CAQ and Deloitte Issue Report on Audit Committee Practices

Jan 13, 2023

On January 13, 2023, in collaboration with Deloitte’s Center for Board Effectiveness, the Center for Audit Quality (CAQ) issued "Audit Committee Practices Report: Priorities and Committee Composition". The report is intended to provide insight into shifting priorities as well as trends and practices related to audit committee composition.

Review the press release and report on the CAQ’s website.

IAASB digital technology market scan: Robotic process automation

Jan 12, 2023

On January 12, 2023, the International Auditing and Assurance Standards Board (IAASB) released their publication "Market Scan", where they explore Robotic Process Automation, a technology used for executing repetitive tasks that has applications across the audit process, from data transformation to workpaper creation, as well as potential for forming part of an audited entity’s IT environment.

This publication covers:

  • What is Robotic Process Automation and why is it important?
  • The latest developments
  • What this might mean for the IAASB

Review the publication on the IAASB's website.

IAASB re-appoints Deloitte Canada partner as member

Jan 09, 2023

On January 9, 2023, the International Auditing and Assurance Standards Board (IAASB) announced the re-appointment of Julie Corden for a term that begins on January 1, 2023.

Ms. Corden is a partner with Deloitte Canada who is responsible for leading audit methodology, policies and guidance, including the firm's ISQM 1 implementation.

Review the press release on the IAASB's website.

CPAB planned changes to disclosure and 2022 outreach overview

Dec 21, 2022

On December 21, 2022, the Canadian Public Accountability Board (CPAB) released its planned changes to disclosure and 2022 outreach overview.

Expanding the information CPAB discloses

In September, CPAB outlined planned changes to how we will disclose information about the results of our regulatory assessments.

Beginning in 2023, CPAB will publish information on recent enforcement and other regulatory actions imposed on audit firms.

2022 outreach overview

Here's a summary of CPAB's 2022 publications:

CPAB Exchange

Publications in the CPAB Exchange series highlight important issues and share practical insights with a view to prompting productive dialogue with audit firms and audit committees.

In 2022, they published the following:

  • Going concern thematic review focuses on ways for auditors to more proactively assess going concern and underscores the importance of identifying early warning indicators and consistently applying professional skepticism.
  • Fraud thematic review, also published in May, outlines steps that auditors could take to enhance the quality of their fraud risk identification and assessments, and identifies opportunities to enhance existing standards.
  • Auditing in the crypto-asset sector report provides important insights and recommendations for those auditing the existence of crypto-assets held in custody by third parties.

Inspections reports

Twice annually, CPAB publishes the results of our inspections work. The full-year report on inspections conducted in 2021 was published in March. The interim report, published in October, provided a snapshot of themes and insights from our audit quality assessment work in the first portion of 2022.

Strengthening audit quality

In 2022, they published two additional papers intended to strengthen audit quality:

PCAOB Issues Proposed New Standard on the Auditor’s Use of Confirmations

Dec 20, 2022

On December 20, 2022, the Public Company Accounting Oversight Board (PCAOB) issued for public comment a proposed new standard regarding the requirements for the auditor’s use of confirmations. Public comments on the proposal are requested by February 20, 2023.

The PCAOB is proposing to replace AS 2310, The Confirmation Process, in its entirety with a new standard, AS 2310, The Auditor’s Use of Confirmation. The purpose is to strengthen and modernize the requirements for the confirmation process. In doing so, the Board noted that AS 2310 is an important standard for audit quality and investor protection, as the audit confirmation process touches nearly every audit. However, the standard was initially written over 30 years ago and has had minimal amendments since its adoption by the PCAOB in 2003.

Re­view the press re­lease and proposed new standard on the PCAOB's web­site.

IAASB fact sheet helps auditors navigate quality management for group audits

Dec 15, 2022

On December 15, 2022, the International Auditing and Assurance Standards Board (IAASB) published a new fact sheet on the interactions between International Standard on Audit (ISA) 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits.

The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level. This includes the revised definition of engagement team and leadership and direction, supervision, and review responsibilities.

Review the press release and fact sheet on the IAASB's website.

PCAOB Chair challenges firms to uphold the highest standards in audit quality

Dec 12, 2022

On December 12, 2022, the Public Company Accounting Oversight Board (PCAOB) released a speech by Chair Erica Y. Williams delivered at the AICPA & CIMA Conference on current SEC and PCAOB Developments.

In keynote remarks at annual AICPA conference, Chair Williams tells firms: “Resist complacency, sharpen your focus and meet your responsibility to verify the honesty our system depends on with a vigilance that is worthy of [investors’] trust.”

Review the full speech on the PCAOB's website.

PCAOB Issues Staff Report on Audit Firm Inspections

Dec 08, 2022

On December 8, 2022, the Public Company Accounting Oversight Board (PCAOB) staff has issued a report that details the results of its audit firm inspections conducted in 2021.

Topics covered in the report include:

  1. recurrences in audit deficiencies and higher deficiency rates observed in 2021;
  2. observations on quality control systems; and
  3. good practices related to internal control over financial reporting, accounting estimates related to business combinations, critical audit matters, auditor independence, supervision of audits, and engagement quality review.

Review the press release and report on the PCAOB’s website.


PCAOB Issues Interim Analysis Report on Critical Audit Matters

Dec 07, 2022

On December 7, 2022, the Public Company Accounting Oversight Board (PCAOB) published a second report on the initial impact of its critical audit matter (CAM) requirements (the first report was released in October 2020).

Key findings of the follow-up report include:

  • “The average number of CAMs per audit report has declined over time, and the proportion of audit reports that communicate a single CAM has increased.”
  • “Investor awareness and use of CAMs continues to develop.”
  • “The staff has not found evidence of significant unintended consequences from auditors’ implementation of the CAM requirements.”

To accompany the report, the PCAOB also released the following two staff white papers that provide “technical detail and additional information related to the methodologies by which the PCAOB gained information to support the findings in the interim analysis reports”:

Review the report and postimplementation review page on the PCAOB’s website.

FAQs – Extended External Reporting (EER)

Nov 30, 2022

The Auditing and Assurance Standards Board (AASB) issued FAQs regarding assurance in respect of sustainability and environmental, social and governance.

Review the FAQ on the AASB's website.

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