CPAB Regulatory Oversight Report: 2021 Annual Inspections Results

  • CPAB - Assurance Image

Apr 05, 2022

The Canadian Public Accountability Board’s (CPAB) Regulatory Oversight Report on its 2021 annual inspections features common findings and highlights several audit quality matters that impact audit committees, regulators and investors.

CPAB's 2021 findings show mixed inspection results with inconsistent audit performance among the 11 annually inspected audit firms. Key findings at the annually inspected firms include:

  • Two of the four largest firms met the target of no more than 10 per cent of files inspected with significant findings.
  • The findings rate at the other annually inspected firms in 2021 is substantially above CPAB’s target.
  • Four firms had significant findings in more than 50 per cent of files inspected and three firms had significant findings in more than 25 per cent of files inspected.
  • Investigations at two annually inspected audit firms resulted in the imposition of requirements and/or sanctions including public censure.

Overall, their reviews point to disappointing deficiencies in the areas of professional skepticism, sufficient audit evidence and forward-looking estimates. They expect a continued high level of enforcement and other regulatory intervention in 2022.

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.