The Spotlight publication discusses the following topics:

• Client acceptance or continuance.
• Audit planning.
• Identification and assessment of risks of material misstatement.
• The use of due professional care in performing an audit.
• Evaluation of the results of an audit.

Re­view the report on PCAOB’s website.

Third-party arrangements can support efficiency, innovation, and service. FRFIs are increasingly relying on third parties in ways that can impact operations and financial resilience.

OSFI expects FRFIs to manage these risks by adhering to this updated Guideline, which emphasizes governance and risk management programs and includes six new, clear expected outcomes associated with effective third-party risk management.

Re­view the news release and the guideline on OSFI's website.

Under the I-CRT framework, OSFI provides guidance and oversight throughout the assessment, while FRFIs manage overall testing. Consistent with OSFI’s Guideline B-13 – Technology and Cyber Risk Management, OSFI expects FRFIs to have measures in place that create resilience against cyber attacks and disruptions. The I-CRT framework is a supervisory tool that supplements Guideline B-13 with I-CRT assessments that allow FRFIs to proactively identify and address issues with their cyber resilience.

The I-CRT framework currently applies to Canada’s systemically important banks (SIBs) and internationally active insurance groups (IAIGs). OSFI recommends that these institutions conduct an I-CRT assessment at least once during each three-year supervisory cycle, beginning in 2023.

Re­view  the press re­lease and the Framework  on OSFI's Web site.

To access the 60-minute webinar recording on IESBA's web­site click here.

The publication discusses selected areas of focus for the PCAOB’s inspections of audits of SPACs and de-SPAC transactions, including:

• Valuation of financial instruments by using complex valuation models;
• Quarterly mark-to-market valuation adjustments;
• Identification of the accounting acquirer in a business combination;
• Internal control over financial reporting;
• Financial presentation and disclosures; and
• Potential restatements.

Re­view the Spotlight report on PCAOB’s website.

Data availability and accessibility have improved dramatically, modeling techniques have taken a large step forward, and models are being applied to an increasing number of businesses across regulated financial institutions in Canada. Capabilities and usage have evolved faster than regulation.

OSFI partnered with GRI to create a community of Artificial Intelligence (AI) thought-leaders from academia, regulators, banks, insurers, pension plans, fintechs, and research centres. This group, called the Financial Industry Forum on Artificial Intelligence (FIFAI), advanced the conversation around appropriate safeguards and risk management in the use of Artificial Intelligence (AI) at Financial Institutions.

Ideas discussed to support safe AI development are grouped into Explainability, Data, Governance, and Ethics - the “EDGE” principles.

Re­view the press re­lease on and the detailed report on OSFI’s website.

The publication discusses selected areas of focus for the PCAOB’s 2023 inspections program, including:

• Fraud risks.
• Auditing and accounting risks.
• Risk assessment and internal controls.
• Considerations related to financial services.
• Broker-dealer-specific considerations.
• Mergers and acquisitions, including de-SPAC transactions.
• Digital assets.
• Use of the work of other auditors.
• Quality control.
• Other areas of inspection.

Re­view the Spotlight report on PCAOB’s website.

The revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology. Developed to remain relevant and applicable in the ever-evolving landscape of technology transformation, the revisions apply to the use of any technology, including to the extent possible, future technologies.

The revisions to the IIS will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024. The other revisions to the ethics provisions of the Code will be effective as of December 15, 2024. Early adoption is permitted.

Re­view the press release  on IESBA's website.

The Agenda items in­cluded:

• IESBA Strategy and Work Plan 2024-2027;
• Sustainability;
• Use of Experts;
• Public Interest Entity (PIE) rollout update;
• Abu Dhabi Accountability Authority (ADAA) - IESBA panel session;
• Emerging Issues and Outreach Committee (EIOC);
• IESBA/IAASB Coordination; and
• IESBA communications

The next IESBA meeting is scheduled for June 12-16, 2023, and will be held in New York, USA.

Re­view the high­lights sum­mary on the IESBA's web­site.

Inspection results for all categories of firms showed mixed results. Some firms demonstrated strong improvements while others received significant inspection findings at a rate higher than CPAB’s target of 10 per cent. Consistent with the inspection insights published last fall, CPAB continues to observe that firms with strong systems of quality management are more likely to have fewer files with significant inspection findings.

In 2022, CPAB published recommendations on intended changes to the information it will disclose about the results of its oversight of participating firms that audit Canadian reporting issuers. These changes will be introduced in a phased approach. In the first phase, which was effective January 2023, CPAB started to disclose all significant enforcement actions arising from regulatory assessments.

Re­view the 2022 Annual Report on CPAB's website.