Question

The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members' behaviour. The new rules?

1) are as robust as parallel rules required by the U.S. Sarbanes-Oxley Act.
2) were adopted by all provincial and territorial securities regulators, except for British Columbia's.
3) were introduced in conjunction with the Canadian Securities Administrators.
4) all of the above.

Answer 1

The Ontario Securities Commission's regulations on audit committees aim to protect investors from accounting fraud by enhancing corporate governance, mirroring the intentions behind the U.S. Sarbanes-Oxley Act.

Step-by-step explanation:

The Ontario Securities Commission's new regulations on audit committees are designed to enhance corporate governance and investor protection. These measures were influenced by major accounting scandals, demonstrating the necessity for robust oversight in preventing accounting fraud. While it is not explicitly stated whether all three statements about the new regulations are true, the development shows a proactive approach similar to the U.S. Sarbanes-Oxley Act, which was established following scandals involving companies like Enron and WorldCom to increase confidence in financial information provided by public corporations.

Regulating securities and enforcing transparency have been critical actions taken by financial regulatory authorities to ensure corporate accountability and safeguard investors' interests. The formation and operation of audit committees are vital components of a sound corporate governance framework, which aligns with the duties imposed by the Sarbanes-Oxley Act in the U.S.