Among the top 2006 Internet security issues are compliance with the U.S. Sarbanes-Oxley Act (SOX) and its Canadian equivalent, boosting IT experts on staff, email management, improving user-authentication, and grappling with IT outsourcing. New SOX-related regulations are expected to go into effect, and Canadian companies must also handle new rules based on SOX that were released by the Canadian Securities Administrators in 2004. Improving control of IT systems will be crucial for regulatory compliance, as well as for all the top issues this year.

Improving email management includes:

• ensuring email history storage
• improving anti-virus strategies
• improving email security
  
  Source: CA Magazine (09/06) ; Trites, Gerald; Lavigne, Andree

• The first set of rules proposed by Canadian regulators requires CEO/CFO certification of annual and quarterly reports (MI 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings).  Canadian companies will also have to adopt disclosure controls and procedures with regard to financial reporting.  Apart from some minor differences related to how information is disclosed in Canada, the proposed national instrument for Canada is very similar to s. 302 of Sarbanes-Oxley, both in form and implementation.
  
• The second set of rules (MI 52-110, Audit Committees) proposes new standards and an expanded role for the audit committee.  Major Canadian public companies will be required to have fully independent and financially literate audit committees.  Certain exemptions are provided for venture issuers, controlled companies and U.S.-listed issuers.
  
• The third set of rules (MI 52-111) relates to internal controls.  Companies will be required to perform detailed tests of all their internal accounting processes, and their external auditors will have to examine and give an opinion on those tests.  In addition, MI 52-108 proposes establishing a new accounting supervision body, the Canadian Public Accountability Board.