What must publicly traded corporations in Canada have a public accountant do?
A) prepare the financial statements filed with Canada Revenue Agency
B) perform an annual external audit
C) address the shareholders at their annual meeting
D) perform standard horizontal, vertical, and ratio analyses

Question

Quizplus · Accepted Answer

Publicly traded corporations in Canada must have an annual external audit performed by a public accountant to ensure that their financial statements are accurate and reliable. This is a regulatory requirement set by the Canadian Securities Administrators (CSA) and enforced by stock exchanges such as the Toronto Stock Exchange (TSX). Choice A is incorrect because financial statements filed with the Canada Revenue Agency (CRA) are typically tax returns and do not require the same level of scrutiny as those filed with securities regulators. Choice C is incorrect because addressing shareholders at an annual meeting is a responsibility of the company's management team, not the public accountant. Choice D is incorrect because while standard financial analysis techniques may be used by a public accountant during an audit, they are not the primary purpose of the engagement.

What Must Publicly Traded Corporations in Canada Have a Public