The Canadian Securities Administrators yesterday released changes to auditor oversight rules designed to enhance the integrity of financial reporting by reporting issuers by repealing and replacing National Instrument 52-108 Auditor Oversight and making other amendments to NI 41-101, NI 51-102, NI 71-102 and their respective companion policies.
Among other things, the changes will (i) require a public accounting firm to deliver a notice to the applicable regulator when certain remedial actions have been imposed by the Canadian Public Accountability Board; (ii) require additional disclosure in an issuer's prospectus when financial statements included in the prospectus were audited by an auditor not subject to CPAB oversight; (iii) clarify the rule's application to foreign issuers; and (iv) reduce the timing for making, filing or sending various types of notices and other documents in connection with a change of auditors.
As we discussed last year, the CSA released proposed amendments to the rules in October 2013, and the final version takes into account comments received. Assuming all ministerial approvals are obtained, the new rules come into effect on September 30, 2014.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.