• Register
Return to: Home > News > Regulation > Most of the information used by investors doesn’t come from the audited financial statement, Canadian audit regulator finds

Most of the information used by investors doesn’t come from the audited financial statement, Canadian audit regulator finds

The Canadian Public Accountability Board (CPAB) has releases a summary of the key messages that came out of its audit quality symposium revealing expectations gap between stakeholders and the importance of information disclosed outside of the financial statements.

In a short report summarising the discussions, the CPAB outlined the three key messages that came out of the two day event:

“1. Investors use a wide variety of financial and non-financial information to assess a company’s performance, financial condition and future prospects; very little of which comes from the annual audited financial statements. The belief by key stakeholders that all information disclosed by reporting issuers is equally reliable represents an expectations gap that creates a risk to the capital markets.

2. Auditors and audit committees have an opportunity to engage increasingly with information outside the financial statements to enhance its reliability and reduce the expectations gap.

3. Transformational change is required to ensure there is continued confidence in the information that drives the capital markets and the audit remains relevant. A fundamental transformation will only be successful if all parties in the financial reporting and disclosure system are engaged, support this transformation and reassess their respective roles and responsibilities.”

The CPAB’s audit quality  symposium was held in May of this year and the final summary of the findings published earlier this summer.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.