Half (51%) of Canadians Say Accounting and Financial Irregularities As Recently Reported Are Widespread, Not In Just a Few Companies

Six in Ten (58%) Have Confidence in the Accuracy of Companies Audited Financial Statements When Released

Toronto, ONTARIO - A new Ipsos-Reid/CTV/Globe and Mail poll released today indicates that half (51%) of Canadians believe that accounting and financial irregularities reported recently do not just affect a few companies but believe that it's widespread issue. This compares to 44% who think that it is an issue that only affects a few companies and is not that widespread. As well, just under half (47%) of Canadians say that Canadian based public companies have the same problems with financial irregularities as U.S. based companies, while 44% support the opposite view that Canadian companies do not have the same problems.

A slightly higher number (54%), believe however, that Canadian auditing standards are more effective in protecting the public interest than the standards in the United States. A similar number (55%) agree that Canada's financial regulators do a better job of policing the activities of companies than their American counterparts. This compares to one-third (34%) who disagree with this viewpoint.

And finally, six in ten (58%) Canadians say that when they hear a company has release its audited financial statements they have confidence that the reported figures are accurate. Four in ten (40%) express the opposing view.

These are the findings of an Ipsos-Reid/CTV/Globe and Mail poll conducted between July 3rd and July 7th, 2002. The poll is based on a randomly selected sample of 1,000 adult Canadians. With a sample of this size, the results are considered accurate to within 177 3.1 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 1996 Census data.

Half (51%) of Canadians Say Accounting and Financial Irregularities as Recently Reported is Widespread, Not In Just a Few Companies

In light of the recent reports of irregular accounting and financial practices by large firms such as Enron and Worldcom, during the past few months, half (51%) of Canadians believe that such irregularities do not just affect a few companies and that the problem is more widespread. This compares to 44% who feel the opposite way.

• Half (49%) of Canadians who own stocks (directly or through an RRSP or Mutual Fund) agree that this is the case.
• Regionally, residents of Alberta (62%) and British Columbia (61%) are the most likely to express this view, followed by those in Atlantic Canada (55%), Ontario (53%) and Saskatchewan/Manitoba (49%). Residents of Quebec (39%) are least likely to express this view.
• Younger (55%) Canadians are slightly more likely to believe this to be the case than their older (50%) or middle aged (49%) counterparts.
• There is no statistical difference between household income groups or between genders.

These issues are not just confined to American companies according to the Canadian public. In fact, just under half (47%) of Canadians say that Canadian based public companies have the same problems with financial irregularities as do U.S. based firms. Forty-four percent support the opposite view that Canadian companies do not have the same problems.

• Regionally the belief is also split, with at least half of residents of Alberta (58%), Saskatchewan/Manitoba (52%), British Columbia (51%) and Ontario (50%) expressing the view that Canadian firms have the same issues, compared to only 41% of Atlantic Canadians and 38% of Quebecers who share this view.
• Younger (56%) are more likely to believe this to be the case, while only 37% of older Canadians express this view. Middle age Canadians reflect the national average on this point.
• Half (50%) of those who own stocks agree with this view, compared with 45% of those who don't own stocks.
• Upper income households (53%) are more likely than lower (44%) or middle (43%) income households to believe this to be the case.

Slim Majority (54%) Believe Canadian Auditing Standards Are More Effective In Protecting the Public Interest Than In United States

A slightly higher number (54%) believe however, that Canadian auditing standards are more effective in protecting the public interest than the standards in the United States. The opposing view is held by three in ten (31%) Canadians.

• Regionally, residents of Atlantic Canada (61%) are most likely to express this view compared to the views of Albertans (45%).
• Women (56%) are slightly more likely to believe this to be the case than men (52%).
• Canadians who do not own stocks (57%) are slightly more likely than those who do (52%), to feel this way.

An Equal Number (55%) Say Canada's Financial Regulators Do A Better Job of Policing the Activities of Companies than Their American Counterparts

An equal number (55%) agree that Canada's financial regulators do a better job of policing the activities of companies than their American counterparts. This compares to one-third (34%) who disagree with this view.

• This view is higher among residents of Atlantic Canada (62%) when compared to those in Alberta (49%).
• There are no statistical differences between age, gender, and household income groups or between those who own stocks and those who do not.

Six in Ten (58%) Have Confidence in the Accuracy of Companies Audited Financial Statements When Released

Only six in ten (58%) Canadians say that when they hear a company has released its audited financial statements, they have confidence that the reported figures are accurate. Four in ten (40%) express the opposing view.

• Investors in stocks (62%) are more likely than those who do not own stocks (54%) to express this view.
• Regionally, residents of Saskatchewan/Manitoba (71%) are most likely to express this view, followed by those in Alberta (61%), Atlantic Canada (61%), Ontario (60%) and Quebec (57%). Those in British Columbia (44%) are least likely to express this view.
• Younger (62%) and middle aged (60%) Canadians are more likely than their older (51%) counterparts to express this belief.
• Canadians from upper (63%) and middle (60%) income households are more likely that those from lower income households (54%) to express this view.

Six in Ten (59%) Believe Top Managers at Publicly Traded Companies are Generally Ethical and Trustworthy

However, an equivalent number (59%) of the Canadian public agree that senior management at most public companies are generally ethical and trustworthy, while the opposite view is expressed by 39% of the public.

• Canadians who own stocks (65%) are more likely than those who do not (51%) to express this view.
• Those in upper (63%) and middle (59%) income households are slightly more likely than those from lower income households (52%) to believe this to be the case.
• Regionally, residents of Atlantic Canada (68%), Saskatchewan/Manitoba (67%), and Alberta (65%) are more likely than those in Quebec (58%), Ontario (56%) and British Columbia (53%) to believe this.
• There are no statistical differences on this view between age or gender groups.

To view the complete release and tables, please open the attached PDF files.

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For more information on this news release, please contact:

John Wright
Senior Vice-President
Ipsos-Reid Public Affairs
(416) 324-2900