Disclosures
CPAB has now finalized all approvals required to implement the last phase of its multi-year project to enhance the information that we disclose.
Changes made over the past several years include:
- Individual public inspection reports, including firm name and inspection results for the most recent inspection year
- To take effect with 2025 inspections; the first firm-specific inspection reports are expected to be published in the first quarter of 2026
- Note that under amended Rule 413, a participating audit firm may not publish or extract portions of any of CPAB’s inspection reports without CPAB’s consent
- Mandatory disclosure of reporting issuer-specific inspection results to their audit committee. (Most firms registered with CPAB already voluntarily participated in this disclosure.)
- Disclosing significant enforcement actions imposed on a firm
- Disclosing recommendations which were included in a firm report but not addressed by the firm
- Implementing changes required to improve operational efficiency and administrative processes
The intent of these changes is to provide greater transparency for the investing public, audit committee chairs and other stakeholders, and support CPAB’s oversight of public accounting firms that audit Canadian reporting issuers.
Background
In 2021, CPAB consulted stakeholders regarding the information that we disclose about the results of our regulatory assessments. CPAB took this feedback into account, and in 2022 published intended changes, including near-term changes and changes that would be implemented in a second phase.
Near-term changes that did not require amendments to CPAB’s Rules or legislation were implemented beginning in January 2023. As a result of these changes, CPAB now discloses:
- Significant enforcement actions imposed on a firm.
- Recommendations which were included in a firm report but not addressed by the firm.
Changes requiring amendments to CPAB’s Rules and legislation
Below is an overview of recent amendments to CPAB’s Rules and legislation.
- CPAB now has the ability to publish individual firm inspection reports for each participating audit firm inspected in a given year.
- Inspection reports are expected to be published beginning in the first quarter of 2026.
- An example inspection report can be accessed here using Firm X as an example. In the public reports, firm names will be included.
- In exceptional circumstances, an individual firm inspection report may not be published or CPAB may publish a redacted version if publishing a report would directly identify a reporting issuer.
- CPAB’s Protocol became mandatory as of March 2025. Audit firms are required to disclose reporting issuer-specific inspection results to the reporting issuer’s audit committee.
- Changes to improve operational effectiveness and administrative practices came into effect as of November 2024.
Looking ahead
These changes were made in the interest of improving transparency for the investing public, audit committee chairs and other stakeholders. CPAB will engage with stakeholders to seek feedback on the effectiveness of the disclosure changes and how the process associated with the publication of the results of our regulatory assessments are functioning.
Additional information
For more information on the consultation process for these changes, please refer to the documents linked below.
2023 Rule change consultation documents
- Request for comment on CPAB proposed rule changes – September 2023
- CPAB proposed rule changes summary – September 2023
- CPAB proposed rule changes blackline – September 2023
- CPAB proposed Participation Agreement changes blackline – September 2023
2023 Rule change consultation written responses
Disclosures consultation updates
- Update: Approval of rule and legislative amendments for disclosure-related changes – March 2025
- Update: Approval of rule changes to improve operational effectiveness and administrative practices – November 2024
- Update on CPAB's proposed rule changes – March 2024
- CPAB Disclosures project update – June 2023
- CPAB's disclosure recommendations – September 2022
- CPAB 2021 Disclosures Public Consultation - Update on feedback received and next steps