CSA seek more information about the quality of audit firms through proposed changes to auditor oversight rule

TORONTO, Oct. 17, 2013 /CNW/ - The CSA today published for comment proposed amendments to NI 52-108 Auditor Oversight, which would give regulators greater insight into situations where the Canadian Public Accountability Board (CPAB) has imposed significant remedial actions on an audit firm.

To better monitor Canada's capital markets, work towards addressing issues before they become significant, and ultimately provide greater investor protection, the CSA is proposing to amend the 'triggers' for when an audit firm must notify securities regulators about CPAB remedial actions. The CSA is also proposing amendments concerning the content of the CPAB notices.

"Auditors are key gatekeepers, so it is important to improve the extent of information securities regulators receive when the Canadian Public Accountability Board identifies significant audit quality issues," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission.  "Receiving information about audit firms enables securities regulators to better assess systemic issues and consider, in a timely manner, whether regulatory action is needed.  This in turn will increase investor confidence in the quality of financial reporting in Canada."

The CSA also recognize the importance of information made available to audit committees.  In May 2013, the Enhancing Audit Quality initiative, led by the Chartered Professional Accountants of Canada and CPAB, recommended that CPAB and the audit firms it oversees develop a protocol to enhance information flow to audit committees.  The CSA will monitor the CPAB protocol developments and consider whether further amendments are needed.

A copy of the proposed amendments is available on CSA members' websites and the comment period is open until January 15, 2014.

The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

SOURCE: Canadian Securities Administrators

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Mark Dickey
Alberta Securities Commission
403-297-4481

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733

Wendy Connors-Beckett
Financial and Consumer Services Commission 
New Brunswick
506-643-7745

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Daniela Machuca
Financial and Consumer Affairs 
Authority of Saskatchewan
306-798-4160

Janice Callbeck
The Office of the Superintendent 
Securities, P.E.I.
902-368-6288

Craig Whalen
Office of the Superintendent of Securities 
Government of Newfoundland and Labrador
709-729-5661

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

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories Securities 
Office 
867-920-8984