CPAB Quality Insights Report: 2018 Inspections Results

  • CPAB - Assurance Image

Mar 29, 2019

On March 29, 2019, the Cana­dian Pub­lic Ac­count­abil­ity Board (CPAB) re­leased its Quality Insights Report: 2018 Inspections Results, which dis­cusses CPAB's find­ings for par­tic­i­pat­ing firms in­spected in 2018.

During 2018 CPAB inspected 32 firms (2017: 45) and 139 engagement files (2017: 154).

Overall, CPAB found that the trend in audit quality results has improved for most firms over the past 15 years; however, their current inspections show that sustainable, consistent audit quality remains a challenge in Canada. CPAB believes that: (i) all participating audit firms must enhance their commitment to continuous improvement at every level of their organization and embed a culture of quality to deliver audits that are of consistently high quality; and (ii) that quality management systems will be critical to this improvement.

2018 marked the first year of CPAB’s enhanced assessment of the quality management systems at the country’s four largest public accounting firms and they found that all of the firms require improvement.

CPAB’s 2017 in­spec­tions of the 14 pub­lic ac­count­ing firms re­viewed an­nu­ally (those with 100 or more re­port­ing is­suers) in­di­cate that, de­spite an over­all de­crease in sig­nif­i­cant in­spec­tion find­ings com­pared to last year, au­dit qual­ity con­tin­ues to be in­con­sis­tent.

In summary, the number of files with significant findings increased, files with other findings decreased and files with no findings remained similar to last year. 

  • Big Four firms: 80 engagement files; 16 with significant findings.
  • Four national/network firms: 23 engagement files; 10 with significant findings.
  • Six large regional firms: 19 engagement files; 8 with significant findings.

For further details, re­view the re­port on the CPAB's web­site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.