The Office of the Superintendent of Financial Institutions, Canadian Public Accountability Board and Canadian Securities Administrators published takeaways from a roundtable with audit firms, professional bodies, standard setters and regulators on risks affecting audit quality. Participants emphasized the role of high-quality audits and regulatory coordination in maintaining confidence in financial reporting as technology, geopolitical tensions and market uncertainty reshape the risk environment. Key areas included the opportunities and risks arising from artificial intelligence, governance and ethical weaknesses within audit firms, and increasingly sophisticated fraud linked to financial crime, technology and third-party reliance. Financial statement disclosures involving estimates, judgments and uncertainty were identified as needing improvement, with auditors expected to challenge their clarity and robustness while maintaining skepticism as they adopt new technologies.
2026-05-04Canadian Securities Administrators
Office of the Superintendent of Financial Institutions, Canadian Public Accountability Board and Canadian Securities Administrators highlight emerging risks to audit quality
Canadian financial and audit regulators highlighted technology, governance, fraud and disclosure risks affecting audit quality. They called for stronger oversight, risk-focused fraud defenses and more robust scrutiny of financial statement disclosures involving estimates, judgments and uncertainty.