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.

This update includes:

• overview of Discussion Paper respondents;
• what you told us;
• what we are doing now; and
• what assistance is available now

Review the report on the AASB's website.

Specifically, the publication discusses the Division’s observations, as well as the auditor’s responsibilities and good practices, related to four key topics: (1) fraud, (2) interim reviews of special-purpose acquisition companies (SPACs) and de-SPACs, (3) going concern, and (4) cash and cash equivalents.

Review the publication on the PCAOB's website.

The agreement grants the PCAOB complete access to the audit work papers, audit personnel, and other information its needs to inspect and investigate any firm it chooses, with no loopholes and no exceptions.

The PCAOB Is currently finalizing preparations to be on the ground by mid-September so it can put this agreement to the test.

The Statement of Protocol specifically grants the PCAOB complete access in three important ways:

• The PCAOB has sole discretion to select the firms, audit engagements and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities;
• Procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information as needed; and
• The PCAOB has direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

Re­view the press release on the PCAOB’s web­site.

Topics covered in the publication include:

• fraud and other risks;
• initial public offerings and mergers and acquisitions;
• audit execution;
• audit firms’ quality control systems;
• compliance with auditor independence requirements; and
• technology (e.g., auditing digital assets, responding to cyberthreats, and use of data and technology in the audit).

Re­view the publication on the PCAOB's web­site.

The bulletin describes things that CPAB believes auditors should be considering when auditing the financial statements of reporting issuers that use custodians to safeguard their crypto-assets.

Re­view the bulleting on the CPAB’s web­site.

The PCAOB’s updated standards make enhancements across two broad areas. First, the amended standards specify certain procedures for lead auditors to perform when supervising other auditors. Second, they require lead auditors to prioritize their supervisory activities around higher-risk areas in the audit.

Re­view the SEC’s press re­lease  on the SEC’s website and the PCAOB’s Release No. 2022-002, Planning and Supervision of Audits Involving Other Auditors and Dividing Responsibility for the Audit With Another Accounting Firm, on the PCAOB's web­site.

The Exposure Draft is similar to the one of the same name issued by the IAASB on July 6, 2022 relating to changes to the ISAs for which comments are due by October 4, 2022.

Re­view the press re­lease and Exposure Draft on the AASB's web­site.

Refer to the IAASB’s focus area web page for these and other resources.

These videos are available in English; translated transcripts are also available in Spanish and French and consist of:

• ISQM 1: Getting Ready for the New Risk-Based Approach – a discussion of the standard and the shift in mindset needed to apply the new risk-based approach.
• ISQM 1: Early Lessons Learned and Next Steps - a discussion on how to get started on implementation and tips and best practices.

Re­view the press re­lease and videos on IFAC’s web­site.