Under NI 52-110, which body is the external auditor of a TSX-listed company accountable to?

Answer

The audit committee, to which it reports directly

Options - A. The audit committee, to which it reports directly - B. The chief financial officer, who prepares the statements - C. The compensation committee, which sets its fee - D. The chief executive, who signs the engagement letter Why - A. Correct — s. 2.2: the auditor reports directly to the audit committee, which recommends its appointment and oversees its work. - B. The CFO’s statements are what the auditor examines; reporting to the CFO would undo the auditor’s independence. - C. The compensation committee deals with executive pay; the audit committee recommends the auditor’s compensation (s. 2.3(2)). - D. An engagement letter may be signed by management, but accountability runs to the committee.

OpenStax Finance §2.3; Lyryx IFA Vol 2 §22.3; CBCA s. 171; NI 52-110 ss. 1.6, 2.2, 2.3, 3.1; NP 58-201 ss. 3.10, 3.15