Overview

In 2021 CPAB conducted a public consultation to gather stakeholder input and invite a dialogue to inform CPAB’s evolution of its approach to disclosing the results of oversight of participating audit firms that audit Canadian reporting issues. The majority of stakeholders said CPAB should significantly increase or make targeted improvements to how CPAB discloses its regulatory assessments. Specifically, audit committee members expressed that additional information on the results of CPAB’s oversight would be beneficial in supporting their oversight of auditors. Investors and other commentators outlined that increased disclosures would increase public accountability and pressure on firms to improve audit quality.

A detailed summary of the feedback received from that consultation can be found here.

In September 2022 CPAB published disclosure recommendations stemming from the 2021 consultation. CPAB outlined, for each recommendation, the anticipated impact on:

• Improvement in audit quality.
• Timeliness of CPAB reporting and remediation of audit deficiencies.
• Public accountability.
• Cost vs. benefit.

Disclosure changes is taking place in two phases. The first phase of CPAB’s recommendations were implemented in 2023. The second phase will be implemented following this public consultation process.

Comments received in this consultation will be considered together with feedback received in the 2021 consultation. This document provides background on the proposed rule changes and includes specific areas where CPAB would like input.

Comments are requested by November 24, 2023. Earlier responses are appreciated.