Canada is set to adopt International Financial Reporting Standards (IFRS) on 1 January 2011. Even though the adopted IFRS will in a formal sense become Canadian GAAP, auditors will be required to affirm that a company’s financial statements comply with IFRS. In addition, auditors will be permitted to affirm that the financial statements also comply with Canadian GAAP, because the requirement to use GAAP is enshrined in many laws and GAAP is referenced in many contracts.