"Most conversations are simply monologues delivered in
the presence of a witness." – Margaret
Two things have happened recently that you need to be aware of
if you're a Canadian SEC registrant.
The first is that the SEC has begun to review and comment on
first time IFRS financial statements included in Canadian SEC
filings. If you haven't got one already, you can expect a
friendly letter soon. Remember, too, that communications with the
SEC are a matter of public record.
The second relates to communications between auditors and audit
committees. In August, the US Public Company Accounting Oversight
Board approved new requirements for the auditor to discuss:
Its evaluation of the quality of the company's financial
Certain matters about the company's accounting policies and
practices on estimates including a description of the processes and
assumptions management used in critical estimates.
Significant unusual transactions including the underlying
Its views on significant accounting or auditing matters when
they are aware that management has consulted with other accountants
about these matters and the auditor has a concern.
The new rules also formalize PCAOB required communications that
many auditors already are making to audit committees as a matter of
practice or as the result of other regulations (e.g. audit strategy
and risks, specialized skill needs (such as actuaries, valuators
and others), principal auditor determinations, concerns about
management's proposed adoption of new standards, outside
consultations, contentious matters, going concern issues,
qualifications in audit reports, etc.)
The requirements, if approved by the SEC, would apply for years
beginning on or after December 15, 2012 however, there may be some
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.
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Over the past year, we have watched the Canadian dollar drop relative to its U.S. counterpoint impacting Canadian businesses. U.S. goods and services are now more expensive, U.S. sales make a premium and errors when recording foreign exchange transactions can cost you more money.
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