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News and discussion on implementing risk management

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Federal prompt payment legislation passed

The Federal Prompt Payment Act was first introduced into the House of Commons on April 8, 2019, as part of the larger budget Bill C-97 (Budget Implementation Act, 2019, No. 1).

 

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Court has no appetite to pierce corporate veil in restaurant lease decision

Corporate directors and officers may generally only be held personally liable for misconduct on the part of the corporation in limited circumstances where there has been improper or fraudulent conduct.

 

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Revenue cycle risks and controls: Essential questions you should ask about your company’s sales and receivables

The importance of finance and accounting controls goes far beyond complying with legal requirements. In fact, revenue cycle controls are perhaps the most important component of an organization’s overall internal control framework! Not only are revenue cycle controls an organization’s strongest defense against fraud and loss, they help ensure that decisions are made based on […]

 

Payments Canada proposes new rule for debit payments

Payments Canada recently announced a proposal for a new rule (the Proposed Rule) aimed at increasing the availability of point-of-service (POS) debit card acceptance in Canada. The underlying goal of the Proposed Rule is the transition towards digital payments and decreasing reliance on cash transactions.

 

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Builders liens: The consequences of less than strict compliance

It is often difficult to calculate the running of the 45-day time limit in which builders liens have to be filed since a number of factors can trigger or extend that limit

 

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Advice for audit committees and oversight of external auditor

While it is clear that the role of the external auditor is important and that the audit committee is charged with their oversight, it is unusual to see advice on how that oversight should be discharged.

 

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Top 10 most-read Inside Internal Controls posts for 2018

This year on the Inside Internal Controls blog we’ve been covering some of the hot topics in internal controls, governance, information technology, not-for-profit, and business management.

 

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It’s almost year end; avoid cut-off errors

Cut-off errors are common and it is important that you avoid them, particularly at year end when one fiscal year will be closed and finalized for the external audit or as a precursor to starting the new fiscal year.

 

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Manitoba court finds that distribution arrangement is not a franchise

In Diduck v. Simpson, 2018 MBQB 76 (“Diduck”), the Manitoba Court of Queen’s Bench reviewed a distribution agreement and found that it failed to meet the test for a “franchise” under Manitoba’s Franchises Act, C.C.S.M. c. F156.

 

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Wade-ing into the limits on post-contractual conduct: BC Court of Appeal confirms post-contractual conduct may be considered only if contract contains ambiguity

Attempts by litigants to rely on post-contractual conduct are not uncommon in commercial litigation involving contractual interpretation. However, in the case of Wade v. Duck, an important reminder is offered that Canadian contract law places strict limits on the circumstances in which courts may have recourse to post-contractual conduct when interpreting a contract.

 

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Québec Superior Court reaffirms importance of franchisors keeping their invoices

The judgment in this case demonstrates that franchisors have to properly document the sales they make to their franchisees, by keeping the sales-related invoices, for example. Franchisors that follow that practice will not find themselves unable to prove their claims, thereby incurring serious financial losses.

 

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Collective agreement, not software, drives employee entitlements

Organizations must carefully and proactively determine user requirements and document them with great specificity when designing or evaluating software options to manage payroll and benefits within their companies.

 

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514-BILLETS gets billed by the CRTC for CASL violations

This case reminds organizations that CASL applies to any form of CEM, even text messages, used to promote products and services, and that the CRTC is actively monitoring and responding to complaints involving different types of CEMs.

 

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Commercial financing: Common security types

The purpose of this article is to summarize the features of some of the more common security types used in commercial financing transactions. In any particular transaction, the security used depends on the asset types.

 

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Ontario ban on door-to-door sales in effect as of March 1st

Door-to-door sales contracts have been among the top complaints received by the Ministry of Government and Consumer Services. Starting March 1, 2018, Ontario has banned unsolicited, door-to-door sales of certain household appliances to better protect consumers from aggressive and misleading contracting at home. This will bring about some changes for some companies business model and marketing strategies.

 

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