By-Law Four, Code of Ethical Principles
and Rules of Conduct and the Public Accounting Licensing Regulations 
Preamble
The following sets out CGA Ontario’s regulations for public accounting licensing.
These regulations were developed pursuant to the Standards of the Public Accountants
Council for the Province of Ontario, which a designated body must meet in
order to be authorized to license and govern the activities of its members as public
accountants.
(1) In these regulations,
- “Act” means the Public Accounting Act, 2004 and words defined in the Act
have the same meaning when used in these regulations;
- “Association” means the Certified General Accountants of Ontario;
- “capabilities” means the attributes held by a licensing candidate or licensee that
enables the licensing candidate or licensee to perform their role, including, but
not limited to, content knowledge, technical, functional, and behavioural skills,
intellectual abilities including professional judgment, and professional values,
ethics, and attitudes;
- “chargeable hours” means hours normally chargeable to clients of a public accounting
practice, provided that work of a routine clerical nature shall not be included
in the computation of chargeable hours;
- “competency” means the demonstrated ability to perform relevant roles or tasks to
the required standard, which ability may be assessed by a variety of means, including
but not limited to work place performance, work place simulations, and written and
oral tests of various types;
- “credit course” means a course in the CGA Program of Professional Studies, a course
that is recognized for credit towards the completion of an academic degree that
is awarded by a degree-granting institution of higher education, or a course that
is recognized for credit towards the completion of a graduate diploma that is awarded
by a university;
- “credit hour” means each classroom hour per week of a one-term course at a recognized
degree-granting institution of higher education that is recognized as a credit towards
an academic degree or university graduate diploma; a one-term course typically constitutes
three credit hours;
- “degree granting institution of higher education” means a post-secondary academic
institution that is a member of the Association of Universities and Colleges of
Canada or the Association of Canadian Community Colleges or the equivalent national
association in another country that is fully accredited by the appropriate regulatory
authorities in Canada or the other country to grant degrees, and is recognized by
the authorized designated body; new universities or colleges not yet eligible for
membership in the associations noted above may also be considered if they are established
to the satisfaction of Public Accountants Council to be substantially equivalent
to an institutional member of such associations;
- “licence” means a licence to practise public accounting that has been granted by
an authorized designated body in accordance with the provisions of the Act;
- “licensee” means a member of an authorized designated body or professional corporation
who has been granted a licence or certificate of authorization to practise public
accounting in accordance with the provisions of the Act;
- “licensing candidate” means a person who is registered with the Association in the
public accounting training program (termed “student” in Standards of the Public
Accountants Council);
- “mature licensing candidate” means a person who is over the age of 25 and has at
least three years of relevant accounting experience (termed “mature student” in
Standards of the Public Accountants Council);
- “partnership” means a partnership of two or more members of an authorized designated
body who have been granted a licence to practise public accounting in accordance
with the provisions of the Act;
- “Public Accountants Council Handbook” means the document containing the prescribed
professional competency requirements for public accounting and the prescribed practical
experience requirements for practising public accounting adopted on April 17, 2006,
as the same may be amended from time to time;
- “public representative” means a member of the public who is not a member, student,
or employee of the Association or its affiliates, or of another designated body,
and who does not have any obligation, commitment, relationship, or interest that
could conflict with or may be perceived to conflict with his or her duties to or
the interests of the Association.
(2) These regulations recognize that:
- the Association’s public accounting program of studies is comprised of all
mandatory components of the certification program, along with other components that
may be completed pre- or post-certification;
- in the case of mature licensing candidates, certain post-secondary education or
pre-licensing education and study may be recognized as being equivalent to an undergraduate
degree from a recognized degree-granting institution of higher education;
- the post-secondary education, pre-licensing education and study, and pre-licensing
experience requirements, and examination(s) or evaluation(s) do not have to be completed
in the order shown in these regulations; provided, however, that the education or
credit course shall be completed before the relevant examination(s) or evaluation(s);
- the CGA Program of Professional Studies may be gained alongside general education
while pursuing a degree from a recognized degree-granting institution of higher
education or may be obtained in advanced study after completing such a degree;
- the Association’s public accounting training program represents the required
practical experience for licensing; this practical experience may be obtained before,
during, or after the Association’s public accounting program of studies.
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Objective
The Association’s post-secondary education requirements ensure that licensees have
attained the appropriate level of education and learning of the intellectual and
personal skills necessary to become public accountants, and have attained a sufficient
foundation in the core areas of study that are relevant to public accounting.
(1) The post-secondary education requirements for the Association’s licensing candidates
consists of a combination of:
- a four-year undergraduate degree comprising 120 credit hours or equivalent from
a recognized degree-granting institution of higher education;
- the Foundation Studies and Advanced Studies course requirements described in Section2(2);
and
- the PACE level professional program in public accounting, the Orientation to Public
Accounting Licensing program, and the public accounting seminars described in Section
3.
(2) The prescribed courses in the Foundation Studies and Advanced Studies levels
include the following:
- FA1 to FA4: financial accounting (introductory, intermediate, and advanced);
- MA1 and MA2: introductory and advanced cost and management accounting;
- AT1: accounting theory;
- AU1: introductory auditing (including introductory auditing theory and computer
auditing);
- TX1: personal and corporate taxation;
- MS1: management information systems;
- EM1: economics;
- LW1: business law;
- FN1: introductory finance and financial management;
- QU1: quantitative studies;
- CM1: business communications
- BC1: business case (financial and managerial accounting, finance and financial management,
management information systems, and business communications); and
- BC2: business case (auditing and business communications).
A minimum grade of 65 per cent or the equivalent alphabetic or other grade indicator
must be obtained in each of these prescribed courses. Credit courses from a degree-granting
institution of higher education are acceptable for transfer credit to meet these
prescribed course requirements.
(3) The Association regularly reviews the transfer credit courses and degree program
requirements of each degree-granting institution of higher education attended by
its licensing candidates to determine whether the degree-granting institution of
higher education meets, and continues to meet, the content, learning methods, and
assessment methods prescribed by the Association for purposes of fulfilling the
degree requirements set out in Section 2(1) and, if so, which credit courses meet
the content, learning methods, and assessment methods prescribed by the Association
for the purposes of receiving transfer credit to fulfill the course requirements
set out in Section 2(2).
(4) Despite Section 2(1), the Association may recognize for the purposes of entry
into its public accounting training program:
- transfer credits from a co-operative education or other degrees in progress at a
degree‑granting institution of higher education in Canada; the conferral of a degree
remains a mandatory requirement prior to licensing;
- membership in good standing in an accounting body in Canada or another country;
- qualification for mature licensing candidate or degree-equivalent status where the
Association is able to demonstrate that the intellectual and personal skills of
the applicant have been developed to the required level in other ways.
(5) The Association may, in respect of applicants who are members in good standing
of an accounting body in Canada or in another country and have been accepted for
entry into the public accounting training program of the authorized designated body
pursuant to Section 2(4)(b), grant exemptions from, or reductions of, any one or
more of the requirements but shall not grant exemption to any such applicant from
the evaluations for licensing prescribed in Section 6.
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Objective
Pre-licensing education and study requirements ensure that licensees have completed
sufficient professional studies to develop the necessary higher-order cognitive
skills and have attained sufficient integration of their foundation-level studies
of the core areas relevant to public accounting.
(1) The Association’s public accounting program of studies and public accounting
training program prescribe an integrated program of study, practical experience,
and professional education that ensure that licensing candidates develop and demonstrate
their attainment of the CGA Ontario Public Accounting Competencies, which are substantially
equivalent to the specific capabilities and competencies at the levels of proficiency
that entry-level public accountants must possess, as prescribed in the Public Accountants
Council Handbook.
(2) All licensing candidates are required to attain proficiency to the level prescribed
in the CGA Ontario Public Accounting Competencies as detailed in Appendix Part I:
CGA Ontario Professional Competency Requirements for Public Accounting. These
competencies are substantially equivalent to those set out in the Public Accountants
Council Handbook and include the following:
- Assurance: competencies related to statutory and regulatory audit assurance requirements
as well as broader validation and assurance services;
- Financial accounting and reporting: competencies related to ensuring the reliability
of financial information through adherence to generally accepted accounting principles;
- Performance measurement: competencies related to the evaluation, development, and
interpretation of an entity’s financial and non-financial information that measures
and enhances an entity’s organizational performance;
- Organizational effectiveness, control, and risk management: competencies related
to the evaluation and development of an entity’s ability to enhance its decision
making and maximize the organizational performance, including its governance, structure,
policies, systems, and resources;
- Finance: competencies related to financial management, financial strategy, and financial
decision making;
- Taxation: competencies related to taxation planning, compliance, and reporting for
various entities; and
- Information and information technology: competencies related to the evaluation of
an entity’s information needs and the development and use of information technology
in achieving its strategic and operational goals and objectives.
(3) The competency requirements described in Section 3(2) are integrated with the
public accounting capabilities as detailed in Appendix Part I: CGA Ontario
Professional Competency Requirements for Public Accounting, and include the
following:
- ethical behaviour and professionalism (e.g. integrity, protecting the public interest,
with a particular focus on the standards pertaining to services where third party
assurance is provided);
- personal attributes (e.g. maintaining and demonstrating competence, applying strategic
thinking, developing innovative ideas); and
- professional skills (e.g. creation, analysis, synthesis, and evaluation of information,
solving problems, and making decisions).
(4) Specific pre-licensing education and study requirements include:
- the PACE Level of the CGA Program of Professional Studies, which must include:
- AU2: advanced auditing (including auditing theory and computer auditing);
- TX2: advanced taxation;
- PA1: first capstone professional applications exam focusing on integration and application
of knowledge and judgment;
- PA2: second capstone professional applications exam focusing on integration and
application of knowledge and judgment; and
- the Orientation to Public Accounting Licensing program, which includes:
- Practice Administration seminar;
- Review Engagements seminar;
- Audit seminar;
- GAAP & GAAS Review and Update seminar; and
- Ethics Seminar.
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Objectives
Pre-licensing experience requirements ensure that candidates complete a sufficient
period of relevant, professional accounting experience that includes sufficient
public accounting experience to permit candidates to demonstrate that they have
acquired the professional knowledge, skills, values, ethics, and attitudes required
to competently perform the work of an entry-level public accountant.
Pre-licensing experience requirements also prepare candidates for the environment(s)
in which they expect to practise public accounting.
(1) Each licensing candidate must complete a minimum period of 30 months of full-time
structured and monitored practical experience in public accounting and other accounting
services acquired in an approved training office under the supervision of a licensee
as prescribed in Appendix Part II: CGA Ontario Practical Experience Requirements
for Practising Public Accounting.
(2) A licensing candidate’s pre-licensing experience requirements must be of sufficient
breadth and depth of experience and of appropriate nature and quality in respect
of all of the public accounting services defined in the Act. The pre-licensing experience
requirements must also seek to develop in licensing candidates the core competencies
of an entry-level public accountant and their ability to perform the requisite roles
and tasks to the proficiency levels prescribed in Appendix Part I: CGA Ontario Professional
Competency Requirements for Public Accounting.
(3) A licensing candidate’s pre-licensing experience shall be structured to expose
the licensing candidate to a variety of professional engagements and special assignments
in public accounting services in one or more related competencies through engagements
performed for a variety of clients. The licensing candidate is also required to
engage in ongoing discussions with licensee mentors and senior client executives
in order to develop an understanding of professional responsibilities.
(4) Each licensing candidate shall fulfill, within the 30-month training period
referred to in Section 4(1), a minimum of 2,500 chargeable hours in public accounting
and other accounting services, which shall include:
- a minimum of 1,250 chargeable hours in assurance work in a wide range of applications
within which the licensing candidate must have spent:
- a minimum of 625 chargeable hours in financial statement audit procedures in accordance
with the CICA Handbook – Assurance; and
- a minimum of 100 chargeable hours of review procedures in review and other assurance
engagements, in accordance with the CICA Handbook – Assurance; and
- a minimum of 100 chargeable hours in taxation matters involving providing advice
on corporate or personal income tax matters associated with auditing and review
engagements and the preparation of the related tax returns.
(5)
- A minimum of 50 per cent of each of the chargeable hour requirements set out in
Section 4(4)(a) and (b) must be gained alongside or after the public accounting
program of study. The balance of these requirements may be gained in the five years
immediately prior to commencing a public accounting program of study provided the
experience is verifiable.
- Verifiable experience gained in the five years immediately prior to commencing a
public accounting program of study may also be taken into account in satisfying
the pre-licensing experience requirements of Section 4 other than those specified
in Sections 4(4)(a) and (b).
For the purpose of Sections 4(5)(a) and (b), “verifiable experience” means experience
in professional accounting verified by a licensee to the satisfaction of the licensee’s
licensing body. Where the licensee’s licensing body is not the Association and the
experience of the licensing candidate is not deemed verifiable by the licensee’s
licensing body, that body must provide a full report on its assessment of the experience
and the reason for its decision to the Association.
(6) Practical experience gained in environments other than an approved training
office and under the supervision of other than licensees can satisfy the pre-licensing
experience requirements other than those specified in Sections 4(4)(a) and (b) provided
that the licensing candidate can demonstrate that the work environment and the competencies
and capabilities acquired within the work environment are equivalent to those prescribed
in Appendix Part II: CGA Ontario Practical Experience Requirements for Practising
Public Accounting.
(7) The Association requires that the appropriate licensee in the approved training
office sign a declaration that a licensing candidate has completed the duration
and the chargeable-hour requirements and that the licensing candidate has been exposed
to a reasonable cross-section of the competencies set out in Appendix Part II: CGA
Ontario Practical Experience Requirements for Practising Public Accounting.
(8) Within the training period referred to in Section 4(4), the Association’s public
accounting training program:
- recognizes that some competencies may be attained and assessed in an educational
setting, whereas others are better attained and assessed through practical experience
that includes public accounting experience;
- requires progressive levels of responsibility for the engagement and the full file,
and increasing complexity in assignments;
- requires an integrated application of competencies
relevant to public accounting;
- reflects the environment in which an entry-level public accountant expects to practise
public accounting;
- requires the demonstration of teamwork and integration of knowledge and judgment
in a professional setting;
- encourages more frequent assessment of one or more competencies over a period of
time rather than at a point in time, to provide regular feedback to candidates as
they increase competence; and
- requires the demonstration of professional communication skills and competencies
that are relevant to a public accountant.
(9) Each licensing candidate is required to demonstrate through direct work place
competency assessment that they have acquired and integrated the fundamental professional
knowledge, skills, values, ethics, and attitudes required to competently perform
the work of a public accountant as prescribed in Appendix Part II: CGA Ontario Practical
Experience Requirements for Practising Public Accounting. This requirement
includes assessment and verification of a licensing candidate’s demonstration of
these competencies to be performed by an approved assessor, as specified in Section
4(10).
(10)The Association requires that its licensing candidates’ pre-licensing experience
and demonstration of public accounting competence be assessed and verified by an
approved assessor who is:
- in the case of those competencies that must be demonstrated and assessed in a public
accounting context, a licensee or a public accountant qualified in another Canadian
jurisdiction who has sufficient knowledge of the candidate’s work through a supervisory
or review capacity; or
- in the case of those competencies that may be demonstrated and assessed in a non-public
accounting context, a designated professional in a relevant discipline who has sufficient
knowledge of the candidate’s work through a supervisory or review capacity.
(11)The Association requires that all approved assessors certify that licensing
candidates have demonstrated proficiency in all competencies that the approved assessor
has verified and that the approved assessor meets the requirements of Section 4(10)(a)
or 4(10)(b), as applicable.
(12)An approved assessor under Section 4(10)(a) must be a licensee in good standing
of an authorized designated body or a public accountant in another Canadian jurisdiction
who has been assessed by the authorized designated body to be equivalent.
(13)The assessment of a candidate’s demonstration of the public accounting competencies
must be supported by sufficient appropriate documentation to enable the Association
to verify that the practical experience requirements for licensing have been met.
Such documentation shall be submitted by the licensing candidate to the Association
as part of the licence application.
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(1) The Association requires approved training offices to:
- be engaged in the practice of public accounting as defined in the Act;
- be periodically inspected by an authorized designated body to ensure that:
- each licensing candidate employed by the office would be able to fulfill the experience
requirements prescribed in the Public Accountants Council Handbook;
- the office adheres to the Standards of the Public Accountants Council for the
Province of Ontario; and
- the office provides a diverse mix of assignments to ensure well-rounded training
for licensing candidates;
- satisfy the Association that the requirements of Section 5(1)(b) have been fulfilled;
and
- be approved by the Association for the training
of licensing candidates to provide public accounting services as defined in the
Act.
(2) Each approved training office is required to give each licensing candidate in
its employ such practical experience and instruction and to offer such training
opportunities as are necessary to enable the licensing candidate to acquire the
competencies and capabilities required to provide the public accounting services
set out in the Act.
(3) Each approved training office is required to maintain and to submit to the Association
for review records showing, in reasonable detail, the disposition of the time spent
by each licensing candidate while engaged in public accounting services and the
type of work allocated to the licensing candidate. Such records shall include the
chargeable hours in any of the applications specified in Section 4(4) and shall
be submitted to the Association at such time as the licensing candidate terminates
employment with the office or has completed the experience requirement.
(4) At the time of the mandatory, cyclical practice inspection required under Section
9, or at least every three years in the case of training offices who report to another
authorized designated body, the Association shall conduct a reappraisal of each
training office to determine if the office should continue to be an approved training
office.
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Objective
Examinations and evaluations that form part of the Association’s licensing requirements
assess the candidate’s technical knowledge and higher-order skills, as well as the
candidate’s ability to demonstrate and integrate the competencies that are relevant
to public accounting.
(1) Licensing candidates shall successfully complete the Association’s pre-licensing
examinations in Professional Applications 1, Professional Applications 2, Auditing
2, and Taxation 2, which assess their acquisition of the competencies and capabilities
to practise public accounting at the proficiency levels prescribed for entry-level
public accountants in Appendix Part II: CGA Ontario Practical Experience Requirements
for Practising Public Accounting.
(2) The pre-licensing examinations established by the Association are rigorous and
competency‑based, using essay, short-answer, and/or multiple choice formats that
substantially rely on simulations or case studies to test both technical competency,
higher-order cognitive skills and the public accounting capabilities prescribed
in Sections 3(2) and (3) and also:
- test knowledge across multiple subjects and the competencies prescribed in Appendix
Part I: CGA Ontario Professional Competency Requirements for Public Accounting;
- emphasize the ability to use knowledge and to exercise professional judgment appropriate
to an entry-level public accountant;
- be integrative in nature; and
- be based on a process that is fair, equitable, valid, and reliable.
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7. Licensing
of persons admitted to membership from accounting bodies in other jurisdictions
Prior to issuing a licence to a person who is permitted to practise as a public
accountant in another jurisdiction, the Association shall ensure that the candidate
is a member in good standing of a CGA Affiliate or is a member in good standing
of an accounting body with a mutual recognition agreement and satisfies the requirements
for practicing public accounting in Ontario.
To qualify for a licence, a member must demonstrate to the Association’s satisfaction
that the member has satisfied the licensing requirements as prescribed in Sections
2 through 6 of the Public Accountant’s Council Standards and all Association by-laws
or policies adopted by the Association.
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8. Mandatory
post-licensing public accounting experience and continuing professional development
Objective
Post-licensing experience and continuing professional development ensures that licensees
maintain current public accounting competence.
(1) A licensee shall not be eligible to renew a licence, if, within the immediate
past five years, the licensee has not engaged in the practice of public accounting
in a substantive way. Section 15(1) sets out the requirements respecting the issuance
of a new licence to such a member.
(2) All licensees must complete a minimum amount of continuing professional development
consisting of at least:
- 20 verifiable hours annually; and
- 120 hours in every rolling three-year period, at least 60 of which are verifiable.
(3) Each licensee must fulfill and report to the Association on compliance with
the minimum annual and periodic continuing professional development requirements
prescribed in Section 8(2).
(4) The consequences arising from a licensee’s failure to comply with the continuing
professional development requirements or failure to file annually a report of compliance
with the requirements include referral to the Association’s disciplinary process
and, where circumstances warrant, suspension or revocation of the member’s licence.
(5) The mandatory continuing professional development requirements permit each licensee
to determine whether the content of the activity contributes to his or her own personal
professional development, but the licensee is required to base such determination
on ensuring that the activity:
- is quantifiable, meaning it must be specifically identifiable and be able to be
expressed in terms of a specific time requirement;
- is directly related to the competencies needed to practise public accounting;
- is relevant to the licensee’s current professional needs and/or longer-term career
interests as a public accountant; and
- contains significant intellectual or practical content.
(6) For the purposes of Sections 8(2)(a) and (b), “verifiable” means that the learning
can be objectively verified by a competent source.
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9. Practice
inspections of public accountants
Objective
Mandatory practice inspection programs serve to protect the public by maintaining
accountability and ensuring compliance with ethical and professional standards.
Practice inspections also provide a constructive and educational environment in
which a public accountant can ensure their processes and procedures are consistently
being maintained at the highest standards.
(1) All licensees engaged in the practice of public accounting are subject to the
Association’s system of mandatory, cyclical practice inspection that includes on-site
inspections by the Association’s practice inspectors to ensure maintenance of an
appropriate level of professional standards.
(2) Every licensee that issues, or seeks to be authorized to issue, audit reports
on financial statements of any reporting issuer as defined under the Securities Act
must be registered with the Canadian Public Accountability Board, to be subject
to the rules and oversight of the Board and to be inspected by the Board in respect
of the performance of such engagements.
(3) The Association’s licensee practice inspection process:
- requires a practice inspection to be conducted within twelve months of inception
of the practice;
- involves the testing of quality control procedures;
- involves the review of current auditing and review engagement files and current
files for compilation services;
- contains sufficient procedures to ensure careful assessment of the nature of the
types of engagements and the types of clients of the licensee and to determine key
areas of risk in respect of each
- retains the services of inspectors having senior experience in public accounting
who are independent of the particular licensee subject to inspection
- provides the practice inspection system with the power to:
- compel a licensee to produce working paper files, books, documents, or other materials;
and
- make complaints of professional misconduct where warranted, including in situations
where the licensee fails to co-operate in the inspection of the practice;
- adopts procedures to ensure consistency in the conducting of inspections and of
inspector reporting standards, including review of an inspection report by a senior
inspector and a final review by a committee comprised of licensees; and
- verifies that every licensee that issues or seeks to be authorized to issue audit
reports on financial statements of any reporting issuer as defined under the Securities
Act is registered with the Canadian Public Accountability Board.
(4) The practice inspection system is based on selection of licensees within a three-year
cycle of inspection.
(5) The by-law provisions associated with practice inspections are outlined in By-Law
Four, Article 9, Section 4.
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10. Generally
accepted accounting principles and generally accepted assurance standards
The requirement for public accountants to follow generally accepted accounting principles
and generally accepted assurance standards is fundamental to ensure a common baseline
of technical standards. As such, licensees are expected, at a minimum to adhere
to the principles and guidelines as set out in the CICA Handbook – Accounting
and the CICA Handbook – Assurance in accordance with generally accepted standards
of practice of the public accounting profession.
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11. Rules
of professional conduct
Rules of professional conduct set out ethical principles and provide standards of
acceptable behaviour that distinguish the accountancy profession in its responsibility
to act in the public interest. Public accountants are expected to adhere to the
Associations By-Laws and Code of Ethical Principles and Rules of Conduct.
Details regarding rules of professional conduct are contained in the Association’s
Code of Ethical Principles and Rules of Conduct.
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Objective
Disciplinary processes and procedures are required to ensure the accountability
of licensees who fail to maintain high professional and ethical standards. The Association’s
disciplinary process is:
- responsive to its mandate to protect the public;
- fair and objective in perception and practice;
- relevant to current practices and realities;
- easily understood by the public, licensees, and candidates; and
- rigorous, efficient, and effective.
The by-law provisions associated with the complaints process with respect to matters
dealt with by the professional standards and competence committee or the discipline
committee are contained in the Association’s By‑Law Four, Article 9.
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The by-law provisions associated with the prosecution and adjudication procedures
with respect to the Competence Tribunal and the Professional Conduct Tribunal and
the resolution of a complaint subject to ratification by a three-person tribunal,
as proposed by either the professional standards and competence committee or the
discipline committee, are contained in the Association’s By-Law Four, Article 9.
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The regulatory provisions with respect to the appeals process and the Appeals Tribunal
are contained in the Association’s By-Law Four, Article 9.
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15. Rules governing issuing a new licence to a former licensee
Objective
Prior to issuing a new licence to a former licensee, an authorized designated body
must ensure that the candidate is competent, of good character, and suitable to
carry on the practice of public accounting. The by-law provisions for a public accounting
licence are contained in By-Law Four, Article 16, and in Article 2 of the By-law
contains provisions with respect to a determination of good character in circumstances
where the public accounting licensing board refers the matter to the admissions
standards committee for that purpose.
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16. Mandatory professional liability insurance
Objective
Professional liability insurance ensures that licensees and firms engaged in the
practice of public accounting are able to adequately meet any claims made against
them arising out of their work.
Details regarding mandatory professional liability insurance for licensees are contained
in the Association’s Code of Ethical Principles and Rules of Conduct, R516,
in By-Law Four, Articles 3 and 15, and in the CGA-Canada National Policy.
Specifically, the mandatory professional liability insurance requirements shall
embody the following principles and processes with regard to licensed public accounting:
(1) CGA Ontario requires all licensees to maintain, and provide satisfactory proof
of maintaining professional liability insurance coverage.
(2) CGA Ontario’s requirements for insurance includes:
- Minimum coverage limits per claim and, in aggregate per policy period;
- Maximum allowable deductibles; and
- The minimum period for which insurance is to be maintained after a licensee retires
or leaves practice.
(1) In setting requirements for insurance, CGA Ontario must consider and address,
to the extent possible:
- Different levels of risk based on practice size, number of principals, or other
similar factors;
- The magnitude of claims reasonably anticipated to arise; and
- The coverage reasonably available in the marketplace.
(2) CGA Ontario may, as an exception, permit self-insurance in cases where sufficient
professional liability coverage is not reasonably available in the marketplace due
to the size of the firm or practice and its risk exposure. Such an exception may
be permitted only on the condition that the firm or practice set aside assets at
least equal in value to the self-insured amount.
(3) CGA Ontario has specified in its bylaws and in the Code of Ethical Principals
and Rules of Conduct the adverse consequences arising for a licensee, partnership
or professional corporation who fails to comply with the mandatory professional
liability insurance requirements and the consequences for failure to comply thereto
which includes the suspension or revocation of a licence or authorization to practice
public accounting, as applicable.
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17. Principles of governance
relating to the licensing and governing the activities
of members of the Association as public accountants
Objective
Governance principles reflect the requirement of the Association to design and implement
appropriate policies and procedures for public accounting within a framework that
is fair and equitable to licensees and candidates, while keeping at the forefront
the Association’s mandate to protect the public. The by-law provisions associated
with a public accounting licence are outlined in By-Law Four, Article 16.
(1) The Association publishes a roll of licensed public accountants on its website
in a publicly accessible and freely available manner that is open for public inspection
and shall provide such information to the Public Accountants Council for its roll.
(2)The Association publishes an annual report on its licensure activities on its
website in a publicly accessible and freely available manner and makes such report
available to the public upon request and to the Public Accountants Council.
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Objective
Disclosure requirements ensure that authorized designated bodies continually maintain
and provide relevant and reliable information to the Public Accountants Council
to carry out its oversight duties with respect to the regulation of public accounting,
and that such information is also made accessible to the public as necessary to
protect the public interest.
(1) The Association maintains sufficient appropriate documentation to support its
ongoing compliance with these standards. Such documentation shall be made available
to the Public Accountants Council within a reasonable time frame upon request as
part of the review process outlined in the Act.
(2) The Association requires its licensees to consent and to be deemed for all purposes
to consent to the release of any and all information and documentation by a licensee
to the Association and to the Public Accountants Council insofar as the information
is necessary to enable the Association and the Public Accountants Council to carry
out their respective responsibilities and functions pursuant to these regulations,
the Standards of the Public Accountants Council for the Province of Ontario, and
the Act.
(3) The Association requires a licensee, when providing any accounting services
in respect of a financial statement, or of any part of a financial statement or
any statement attached to a financial statement, to disclose in any written statement,
opinion, or report, the fact that the person is licensed as a public accountant
by use of the term “Licensed Public Accountant” following the name or initials of
their accounting designation(s).
(4) The Association requires a professional corporation that holds a certificate
of authorization, when providing any accounting services in respect of a financial
statement, or of any part of a financial statement or any statement attached to
a financial statement defined in the Act, to disclose in any written statement,
opinion, or report, the fact that the professional corporation holds a certificate
of authorization by use of the words “Authorized to practise public accounting by
the Certified General Accountants Association of Ontario”.
(5) Within 120 days after the end of the Association’s financial year, the Association
shall forward a copy of its annual report for that year to the Minister and to the
Public Accountants Council. The Association also posts its annual report on a publicly
accessible and freely available section of its website.
(6) The Association prepares a supplemental report as at and for each 12-month period
ended October 31 (with comparative figures for at least the three preceding years
or period) and files the same with the Public Accountants Council on or before January
1 in each year. In the case of the first supplemental report, it shall cover the
period from the date of Public Accountants Council’s recognition of the Association
as an authorized designated body to October 31 in the relevant year. This report
is published in a format that is readily available to licensees and to members of
the public, including on a publicly accessible and freely available section of the
Association’s website. The report shall contain at least the following information:
- the number of total licensees;
- the number of new licences granted during the period to which the supplemental report
relates to:
- persons who are permitted to practise public accounting in another jurisdiction
in Canada;
- persons who are permitted to practise public
accounting in another jurisdiction outside Canada;
- former licensees who were re-licensed;
- all others.
- the number of suspended or revoked licences, showing the total number by reasons
for suspension or revocation;
- the number of licensees who did not renew their licences or who died during the
year;
- the net increase or decrease in the number of licensees;
- total professional corporations authorized to practise public accounting;
- total sole practitioner licensees;
- total number of complaints made against licensees and the disposition of such complaints
according to whether the investigation is ongoing, has been completed with no charges
of professional misconduct laid, or has been completed with one or more charges
of professional misconduct laid;
- total number of disciplinary hearings involving licensees completed or in process
during the reporting period, including, as applicable, number of appeals in process
or outcome of completed appeal hearings, showing cases in which the licensee or
professional corporation was found not guilty of all charges of professional misconduct
or in which the licensee or professional corporation was found guilty of one or
more charges of professional misconduct and, in respect of each of the latter, an
indication of the sanction(s) ordered;
- total number of appeals to the Divisional Court of disciplinary decisions involving
licensees made during the reporting period or continuing from a prior reporting
period, the grounds on which the appeal was made and the outcome of the appeal,
if known;
- the total number of licensing candidates registered with the Association who are
enrolled in the public accounting training program;
- a listing of the accounting bodies in jurisdictions outside Canada that the Association
recognizes as having public accounting licensing regulations that are substantially
equivalent to the public accounting licensing regulations of the Association, showing
for each the total number of current and new licensees from each such body;
- a listing and detailed description of any changes made during the reporting period
to the Association’s statutory authority, by-laws, rules, regulations, policies,
or procedures that impact the Standards of the Public Accountants Council for the
Province of Ontario; and
- such other information as the Public Accountants Council may reasonably request.
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(1) For the purposes of Section 8, the five-year period specified in Section 8(1)
shall commence on January 1, 2007 for any person who was granted a licence or a
permit to practise under the provisions of the Public Accountancy Act and
whose licence or permit to practise was continued under the Act.
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