Significant audit deficiencies in Canada more than doubled in 2018 compared to 2017, according to the inspection report of Canada’s audit regulator, the Canadian Public Accountability Board (CPAB). The report found that significant audit deficiencies increased from 15 in 2017 to 34 in 2018.

CPAB defines a significant audit deficiency, or “finding,” as “a deficiency in the application of generally accepted auditing standards that could result in a restatement.” Deficiencies related to auditing fair values in business combinations, impairment of assets, and revenue recognition represented approximately half the significant findings of CPAB’s 2018 inspections cycle. The other half related to significant but noncomplex account balances and transactions streams where basic audit procedures were either not performed or not performed appropriately.