Common use of Notice of Sanctions Clause in Contracts

Notice of Sanctions. (1) A participating audit firm that is subject to sanctions imposed by the CPAB must provide notice to (a) the audit committee of each reporting issuer for which it is appointed to prepare an auditor’s report, or, if a reporting issuer does not have an audit committee, the board of directors or the person or persons responsible for reviewing and approving the reporting issuer’s financial statements before they are filed, and (b) the regulator, if the participating audit firm is appointed to prepare an auditor’s report with respect to the financial statements of a reporting issuer. (2) The notice required under subsection (1) must be in writing and include a complete description of the sanctions imposed by the CPAB, including the date the sanctions were imposed. (3) The notice required under subsection (1) must be delivered within 10 business days of the sanctions being imposed.