CPAB/CICA collaborate on audit quality consultation process

TORONTO, June 7, 2012 /CNW/ - Senior financial leaders are coming together to ensure Canada has a voice in discussions on international audit proposals that stem from the 2008 financial crisis.

This is being accomplished through the Enhancing Audit Quality (EAQ) initiative, a collaborative undertaking of the Canadian Public Accountability Board (CPAB) and the Canadian Institute of Chartered Accountants (CICA).

Regulators, policy makers, and standard setters in Europe, the United States and elsewhere are considering changes to improve confidence in the financial system.  A key aspect of the international discussions is audit quality.

"Canada is not immune to audit proposals developed in other jurisdictions so it is essential that Canadian stakeholders add their perspectives to the global discussions," said Brian Hunt, CEO, CPAB.  "The EAQ initiative will provide an avenue for robust discussion on various audit reform proposals being discussed internationally."

An independent steering group of leading Canadian stakeholders has been established to ensure a transparent consultation process that serves the public interest.  Audit committees, standard setters, auditors, institutional investors, banking and securities regulators, and financial statement preparers are represented on the steering group.  It will provide direction to and oversight of three committees focusing on:

• The role of the audit committee
• Auditor reporting
• Auditor independence

"By collaborating on this initiative, CPAB and the CICA are ensuring that a full spectrum of stakeholders is engaged for a broad, effective consultation effort," said Kevin Dancey, president and CEO, CICA.  "In order to provide credible Canadian input to the audit quality conversation, we need a clearer picture of stakeholder perspectives on the issues."

The EAQ Steering Group is chaired by David Brown, a leading Canadian securities lawyer and former chair of the Ontario Securities Commission.

"Perspectives gained from the consultation process should provide useful input for those who represent Canada internationally where audit quality is discussed," stressed Brown.  "These Canadian stakeholders also will be able to consider the input collected as they follow their own due process in establishing any new rules or standards."

Each working group will produce discussion papers for comment. Reports reflecting the results of the consultation process will be produced and made public with the EAQ initiative expected to be completed in 2013.

More information about the consultation process can be found online at www.cica.ca/enhancingauditquality

The Canadian Public Accountability Board (CPAB) is Canada's audit regulator, dedicated to protecting the investing public's interests. CPAB regulates the auditors of Canadian public companies through its national inspection program. CPAB's risk-based inspection process focuses on key audit risks that could have the greatest impact on audit quality. By promoting high-quality, independent auditing, CPAB contributes to public confidence in the integrity of financial reporting, which supports our capital markets.

Chartered Accountants (CAs) are Canada's most valued, internationally recognized profession of leaders in senior management, advisory, financial, tax and assurance roles. Through their integrity, expertise, and internationally recognized qualification standards, Canada's 81,000 CAs sustain their influence and leadership position both in Canada and globally.  As trusted business advisors to Canadian organizations of all sizes, Canada's CAs foster confidence in Canadian business and contribute to the health and sustainability of Canada's capital markets and economy.  The Canadian Institute of Chartered Accountants (CICA) represents Canada's CA profession both nationally and internationally.  The CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).

Image with caption: "The Canadian Public Accountability Board and the Canadian Institute of Chartered Accountants have launched the Enhancing Audit Quality initiative. Perspectives gained through consultation will provide a clearer picture of Canadian stakeholder views on international audit reform proposals. (CNW Group/Canadian Institute of Chartered Accountants)". Image available at: http://photos.newswire.ca/images/download/20120607_C2151_PHOTO_EN_14105.jpg

Media Contacts:

Tobin Lambie, Manager, Media
CICA
[phone]
[email protected]
www.cica.ca

Rachel Dao, Manager
CPAB
[phone]
[email protected]
www.cpab-ccrc.ca