For Immediate Release
April 25, 2017

Canadian securities regulators seek comment on potential oversight requirements for foreign audit firms

Toronto – The Canadian Securities Administrators (CSA) today published for comment CSA Consultation Paper 52-403 Auditor Oversight Issues in Foreign Jurisdictions (Consultation Paper), which seeks input on whether certain oversight requirements should be introduced for audits done by foreign firms.

“Auditors are important gatekeepers in our market, and we are seeking input on our current oversight requirements to ensure there continues to be public confidence in the integrity of financial reporting,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

The Consultation Paper discusses challenges faced by the Canadian Public Accountability Board (CPAB) in accessing audit work performed in certain foreign jurisdictions. The Consultation Paper describes a CPAB request for the CSA to amend National Instrument 52-108 Auditor Oversight to require certain audit firms involved in the audit of a reporting issuer’s financial statements to register as a participating audit firm. This requested amendment would assist CPAB in accessing audit working papers in most foreign jurisdictions.

CSA staff is also considering potential disclosure enhancements to provide stakeholders with information about situations where CPAB has been prevented from inspecting audit work performed.

The Consultation Paper can be found on CSA members’ websites. Comments should be submitted in writing by June 24, 2017.

The CSA will consider the feedback it receives and any requirements, if introduced, would be published in accordance with the regular rule-making process.

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 more information:

Kristen Rose
Ontario Securities Commission

Nicole Tuncay
Alberta Securities Commission

Alison Walker
British Columbia Securities Commission

Sylvain Théberge
Autorité des marchés financiers

Jason (Jay) Booth
Manitoba Securities Commission

Andrew Nicholson
Financial and Consumer Services
Commission, New Brunswick

David Harrison
Nova Scotia Securities Commission

Janice Callbeck
Office of the Superintendent
of Securities, P.E.I.

John O’Brien
Office of the Superintendent of Securities
Newfoundland and Labrador

Rhonda Horte
Office of the Yukon Superintendent
of Securities

Jeff Mason
Nunavut Securities Office

Tom Hall
Office of the Superintendent of
Securities, Northwest Territories

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan