Compliance Blog

Recent proposed changes to the Canadian equivalent to SOX (CSA Notice 52-313) are beginning to ripple through the TSX and TSX V markets.

Highlights include:

1. Proposed elimination of auditor review and attestation of a company's internal control over financial reporting (elimination of MI 52-111).
2. Proposed expansion of CEO/CFO certification requirements to include discussion in the annual MD&A as to the effectiveness and process used to evaluate internal controls over financial reporting (expansion of MI 52-109).
3. It is proposed that all TSX.V companies must now "evaluate" the effectiveness of their internal controls over financial reporting (this is a new requirement and an expansion of MI 52-109).
4. All TSX and TSX.V companies (excluding SOX filers) must undertake "evaluation" of ICFR effectiveness for years ending on or after Dec 31, 2007 (New for all TSX.V companies. Sooner for smaller cap TSX companies based on the old MI 52-111.

What does this mean for management teams, audit committees and their auditors? An article published today in the Globe and Mail (click here) provides some ideas as to the impact.

Other organizations such as Thomson Carswell are running sessions in May in Vancouver, Calgary and other Canadian cities to further explain the impact of these proposed changes. Click here to learn more.