Canadian Public Accountability Board
 |
|
| Abbreviation | CPAB |
|---|---|
| Formation | April 14, 2003 |
| Founder |
Canadian Securities Administrators Office of the Superintendent of Financial Institutions Canadian Institute of Chartered Accountants |
| Type | NGO |
| 890500705RC0001 | |
| Registration no. | 4157826 |
| Legal status | Not-for-profit corporation |
| Purpose | National audit regulator with respect to public reporting issuers |
| Location | |
|
Chair
|
Nicholas Le Pan |
|
Chief Executive Officer
|
Brian A. Hunt |
|
Budget (2015)
|
$16,265,000 |
|
Revenue (2014)
|
$16,139,000 |
| Expenses (2014) | $16,914,000 |
| Slogan | World class audit regulation |
| Mission | Effective regulation |
| Website | www |
The Canadian Public Accountability Board ("CPAB") (French: Conseil canadien sur la reddition de comptes) is a national body organized by the Canadian Securities Administrators ("CSA") which oversees Canadian accounting firms performing auditing work.
The CPAB was formed in 2003, as part of Canada's response to the occurrence of accounting scandals that were happening worldwide, such as at Enron and Worldcom. It was different in approach from the Sarbanes-Oxley Act adopted in the United States. In 2016, its CEO stated that the Board "encourages a more holistic approach to better understand the root causes of lapses in audit quality," in contrast to that taken by the US Public Company Accounting Oversight Board.
The CSA have specified that a "reporting issuer" (ie, a publicly traded company) must have its financial statements audited by a "participating audit firm," being one that has entered into a participation agreement with the CPAB which has not been terminated. Its authority is reinforced through legislation passed at the provincial level, of which Ontario has passed the most extensive example.
164 Canadian and 133 foreign firms have entered into participation agreements with the CPAB. These firms audit approximately 4,000 reporting issuers and 3,000 investment funds. Of these firms, fourteen are inspected annually, of which the Big Four account for 98% of total market capitalization on Canadian markets, and the other 10 large firms account for a further 1.5%. The other firms are subject to inspection on a triennial basis.
The CPAB has two governing bodies. The Council of Governors consists of six members, who are the Superintendent of Financial Institutions, the Chair of the Ontario Securities Commission, the Chair of the Autorité des marchés financiers, the Chair of the Canadian Securities Administrators, a fifth Governor selected by the CSA, and a sixth Governor selected by the other five who is a public accountant that has audit oversight regulatory experience. In turn, the Council appoints the Board of Directors, who are responsible for supervising the activities of the organization.
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