BU547 Lecture Notes - Lecture 18: Canada Business Corporations Act, Financial Statement, Fiduciary
Document Summary
Under the canada business corporations act, public companies are required to have an audit committee, although provision is made for a waiver in some circumstances. The audit committee is required to review the company"s financial statements before they are issued. The committee must comprise at least three members of the company"s board of directors, the majority of whom must be outside directors. The directors have an obligation to inform the auditor and audit committee of any wrongdoing or misstatements that come to their attention. The auditor should communicate with the audit committee (or those responsible for overseeing the financial reporting process). Matters to be included and the extent of communication may vary, depending on the needs and accountability of the entity. For public companies, the communication should be more extensive and should include: details of the audit process, including planning and approach, matters that arise during the audit, matters that could bear on the independence of the auditor.
