OSC Publishes Considerations For Public Accounting Firms In Developing Internal Ethics Policies And Procedures

The Ontario Securities Commission ("OSC") recently published OSC Staff Notice 52-724 Considerations for Public Accounting Firms in Developing Internal Ethics Policies and Procedures (the "Notice"). The Notice summarizes observations of OSC Staff, following inquiries they made in response to ethical violations that had been identified by regulators in Canada and other jurisdictions. The Notice also outlines recommendations, but does not create any new requirements, for public accounting firms.

Purpose and Scope of Inquiry

Last year, the OSC announced that it would be making targeted inquiries to certain public accounting firms that audit Ontario reporting issuers, in light of ethical violations identified by the Canadian Public Accountability Board and regulators in other jurisdictions. As actual or perceived issues with the ethical integrity of auditors may undermine investor confidence in financial reporting, OSC Staff aimed to assess how public accounting