CPA Canada would like to thank all the CPAs across the country who have reached out to offer insights, provide feedback and ask questions about the future of the profession.
CPA Canada continues to explore strategies and opportunities for the accounting profession following announcements by CPA Ontario and the Ordre des CPA du Québec that they intend to withdraw from the Collaboration Accord, which has been the backbone of the Canadian CPA profession for the past decade. Consequently, there are numerous processes and operations that need to be re-examined in response to the recent developments.
We are actively engaged with our provincial, territorial and Bermudian partners in ongoing discussions about the path forward and we will share more details as soon as we can.
CPA Canada remains focused on further advancing the attractiveness of the profession, a goal shared by accounting bodies worldwide. Through collective efforts, driven by collaboration and shared goals, CPA Canada is resolute in propelling the accounting profession to even greater heights.
Together with our peers across the globe, we continue to shape an inclusive, innovative, and dynamic future for accountants—a future that not only attracts exceptional talent but also serves as a beacon of excellence, integrity, and value for businesses, organizations, and the Canadian economy.
We have updated our FAQ to address additional questions we’ve heard since our first FAQ was posted on June 23, 2023. Click on each question for more information.
Q. Why do CPA Ontario and the Ordre des CPA du Québec want to withdraw from the collaboration accord and what steps have been taken to resolve the issue?
Q. Did the intention to withdraw arise as a result of the new proposed training program? What is the future of the common final examination (CFE)?
Q. How is FRAS Canada funded by CPA Canada? Would this be affected if CPA Ontario and the Ordre des CPA du Québec were to withdraw?
Q. CPA Ontario has pointed to a lack of transparency on CPA Canada’s part in terms of how it spends the membership dues of Ontario members. What is your position on this question?
Q. What can/should concerned members of CPA Ontario and the Ordre des CPA du Québec do within their respective organizations to prevent this unfortunate situation from happening as currently foreseen?
Q. What is the connection between CPA Canada and standard setting in Canada?
Q. How is the role of CPA Canada different from the provincial bodies?
Q. Why did this happen? What are the main sticking points?
Q. How does the development of a new certification process factor into these discussions?
Q. Why is a unified profession/national voice important?
Q. What will it look like if Ontario and Quebec withdraw?
Q. Why weren’t members consulted in these discussions?
Q. Does CPA Canada see a path forward for a unified profession?
Q: WHY DO CPA ONTARIO AND THE ORDRE DES CPA DU QUÉBEC WANT TO WITHDRAW FROM THE COLLABORATION ACCORD AND WHAT STEPS HAVE BEEN TAKEN TO RESOLVE THE ISSUE? (New as of September 13, 2023)
This question is best addressed to the withdrawing provinces. However, we can describe our perspective on the discussions underway before the withdrawal notices were issued.
After five years of governance discussions, CPA Ontario and the Ordre des CPA du Québec asked CPA Canada this past spring to engage in separate conversations so an agreement could be reached that could be presented to the other provincial, territorial and Bermudian partners. With the endorsement of all of our partners, we sat down directly with them.
The two withdrawing provinces sought agreement on three principles:
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Increased and direct oversight of the profession by the provincial, territorial and Bermudian bodies
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Changes to the governance structure to eliminate individual membership
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Increased accountability and transparency
We agreed to work with these principles, subject to:
- Consultation with the other provincial, territorial and Bermudian partners as well as individual CPAs
- Developing a workable approach to further enhancing financial transparency
CPA Canada also focused on three additional principles:
- There must be a commitment to act nationally as a profession
- There can be no path to control (or veto) for one or two provinces
- CPA Canada’s role in the CPA ecosystem must be defined
As we were not able to reach agreement on these principles, we started further conversations with all provincial, territorial, and Bermudian partners. Those discussions were ongoing when the withdrawal notices were sent.
The withdrawal notices mean that the remaining provincial, territorial and Bermudian partners remain in the accord and that all the other agreements continue. The withdrawing provinces will not be a part of them at the end of the 18-month period. All parties have said they want to find a new way forward and we are wholeheartedly committed to that.
However, that new way forward still needs to be developed and negotiated. We stand ready to work on that. Our aim is for all CPA body partners to continue to work together.
In our roles as leaders of our respective bodies and representatives of our membership, we have a responsibility to act in the public interest. In this case, we strongly believe this requires us to do everything in our power to find a mutually beneficial resolution that addresses the concerns of all parties involved to ensure the CPA profession in Canada remains strong, unified and future-focused.
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Q: DID THE INTENTION TO WITHDRAW ARISE AS A RESULT OF THE NEW PROPOSED TRAINING PROGRAM? WHAT IS THE FUTURE OF THE COMMON FINAL EXAMINATION (CFE)? (New as of September 13, 2023)
It’s important to note that the new certification program was not part of the discussions about the governance of the profession. The development of the program has been driven by the provincial, territorial, and Bermudian bodies with the support of CPA Canada, which has dedicated resources and expertise.
CPA Canada deeply believes in the program’s objectives: investing in the next generation of CPAs. We are fully committed to honouring our commitments and being transparent throughout the process — so that we remain focused on ensuring CPAs are future-ready leaders.
With regard to the CFE itself, there will be no change for students writing exams this year, or in May or September 2024. What happens after that date in Ontario and Quebec still needs to be determined. CPA Ontario and the Ordre des CPA du Québec have not engaged with CPA Canada yet on their plans. However, given that it takes at least two years to develop and implement a new exam, we do have concerns about possible implications for current students.
The New Certification Program is still under development.
With regard to the CFE exams taking place under the existing program, there will be no change for students writing exams this year, or in May or September 2024.
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Q: HOW IS FRAS CANADA FUNDED BY CPA CANADA? WOULD THIS BE AFFECTED IF CPA ONTARIO AND THE ORDRE DES CPA DU QUÉBEC WERE TO WITHDRAW? (New as of September 13, 2023)
We welcome the opportunity to explain the vital relationship between CPA Canada and standard-setting bodies (Financial Reporting and Assurance Standards Canada).
In March 2023, the Independent Review Committee on Standard Setting in Canada (IRCSS) released its final report. It highlights the need to ensure that the benefits of the existing framework between CPA Canada and standard setting are preserved, while also achieving a higher level of independence.
In order to achieve this, the IRCSS suggests the creation of a separate legal entity with a new diversified funding model that includes CPA Canada and additional sources of funding.
CPA Canada funding and services provided to standard setting – such as human resources, translation services, and information technology – are expected to remain consistent with current levels.
The report recommends that CPA Canada continues to hold stewardship responsibilities and to own intellectual property relating to standards, with CPA Canada continuing to publish the CPA Canada Handbook.
A related recommendation is to provide access to final standards—a public good—free of charge. However, it advises that other materials in the CPA Canada Handbook, such as non-authoritative guidance, would continue to be restricted to CPA Canada members and other paying subscribers.
The IRCSS recommendations are currently being reviewed and CPA Canada will meet with the oversight councils this fall to determine a path forward.
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Q: CPA ONTARIO HAS POINTED TO A LACK OF TRANSPARENCY ON CPA CANADA’S PART IN TERMS OF HOW IT SPENDS THE MEMBERSHIP DUES OF ONTARIO MEMBERS. WHAT IS YOUR POSITION ON THIS QUESTION? (New as of September 13, 2023)
We do not agree with the suggestion that CPA Canada is not transparent, accountable or responsive to feedback.
The provincial, territorial, and Bermudian bodies have more involvement than ever before.
We now provide quarterly operating reports and have revamped the way we report financials in our annual report to make them easier to follow.
After consulting with every provincial, territorial, and Bermudian body to hear their concerns and suggestions, we conducted an enterprise-wide reorganization last fall, resulting in a 10 per cent staff reduction, flatter structure, and changes in leadership to better orient us toward tomorrow’s challenges.
There has been unprecedented review by all provincial, territorial, and Bermudian bodies at a granular level of both our ongoing operations – where the money is spent – as well as the education budget that is funded separately by candidate courses and exam fees.
We are willing to work with our provincial, territorial, and Bermudian partners on any further changes we can implement.
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Q: WHAT CAN/SHOULD CONCERNED MEMBERS OF CPA ONTARIO AND THE ORDRE DES CPA DU QUÉBEC DO WITHIN THEIR RESPECTIVE ORGANIZATIONS TO PREVENT THIS UNFORTUNATE SITUATION FROM HAPPENING AS CURRENTLY FORESEEN? (New as of September 13, 2023)
We agree that the decision to withdraw should not have been made without members’ input. In fact, CPA Canada’s stance on the need for member engagement was one of the main sticking points in our discussions that we pushed for on behalf of all members.
The profession has a track record of consultation on such matters and we believe that a change of this magnitude can only be made after consulting with individual CPAs and the other provincial, territorial, and Bermudian partners as well as the broader stakeholder community.
You have a right to express your views and concerns with CPA Canada and your provincial bodies.
This is your profession, your voice matters.
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Q. WHAT IS THE CONNECTION BETWEEN CPA CANADA AND STANDARD SETTING IN CANADA? (New as of August 25, 2023)
Standards are critical to understanding the performance of organizations, ensuring fairness and transparency in their reporting. Standards for accounting, auditing, and now, sustainability, provide a common and essential measurement that lends credibility and trust to both financial and non-financial results of public and private companies, not-for-profit organizations, Crown corporations, governments and auditing firms.
CPA Canada’s vital role in the standard-setting process is one of stewardship: we help protect the integrity of Canada’s independent standard-setting process, which includes funding and providing resources to Canada’s standard-setting boards and oversight councils and acting as publisher of the CPA Canada Handbook—a responsibility that ensures Canadian organizations and governments receive new and updated domestic and international standards in English and French.
We are also thought leaders, developing critically important research and guidance to support the details of standards in Canada.
CPA Canada has been working with Canada’s oversight councils to assess recommendations from the March 2023 Final Report from the Independent Review Committee on Standard Setting in Canada (IRCSS).
The IRCSS Final Report highlights the need to ensure that the benefits of the existing framework between CPA Canada and standard setting are preserved while also achieving a higher level of independence.
In order to achieve this, the report suggests the creation of a separate legal entity with a new diversified funding model that includes CPA Canada and additional sources of funding. CPA Canada’s funding support is expected to stay consistent with current levels and services currently provided to standard setters by CPA Canada, including information technology, finance, translation, and human resources are expected to continue.
IRCSS recommends that CPA Canada continue to hold stewardship responsibilities and own intellectual property relating to standards and control their distribution, with CPA Canada continuing to publish the CPA Canada Handbook. It advises that certain materials in the CPA Canada Handbook, such as non-authoritative guidance (e.g., illustrative examples, bases for conclusions) would continue to be restricted to CPA Canada members and other paying subscribers – an approach similar to that of the IFRS Foundation’s provision of unaccompanied standards.
FRAS has prepared a FAQ ahead of decisions expected this fall on its recommendations, including details on CPA Canada’s ongoing support for standard setting. Read more here.
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Q. HOW IS THE ROLE OF CPA CANADA DIFFERENT FROM THE PROVINCIAL BODIES? (New as of July 25, 2023)
CPA Canada is a not-for-profit organization that represents the Canadian accounting profession at the national and international levels.
Like many other national professional organizations that are provincially regulated, CPA Canada is composed of members of provinces and territories and carries a different mandate than provincial bodies. CPA Canada has two classes of members—organizational members and individual members. In order to be an individual member of CPA Canada, a CPA must be a member in good standing with their provincial or territorial body, which is also an organizational member.
The mandates of provincial, territorial and Bermudian bodies vary, but are consistently grounded in their mandates as the qualifying and regulatory bodies responsible for protecting the public by governing the profession within their respective jurisdictions. These organizations ensure CPAs in their jurisdictions meet the profession’s high standards of qualification and enforce their codes of professional conduct. Their responsibilities include, but are not limited to, member management, setting and enforcing ethical rules, enforcing practice standards and investigating and adjudicating complaints.
CPA Canada’s mandate is to act in the public interest by promoting transparency in financial markets, providing extensive guidance and programming to members and contributing to standard setting and public policy in Canada and worldwide.
Here's a closer look at what CPA Canada does:
Supporting an independent, efficient and effective standard-setting system and enhancing Canada’s position as a leader in global accounting, assurance and sustainability standards
- Providing funding, staffing, translation, and other resources for Canadian and international accounting and assurance standards boards.
- Supporting international sustainability standards, including leading a coalition of Canadian champions to bring a second global headquarters of the International Sustainability Standards Board to Montreal and providing resources for the establishment of the Canadian Sustainability Standards Board.
- Continuing stewardship and publication of the CPA Canada Handbook, which provides guidance on accounting, audit and assurance standards.
- Influencing the development of international accounting, assurance and sustainability standards to ensure the Canadian CPA perspective is heard, achieved through consultations with members and experts across the country and engagement with policymakers, regulators and international standard-setting bodies including the IFRS Foundation and the International Federation of Accountants.
Acting as a strong, consistent and authoritative voice for the profession to elevate the Canadian CPA profession’s leadership in national and global affairs
- Helping to shape the Canadian tax and financial systems through consultations with federal government institutions and regulatory authorities, such as the Canada Revenue Agency and the Canadian Securities Administrators, as well as participating in pre-budget consultations, intervening in Supreme Court cases and representing the profession in parliamentary committees.
- Negotiating on behalf of Canadian CPAs in reciprocity agreements with international accounting groups, allowing members greater credential recognition, mobility and career opportunities globally.
- Enhancing the impact and influence of Canadian CPAs by working with global peers to advance the global accounting profession as a member of the Global Accounting Alliance and the International Federation of Accountants, as well as providing guidance to international committees including the Financial Action Task Force, the Organization for Economic Co-operation and Development and the B20 Business Summit.
Developing learner-centric education to cultivate qualified and competent CPAs fully equipped to meet the needs of the future
- Creating the Professional Education Program and preparatory courses as well as the Common Final Examination to ensure education and qualification is uniform, consistent and co-ordinated across the country.
- Co-ordinating the practical experience component of the CPA certification program, developing the practical experience strategy and collaboratively developing and supporting national requirements and policies to ensure equivalency across jurisdictions.
- Supporting the work of the provincial, territorial and Bermudian partners in the development of the new CPA Certification Program, dedicating resources and expertise in key areas, including curriculum development and education technology.
- Developing and administering the national in-depth tax program, the most comprehensive and practical tax training available in Canada, globally recognized by employers seeking demonstrated tax expertise.
- Programming nationally recognized continuing education for members and other finance professionals—including in-depth and technical programs and certificates, webinars and conferences such as the ONE, the ESG Symposium and the Public Sector Conference.
Investing in research and thought leadership that helps members build professional competency and proficiency, advancing the profession and enhancing the reputation of the CPA designation
- Sharing exclusive research and insights in economics and other priority areas—including sustainability, data and AI governance—that enhance members’ ability to build awareness and knowledge of emerging issues and provide valuable insights to clients and employers.
- Providing timely and consistent guidance and related resources about changes to Canada’s tax system and navigating new and complex accounting, audit, assurance and sustainability standards, as well as methodology guides.
- Marshalling a network of more than 7,300 CPA volunteers across the country to enable them to give back to their communities through initiatives such as the CPA Martin Mentorship Program for Indigenous students, the financial literacy program offered jointly with our regional CPA partners and opportunities to serve on one of the profession’s many boards, committees and working groups.
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Q. WHY DID THIS HAPPEN? WHAT ARE THE MAIN STICKING POINTS?
Provincial, territorial and Bermudian bodies have been engaged with CPA Canada in a governance review for the past five years. Effectively, the discussions are about how decisions should be made in the context of the provincial legislative requirements, which create the profession, and the agreement, as stated at unification, that we all benefit by doing some important work together.
There are three primary issues at stake in the discussions that CPA Canada did not feel we had the authority to agree upon on behalf of our 220,000 members and our other provincial, territorial and Bermudian partners.
1. Consultation with CPA bodies and individual CPAs
We believe consultation with CPA bodies, individual CPAs and significant stakeholders is vital. There were several proposals that CPA Canada could not, in good faith, agree to without consultation because those demands impacted individual CPA members and other regional CPA bodies. We believe agreement on these matters can only be achieved after those bodies consult with their boards and membership.
A particularly important example is the proposal to eliminate CPA Canada’s individual members. CPA Canada has two classes of members—organizational members (the regional bodies) and individual members (CPAs). Currently, in order to be an individual member of CPA Canada, you must be a member in good standing with your provincial or territorial body. The proposed changes would mean individual CPAs would no longer be members of CPA Canada.
We believe that a change of such magnitude can only be made after testing it with individual CPAs and the other provincial, territorial and Bermudian partners. CPA Ontario and CPA Quebec disagreed, indicating their conviction that the governors of the profession could and should unilaterally make this change.
2. Commitment to a national profession
We have agreed that provincial legislative mandates provide a basis for increased accountability of CPA Canada to the provincial, territorial and Bermudian partners. Concurrently, we asked for a commitment that all our CPA partner bodies act as a national profession.
3. The role of CPA Canada
We believe the role of CPA Canada, which is foundational to defining the goals of the national profession, must be determined by all provincial, territorial and Bermudian partners as part of a comprehensive governance agreement.
The Canadian CPA is the pre-eminent, globally respected business and accounting designation. We want to ensure members of CPA Canada continue to not only gain access to unparalleled professional resources and opportunities but also remain part of a thriving community of accounting professionals.
Through our national and international participation and influence, we can further enhance the reputation of, and trust in, the Canadian CPA designation, cementing Canadian CPAs as global leaders who are part of a vibrant national profession where members of the profession can thrive.
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Q. HOW DOES THE DEVELOPMENT OF A NEW CERTIFICATION PROCESS FACTOR INTO THESE DISCUSSIONS?
The provincial, territorial and Bermudian bodies and CPA Canada have been working to revise the CPA certification process in line with a new competency map that will incorporate 21st century global developments—such as sustainability reporting, big data and artificial intelligence—while retaining the critical foundation of the profession in accounting, tax and assurance.
The goal of this modern approach is to ensure current and future CPAs are equipped to move forward with the skills, resilience and knowledge necessary to thrive in a constantly evolving marketplace.
The development of the new certification program has been driven by the provincial, territorial and Bermudian partners with the support of CPA Canada, which has dedicated resources and expertise to the administration and content creation.
The new certification process was not part of the discussions about the governance of the profession.
It is important to continue development of a new certification process as CPAs have never been in more demand due to our skills and competencies. We need to attract more people to our profession and to set CPAs up to succeed in a fast-paced global marketplace.
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Q. WHY IS A UNIFIED PROFESSION/NATIONAL VOICE IMPORTANT?
CPA Canada represents the profession on the national and global stage.
Members of CPA Canada are part of a powerful collective voice that actively works to promote the profession's interests at both the national and international levels. CPA Canada's dedicated efforts shape public policy, influence regulatory frameworks and establish high professional standards that reflect the evolving needs of the accounting industry. By being a member, you directly contribute to these efforts, ensuring that your profession remains strong, trusted, respected and influential.
Our collective strength ensures the Canadian CPA designation is widely recognized and respected for its rigorous educational requirements, comprehensive professional development and adherence to the highest ethical standards.
As countries around the world grapple with evolving financial reporting frameworks, our unified voice positions Canada as a significant contributor to global standard setting. Together, we can influence the development of standards that align with our unique economic landscape, ensuring they strike a balance between transparency and practicality.
CPA Canada is a trusted advisor speaking for the profession in consultations with Finance Canada, the CRA, the Senate and other government bodies on important federal issues including the budget, tax regime and financial crimes.
By positioning ourselves as a cohesive force, we enhance our profession’s credibility and demonstrate our commitment to globally recognized standards of excellence. This, in turn, strengthens Canada's reputation as a trusted destination for investment and business.
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Q. WHAT WILL IT LOOK LIKE IF ONTARIO AND QUEBEC WITHDRAW?
Developing a structure over the next 18 months to operationalize the withdrawals requires changes to virtually all aspects of how CPA organizations interact. The Collaboration Accord provides terms for withdrawal; however, it doesn’t actively address the “how” because the drafters didn’t expect this would come to pass.
The withdrawal of two provinces from CPA Canada leaves many questions yet to be answered. Discussions about what the future will look like are ongoing. CPA Canada remains committed to engaging with all provincial, territorial and Bermudian partners in negotiating a new framework.
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Q. WHY WEREN'T MEMBERS CONSULTED IN THESE DISCUSSIONS
This is a question more appropriately addressed to CPA Ontario and CPA Quebec, as the decision to withdraw was made by those provincial bodies.
We firmly believe that CPA members and the rest of our Provincial, Territorial and Bermudian CPA partners should be consulted on this significant change.
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Q. DOES CPA CANADA SEE A PATH FORWARD FOR A UNIFIED PROFESSION?
Absolutely. We are optimistic that an agreement is possible that recognizes the legislative authority of each of our provincial, territorial and Bermudian partners and provides for collective work to advance a national profession.
CPA Canada remains committed to a constructive dialogue and finding a mutually beneficial resolution that helps forge a new way forward to ensure the CPA profession in Canada remains strong and future ready.
CPA Canada stands ready to engage with all provincial, territorial and Bermudian partners to reach a new agreement.
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