CPAB releases 2018 fall inspections results

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Oct 03, 2018

On October 3, 2018, the Canadian Public Accountability Board (CPAB) released its "Audit Quality Insights Report: 2018 Fall Inspections Results".

To date, CPAB has inspected 77 out of 80 planned (2017:86) audit engagement files across Deloitte LLP, Ernst & Young LLP, KPMG LLP, and PwC LLP and identified significant inspection findings (deficiencies in the application of generally accepted auditing standards that could result in a restatement of the company’s financials) in 14 (2017:6) of those files.

Remediation work has either been completed or is in process; no restatements have been required to date. Where a restatement is required, the firm works with the reporting issuer and its securities legal counsel to effect the restatement as soon as possible – usually within the next quarterly reporting period.

Two of the firms continued to demonstrate an acceptable level of audit quality – their inspections results were generally comparable to 2017. The other two firms experienced an increase in findings. One firm with increased findings must fully review our inspections findings to determine if the current year results are an anomaly or an early indication of a shift in audit quality and amend its action plan as needed. The other firm with increased findings must provide a detailed action plan to CPAB, including targeted communications of quality expectations to the partnership at large and a root cause analysis, to address these unacceptable results.

Review the report on CPAB's website.

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