The Canadian Public Accountability Board (CPAB) has released its 2025 Annual Report, setting out inspection and enforcement outcomes for audit firms of Canadian reporting issuers and confirming completion of its disclosures project, which has moved CPAB to publishing firm-specific public inspection reports. In 2025 CPAB inspected 120 audit files and identified significant inspection findings in 27 files (23%), with the rate rising to 16% at the four largest firms (10 of 62 files), falling to 13% at other annually inspected firms (four of 31), and remaining high at non-annually inspected firms at 48% (13 of 27). Under the new disclosure regime, individual public inspection reports apply to inspections commenced after the March 24, 2025 CPAB Rule change and the first firm-specific public inspection reports were published in March 2026; firms must also disclose issuer-specific significant findings to the reporting issuer’s audit committee (effective March 2025) and CPAB continues to disclose significant enforcement actions (effective January 2023). Enforcement actions applied to 20 firms in 2025 and four financial statement restatements were made since the prior annual report due to significant findings; the report also notes one instance where access to component auditor working papers in China was denied. The report flags decisions in 2026 on whether to ease or escalate regulatory intervention and to modify or terminate certain existing enforcement actions, and notes a leadership transition with CEO Carol Paradine retiring and Sonny Randhawa succeeding her in March 2026.
Canadian Public Accountability Board 2026-03-31
Canadian Public Accountability Board begins firm-specific public inspection reporting and reports 23% significant findings rate
The Canadian Public Accountability Board’s 2025 Annual Report confirms completion of its disclosures project and the shift to firm-specific public inspection reports for audits of Canadian reporting issuers. CPAB reported significant inspection findings in 23% of 120 files reviewed, continued issuer- and enforcement-related disclosures, and noted 20 enforcement actions, four financial statement restatements and one denial of access to component auditor working papers in China. The report also highlights 2026 decisions on regulatory interventions and a leadership transition from CEO Carol Paradine to Sonny Randhawa in March 2026.