Two additional accounting firms reprimanded by Canadian audit regulator in 2024

Canadian Public Accountability Board Sanctions Two More Auditors in 2024

CPAB Sanctions Two More Canadian Auditors, Continues Crackdown on Audit Quality

TORONTO, July 28, 2024 – The Canadian Public Accountability Board (CPAB) has added two more Canadian auditors to its list of sanctioned firms in 2024, as it continues its crackdown on audit quality. Kingston Ross Pasnak LLP of Alberta and Macias Gini & O’Connell LLP, based in Los Angeles, were both sanctioned for significant inspection findings that raised concerns over audit quality.

CPAB, responsible for overseeing audits performed by registered public accounting firms, has been actively monitoring and sanctioning firms that violate its rules. The recent sanctions against Kingston Ross Pasnak and Macias Gini & O’Connell highlight the regulator’s commitment to upholding audit standards in Canada.

In its enforcement action against Kingston Ross Pasnak, CPAB identified four significant inspection findings in two audit files inspected, leading to a prohibition on accepting audit engagements from new “moderate and high-risk” reporting issuers. Despite some improvements in the firm’s 2023 inspection results, CPAB noted that concerns over audit quality have not been sufficiently addressed.

Similarly, Macias Gini & O’Connell faced sanctions after CPAB found significant inspection findings in all three audit files inspected. The violations of Canadian Auditing Standards and PCAOB rules raised continued concerns over audit quality, prompting the regulator to take action against the firm.

The crackdown on audit quality comes in the wake of CPAB’s censure of several accounting firms in 2023, with foreign firms dominating the mid-tier audit market in Canada. The regulator’s efforts to enhance transparency include naming firms in enforcement actions and detailing audit deficiencies to improve accountability in the industry.

As CPAB continues to enforce audit standards and hold firms accountable for their practices, the Canadian accounting profession faces increased scrutiny and pressure to uphold the highest standards of integrity and quality in financial reporting.

For more updates on CPAB’s enforcement actions and the latest developments in the accounting industry, stay tuned to Canadian Accountant for in-depth coverage and analysis.