Proposed Changes to Auditor Oversight Rules

The day-to-day operation of a public company is a massive undertaking, requiring teams of people working together to meet the goals of the organization. The company’s financial health is vital to its overall success, and the professionals at SAAPC work with public companies, from start-ups to mature organizations, to assist with this aspect of the business.

Some reporting issuers work with Component auditors, in foreign jurisdictions, and these Component auditors complete a significant portion of the audit work that forms part of the evidence used to support an audit opinion. Under the proposed new requirements, reporting issuers will be required to direct these Component audit firms, who are not subject to Canadian Public Accountability Board (CPAB) oversight, to enter into an agreement with CPAB to access their files and inspect their work. The new rules will provide CPAB access to audit working papers of audit firms in foreign jurisdictions, if such audit firms are not prepared to voluntarily provide access to CPAB.

The CSA envision the changes to improve the audit quality and assist CPAB in inspecting audit work. The notice of the proposed changes was given in October 2019 and is open for comments.

At SAAPC we support reporting issuers with outsourced part-time CFO services and assistance in preparation of quarterly and annual financial statements and MD&A so they are able to file timely. Please contact our team to learn more