Auditor Independence Peter Mills

Observer

Kenneth J.A. Vallillee, FCA, Canadian Public Accountability Board (CPAB), Toronto

Project Manager

Melissa E. Langlois, CA, Deloitte, LLP, Toronto

The Canadian Environment

• Approximately 6,000 reporting issuers in Canada and 1/3 are considered small market capitalization companies (market capitalization and total assets under $10m)
• Large majority of public companies audited by the Big 7 – members of the Forum of Firms (FOF)
• FOF members cannot use the exemption in our independence rules for small cap companies

Features of the Canadian Environment

Feature	Description
Office of the Superintendent of Financial Institutions (OSFI)	Supervises and regulates more than 450 banks and insurers
Provincial Securities Commissions	Each province and territory has its own securities regulator and its own securities legislation
Canadian Securities Administrators (CSA)	A voluntary umbrella organization of the provincial and territorial securities regulators referred to above
Regulatory Oversight	All public issuers in Canada have to be audited by firms registered with CPAB and subject to its inspection and discipline. CPAB, was established in 2002, and is a member of the International Forum of Independent Audit Regulators (IFIAR).
Provincial Institute Reviews	Audit Partners subject to reviews by the provincial accounting institutes

Features of the Canadian Environment

Feature