An analysis of Canadian Audit Committee charters

Abstract

This paper presents the results of a content analysis of Audit Committee (AC) charters for the 60 largest publicly traded companies on the Toronto Stock Exchange as measured by market capitalisation (S&P/;TSX 60) as at February 28, 2008. The research found that not all AC activities (as defined by regulation and 'best practice') were included in the committees' charters. As a result, it appears that not all AC charter components are considered equal. The findings also vary by industry classification. The paper speculates on the possible reasons for these results and proposes additional avenues for research.