The Canadian Securities Administrators has issued a notice indicating that the requirements for issuers to report on the effectiveness of their internal controls will apply by mid-2008.

Back in March 2006, the CSA published National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, indicating that it would require companies to report on the effectiveness of their internal controls, although it would not require issuers’ auditors to sign off on these controls, as was done in the U.S.

That notice, “indicated that the process of evaluating the effectiveness of internal control over financial reporting would be a significant undertaking for many issuers and that we intended to allow significant lead time for issuers to plan and implement efficiently the activities required to support the additional certifications and disclosure relating to internal control over financial reporting,” the CSA explains.

Back then the CSA also indicated that the earliest the proposed requirements would apply was for financial years ending on or after December 31, 2007. Now, the CSA says that it plans to seek all necessary approvals to publish proposed revisions for public comment by the end of March, and that the requirements would apply for by mid-2008.

“To allow significant lead time for issuers to plan and implement efficiently the activities required to support the additional certifications and disclosure relating to internal control over financial reporting, we intend to propose that the requirements apply in respect of financial years ending on or after June 30, 2008,” it says.