News
For Immediate Release      
October 3, 2019

 

Canadian securities regulators propose changes to auditor oversight rules

 

Toronto – The Canadian Securities Administrators (CSA) today published for comment proposed amendments to National Instrument 52-108 Auditor Oversight (The Notice) [Link] 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.

  

For Investor inquiries, please refer to your respective securities regulator. You can contact them here.

For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca

- 30 -

For more information:

Kristen Rose  
Ontario Securities Commission
416-593-2336 

Brian Kladko
British Columbia Securities Commission
604-899-6713

Hilary McMeekin       
Alberta Securities Commission
403-592-8186

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660

Sara Wilson
Financial and Consumer Services
Commission, New Brunswick
506-643-7045

David C. Harrison       
Nova Scotia Securities Commission
902-424-8586

Steve Dowling
Government of Prince Edward Island,  
Superintendent of Securities  
902-368-4550 

Renée Dyer
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-5661 

Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591 

Tom Hall
Office of the Superintendent of Securities
Northwest Territories
867-767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160