The Canadian Public Accountability Board (CPAB) published an overview of how its risk-based inspections approach identifies reporting issuers with significant operations in foreign jurisdictions and the steps it uses to obtain access to component auditor working papers outside Canada when needed to evaluate audit quality. CPAB defines “significant operations” as subsidiaries or components with assets or revenues representing 20 per cent or more of a reporting issuer’s consolidated assets or revenues. It notes that its inspection work starts with engagement files accessible in Canada, and if access to foreign component auditor working papers is required it notifies the relevant Canadian participating audit firm, with access often provided voluntarily by the component audit firm. Where a memorandum of understanding (MOU) or equivalent arrangement exists with a foreign audit regulator, CPAB follows the agreed process, and where neither voluntary access nor an arrangement is available it can request access through the process in National Instrument 52-108. CPAB reports MOUs or equivalent arrangements with audit regulators in 32 countries, including direct arrangements with 11 jurisdictions, and information sharing with 21 additional International Forum of Independent Audit Regulators members via the IFIAR Multilateral Memorandum of Understanding. It lists signed MOUs with the United States, United Kingdom, Australia, France, Germany, Ireland, Japan, the Netherlands, Switzerland, Austria and Spain, and ongoing negotiations with Greece, Poland and Italy, and notes past denials of access in Bermuda, China, Mexico and Tunisia; it also reports aggregate market capitalisation at 31 December 2025 of USD 1,386.1B for reporting issuers with significant operations in the United States, United Kingdom and Australia and USD 680.1B for those in all other foreign jurisdictions (71 jurisdictions).
Canadian Public Accountability Board 2026-03-01
Canadian Public Accountability Board sets out how it seeks access to foreign component auditor working papers in inspections
The Canadian Public Accountability Board outlined its risk-based inspections approach for reporting issuers with “significant operations” in foreign jurisdictions and its processes for obtaining access to foreign component auditor working papers to assess audit quality. It detailed the use of voluntary access, memoranda of understanding with audit regulators in 32 countries, and National Instrument 52-108 where needed, noting existing and negotiated MOUs as well as past access denials in certain jurisdictions.