TORONTO - Canada's Chartered Accountants have published a new product to help 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 Allegations of Corporate Wrongdoing". The aim of the easy-to-read publication is to equip boards of directors to deal with situations in which wrongdoing has been alleged against the company or its employees, officers or directors. 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 potential consequences include regulatory penalties, criminal prosecution, class action lawsuits, loss of market share and damage to the company's reputation." However, Hansell stressed that an appropriate board response can not only resolve the problem but can preserve the company's relationships with regulators, enhance stakeholder confidence and protect the corporate reputation.

The document, like others in the CICA's "20 Questions" series, provides suggested questions for directors to ask and guidance to assess the answers they receive. It is written to be of assistance to organizations and their boards in both the private and public sectors along with not-for-profit bodies. The document draws on a number of public examples of corporations which have faced allegations of corporate wrongdoing, and dealt 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 board has the important duty of assuring that the allegations are appropriately addressed. This publication provides 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 approximately 74,000 CAs and 10,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).