Chartered Professional Accountants of Canada

The Canadian Public Accountability Board (CPAB) and the provincial accounting bodies of CPAs, as the entities responsible for quality assurance (QA) in the jurisdiction, have adopted and implemented QA review systems that are in line with SMO 1 requirements. The profession has established a Public Trust Committee (PTC) to promote the adoption of common requirements by the provincial accounting bodies' QA review systems. The PTC monitors and reviews developments related to best practices in QA review processes through its Practice Inspection Program Standing Committee (PIPSC).

CPA Canada reports that the PIPSC has developed recommendations to achieve best practices in practice inspections that meet or exceed SMO 1 requirements. The PIPSC has also collaborated with CPAB to promote ongoing and continuing enhancement to the QA review system in line with international developments.

CPA Canada is also engaged in disseminating updates on new and revised, relevant standards issued by the IAASB (e.g., concerning quality management), participating in public consultations, and providing technical support to its members on an ongoing basis.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 1 obligations and is committed to continuous improvement.

Current Status: Sustain

CPA Canada states that the education and training requirements for professional accountants in Canada meet or exceed the latest IES requirements. The CPA Canada and the provincial accounting bodies collaborate through the profession's Public Trust Committee to consider the initial and continuing professional education development (IPD and CPD) requirements and to consider the International Education Standards (IESs); the provincial accounting bodies of CPAs set the IPD and CPD requirements that are adopted in each province.

The profession has two education committees: the Professional Education Management Committee, which coordinates the IPD requirements, and the Professional Learning and Development Strategy Committee, which coordinates the CPD requirements and CPD activities. The committees monitor international education developments to consider modifications to the profession’s requirements.

There is an ongoing cyclical process for reviewing educational requirements. Detailed recommendations have been established for CPD requirements aligned with the IESs that provincial accounting bodies have implemented as appropriate for their jurisdictions. Canadian universities generally look at the CPA Competency Map rather than international standards when deciding on program content.

The CPA Canada has developed a Canadian CPA Certification Program delivered by the provincial accounting bodies or through post-secondary programs accredited by the profession. The CPA Canada states that the program meets the standards established in the IES.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 2 obligations and is committed to continuous improvement.

Current Status: Sustain

The CPA Canada has no direct authority for audit standard-setting in Canada but uses its best endeavors to support adopting auditing standards issued by the IAASB. The CPA Canada provides funding, staff, and other resources to support the Auditing and Assurance Standards Board (AASB), an independent body responsible for setting auditing standards.

CPA Canada maintains translation processes (from English to French) for ISA and has a translation agreement with IFAC. It publishes the CPA Canada Handbook–Assurance in English and French. When the IAASB has issued an exposure draft related to ISAs, the AASB issues a corresponding exposure draft informing stakeholders that it proposes to adopt the ISAs as a Canadian Auditing Standard (CAS). CPA Canada translates all proposed ISAs for inclusion in the AASB's exposure draft.

The CPA Canada develops and makes available various non-authoritative materials to assist practitioners in implementing CAS, such as the Professional Engagement Guide (PEG) and the Quality Management Guide (QMG). CPA Canada updates these publications on a timely basis and provides guidance related to CAS for small and medium-sized practices. In addition, CPA Canada includes CAS updates in its initial and continuing professional education programs and exams.

CPA Canada also participates in the international standard-setting process through its representatives serving on the IAASB. It also actively participates in various IAASB task forces, working groups, and committees.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

The provincial accounting bodies of CPAs have the legislative authority to set ethical requirements for their members in accordance with each provincial Chartered Professional Accountants Act or other professional legislation. The provincial accounting bodies collaborate through the profession's Public Trust Committee to develop and recommend standards for adoption in each province.

The CPA Canada reports that the ethical requirements of the harmonized Canadian CPA Code of Professional Conduct (CPA Code) are under active consideration to more closely align with the IESBA Code of Ethics unless differences are required regarding Canadian laws, regulations, or public interest. The 2023 IESBA Code, including provisions not yet in effect, is being considered and the IESBA sustainability developments are being monitored for consideration.

Through the Public Trust Committee, the CPA Canada participates in the international standard-setting process by disseminating and consulting on IESBA exposure drafts, gathering comments and then preparing and submitting a response to the IESBA. Additionally, the Public Trust Committee has established an Independence Standing Committee to review the IESBA independence requirements in order to identify any necessary changes to the harmonized CPA Code for recommendation and consideration of adoption by the provincial accounting bodies in their respective codes of conduct.

The CPA Canada and the provincial accounting bodies have long demonstrated their commitment to work with the IESBA such as through submissions and attendance at consultations, participation at the National Standard Setters, contributions to the IESBA's COVID-19 Working Group and leadership of many working groups and task forces.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 4 obligations and is committed to continuous improvement.

Current Status: Sustain

As it has no legal responsibility for adopting public sector accounting standards, CPA Canada uses its best efforts to promote adoption and implementation of strong public sector accounting and reporting standards for use by governments and other public sector entities in Canada. It does so by providing financial and human resources to support the work of the Public Sector Accounting Board (PSAB). The PSAB has adopted accrual standards based on the IPSAS.

PSAB participates in the international standard-setting process by responding to exposure drafts and pronouncements issued by the IPSASB. CPA Canada provides direct financial support to the IPSASB, matching contributions by the Canadian government. CPA Canada also promotes the adoption of IPSAS through other networks it participates in, such as the Confederation of Asian and Pacific Accountants and the Institute of Chartered Accountants of the Caribbean.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.

Current Status: Sustain

The provincial accounting bodies of CPAs have the legislative authority to carry out investigative and disciplinary (I&D) processes for their members in accordance with the respective provincial Chartered Professional Accountants Acts. The provincial accounting bodies collaborate through the Public Trust Committee to develop and recommend I&D processes that are as harmonized as possible for adoption in each province.

The Public Trust Committee actively promotes the adoption of I&D processes that are aligned with SMO 6 requirements. The CPA Canada states that the provincial accounting bodies have demonstrated their commitment to support and adhere to the requirements of SMO 6. The Public Trust Committee, through its Conduct and Discipline Standing Committee, reviewed the provincial bodies' I&D systems and processes, used the IFAC SMO 6 self-assessment tool, and concluded that SMO 6 is being complied with in accordance with provincial legislative and regulatory requirements.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 6 obligations and is committed to continuous improvement.

Current Status: Sustain

With no direct responsibility for adopting private sector accounting standards in Canada, the CPA Canada uses its best endeavors to support the implementation of IFRS, which is adopted for publicly accountable entities.

The CPA Canada provides funding, staff, and other resources to support the Accounting Standards Board (AsCB). When the IASB has issued an exposure draft, the AcSB Chair approves a corresponding "wraparound" exposure draft issued as part of the Board's endorsement process. The Board asks stakeholders and its advisory committees for input on whether the proposed new or amended IFRS Standard is appropriate for application in Canada.

The CPA Canada and provincial accounting bodies have developed an ongoing program of courses and conferences to assist its members with IFRS implementation and provide non-authoritative implementation guidance and tools to support them in consistently applying accounting standards. The CPA Qualification, CPA Competency Map, and examination syllabus have all included an appropriate level of knowledge of IFRS among their requirements. CPA Canada publishes the IFRS guidance in English and French under a license from the IFRS Foundation in Part I of the CPA Canada Handbook.

Additionally, the AcSB has an IFRS Discussion Group (IDG), which considers issues arising from the application of IFRS and, when appropriate, makes recommendations to the AcSB to refer particular issues to the IASB.

CPA Canada has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement.

Current Status: Sustain