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.

    The Canadian Institute of Chartered Accountants

     

    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:
      The Canadian Institute of Chartered Accountants

      Or please specify name:



    3. Individual responsible for preparation:
      Dana R. Clarence


    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.):
      CAPA, 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: National - Canada Business Corporations Act (CBCA) (deals with federally incorporated corporations) (the answers provided to the questions which follow relate only to the CBCA); Canada Corporations Act (deals with federal non-profit entities); Financial Administration Act (deals with federal government departments and agencies and some federal crown corporations); the Auditor General Act (deals with the appointment, power and responsibilities of the Auditor General of Canada); there is also corporations legislation, non-profit legislation, legislation related to government entities and legislation pertaining to legislative auditors in the 10 Canadian provinces. There are also three Territories in Canada.
      b). the Enacting body: Parliament of Canada
      c). date the Act or Code came into force: 12 / 1975


    25. How can IFAC obtain a copy of the Act or Code?
      The Canadian Government (and, at least, the four largest provinces - British Columbia, Alberta, Ontario and Quebec) has its statutes on its website. [Canada (http://laws.justice.gc.ca/en/index.html)] These governments also sell their statutes as publications (accessible through its website). Commercial publishers such as Carswell Thompson and CCH Canadian Limited sell the statutes individually or in loose leaf services.


    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): The term used in the CBCA is "distributing corporation". The term is defined in the CBCA's Regulations.
      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 financial 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 separately to (i) the period that began on the date the corporation came into existence and ended not more that 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 preceding financial year; (b) the report of the auditor, if any ..." CBCA Regulations - Sec. 70. 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."
      Private companies As above for distributing corporations.
      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 - "Sec 162(1) - Subject to section 163, shareholders of a corporation shall, by ordinary resolution, at the first annual meeting of shareholders and at each succeeding annual meeting, appoint an auditor to hold office until the close of the next annual meeting." "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 placed 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: "Sec. 71. - The auditors 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 the Handbook of the Canadian Institute of Chartered Accountants."
      Private companies CBCA - "Section 163(1) - The shareholders of a corporation that is not a distributing corporation may resolve not to appoint an auditor." "163(2) - A resolution under subsection (1) is valid only until the next succeeding annual meeting of shareholders." "163(3) - A resolution under subsection (1) is not valid unless it is consented to by all the shareholders, including shareholders not otherwise entitled to vote."
      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

    2. the Enacting body(ies)

    3. the latest amendment date?

      Obviously this varies from province to province. For example, Bill 198, part of which amended the Securities Act, received Royal Assent on December 9, 2003 but, because it required some technical amendments and because the Ontario Government changed before these amendments could also be passed, the securities act portions of Bill 198 have not yet been proclaimed in force. In British Columbia Bill 38, which would enact a new Securities Act for the province, was introduced on May 5 and, as of May 11th had proceeded to the Committee report stage.


    35. How can IFAC obtain a copy of the Legal authority?


    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:


    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:
      See answer to question 37 with respect to the situation in Ontario.

      National - The CBCA contains provisions related to auditor independence. CBCA Section 161 provides:

      161. (1) Subject to subsection (5), a person is disqualified from being an auditor of a corporation if the person is not independent of the corporation, any of its affiliates, or the directors or officers of any such corporation or its affiliates.

      (2) For the purposes of this section,

      (a) independence is a question of fact; and

      (b) a person is deemed not to be independent if he or his business partner

      (i) is a business partner, a director, an officer or an employee of the corporation or any of its affiliates, or a business partner of any director, officer or employee of any such corporation or any of its affiliates,

      (ii) beneficially owns or controls, directly or indirectly, a material interest in the securities of the corporation or any of its affiliates, or

      (iii) has been a receiver, receiver-manager, liquidator or trustee in bankruptcy of the corporation or any of its affiliates within two years of his proposed appointment as auditor of the corporation.

      (2.1) For the purposes of subsection (2), a person's business partner includes a shareholder of that person.

      (3) An auditor who becomes disqualified under this section shall, subject to subsection (5), resign forthwith after becoming aware of the disqualification.

      (4) An interested person may apply to a court for an order declaring an auditor to be disqualified under this section and the office of auditor to be vacant.

      (5) An interested person may apply to a court for an order exempting an auditor from disqualification under this section and the court may, if it is satisfied that an exemption would not unfairly prejudice the shareholders, make an exemption order on such terms as it thinks fit, which order may have retrospective effect.

      Note that in addition to the CBCA independence standards, Canadian CAs wishing to audit listed entities must also adhere to Rule 204, Independence, of their Rules of Professional Conduct which set out additional independence requirements. The Rules of Professional Conduct are harmonized among the provincial institutes of chartered accountants to the extent possible. For the Rules of Professional Code in Ontario see the website of the Institute of Chartered Accountants (ICAO) at:
      http://www.icao.on.ca/index.cfm/ci_id/2779.htm


    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:
      Canadian CAs are required to adhere to Rule 204, Independence, of their Rules of Professional Conduct. Rule 204 provides for a mandatory rotation of the auditor partner within the audit firm. The rotation period is five years. There is also a five year "cooling off" period during which time the former lead engagement partner cannot return to the audit as either the lead engagement partner or as the engagement quality control reviewer. Audit firms that wish to audit reporting issuers in Canada are required to be members in good standing with the Canadian Public Accountability Board (CPAB). CPAB requires that a firm wishing to be one of its participating audit firms adhere to the Rule 204 standard. There is no manadatory rotation of audit firms for listed companies in Canada. For more information about CPAB go to: http://www.cpab-ccrc.ca



    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 See the responses to questions 28 and 29 in Section 4 for information on the CBCA. Note that companies can also be incorporated provincially. The business corporations acts of the major provinces have provisions similar to the federal act (CBCA). The Auditing and Assurance Standards Board (AASB)
      Other (please describe) Private and other entities See listed entities The Auditing and Assurance Standards Board (AASB)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The CBCA and its regulations may be accessed at the Government of Canada website: (http://laws.justice.gc.ca/en/)

      The standards set by the Auditing and Assurance Standards Board (AASB) are set forth in the CICA Handbook - Assurance. The CICA Handbook may be ordered at: https://www.knotia.ca/kStore/Catalogue/ProductDetails.cfm?productID=8&nc=1085496086397 or by calling the Knotia Help Desk - Knotia Help Desk: Monday - Friday, 9am - 6pm ET
      Toll Free: 1-866-2-KNOTIA (1-866-256-6842)


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (The Auditing and Assurance Standards Board (AASB))


    44. For The Auditing and Assurance Standards Board (AASB), 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 mission of the Auditing and Assurance Standards Board (AASB) is to assist the profession in serving the public interest by enhancing the quality of assurance services. The AASB supports the growth and relevance of such services by continually improving and disseminating guidance and generally accepted standards for a broad range of assurance and related services. These standards and guidance reflect best practice and meet the needs of decision makers and assurance providers.

      AASB is a private sector, unincorporated body originally established by the Canadian Institute of Chartered Accountants. Its activities are overseen by AASOC. See the response to Question 48 for information on AASOC.

      General information on AASB can be found on the CICA's website at:
      http://www.cica.ca/index.cfm/ci_id/212/la_id/1.htm

      Note with respect to Question 50 that the CICA established its Accounting and Auditing Research Committee in 1946. In 1973 the accounting and auditing standard setters divided into separate committees. Those committees evolved into the current Accounting Standards Board (AcSB) and the Auditing and Assurance Standards Board (AASB).


      b. Name of standards

      CICA Handbook - Assurance

      Standards for Assurance Engagements
      (Note: Generally Accepted Auditing Standards (GAAS) (for financial statement audits) are a subset of Standards for Assurance Engagements)


    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: 13 - voluntary voting members; 2 staff non-voting members (the Vice President, Standards, and the Director, Auditing and Assurance Standards, of the Canadian Institute of Chartered Accountants)


    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.)?


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    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)

      $US 1,336,000

      Please enter the exchange rate used to calculate this number.

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

      $US 1 = $Canadian 1.31 ($ Cdn 1 = .76 $US)



    52. To what entity is the standard-setting body accountable?
      The Auditing and Assurance Standards Oversight Council (AASOC). (See Question 48 above.)


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

      All standards require public exposure (i.e., an Exposure Draft) before they can be approved. Normally the period for comment on an exposure draft is 60 days.

    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)



    4. other relevant due process activities



    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 All Chartered Accountants (including those in public practice, business and the public sector) are subject to the Rules of Professional Conduct established by the Provincial Institutes/Ordre of Chartered Accountants (PICAs/Ordre). Councils/Bureau of the Provincial Institutes/Ordre of Chartered Accountants
      Professional Accountants in Business The PICAs/Ordre derive their powers, including the power to set and enforce standards of ethics, from a provincial statute in their jurisdiction.
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The governing statutes (frequently called The Chartered Accountants Act) and the Rules of Professional Conduct of the PICAs/Ordre of Britsh Columbia (http://www.ica.bc.ca/kb.php3?catid=201), Alberta (http://www.icaa.ab.ca/publications/standards.shtml), Ontario (see below) and Quebec (see below) can be found on their websites.

      The Rules of Professional Conduct have been harmonized to the extent possible. The Rules of Professional Conduct of the Ontario Institute of Chartered Accountants provide an example of the Rules in force throughout the country. The ICAO's Rules of Professional Conduct may be found at: http://www.icao.on.ca/index.cfm/ci_id/2779.htm

      Because the legislation in Quebec is based on the civil law and because of certain other differences in the Quebec legal environment, the Rules of Ethics for CAs in Quebec may differ somewhat. The Quebec CA Act and the Quebec Ordre's Rules of Ethics may be found at: http://ocaq.qc.ca/ang/2_protection/2_1_repertoires.asp


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Councils/Bureau of the Provincial Institutes/Ordre of Chartered Accountants)


    56. For Councils/Bureau of the Provincial Institutes/Ordre of Chartered Accountants, 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 PICA/Ordre Councils/Bureau are the governing bodies of the PICAs/Ordre. They are elected by the members of the CA profession in their jurisdiction.

      The PICA/Ordre Councils/Bureau must approve of amendments or additions to the Rules of Professional Conduct. Changes to the Rules do not come into force until they are approved by a vote of the members of the CA profession in their jurisdiction. In Quebec the Office des professions, a Government body, is also involved in the approval process for new standards.

      The CA profession's Public Interest and Integrity Committee (PIIC) and the Ethics Standards Harmonization Committee (ESHC) assist the PICAs/Ordre by considering possible changes to the Rules and developing proposed new wording, as appropriate.

      The PIIC's terms of reference defines its role and responsibilities as follows:

      Role

      The focus of this Committee is to provide the policy and strategy through which the CICA Board of Directors, the councils of the PICAs/Ordre and, as applicable, the individual members of the Canadian CA profession, uphold the integrity of the profession and protect the public interest through a common code of professional conduct and self-regulatory policies and programs.

      Responsibilities

      The Committee is responsible for:

      (a) recommending policies and strategies to uphold the public interest and integrity of the profession;

      (b) monitoring the development and renewal of the profession's harmonized code of professional conduct and standards of self-regulation, through an ongoing Ethics Standards Harmonization Committee and such other committees, task forces, etc. as may be required;

      (c) identifying matters additional to those included in the terms of reference of the Ethics Standards Harmonization Committee and providing for the establishment and monitoring of the appropriate committees, task forces, etc. to research and address them; and

      (d) communicating and promoting the recommendations of the committee to the CICA Board of Directors and the councils of the PICAs, as appropriate.


      The ESHC's terms of reference defines its role and responsibilities as follows:

      Role

      The Ethics Standards Harmonization Committee (the Committee) assists the Public Interest and Integrity Committee (PIIC) in carrying out its oversight role in the development and renewal of a harmonized code of professional conduct and standards of self-regulation. In doing so, the Committee will work directly with the provincial institutes/ ordre (PICAs), recognizing that the PICAs have the legislated responsibility for the adoption and enforcement of rules of professional conduct.

      Responsibility

      It is the responsibility of the Ethics Standards Harmonization Committee:
      - to receive notice from the PICAs/Ordre or the PIIC of any desired change to the rules of professional conduct, council interpretations or the disciplinary process; and
      - to prioritize and establish a timetable for dealing with the matter, and
      - to seek input from the councils of the other provincial institutes/ordre
      for the development of a change proposed by the Committee;
      - to study or review any rule of professional conduct, any council interpretation or the disciplinary process and to consider any concern brought to its attention by any provincial institute/ ordre, the PIIC, a member of the public or a member of the profession relating to ethical standards and their enforcement;
      - to study and review any other matter referred to it by the PIIC; and
      - to determine the consistency of enforcement of the rules of professional conduct and the consistency of sanctions imposed by the PICA discipline committees and inform the PICAs accordingly.


      b. Name of standards

      Rules of Professional Conduct


    57. How many voting members does the standard-setting body have?
      The number of members on a PICA/Ordre Council/Bureau varies from province to province. The numbers or voting members ranges from 5 to 29. For example, the number of Council/Bureau members in the four largest PICAs/Ordre are: British Columbia (18), Alberta(12), Ontario (20) and Quebec (29).


    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.)?
      Members are elected to the PICA/Ordre Councils/Bureau by the members of the CA profession in each provincial jurisdiction. Most PICA/Ordre Councils have public members. In two PICAs the government appoints the public members. In other cases the PICA/Ordre itself selects and appoints the public members of its Council.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Members are elected to the PICA/Ordre Councils/Bureau by the members of the CA profession in each provincial jurisdiction. Most PICA Councils have public members. In two PICAs the government appoints the public members. In other cases the PICA itself selects and appoints the public members of its Council.


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


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

      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?
      The members of the CA profession in each province.


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

      The proposed wording of changes to the Rules of Professional Conduct are sent to members prior to the vote by members on whether or not to approve the proposed changes.

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

      The meetings of most, if not all, PICA/Ordre Council/Bureau meetings are private.

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

      A majority for approval by the vote of members would be determined by the bylaws and rules of each PICA/Ordre. In most cases a simple majority of members should be sufficient for the approval of a change in the Rules of Professional Conduct.

    4. other relevant due process activities

      When the CA profession recently moved to adopt new Independence standards, the Public Interest and Integrity Committee undertook extensive consultations, including public exposure of the proposed new standards, before finally recommending them to the PICA/Ordre Councils/Bureau for adoption.

      In Alberta and Quebec there is direct provincial government involvement in the creation of new ethical standards.


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


    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.

      There are no requirements which must be met by an individual who wishes to operate as an accountant.

      There are requirements which must be met by an individual who wishes to practice as a Chartered Accountant, a Certified General Accountant or a Certified Management Accountant.

      There are restrictions in some provinces on those who wish to practice public accounting. For the purpose of this response public accounting includes audits, reviews and compilations. The provinces with some type of restrictions are British Columbia, Alberta, Ontario, Quebec, Prince Edward Island, Nova Scotia and Newfoundland.

      In some provinces there are no restrictions on individuals who wish to operate as auditors. The provinces with no restricitions are Saskatchewan, Manitoba and New Brunswick.

      See the material in the response to Question 77 for detailed provincial information.


    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
      Professional examinations
      Practical experience
      Final qualifying examination
      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.
      The Qualification Committee, a committee of the CICA Board and accountable to teh CICA Board, is the relevant body which establishes the education requirements for CA students. Requirements are established in consultation with the Provincial Institutes/Ordre of Chartered Accountants which have the statutory responsibility for the education of CA students in their jurisidictions.

    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.

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

      Pursuant to the Terms of Reference (see Composition and Term), the Qualifications Committee has 8 members.

    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?

      4 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?
      Contact CICA

    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:
      This answer relates to Canadian CAs.

      Competency and experience requirements to qualify as a CA are the same throughout the country. The evaluation is a uniform national evaluation. However, there are four different delivery systems which provide the education necessary to challenge the national evaluation.


    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?


    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)
      Refer to above specific information for additional requirements or differences in licensing requirements.


    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?
      See Regimes to Control Public Accounting in Canada reproduced under Question 77.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      With effect from March 30, 2004, reporting issuers are required to file with the securities commissions annual financial statements that have been audited by an audit firm that, as of the date the firm signs the audit report, is a participant in the Canadian Public Accountability Board (CPAB) oversight program. Any audit firm that is entitled to audit Canadian reporting issuers may apply to participate in the CPAB oversight program. A foreign audit firm will have until July 19, 2004 to complete the registration process.

      For more details on registration see CPAB's website: http://www.cpab-ccrc.ca



    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 There is no legal authority which establishes the Public Sector Accounting Board as the standard setter for public sector accounting standards. However, federal and provincial governments voluntarily apply the PSAB's standards The Public Sector Accounting Board (PSAB)
      Ministry/department None
      Statutory authority/agency None
      Profit entity owned by government None
      State governments While provincial governments adhere to standards set by PSAB, in British Columbia there is legislation which requires that adherence. The Public Sector Accounting Board (PSAB)
      Local governments There is legislation in each province dealing with municipal affairs. The legislation in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario requires that local governments adhere to PSAB's standards. See details in response to question 82a. The Public Sector Accounting Board (PSAB)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      For information on obtaining legislation is British Columbia, Alberta, Ontario and Quebec see the response to question 35.

      The relevant legislation is:

      British Columbia

      Budget Transparency and Accountability Act
      (See subsections 9(1) and 9(2)(e) which provide that "9 (1) Annual public accounts for each fiscal year must be prepared in accordance with this section and with the accounting policies as established by Treasury Board. (2) The public accounts for a fiscal year must include the following: ... (e) a summary of the accounting policies of the government reporting entity as established by Treasury Board and disclosure of any material variance of those policies from generally accepted accounting principles for senior governments in Canada;."

      Local Government Act
      (See subsection 328(3) which requires that local governments prepare their financial statements in accordance with "generally accepted accounting principles for local governments.")

      Alberta

      Municipal Government Act
      (See subsection 276(1) which states that "Each municipality must prepare annual financial
      statements of the municipality for the immediately preceding year in accordance with a) the generally accepted accounting principles for municipal governments recommended from time to time by the Canadian Institute of Chartered Accountants,... ".)

      Ontario

      Municipal Act
      (See Section 1 of Regulation 277/02 to the Municipal Act which provides "A municipality shall, for each fiscal year, prepare annual financial statements for the municipality in accordance with generally accepted accounting principles for local governments as recommended, from time to time, by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants.")

      Information on obtaining the CICA Public Sector Accounting Handbook can be found in the answer to Question 43a.


      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (The Public Sector Accounting Board (PSAB))


    83. For The Public Sector Accounting Board (PSAB), 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 Public Sector Accounting Board (PSAB) establishes financial accounting and reporting standards for use by federal, provincial, territorial and local governments.

      With respect to Question 98 PSAB has been in existence for 22 years.

      PSAB is a private sector, unincorporated body originally established by the Canadian Institute of Chartered Accountants. Its activities are overseen by AcSOC. See the response to Question 87 for information on AcSOC.

      General information on PSAB can be found on the CICA's website at: http://www.cica.ca/index.cfm/ci_id/1053/la_id/1.htm


      b. Name of standards

      Public Sector Accounting Handbook.

      For the purposes of this Assessment of the Regulatory and Standard-Setting Framework the CICA is interpreting expressions such as "generally accepted accounting principles for governments" when used in Canadian legislation or regulations as referring to the standards set out in the CICA Public Sector Accounting Handbook.


    84. How many voting members does the standard-setting body have?
      12


    85. 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: The Vice-President, Standards, and the Director of Public Sector Accounting are non-voting members of the Board.


    86. 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 - profile built seeking representation from senior and local governments, including preparers, auditors and users.

      Note: Information on PSAB's members, including profiles which contain information on their employment sector, regional distribution, gender and language, can be found under the heading, Structure and Members of PSAB, on the CICA's website at: http://www.cica.ca/index.cfm/ci_id/1053/la_id/1.htm


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Accounting Standards Oversight Council (AcSOC) is an independent body established by the Canadian Institute of Chartered Accountants to oversee the activities of the Accounting Standards Board (AcSB) and Public Sector Accounting Board (PSAB). Reporting to the public and consisting of 26 prominent business and government leaders, the Council brings a broad perspective to complex issues facing standard setters, and supports the AcSB and PSAB in setting accounting standards. AcSOC's responsibilities include appointing AcSOC, AcSB and PSAB members and providing input on strategic priorities. AcSOC members, many of whom represent particular constituencies, include regulators, investors and other users, preparers and auditors of financial reports.


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


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


    90. 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)

      1,000,000

      Please enter the exchange rate used to calculate this number.

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

      0.75



    91. To what entity is the standard-setting body accountable?
      PSAB is accountable to AcSOC. (See response to Question 87 for information on AcSOC.)


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

      Proposed standards are exposed at least once.

    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)

      Approval is required from 2/3 of members.

    4. other relevant due process activities

      Extensive consultation on agenda setting.

      Note: Extensive information on PSAB's due process can be found under the heading, The Due Process for Standards Development on the CICA's website at: http://www.cica.ca/index.cfm/ci_id/1053/la_id/1.htm


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



    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 See answers to Questions 24, 28, 34 and 37. (There is corporations legislation at the federal level and in all 10 provinces. There is securities legislation in most, if not all, provincial jurisdictions.) The Accounting Standards Board (AcSB)
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      For copies of the legislation see answers to questions 25 and 34a.

      The private sector accounting standards are contained in the CICA Handbook - Accounting. Information on obtaining the Handbook can be found in the answer to question 43a.


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (The Accounting Standards Board (AcSB))


    95. For The Accounting Standards Board (AcSB), 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 Accounting Standards Board (AcSB) is a private sector, unincorporated body originally established by the CICA. Its activities are overseen by AcSOC. For information on AcSOC see the response to Question 99.

      For general information on the AcSB go to its website at: http://www.acsbcanada.org and select About AcSB.

      Note with respect to Question 101 that the CICA established its Accounting and Auditing Research Committee in 1946. In 1973 the accounting and auditing standard setters divided into separate committees. Those committees evolved into the current Accounting Standards Board (AcSB) and the Auditing and Assurance Standards Board (AASB).


      b. Name of standards



    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: The AcSB consists of a maximum of nine voting members from a variety of backgrounds. The Chair is a full-time position and the remaining members are volunteers. (Note with respect to Question 100 that the Chair is appointed for a 5 year term renewable twice and the members are appointed for three years renewable for one additional term of three years.) The Vice-President, Standards, and the Director, Accounting Standards, along with the International Accounting Standards Board's Liaison Board member for Canada, are non-voting members of the AcSB.


    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.)?
      Members are chosen in order that the AcSB has an appropriate balance of competencies and experiences to meet its objectives. The selection criteria thus include technical competencies (best person for the job), representatives from various sectors of the financial community (financial analysts, preparers, auditors, and academics) and geographical representation.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Accounting Standards Oversight Council (AcSOC) is an independent body established by the Canadian Institute of Chartered Accountants to oversee the activities of the Accounting Standards Board (AcSB) and Public Sector Accounting Board (PSAB). Reporting to the public and consisting of 26 prominent business and government leaders, the Council brings a broad perspective to complex issues facing standard setters, and supports the AcSB and PSAB in setting accounting standards. AcSOC's responsibilities include appointing AcSOC, AcSB and PSAB members and providing input on strategic priorities. AcSOC members, many of whom represent particular constituencies, include regulators, investors and other users, preparers and auditors of financial reports.


    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?
      22 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)

      1,800,000

      Please enter the exchange rate used to calculate this number.

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

      0.75



    103. To what entity is the standard-setting body accountable?
      Accounting Standards Oversight Council


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

      All accounting standards are exposed for public comment.

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

      Meetings are held in private.

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

      Two-thirds of all voting members, or five members of a panel appointed by two-thirds of all voting members.

    4. other relevant due process activities

      The AcSB and staff regularly consult with constituents on matters of interest and also prepare a Background Information and Basis for Conclusions document for exposure drafts and standards.

      Note that with respect to Question 105 the AcSB meets for 9 full days and has five 2-hour teleconferences each year.

      For more complete information on the AcSB's due process go the ACSB's website: http://www.acsbcanada.org and select About AcSB and then select AcSB Procedures (due process).


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      9 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:


    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:
      Reporting issuers must file information with the securities regulators prepared in accordance with generally accepted accounting principles. Where audited financial statements are required (e.g., annual financial statements) they must be audited in accordance with generally accepted auditing standards. Securities commission staff review filings and act on complaints regarding fraudulent, manipulative or misleading information.

      The various securities acts and regulations recognize the standards promulgated by the Accounting Standards Board of the CICA as being Canadian generally accepted accounting principles. Also, the Acts recognize the standards promulgated by the Auditing and Assurance Standards Board of the CICA as being Canadian generally accepted auditing standards. The Acts and Regulations have recently been amended to allow reporting issues (subject to various requirements) to have financial statements prepared in accordance with US or international generally accepted accounting standards and to have statements audited in accordance with international or US generally accepted auditing standards.

      CICA does not play any role in regulating securities markets, other than setting the relevant standards, as noted above.


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



    2. accounting and auditing standard-setting



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

      Securities Commission staff review filings (including audited financial statements) and act on complaints regarding fraudulent, manipulative or misleading information.



    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 (1)
      TSX Venture Exchange (1)
      Montreal Exchange (Bourse de Montréal)
      Canadian Trading and Quotation System Inc.



    Section 10B -- Stock Exchange
    Toronto Stock Exchange (1) Details


    110. For Toronto Stock Exchange (1), 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 done by the relevant provincial securities commission.

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



    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    TSX Venture Exchange (1) Details


    110. For TSX Venture Exchange (1), 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 done by the relevant provincial securities commission.

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



    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Montreal Exchange (Bourse de Montral) Details


    110. For Montreal Exchange (Bourse de Montral), 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 done by the relevant provincial securities commission.

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



    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Canadian Trading and Quotation System Inc. Details


    110. For Canadian Trading and Quotation System Inc., 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 done by the relevant provincial securities commission.

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



    3. How enforcement actions are administered.




    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?



    2. The number of members on the oversight body



    3. Its powers



    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



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



    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). The Bank Act (section 308) requires a bank's financial statements to be prepared in accordance with GAAP (the primary source of which is the CICA Handbook) except as otherwise specified by OSFI. OSFI has, from time to time in the past, set one or more accounting requirements that differ from GAAP, but currently OSFI is supportive of GAAP as the basis for reporting. More information on the Office of the Superintendent of Financial Institutions can be found on its website at: http://www.osfi-bsif.gc.ca/


    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:
      The Bank Act (section 308) requires a bank's financial statements to be prepared in accordance with GAAP (as set out primarily in the CICA Handbook) except as otherwise specified by OSFI. The Bank Act requires that the auditors of bank financial statements follow GAAS as set out in the CICA Handbook, except as otherwise required by OSFI. OSFI monitors the setting of GAAP and GAAS: the Superintendent is a member of the Auditing and Assurance Oversight Council (AASOC) that oversees AASB activities and also a member of the Accounting Standards Oversight Council (AcSOC) which oversees the activities of the Accounting Standards Board of the CICA. The Superintendent is also a member of the Council of Governors that appoints the members of the Canadian Public Accountability Board (CPAB).


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

      No formal role. As noted above, the Superintendent monitors regulation of the profession through membership in CPAB.

    2. accounting and auditing standard-setting

      As noted above, the Superintendent monitors standard setting through membership in AASOC and AcSOC. OSFI has the statutory authority to set accounting standards other than GAAP and auditing standards other than GAAS, but in recent years has relied on GAAP and GAAS for regulatory purposes.

    3. review of financial statements prepared by listed entities

      OSFIs activities focus on monitoring the banks compliance with the criteria for sound business and financial practices set by the Canada Deposit Insurance Corporation. Banks must file financial statements and other key information with OSFI, the staff of which monitor the financial condition and well being of the banks. This includes reviewing the financial statements of the banks, including Schedule A banks (the large banks) all of which are listed entities. If OSFIs monitoring activities identify a problem that may adversely affect the safety of creditors or shareholders, or the public interest, OSFI has the power to require the auditors of the financial statements of the bank to increase the scope of their audit, or perform specific procedures, or perform a special audit to examine a particular problem, as OSFI deems fit. (Section 325 of the Bank Act)

    4. enforcement of accounting, reporting and auditing requirements

      If circumstances warrant it, OSFI has the power to replace the auditor of a banks financial statements. The auditor is normally appointed by the shareholders.



    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) (same as for banks). There are also provincial regulators for provincially regulated financial institutions.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      A 1981 Act of the Canadian Parliament: The Office of the Superintendent of Financial Institutions Act. This Act states that the Superintendent shall have the powers set out in Acts governing the various types of financial institution.


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

      Same as for Banks see Section 10D

    2. accounting and auditing standard-setting

      Same as for Banks see Section 10D

    3. review of financial statements prepared by listed entities

      Same as for Banks see Section 10D

    4. enforcement of accounting, reporting and auditing requirements




    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) (same as for banks and other federal financial institutions)


    119. What is the source of Legal authority of the regulatory authority(ies)?
      A 1981 Act of the Canadian Parliament: The Office of the Superintendent of Financial Institutions Act. This Act states that the Superintendent shall have the powers as set out in Insurance Companies Act.


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

      Same as for banks, except that OSFI also has oversight of the activities of actuaries, including the valuation of actuarial liabilities for financial statement purposes. With respect to auditing standards, the AASB currently is undertaking a project to update its guidelines on the audit of actuarial liabilities of insurance enterprises. A task force of public accountants with expertise in this area will be undertaking the work. OSFI has a speaking-rights observer on that task force.

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.


    122. What is the source of Legal authority of each regulatory authority?


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



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    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.

      Chartered Accountants in Canada must belong to both the CICA and at least one Provincial Institute/Ordre of Chartered Accountants (PICA/Ordre). The PICAs/Ordre are responsible for the practice inspection program for public accountants who perform audits or other services for non-public companies. PICAs/Ordre also set the Rules of Professional Conduct for Chartered Accountants. Through cooperative efforts, these rules are essentially the same in all provinces.

      For example, for information on the practice inspection program of the Ontario Institute of Chartered Accountants (ICAO) go to: http://www.icao.on.ca//index.cfm/ci_id/104.htm



    125. Under what authority does the organization conduct the program of quality assurance review?
      The PICAs/Ordre are set up under the laws of each province. In some provinces, the work of the PICAs/Ordre relates to provisions in a public accountancy act.

      See the response to Question 55a for website addresses where the governing statutes of the British Columbia, Alberta, Ontario and Quebec Institutes/Ordre can be found.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Independent contractors with the required expertise and training perform the inspections. Each PICA/Ordre has a staff person responsible for supervision of the inspection program.



    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.



    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?


    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.)?



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


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


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

      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?



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



     

     

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