CPA Ontario Addressing Audit Quality Concerns
TORONTO, ON, Sept. 28, 2022 – CPA Ontario, the regulatory body responsible for the licensing and oversight of Chartered Professional Accountants and accounting firms in Ontario, today provided an update on its ongoing activities to address audit quality concerns in light of actions taken by regulators in Canada and other markets, including the U.S. and the U.K.
CPA Ontario has the legislative mandate to protect the public interest and the responsibility to uphold the high standards of the CPA profession in the province. In response to a high number of significant deficiencies identified through inspections in 2021, as previously reported in its annual Practice Inspection Report, CPA Ontario has undertaken enhanced regulatory measures, including a review of public accounting firms. This also follows the recommendation that national firms undertake a thorough assessment of their quality management systems and develop action plans, where appropriate.
This review encompasses public accounting firms in Ontario that conduct audits of reporting issuers to ensure quality management, policies, procedures and cultural practices comply with the CPA Code of Professional Conduct, Public Accounting Act, 2004, the Chartered Professional Accountants of Ontario Act, 2017 and Quality Management Standards. Firms involved in this review were notified earlier this month.
“Audit plays a vital role in maintaining the integrity and functioning of our capital markets,” said Carol Wilding, FCPA, FCA, president and CEO of CPA Ontario. “Canadians deserve confidence in the quality of financial audits and that confidence comes from the knowledge that firms have the ethical culture and robust processes in place to meet the high standards expected of them.”
In addition, CPA Ontario will review individual Public Accounting Licence holders who audit reporting issuers to ensure their continuing professional development (CPD) meets the requirements of the Code of Professional Conduct, CPA Ontario regulations and international technical competence and ethics standards. It will also enhance its oversight of CPD reporting by CPAs who apply for a new Public Accounting Licence.
Annually, CPA Ontario releases a Regulatory Report which details its activities as a regulator and how it assists members, students and firms to understand their obligations. CPA Ontario will continue to monitor the audit environment, take necessary actions and coordinate with other regulators to share findings and best practices.
About the Chartered Professional Accountants of Ontario
We protect the public. We advance our profession. We guide our CPAs. We ensure that our more than 99,000 members and 21,000 students meet the highest standards of integrity and expertise. We help them stay ahead of global market trends and abreast of regulatory change. CPAs represent a globally recognized, premium designation. Our Chartered Professional Accountants are valued by organizations in all industries for their financial expertise, strategic thinking, management skills and leadership. We believe that success happens when both business and society benefit.
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