IAASA and the Canadian Public Accountability Board (CPAB) have agreed a Memorandum of Understanding (MoU) to facilitate cooperation between the bodies in the area of public oversight, registration, inspections and investigations of auditors of Irish or Canadian companies which have issued securities on the capital markets of the other jurisdiction.
IAASA and CPAB believe it is in their common interest to cooperate in the oversight of such auditors to the extent such cooperation is compatible with respective laws and regulations, key areas of interest and available resources. Cooperation is intended to permit the bodies to meet their respective statutory oversight mandates and also to assist in determining the degree of reliance with regard to oversight activities of auditors that fall within the jurisdictions of both bodies.
IAASA and CPAB will assist each other in the performance of their respective functions by providing timely information, where possible. Where information shared is subject to confidentiality undertakings both regulators will handle the information in accordance with those requirements.
The MoU came into force on 5 August 2015. The text of the MoU can be accessed here.
Background
IAASA is the independent body in Ireland responsible for the examination and enforcement of certain listed entities’ periodic financial reporting and the supervision of the regulatory functions of the Prescribed Accountancy Bodies. As part of the recent European audit reform measures, IAASA will be given responsibility for inspecting the quality of audit work performed by the auditors of public interest entities with effect from June 2016. This will be carried out by a newly established Audit Inspections Unit in IAASA.
CPAB is Canada’s audit regulator, protecting the investing public’s interests. CPAB fulfils its mandate in two ways, through inspections and by involving a broader range of stakeholders in a discussion about and better understanding of the audit process. CPAB’s governing document requires auditors of reporting issuers to be registered with CPAB as CPAB participants, and requires Canadian reporting issuers to issue financial statements audited only by CPAB participating firms.