CPAB inspects audit firms that audit Canadian reporting issuers. In situations where Canadian reporting issuers have operations outside of Canada, it is necessary to access audit files from the foreign jurisdiction.
In 2022, the Canadian Securities Administrators (CSA) amended National Instrument 52-108 to improve CPAB's access to audit working papers in foreign jurisdictions. Investors should be concerned when foreign laws and regulations impede or reduce the level of auditor oversight that they have come to expect in Canada. While most audit firms cooperate where we need access to working papers outside of Canada, certain countries, including China, continue to prevent CPAB from inspecting the audit work of Canadian public companies conducted in their jurisdictions. Discussions are ongoing to obtain access in China.