Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Certified General Accountants Association of Canada

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Canada


    2. Name of member body:
      Certified General Accountants Association of Canada

      Or please specify name:
      Certified General Accountants Association of Canada



    3. Individual responsible for preparation:
      Rita Marnoch


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      1. Federation Internationale des Experts Compatable Francophone (FIDEF)
      2. Confederation of Asian and Pacific Accountants (CAPA)
      3. The Institute of Chartered Accountants of the Caribbean (ICAC)
      4. Interamerican Accounting Association (IAA)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Canada Business Corporations Act (CBCA); Provincial Business Corporations Acts
      b). the Enacting body: Government of Canada; Provincial Governments
      c). date the Act or Code came into force: / 1975


    25. How can IFAC obtain a copy of the Act or Code?
      It can be accessed at the following URL: http://laws.justice.gc.ca/en/C-44/


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities CBCA - "155.(1) annual finacial statements. Subject to section 156, the directors of a corporation shall place before the shareholders at every annual meeting (a) comparative financial statements as prescribed relating seperately to (i) the period that began on the date the corporation came into existence and ended not more than six months before the annual meeting or, if the corporation has completed a financial year, the period that began immediately after the end of the last completed financial year and ended not more than six months before the annual meeting, and (ii) the immediately preceeding financial year; (b) the report of the auditor; if any...". CBCA Regualtions - section 44. The financial statements referred to in paragraph 155(1)(a) of the Act shall, except as otherwise provided by this Part, be prepared in accordance with generally accepted accounting principles as set out in the Handbook of the "Canadian Institute of Chartered Accountants." (Note: the terms used in the CBCA is “distributing corporations”
      Private companies See Listed Entities
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities CBCA - "Section 162(1) Subject to section 163, shareholders of a corporation shall, by ordinary resolution, at the first annual meeting of the shareholders and at each succeeding annual meeting, appoint an auditor to hold offfice until the close of the next annual meeting." "Section 169(1) Examination - an auditor of a corporation shall make the examination that is in his opinion necessary to enable him to report in the prescribed manner on the financial statements required by this act to be put before the shareholders, except such financial statements or part thereof that relate to the period referred to in subparagraph 155(1)(a)(ii)." CBCA Regulations: "Section 45. - the auditor's report referred to in section 169 of the Act shall, except as otherwise provided by this Part, be prepared in accordance with generally accepted auditing standards as set out in accordance with the Handbook of the Canadian Institute of Chartered Accountants."
      Private companies See Listed Entities
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Each province and territory of Canada has its own Securities Act. The Securities Acts also have regulations. There are also Policy Statements, Rules and Orders developed by the Securities Commission in each province. There are thirteen regulators in Canada, these answers are on based on the largest province, Ontario. Ontario is the largest province and has the largest securities market. Information about the other provinces is available in the relevant securities echange’s website.

    2. the Enacting body(ies)

      The Government of Ontario

    3. the latest amendment date?

      2002


    35. How can IFAC obtain a copy of the Legal authority?
      A copy of the authority can be found at: http://www.e-laws.gov.on.ca:81/ISYSquery/IRLEDBA.tmp/51/doc


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      Part XVIII of the Securities Act stipulates additional reporting requirements.
      http://www.e-laws.gov.on.ca:81/ISYSquery/IRLEDBA.tmp/51/doc


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity CBCA Regulation 71 (see also response to questions 28 and 29); Provincial Business Corporations Acts 08/2003 Auditing and Assurance Standards Board of the Canadian Institute of Chartered Accountants (CICA)
      Other (please describe) Private and other entities See listed entities 08/2003 Auditing and Assurance Standards Board of the Canadian Institute of Chartered Accountants (CICA)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Contact the CICA at www.cica.ca

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Auditing and Assurance Standards Board of the Canadian Institute of Chartered Accountants (CICA))


    44. For Auditing and Assurance Standards Board of the Canadian Institute of Chartered Accountants (CICA), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      The Board is a private organization established by one of Canada's three professional accounting bodies. Refer to the Canadian Institute of Chartered Accountants’ response for additional information relating to this section.

      b. Name of standards

      CICA Handbook - Assurance


    45. How many voting members does the standard-setting body have?
      13


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Sector of the profession, private/public, academic, geographic.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Auditing and Assurance Standards Oversight Council (AASOC) of the CICA


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      31 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      1, 336,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      1.31



    52. To what entity is the standard-setting body accountable?
      The Auditing and Assurance Standards Oversight Council (AASOC)of the CICA


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      All standards are publically exposed.

    2. accessibility of meetings (i.e., public or private)

      Meeting are not open to the public.

    3. approval process for final standards (i.e., majority required to approve final standards)

      2/3rd majority.

    4. other relevant due process activities

      There are also public information meetings and discussion memoranda issued on occasion on controversial or complex topics.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      22 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice The Certified General Accountants Act 2002 Certified General Accountants Association of Canada (CGA-Canada)
      Professional Accountants in Business The Certified General Accountants Act 2002 Certified General Accountants Association of Canada (CGA-Canada)
      Professional Accountants in the Public Sector The Certified General Accountants Act 2002 Certified General Accountants Association of Canada (CGA-Canada)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The responses in this section relate to CGA-Canada's members.

      The copies can be obtained at:
      http://www.cga-canada.org/eng/about/corporate/aboutCGA/ceproc.htm


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Certified General Accountants Association of Canada (CGA-Canada))


    56. For Certified General Accountants Association of Canada (CGA-Canada), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      CGA-Canada is a private self-regulating organization established through an act of the Canadian Parliament. CGA-Canada sets the standard for ethics and quality assurance and no Affiliate (see response to question 60) can have a lesser standard, unless there is a legislative requirement. Two provinces (Alberta and Quebec) must also be obtained ministerial approval.

      b. Name of standards

      Code of Ethical Principles and Rules of Conduct


    57. How many voting members does the standard-setting body have?
      21


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The candidate must be a member in good standing with the Association. There is also geographic representation.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Affiliates of CGA-Canada. In Canada the provincial and territorial governments are responsible to regulate the profession. Each province/territory has an Association; this is what we refer to as Affiliates. They are not “of” CGA-Canada but are rather affiliated, with each other and, with CGA-Canada under an Affiliation Agreement. This agreement contains the roles and responsibilities of the Affiliates and CGA-Canada.


    61. What is the term of appointment for members?
      3 Year(s)


    62. For how many years has the standard-setting body been in existence?
      91 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Funding is within the overall budget of the Association

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?
      CGA-Canada is accountable to its members.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposure is limited to members and students of the Association.

    2. accessibility of meetings (i.e., public or private)

      Accessibility is limited to members and students of the Association.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority approval at CGA-Canada Board, then approval by each Affiliate as per their specific voting requirements.

    4. other relevant due process activities

      Reviewed by staff of the Affiliates charged with administering its provisions.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      8 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      Primary - grades 1 to 7, ages 6 to 13, mandatory attendance.
      Secondary - grades 8 to 12, ages 13 to 18, mandatory attendance until age 16.
      Post secondary - is optional, but one can attend college, university, or a school specializing in trades and technical.

      For additional information about the education system in general, refer to the Canadian Institute of Chartered Accountants’ response.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      Each province has its own legal authority. From Ontario perspective it is The Public Accountancy Act.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      University degree, Accounting Curriculum Requirements & Professional Program Requirements (Professional Admission Comprehensive Exams (PACE))
      Professional examinations
      Professional accreditation through the CGA Professional Admission Comprehensive Exams
      Practical experience
      Minimum of 3 years, 2 at a senior level.
      Final qualifying examination
      Professional Admission Comprehensive Exams
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      Board of Directors on recommendations of the National Education Committee (NEC) of the Certified General Accountants Association

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      NEC is made up of members from each Affiliate.
      The Committee meets four times per year in person and by teleconference as required, it:
      (a) formulates, reviews and recommends education policy revisions and additions to the Board of Directors;
      (b) monitors sectoral activities to ensure compliance with both the Strategic Plan and policy approved by the Board;
      (c) develops and maintains a uniform program of studies leading to examination and academic qualifications for certification as a CGA;
      (d) recommends the academic and professional standards for certification as a CGA, set examinations and determine related policies;
      (e) monitors delivery of programs and services through a structured performance appraisal system, ensuring compliance with the standards prescribed for all components of the program of studies;
      (f) recommends to the Board upon the distribution of resources and priorities among all committees and programs within the Education Sector;
      (g) identifies and provides leadership and support to the attainment of common objectives, including shared programs, with the Affiliates.

    2. How many voting members does the relevant body(ies) have

      11

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      40 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      Requirements differ within each province. From an Ontario perspective the requirements are set by the Public Accountants Council for the Province of Ontario


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      From Ontario perspective: The Public Accountants Council for the Province of Ontario


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      Across Canada all auditors of listed entities must be registered with the Canadian Public Accountability Board. For additional information about the public sector accounting standard-setting framework refer to the Canadian Institute of Chartered Accountants’ response.



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government No legal authority. For additional information about the education system in general, refer to the Canadian Institute of Chartered Accountants’ response.
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      For additional information about the education system in general, refer to the Canadian Institute of Chartered Accountants’ response.

      b. Are the documents available in English?
      Yes   No



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity CBCA Regulation 70; Provincial Business Corporations Acts; Industry Business Corporations Acts 08/2003 Accounting Standards Board of the CICA
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      For additional information about the accounting standard-setting framework refer to the Canadian Institute of Chartered Accountants’ response.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Accounting Standards Board of the CICA)


    95. For Accounting Standards Board of the CICA, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      The ASB is a private organization established by one of Canada's three professional accounting bodies.

      b. Name of standards

      CICA Handbook - Accounting


    96. How many voting members does the standard-setting body have?
      9


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Chair is a paid position remaining 8 are volunteers.


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, sector of the profession, private and public members, academic and geographical representation


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Accounting Standards Oversight Council of the CICA


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Not available

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?
      The ASB is accountable to the Accounting Standards Oversight Council of the CICA.


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      All standards are publically exposed.

    2. accessibility of meetings (i.e., public or private)

      Meetings are private.

    3. approval process for final standards (i.e., majority required to approve final standards)

      2/3rds of members

    4. other relevant due process activities

      There are also public information meetings and discussion memoranda issued on occasion on controversial or complex topics.


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      40 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      There is no national securities regulator. Each province and the three territories have their own authority. The 13 regulators belong to a forum called the Canadian Securities Administrators (CSA) that coordinates and harmonizes regulation of Canadian capital markets. From Ontario perspective it is the Ontario Securities Commission (OSC)


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      From Ontario perspective: The Securities Act grants total authority to the OSC.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The 13 securities administrators require auditors of reporting issues to be a participant in the audit oversight program of the Canadian Public Accountability Board(CPAB).

    2. accounting and auditing standard-setting

      No direct role.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      Reporting issuers must file information with the securities regulators prepared in accordance with GAAP. Where audited financial statements are required, they must be audited in accordance with GAAS. Securities commission staff review filings and act on complaints regarding fraudulent, manipulative or misleading information.

      Part XVIII of the Securities Act stipulates additional reporting requirements.

      http://www.e-laws.gov.on.ca:81/ISYSquery/IRLF465.tmp/51/doc




    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Toronto Stock Exchange
      Montreal Exchange



    Section 10B -- Stock Exchange
    Toronto Stock Exchange Details


    110. For Toronto Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Monitoring and enforcing is part of the policy and administration of the Stock Exchange.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Consequences of non-compliance is part of the policy and administration of the Stock Exchange and failure to comply will result in delisting.

    3. How enforcement actions are administered.

      Enforcement is administered through the TSE or the OSC.


    Section 10B -- Stock Exchange
    Montreal Exchange Details


    110. For Montreal Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Monitoring and enforcement is part of the policy and administration of the Stock Exchange.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      The consequences of non-compliance is part of the policy and administration of the Stock Exchange and failure to comply will result in delisting.

    3. How enforcement actions are administered.

      Enforcement actions are administered through the MSE and the Autorité des marchés financiers.



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      In July 2002, federal and provincial financial and securities regulators, as well as Canada's chartered accountants, announced the creation of the CPAB, a new independent public oversight system for accountants and accounting firms that audit reporting issuers. It is incorporated as a corporation without share capital under the Canada Corporations Act. On June 27, 2003, the Canadian Securities Administrators released a draft rule that would require auditors of reporting issuers to be members in good standing with the CPAB (from the CPAB website).

      The mission of the CPAB is to contribute to public confidence in the integrity of financial reporting of public companies by promoting high quality, independent auditing. It is responsible for developing and implementing an oversight program that includes regular and rigorous inspections of the auditors of Canada's public companies.

      CPAB’s authority with respect to monitoring the quality of audits of public companies (including an inspection program) is contractual in nature. However, each Canadian securities regulator (through their cooperative work using Canadian Securities Administrators forum), requires that all auditors of public companies participate in the CPAB program.

      Additional information on CPAB may be found on its website at: http://www.cpab-ccrc.ca/


    2. The number of members on the oversight body

      11 voting members including seven from outside the public accounting profession. Members of CPAB are appointed by the Council of Governors. This 5 member council is is made up of the:
      • Chair of the Canadian Securities Administrators (who is currently the Chair of the Alberta Securities Commission)

      • Chairs of two provincial securities commissions (currently the Ontario Securities Commission and the Commission des valeurs mobilières du Québec)

      • Superintendent of Financial Institutions of Canada
      • President and CEO of the Canadian Institute of Chartered Accountants (CICA).


    3. Its powers

      • Promote, publicly and proactively, high quality external audits of public companies;
      • Establish and maintain participation requirements for public accounting firms that audit public companies;
      • Conduct inspections of public accounting firms that audit public companies to ensure compliance with professional standards and participation requirements;
      • Receive and evaluate reports and recommendations resulting from the inspection process, including, if appropriate, reports from provincial accounting organizations regarding auditors of public companies that are not inspected directly by the CPAB;
      • Impose, where appropriate, sanctions and restrictions on public accounting firms that audit public companies and, where necessary require remedial action;
      • Maintain a register of public accounting firms that audit public companies;
      • Refer matters, as appropriate, to provincial accounting organizations for discipline purposes;
      • Refer matters, as appropriate, to securities regulators;
      • Provide comments and recommendations on accounting standards, assurance standards and governance practices to relevant standards-setting and oversight bodies; and
      • Provide recommendations to securities regulatory authorities.


    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      Its National Inspection Unit conducts quality control reviews of the auditors of public companies, assessing whether they have quality control systems that meet the CICA’s standards of professional practice for quality control for firms performing assurance engagements, and quality control procedures for assurance engagements, to provide reasonable assurance that there audits have been performed in accordance generally accepted auditing standards, rules of professional conduct, and regulatory requirements. (Note: The CICA’s quality control standards meet the requirements of those of IFAC.)

      Financial statements of listed entities may be inspected by CPAB as part of its inspection to assess the quality of the audit of those financial statements.

      See section 400 of the published rules at the following URL:
      http://www.cpab-ccrc.ca/dbdocs/40586ed07a47c.pdf


    5. The sanctions the oversight body may impose in the event of non-compliance

      CPAB can place various types and levels of sanctions on a firm that, in its assessment, has failed to perform an audit in accordance with GAAS. In the most serious cases, sanction would be termination of the firm’s CPAB participation agreement and thereby its ability to perform audits of public companies.

      See section 600 of the published rules at the following URL:
      http://www.cpab-ccrc.ca/dbdocs/40586ed07a47c.pdf


    6. How the oversight body is accountable to any public institution or body

      The Board will report to the public at least annually on the results of its activities.


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The Office of the Superintendent of Financial Institutions (OSFI). Refer to the Canadian Institute of Chartered Accountants’ response for additional information about this section.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      Please refer to the document entitled "Supervisory Framework" located at http://www.osfi-bsif.gc.ca/eng/documents/practices/docs/framew_e.pdf


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      No formal role.

    2. accounting and auditing standard-setting

      It has no regulatory authority to set accounting and auditing standards for the private or public sector, however it is empowered to set standards for the banking sector.

    3. review of financial statements prepared by listed entities

      Review is limited to financial institutions under its purview.

    4. enforcement of accounting, reporting and auditing requirements

      Enforcement is limited to financial institutions under its purview.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The Office of the Superintendent of Financial Institutions (OSFI). Refer to the Canadian Institute of Chartered Accountants’ response for additional information about this section.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Please refer to the document entitled "Supervisory Framework" located at http://www.osfi-bsif.gc.ca/eng/documents/practices/docs/framew_e.pdf


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      None.

    2. accounting and auditing standard-setting

      It has no regulatory authority to set accounting and auditing standards for the private or public sector, however it is empowered to set standards for the banking sector.

    3. review of financial statements prepared by listed entities

      Review is limited to financial institutions under its purview.

    4. enforcement of accounting, reporting and auditing requirements

      Enforcement is limited to financial institutions under its purview.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The Office of the Superintendent of Financial Institutions (OSFI; Office of the Superintendant of Insurance. Refer to the Canadian Institute of Chartered Accountants’ response for additional information about this section.


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Please refer to the document entitled "Supervisory Framework" located at http://www.osfi-bsif.gc.ca/eng/documents/practices/docs/framew_e.pdf


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      None.

    2. accounting and auditing standard-setting

      It has no regulatory authority to set accounting and auditing standards for the private or public sector, however it is empowered to set standards for the banking sector.

    3. review of financial statements prepared by listed listed entities

      Review is limited to financial institutions under its purview.

    4. enforcement of accounting, reporting and auditing requirements

      Enforcement is limited to financial institutions under its purview.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Registrar of Companies which exists in each province.


    122. What is the source of Legal authority of each regulatory authority?
      Under each provincial business act.


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      None

    2. accounting and auditing standard-setting

      None

    3. review of financial statements prepared by listed listed entities

      Yes, limited to companies under their purview.

    4. enforcement of accounting, reporting and auditing requirements

      Yes, limited to companies under their purview.



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      Each self regulating professional accounting body and the Canadian Public Accountability Board (CPAB) have a practice review regime.

      With respect to CGA-Canada, Quality Assurance is contained within the Practice Review Standards which are set nationally and no Affiliate can have a lesser standard unless there is a legislative requirement. Information about the Ontario practice inspection program provided by CGA-Canada may be requested from IFAC staff.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Each self regulating accounting body has its own enabling legislation. CPAB has no legislative authority.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Staff or contractors from the national professional organization and/or the CPAB.



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Each self regulating organization is responsible for investigation and discipline under the terms of its enabling legislation. CPAB also has the responsibility for auditors of publically listed companies.
      With respect to CGA-Canada, each Affiliate is responsible.



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      Varies by CGA-Provincial accounting body


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, sector of the profession and mix of private and public members.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Varies per CGA provincial accounting body


    134. What is the term of appointment for members?
      1 Year(s)


    135. For how many years has the body been in existence?
      40 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Varies by CGA-Provincial accounting body

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?
      To the Board of Directors of each CGA provincial accounting body.


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      14 Day(s)



     

     

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