The Canada Business Corporation Act gave authority to Canadian accounting and auditing standard-setters by stating that financial statements

Question

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The Canada Business Corporation Act requires financial statements to be prepared in accordance with the standards set out in the CPA Canada Handbook. This gives authority to Canadian accounting and auditing standard-setters to establish these standards, which are widely used by Canadian companies. Option A is not entirely accurate, as IFRS is not a requirement under the Act but is instead allowed as an option. Option C is also incorrect as there is no requirement that auditors must reside in Canada, only that they are held to certain professional standards. Option D is also not correct, as the Act requires compliance with the CPA Canada Handbook, which is a comprehensive set of financial reporting standards for Canadian entities.

The Canada Business Corporation Act Gave Authority to Canadian Accounting