The Canadian Public Accountability Board (CPAB) published a CPAB Exchange paper on the evolving use of technology in audits, outlining how Canadian audit firms are embedding advanced technologies and beginning to use agentic artificial intelligence, and identifying additional risks firms need to address to support audit quality. Drawing on CPAB’s 2025 inspections, the paper notes instances where auditors relied on automated tools and techniques as the primary source of audit evidence for a class of transactions, sometimes with limited validation of the completeness and accuracy of data inputs. In one case, substantive testing was generally limited to transactions flagged as higher risk or outliers, raising concerns about the transparency of the tool’s risk classifications and whether auditors sufficiently challenged its outputs. The publication links firm and network-level responses to the Canadian Standard on Quality Management 1, including governance and approval processes for tools, monitoring and oversight, training, methodology updates, and escalation or whistleblowing procedures, and reinforces engagement-level responsibilities under Canadian Auditing Standard 220 and documentation expectations under Canadian Auditing Standard 230, with a focus on professional skepticism, visibility over technology-driven decisions, and transparency with audit committees and regulators. CPAB also referenced its role leading the International Forum of Independent Audit Regulators’ Technology Task Force and pointed readers to IFIAR’s 2025 publication on technology in audits. Looking ahead, CPAB indicated it will continue monitoring the application of advanced technologies through its inspections and share observations through annual and interim inspection reports, alongside support for the International Audit and Assurance Standards Board’s technology initiative.

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