The Canadian Public Accountability Board (CPAB) published its 2025 annual report, setting out 2025 inspection and enforcement outcomes and confirming the completion of its disclosures project that expands transparency around CPAB’s regulatory assessments. The change includes the introduction of individual public inspection reports for each inspected firm, with the first firm-specific reports published in March 2026. In 2025, CPAB inspected 120 audit files and identified significant findings in 27 files, a 23% findings rate (2024: 24%). The aggregate findings rate increased at the four largest firms to 16% (10 of 62 files) while falling to 13% at other annually inspected firms (four of 31 files) and to 48% at non-annually inspected firms (13 of 27 files), where CPAB noted findings levels have remained high over the past five years. CPAB also reported four restatements since its prior annual report linked to significant findings, and 20 firms subject to enforcement actions in 2025 (2024: 18), with no firms terminated and no enforcement actions entirely removed. In cross-border work, CPAB reported being denied access to the working papers of one component auditor in China, preventing a complete review of the relevant reporting issuer’s audit. The expanded disclosure framework is effective for inspections that commenced following a CPAB Rule change on March 24, 2025, and includes mandatory disclosure of issuer-specific significant inspection findings to the reporting issuer’s audit committee (effective March 2025). CPAB also flagged that decisions will be made in 2026 on easing or escalating regulatory intervention for certain firms, and confirmed a CEO transition in March 2026, with Sonny Randhawa succeeding retiring CEO Carol Paradine.
Canadian Public Accountability Board 2026-03-31
Canadian Public Accountability Board begins publishing firm-specific inspection reports and reports a 23% significant findings rate in 2025 inspections
The Canadian Public Accountability Board’s 2025 annual report confirms completion of its disclosures project and the introduction of individual public inspection reports for each inspected firm, with first firm-specific reports in March 2026. CPAB reported a 23% significant findings rate across 120 inspected audit files, four restatements linked to significant findings, enforcement actions against 20 firms, and one denial of access to component auditor working papers in China. The expanded disclosure framework, including mandatory issuer-specific reporting to audit committees, applies to inspections starting after a March 24, 2025 rule change, and CPAB flagged 2026 decisions on regulatory interventions and a CEO transition to Sonny Randhawa.