Our commitment to Audit Quality – 2024

At EY Canada, we embrace our responsibility to perform audits that promote trust and confidence in financial reporting and the capital markets. Our commitment to audit quality is unwavering.

We are pleased to present the audit quality report of EY Canada. At EY Canada, we understand the enormous trust that is placed in us as independent auditors, and we embrace our responsibility to perform audits that promote trust and confidence in financial reporting and the capital markets. Our commitment to audit quality is unwavering.

As leaders, we set clear expectations for the quality of work our professionals do each day, and we foster a culture of integrity and accountability, based on strong ethics and our shared values of respect, teaming and inclusiveness. Quality is foundational to our audit practice, and we continue to reinforce the importance of executing every audit with objectivity and independence and acting with integrity in everything we do.

A snapshot of key metrics

Technology and Transformation

We have an ongoing audit transformation strategy focused on the future and are investing in innovative technologies and using a data-first approach to continuously enhance audit quality. The global EY organization is investing over US$1bn in next generation assurance technology to power data‑driven and artificial intelligence (AI)‑enabled assurance services. Over the past 12 months, more than 20 significant new assurance technology capabilities have been released including next generation data analytics and new AI‑enabled algorithms are being developed directly within our core EY Canvas audit platform to support teams with risk assessment and journal entry anomaly detection.

Our methodology requires the use of data analytics for fraud testing in audits of listed entities to assist in identification of unusual transactions and patterns that might indicate a material fraud. We require the use of our forensic specialists in audits on a targeted‑risk basis to assess potential risks of fraud using tools such as our journal entry fraud risk analyzer and documentation authenticity tool.

System of Quality Management

In 2023, we performed our first annual evaluation of our system of quality management in accordance with International Standard on Quality Management (ISQM 1), which was effective 15 December 2022.

Looking ahead

We continue to engage with regulators, investors, audit committees and other stakeholders to address key topics for our capital markets, including the responsible use of AI and reporting on environmental, social and governance (ESG) matters. EY has launched an AI assurance framework that provides guidance on an entity’s development and usage of AI. We are also focusing on shaping the audit of the future and helping solve the profession-wide challenge of fewer people entering the profession.

Our commitment to the public interest

In closing, we take our responsibility to serve the capital markets very seriously. From our most senior leaders to the most junior members of our audit teams, we are each accountable for the quality of the firm’s audits. We continue to reinforce this message in our communications about driving greater consistency in audit execution and in our coaching and training.

Our mission will always be to serve the public interest by performing high-quality audits. We strive to continuously improve the quality of our audits to protect investors.

Contacts

We welcome any comments and questions you may have about the matters discussed in this report. Please contact an EY Canada partner for more information.