Public Accountancy Act under review to provide further protection to consumers

Walter Noel, Minister of Government Services and Lands and minister responsible for the regulation of the accounting profession in the province, says his department is currently reviewing the Public Accountancy Act to determine if any changes are necessary in light of recent accounting problems with several large U.S. companies.

The Public Accountants Licensing Board, which consists of accountants and non-accountants and reports to Minister Noel, submitted a revised draft act to government some time ago.

Minister Noel said: "Since this draft was submitted prior to the Enron and Worldcom problems in the U.S., government will now need to take a closer look to determine if other changes are needed to enhance public protection

"A new Canadian Public Accountability Board has been established by provincial and federal regulators and the accounting profession to provide supervision, inspection and discipline with respect to auditing firms that audit publicly traded companies. Government will be examining the rules established by this board to determine if any of the rules should also be applied to auditing firms that audit non-listed companies. In particular, government will be addressing whether auditing firms should be allowed to provide internal auditing and consulting services to companies that they audit.

"In addition, the Public Accountants Licensing Board has proposed that accountants performing review engagements be required to be licensed."

The minister said the primary focus of any changes will be to ensure the public can have confidence in audited financial statements. "I have already met with the Public Accountants Licensing Board to raise some of the issues and will have further meetings over the next few months. The general public will be consulted before any changes are made."

Media contact: Winston Morris, Assistant Deputy Minister Consumer and Commercial Affairs (709) 729-2570 or Rick Callahan, Director of Communications (709) 729-4860

2002 07 26                               12:40 p.m.