The Canadian counterpart to the U.S. Sarbanes Oxley Act (SOX), Bill 198 became law in October 2002. Part XXVI of this bill amended the security laws to require reporting issuers to devise and maintain a system of internal controls related to the effectiveness and efficiency of their operations, including financial reporting and asset control. Bill 198 also amended the securities laws to require chief executive officers and chief financial officers of reporting issuers to provide a certification that addresses internal controls, including:
- The establishment and maintenance of internal controls
- The design of internal controls
- The evaluation of the effectiveness of internal controls