We welcome the Canadian Public Accountability Board’s (CPAB) decision to begin publishing individual firm inspection reports. For the first time, investors and other market participants will have public access to individual firm inspection reports, rather than relying primarily on high‑level or aggregated disclosures about audit oversight.
Strong, independent audits play a critical gatekeeper role in Canada’s capital markets. When audit quality falls short, the reliability of financial reporting is compromised, and investor confidence is weakened. The OSC’s recent allegations against KPMG in the Bridging Finance case show how a breakdown in audit procedures can leave investors exposed, reinforcing the essential role auditors play in protecting market integrity.
In our 2021 submission to CPAB, we argued in favour of enhanced public disclosure of inspection findings. We emphasized that protecting the investing public should be a central disclosure principle and that firm‑level transparency, when accompanied by appropriate context, can strengthen confidence in financial reporting.