Canadian firms reporting under the Sarbanes-Oxley Act have as many, if not more, internal control problems than American companies, according to a new study authored by a Toronto-based academic.
Reviewing a sampling of cross-listed public companies, Queen's University School of Business accounting professor Steven Salterio found that a higher percentage of cross-listed Canadian companies reported internal control weaknesses during the first year of compliance with the SOX law. Specifically, Salterio reported that for Year 1, 13 percent of all U.S. companies disclosed weaknesses in internal control. Meanwhile, 19 percent of cross-listed Canadian companies reported a higher incidence of problems.
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