In Canada such translation differences arising from long-term debt are deferred and amortized over the life of the debt. Although many of the accounting procedures differ slightly between the U.S. and Canada, these two countries continue to share more similarities than many other countries. Additionally, during the past two years, considerable effort has been made to ensure that this trend continues, rather than diminishes. The requirements for an audit and available audit exemptions vary, depending on the company s jurisdiction of incorporation. Corporations and securities laws do not establish minimum qualifications for auditors.
Some provinces provide for licensing of auditors.
Licenses are normally issued only to persons with specific professional qualifications and experience. Companies incorporated under the CBCA and companies incorporated under special purposed Federal legislation, are required to appoint an auditor. Under the Bank Act, banks are required to appoint two auditors. One major difference between the U.S. audit process and the Canadian audit process is that a U.S. auditor may modify the wording of his or her report to include an explanatory paragraph to an unqualified option highlighting an uncertainty, including a going concern uncertainty, or a change in accounting principle. The report cannot refer to a change in accounting principle if the auditor is satisfied the change is properly accounted for and adequately disclosed in the financial statements.