CPAB audit quality insights report: 2020 Annual audit quality assessments

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Mar 30, 2021

On March 30, 2021, the Canadian Public Accountability Board’s (CPAB) released its Audit Quality Insights Report that features common findings and highlights several audit quality matters that impact audit committees, regulators and investors.

CPAB's 2020 findings show mixed inspection results. While the overall level of significant findings has decreased slightly, they encountered significant inconsistency in the quality of audits performed between different firms.

Four annually inspected firms met the target of no more than 10 per cent of files inspected with significant findings. Seven other firms had unacceptably high finding levels. Targeted escalation and enforcement measures are being undertaken to address specific instances of breaches of auditing standards or the professional code of conduct. Two restatements have been required to date.

The global economic and workforce disruption gave rise to critical accounting and auditing issues and challenged auditors to adjust to performing audits and overseeing that work remotely. As audits are performed remotely and business challenges persist, continued application of due care must not be compromised.

CPAB encourages public accounting firms to provide this report to their reporting issuers’ audit committees. Audit committees should discuss this report, any file-specific findings and any remediation action taken, if applicable, with their external auditor.

Review the report on the CPAB's website.

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