The Canadian Public Accountability Board (CPAB) published its 2024 annual report, reporting a lower overall rate of significant inspection findings and setting out the next phase of its transparency and oversight strategy. Across 131 audit files inspected in 2024, CPAB identified significant findings in 31 files, a 24% findings rate versus 34% in 2023, alongside continued focus on firms’ systems of quality management and regulatory intervention. Inspection outcomes varied by firm cohort: the four largest firms recorded a 12% significant findings rate (eight of 65 files), with one large firm at 30%, while other annually inspected firms improved to 17% (six of 36 files) and non-annually inspected firms remained high at 57% (17 of 30 files). CPAB recorded seven financial statement restatements since its prior annual report attributable to significant findings identified in current or prior inspections, and noted increased significant findings in financial services (42% of files inspected in that industry). The report also describes enforcement activity, including 18 firms subject to enforcement actions in 2024 and seven active investigations as of December 31, 2024, and notes amendments to CPAB’s Rules in November 2024 to allow requests for interim enforcement actions in exceptional circumstances. On disclosures, CPAB confirmed it has secured the required approvals to implement second-phase transparency changes, including mandatory disclosure of reporting issuer-specific significant inspection findings to the issuer’s audit committee and publication of an individual public inspection report for each audit firm inspected, with the amended disclosure rules applying to inspections that began after March 24, 2025. CPAB expects the first inspection reports to be published in Q1 2026 and plans to periodically review and consult on the effectiveness of the disclosure changes, while decisions on escalation, modification or termination of certain enforcement actions are to be made in 2025.
Canadian Public Accountability Board 2025-04-01
Canadian Public Accountability Board reports improved 2024 inspection results and implements expanded audit committee and public disclosure rules
The Canadian Public Accountability Board (CPAB) released its 2024 report, noting a decrease in significant inspection findings to 24% from 34% in 2023, focusing on quality management and regulatory intervention. Largest firms had a 12% findings rate, while non-annually inspected firms remained high at 57%. CPAB announced amendments to its Rules for interim enforcement actions and secured approvals for enhanced transparency measures, including mandatory disclosure of significant findings to audit committees and public inspection reports, effective for inspections after March 24, 2025.