The Canadian Public Accountability Board published its 2024 annual report, setting out inspection results from its regulatory assessments of public company audit firms and updates on strategic initiatives. The report indicates the aggregate inspection findings rate decreased in 2024 and confirms CPAB has obtained the required rule changes and legislative approvals to implement enhanced public disclosures about its inspections. The improvement was attributed mainly to less significant findings at certain annually inspected firms, alongside CPAB’s continued observation of a strong association between audit quality and strong systems of quality management. CPAB also flagged ongoing concern with firms that continue to show high inspection results, outlined its 2025–2027 strategic plan to strengthen investor protection and improve audit consistency and quality including at smaller firms, and noted its work on standard setting and emerging issues affecting audit quality such as artificial intelligence and fraud. With approvals secured by March 2025, CPAB’s next step is to implement the expanded public disclosure of inspection outcomes and related audit firm performance for audits of Canadian reporting issuers.
Canadian Public Accountability Board 2025-04-01
Canadian Public Accountability Board reports lower 2024 inspection findings rate and secures approvals to expand public disclosure of audit assessments
The Canadian Public Accountability Board (CPAB) released its 2024 annual report, noting a decrease in inspection findings and securing rule changes for better public disclosures. Improvements are attributed to less significant findings at some firms and strong quality management systems, though concerns remain over firms with high inspection results. CPAB's 2025–2027 strategic plan aims to strengthen investor protection, audit consistency, and address emerging issues like artificial intelligence and fraud.