backdating, including 21 after audit report dates. RSM Canada must strengthen its policies and monitoring, provide four hours of additional training to professionals involved in Canadian reporting issuer audits and pay monitoring and investigation costs.