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Oct 03, 2019
Toronto – The Canadian Securities Administrators (CSA) today 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.
"High quality audits are essential to the confidence in our capital markets," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “The new rules we are proposing will assist CPAB in inspecting audit work, which will lead to improvements in audit quality.”
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.
The Notice and its Companion Policy, which provides guidance on the interpretation and application of the proposed amendments, can be found on the CSA members' websites. The comment period will close on January 2, 2020.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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Kristen Rose Ontario Securities Commission 416-593-2336 email@example.com
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Jason Booth The Manitoba Securities Commission 204-945-1660
Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160
David Harrison Nova Scotia Securities Commission 902-424-8586
Renée Dyer Office of the Superintendent of Securities Newfoundland and Labrador 709-729-4909
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Hilary McMeekin Alberta Securities Commission 403-592-8186
Jean-Maurice Bouchard Autorité des Marchés Financiers 514 395 0337 x2347
Sara Wilson Financial and Consumer Services Commission, New Brunswick 506-643-7045
Steven Dowling Government of Prince Edward Island Superintendent of Securities 902-368-4550
Jeff Mason Nunavut Securities Office 867-975-6591
Tom Hall Office of the Superintendent of Securities, Northwest Territories 867-767-9305