NIN 91/18 - Auditor's Report on Comparative Financial Statements [NIN - Rescinded]

Published Date:	1991-10-04
Effective Date:	1991-10-02

This Notice is intended to clarify the requirements of the British Columbia Securities Commission (the "Commission") respecting auditor's reports filed with comparative financial statements, including requirements where there has been a change in auditor during the periods presented in the financial statements.

The Securities Act, S.B.C. 1985, c.83 (the "Act") and Securities Regulation, B.C. Reg. 270/86 (the "Regulation") impose certain requirements for the filing of financial disclosure purposes. Section 4(4) of the Regulation requires, with certain exceptions, that all financial statements filed under the Act or Regulation included an auditor's report.

Audited Financial Statements Filed in Offering Documents or Under Continuous Disclosure Requirements

The Commission will required that each auditor's report dated after October 31, 1991 - whether included in or incorporated by reference into an offering document or filed pursuant to continuous disclosure requirements - specifically identify all audited financial periods presented that have been reported on by the auditor. Change in Auditor

Where audited comparative financial statements are to be included in or incorporated by reference into an offering document, and there has been a change in auditor during the periods presented in the financial statements, a separate auditor's report from each auditor must be filed with the financial statements.

Where audited comparative financial statements are filed with the Commission under continuous disclosure requirements, and there has been a change in auditor during the periods presented in the financial statements, the auditor's report on the most recent financial statements should refer to the former auditor's report is not, in this circumstance, required to be refiled with the financial statements. CICA Handbook

This Notice is intended to be compatible with Ontario Securities Commission "Staff Accounting Communique No. 3" and the October 1990 auditing and related services guideline entitled "Auditor's Report on Comparative Financial Statements" in the Handbook of the Canadian Institute of Chartered Accountants (the "Handbook"). Issuers and their auditors should refer to the Handbook for additional guidance on the appropriate form of the auditor's report.


DATED at Vancouver, British Columbia, on October 2, 1991.