Last week, the Office of the Superintendent of Financial Institutions (OSFI), together with the Canadian Public Accountability Board (CPAB) and the Canadian Securities Administrators (CSA), co‑hosted a roundtable bringing together senior representatives from audit firms, accounting bodies, regulators, and standard setters. The event provided a platform to discuss risks affecting audit quality and the importance of high‑quality financial statement audits in maintaining Canada’s trusted capital markets.
Discussions focused on emerging risks, rapid technological developments such as artificial intelligence, governance and ethics within audit firms, fraud risks linked to financial crimes and geopolitical tensions, and the challenges of auditing disclosures in volatile environments. Participants emphasized that external auditors play a critical role in safeguarding integrity and confidence in financial reporting, particularly amid growing uncertainty and expanding volumes of information.
The roundtable highlighted the need for regulatory coordination and clear guidance to reduce overlap, strengthen risk management, and support sustainable growth. It also underscored that while technology offers opportunities to enhance audit quality, it introduces new risks that require auditors to maintain skepticism and strong oversight. Fraud prevention and detection strategies were identified as essential, with technology providing new tools to strengthen defenses.
Improving financial statement disclosures, especially those involving estimates and judgments, was another key theme. Auditors were urged to challenge the clarity and robustness of disclosures to reinforce market confidence and support better decision‑making.
Leaders from OSFI, CPAB, and CSA stressed that high‑quality audits are essential to financial system resilience and that continuous dialogue between regulators and the audit profession is vital. They affirmed that collaboration across the ecosystem will help ensure Canadians continue to rely on transparent and trustworthy financial reporting.
