Which of the Following Describes Why Canada's Regulation Changes Following

question 9

Multiple Choice

Which of the following describes why Canada's regulation changes following the Enron scandal were less strict than those in the United States?

• A)Canada has a national securities commission that can monitor firms more closely than the SEC in the United States.
• B)The same scale of corporate fraud had yet to be experienced in Canada.
• C)Canadian firms tend to have higher market capitalizations than U.S.firms,and the reporting costs of increased regulation place a greater burden on larger firms.
• D)Canada has a much larger percentage of public firms with a controlling shareholder,and these firms require less oversight than firms without concentrated ownership.
• E)Since Canadian firms report according to IFRS,their financial statements are likely to be more accurate.