Request for Comment - Proposed Amendments Respecting the Audit Requirement to Send Second Positive Confirmation Requests
REQUEST FOR COMMENT
INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC)
PROPOSED AMENDMENTS RESPECTING
THE AUDIT REQUIREMENT TO SEND SECOND POSITIVE CONFIRMATION REQUESTS
IIROC is publishing for public comment proposed amendments to Dealer Member Rule 300.2(a)(vii) regarding the audit requirement to send second positive confirmation requests (“proposed amendments”). The primary objective of the proposed amendments is to provide independent auditors with a practical solution to address their concern that the current IIROC audit requirement to send second positive confirmation requests to all of a Dealer Member’s clients, who did not reply to the initial positive confirmation request, is onerous and redundant. The proposed amendments would give an independent auditor the option (rather than it being a requirement) to send second positive confirmation requests to the Dealer Member’s clients, who did not reply to the initial positive confirmation request, and would require the independent auditor use appropriate alternative verification procedures to obtain relevant and reliable audit evidence where second positive confirmation requests are not sent.
A copy of the IIROC Notice including the amended documents is also published on our website at www.osc.gov.on.ca. The comment period ends on May 25, 2016.