The Canadian Securities Administrators (CSA) announced in March that it would not require auditors to attest to the effectiveness of an issuer's internal controls over financial reporting.
With its decision, 'the CSA has shown that it was listening when it held cross-country consultations,' says Paul Findlay.
The decision extends to all Canadian issuers other than investment funds. It means that the CSA will not proceed with Proposed Multilateral Instrument 52-111: Reporting on Internal Control over Financial Reporting, put forward in February 2005 and substantially similar to s. 404 of the Sarbanes-Oxley Act (SOX 404) in the U.S.
Both SOX 404 and the CSA's original proposal have come under heavy criticism as costly and burdensome, especially to small companies.
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