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TORONTO, April 21, 2009 – Canada’s Chartered Accountants have published a new product tohelp boards take appropriate action when allegations of corporate wrongdoing are made. The Canadian Institute of Chartered Accountants (CICA) has prepared a special document titled 20 Questions Directors Should Ask about Responding to Allegationsof Corporate Wrongdoing. The aim of the easy-to-read publication is to equip boards of directors to dealwith situations in which wrongdoing has been alleged against the company or its employees, officers ordirectors. The document was co-authored by Carol Hansell, a senior partner at Davies Ward Phillips &Vineberg LLP, and Beth Deazeley, Principal, Risk Management and Governance with the CICA. “Allegations of corporate wrongdoing can be devastating to a company,” said Hansell. “The potentialconsequences include regulatory penalties, criminal prosecution, class action lawsuits, loss of market shareand damage to the company’s reputation.” However, Hansell stressed that an appropriate board response can notonly resolve the problem but can preserve the company’s relationships with regulators, enhance stakeholderconfidence and protect the corporate reputation. The document, like others in the CICA’s “20 Questions” series, provides suggested questions for directorsto ask and guidance to assess the answers they receive. It is written to be of assistance to organizationsand their boards in both the private and public sectors along with not-for-profit bodies. The document drawson a number of public examples of corporations which have faced allegations of corporate wrongdoing, anddealt with them with varying degrees of success. “The board of directors bears a significant responsibility to help prevent cases of corporate wrongdoing,”said Hansell. “In cases where preventative efforts have failed and corporate wrongdoing is alleged, the boardhas the important duty of assuring that the allegations are appropriately addressed. This publicationprovides useful guidance for such circumstances.” The document can be found in the Risk Management and Governance section of the Institute’s website (www.cica.ca/rmgb). The Canadian Institute of Chartered Accountants (CICA), together with the provincial,territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately74,000 CAs and 10,000 students in Canada and Bermuda. The CICA conducts research into current business issuesand supports the setting of accounting, auditing and assurance standards for business, not-for-profitorganizations and government. It issues guidance on control and governance, publishes professionalliterature, develops continuing education programs and represents the CA profession nationally andinternationally. CICA is a founding member of the International Federation of Accountants (IFAC) and theGlobal Accounting Alliance (GAA). -30- For more information or to arrange an interview, contact:
Tobin Lambie, Manager, Media
CICA
(416) 204-3228
tobin.lambie@cica.ca
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