firm Hay & Watson Chartered Professional Accountants from auditing publicly listed organizations over violations of audit documentation and supervision standards, it said in a release on Wednesday afternoon.
Hay & Watson audited less than 50 public companies, according to the release. CPAB began investigating the firm in 2022 and now alleges that it was responsible for “serious violations of audit documentation standards and a fundamental absence of supervision and review.” Canadian auditing standards breached included audit documentation, quality control for an audit of financial statements and the auditor’s responses to assessed risks, among others.Audit problems spread at Canadian accounting firms last year, industry regulator finds
Reasons firms can be terminated include failing to submit information required yearly or to pay the annual participation fee, or as a result of enforcement actions by CPAB for seriously violating professional standards or CPAB rules.