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CSA – Proposed changes to auditor oversight rules for audit firms re CPAB access to working papers (amendments to National Instrument 52-108) [ED]

Comment period ends on January 2, 2020

Proposed effective date:

To be determined

Last up­dated:

October 2019

Overview

On October 3, 2019, the Canadian Securities Administrators (CSA) published for comment proposed amendments to National Instrument 52-108 "Auditor Oversight" (The Notice) intended to provide the Canadian Public Accountability Board (CPAB) with improved ability to perform audit inspections. Under the proposed changes, some reporting issuers and audit firms may be required to take steps to provide CPAB with enhanced access to audit working papers, particularly in foreign jurisdictions.

Under the proposed new securities requirements, reporting issuers will be required to direct audit firms who are not subject to CPAB oversight, but complete a significant portion of audit work for a reporting issuer’s audit, to enter into an agreement with CPAB to access their files and inspect their work if such firms are not prepared to provide access to CPAB voluntarily upon request.

Known as component auditors, these audit firms complete some of the work that forms part of the evidence used to support an audit opinion. To assess whether sufficient audit evidence has been obtained to support an audit opinion, CPAB has determined it must be able to review all substantial audit work.

For further details, refer to the press release on the CSA's website and the Staff Notice on the participating jurisdictions' website. 

 

Other developments

October 2019

On October 3, 2019, the CSA published for comment proposed amendments to National Instrument 52-108 "Auditor Oversight" intended to provide the CPAB with improved ability to perform audit inspections. Under the proposed changes, some reporting issuers and audit firms may be required to take steps to provide CPAB with enhanced access to audit working papers, particularly in foreign jurisdictions.

 

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