Auditor Independence And Unpaid Fees

Regulators are increasingly concerned about auditors who have unpaid professional fees and the potential impact of unpaid fees on auditor independence. A recent discipline decision illustrates the implication of unpaid fees on audit independence.

Summary

In this case, the audit firm had been the auditors of a public company whose shares were delisted from the TSX. To regain listing on the TSX, the company was required to complete its outstanding 2010-2012 financial statements and obtain an audit opinion on those financial statements. In 2012, the company was able to raise funds to retain the auditors to complete its audit of the outstanding financial statements and to commence an audit of the 2013 fiscal year.