Based on a comprehensive consultation process and a review of approaches in other jurisdictions, the changes outlined in the document are driven by a desire to provide more information and align with disclosure approaches in similar jurisdictions while respecting Canada’s unique regulatory environment.

Given continued high levels of inspection findings, and changes in audit and regulatory practices and stakeholder expectations, it is appropriate to evolve our current disclosures approach. This evolution is consistent with CPAB’s role as Canada’s public company audit firm regulator charged with protecting the investing public’s interests.

CPAB's recommendations include both near-term changes to be implemented in 2023 and longer-term modifications which require changes to legislation or to our rules. These longer-term changes are expected to take a minimum of two to three years because changes to CPAB’s Rules and its governing legislation require the involvement of provincial governments and securities regulators.

In the near-term, beginning in 2023, CPAB, where possible, will disclose:

• Significant enforcement actions imposed on a firm following an inspection
• Recommendations which were included in a firm report but not addressed by the firm

Over the longer term, CPAB will work to secure rule or legislative changes which will allow the following:

• Mandatory disclosure of issuer-specific significant inspection findings to that issuer’s audit committee
• Individual public inspection reports for each audit firm

Review the recommendations on the CPAB's website.