Stakeholders have been invited to provide feedback on the
desirability and feasibility of oversight requirements for work
conducted by foreign audit firms for Canadian issuers, as described
in a CSA Consultation Paper published on April 25,
2017. Responding to a proposal by the Canadian Public Accountability Board (CPAB),
the CSA is exploring amendments to National Instrument 52-108 Auditor Oversight
which would require foreign audit firms involved in the audit of a
reporting issuer's financial statements (Component Auditors) to
register as a participating audit firm (a PAF).
The Need for Oversight
The Consultation Paper stems from CPAB's request that the
CSA amend NI 52-108 to require that Component Auditors register as
PAFs providing CPAB with a legal basis to inspect their audit work
in most foreign jurisdictions. Currently, a PAF who engages the
work of a Component Auditor must comply with Canadian auditing
standards which provide that the PAF is responsible for
