Alberta Securities Commission publishes roundtable update on AI fraud and disclosure risks affecting audit quality

The Alberta Securities Commission published an update on a roundtable co-hosted by the Office of the Superintendent of Financial Institutions, the Canadian Public Accountability Board and the Canadian Securities Administrators on risks affecting audit quality in Canada. The discussion brought together senior representatives from audit firms, accounting professional bodies, standard setters and regulators, and centred on how high quality financial statement audits support trusted capital markets in a more complex and dynamic risk environment. Key issues included rapid technological change including artificial intelligence, governance culture and ethics in audit firms and the wider reporting ecosystem, more sophisticated fraud risks, and challenges in auditing disclosures involving estimates, judgment and uncertainty. The recap also highlights the role of external auditors in maintaining confidence in financial reporting, the value of regulatory coordination and clearer guidance to reduce overlap, and the need for strong oversight, accountability and professional skepticism as firms adopt new technology and strengthen fraud prevention and detection.