Costs of Internal Control Certification in Canada
Prepared by: Issues and Policy Advisory Committee (IPAC)
For: Financial Executives International Canada

Two years after SOX 404 became law in the United States, studies are beginning to reveal the costs of internal control certification to US corporate filers. In Canada, we anticipate that companies listed on Canadian exchanges that will be subject to the new OSC ruling respecting management reporting and auditor attestation to the design and effectiveness of internal controls (MI 52-111) will be faced with similar costs.

In order to obtain information on the potential costs of implementing MI 52-111, Financial Executives International Canada, and its National Strategic Partner, Russell Investment Group, conducted a survey of inter-listed companies in Canada. The information collected in this survey will help us shed some light on the potential costs to Canadian listed companies that are now preparing to report on the design and effectiveness of their internal controls.

For full survey results, please download the attached pdf file below (available in English only)

fei-costsurvey.pdf (194k)