CSA shines spotlight on audits by foreign firms

Canadian Securities Administrators (CSA) has published for comment CSA Consultation Paper 52-403 Auditor Oversight Issues in Foreign Jurisdictions, which seeks input on whether oversight requirements should be introduced for audits by foreign firms.

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“Auditors are important gatekeepers in our market, and we are seeking input on our current oversight requirements to ensure there continues to be public confidence in the integrity of financial reporting,” says Louis Morisset, CSA chair and president, in a release.

The consultation paper discusses challenges faced by the Canadian Public Accountability Board (CPAB) in accessing audit work performed in some foreign jurisdictions. The consultation paper describes a CPAB request for CSA to amend National Instrument 52-108 Auditor Oversight to require certain audit firms involved in the audit of a reporting issuer’s financial statements to register as a participating audit firm. The requested amendment would assist CPAB in accessing audit working papers in most foreign jurisdictions.

CSA staff is also considering potential disclosure enhancements to provide stakeholders with information about situations where CPAB has been prevented from inspecting audit work.

Comments should be submitted in writing by June 24, 2017. CSA will consider the feedback it receives and any requirements, if introduced, would be published in accordance with the regular rule-making process.

Read the consultation paper.

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