Alert: Protocol for Audit Firm Communication of CPAB Inspection Findings with Audit Committees

Category: Assurance

Alert: Protocol for Audit Firm Communication of CPAB Inspection Findings with Audit Committees

The Protocol sets out how audit firms communicate the Canadian Public Accountability Board’s (“CPAB”) inspection findings to audit committees. The Protocol was developed in response to audit committees’ requests for more information on CPAB’s inspection findings in order to assist them to oversee and evaluate their external auditors.

In accordance with the Protocol, audit firms are required to report the following:

  • CPAB’s Public Report – an audit firm must electronically send CPAB’s Public Report to the audit committee of all reporting issuer clients on an annual basis. The Public Report provides a summary of common findings across CPAB’s inspections in a given year, as well as recommendations to improve audit quality.
  • Communication regarding CPAB’s inspection of an individual reporting issuer – if CPAB has inspected an audit file of a reporting issuer that year, the audit firm will provide the audit committee with:
    • A description of the focus areas selected for inspection by CPAB.
    • An indication of whether or not there are any significant inspection findings.
    • Any significant inspection findings as reported in CPAB’s Engagement Findings Report (EFR), including a description of actions taken by the audit firm in response to the findings and CPAB’s disposition.

Compliance with the Protocol is voluntary; click here to access a list of the audit firms participating in the Protocol. The Protocol applies to audit file inspections commencing on or after March 1, 2014. Please see the Protocol for more details.

Copies of CPAB’s most recent annual Public Reports may be accessed on CPAB’s website or by using the following links:

This communication contains a general overview of the topic and is current as of March 30, 2020. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional, who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2020. All rights reserved.

Contact a member of MNP's Financial Reporting Team

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.