Canadian Institute of Chartered Accountants

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[edit] About the CICA

The Canadian Institute of Chartered Accountants (CICA) together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants represent a membership of approximately 75,000 CAs and 12,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).

[edit] History

  • 1902 : Dominion Association of Chartered Accountants (DACA) formed
  • 1910 : Total number of members 225
  • 1921 : First Canadian woman to receive her CA designation
  • 1927 : DACA proposes a uniform exam for all Canadian accounting candidates – supported by most provinces with the exception of Quebec
  • 1929 : At the DACA’s annual meeting in Vancouver, discuss need for more stringent reporting procedures and uniform companies’ legislation
  • 1930 : DACA’s annual meeting in Regina, members unanimously passed recommendations on “books of accounts, the power and duties of auditors, and the contents of balance sheets
 : Throughout the 1930s DACA begins to standardize accounting exams
  • 1933 : Committee on legislation formed to make representations to the federal government, which was drafting amendments to the Canada Companies Act
  • 1934 : Amendments to Canada Companies Act finalized – very closely followed the generally accepted accounting principles that the DACA had laid down. This marked the beginning of a long involvement in shaping economic life in Canada
  • 1938 : DACA and all the provinces agreed to a uniform national exam
 : DACA forms an alliance with the accounting department at Queen’s University in a program of research into accounting procedures and principles
  • 1939 : Standardization of uniform national exam completed. For the first time, uniform intermediate and final exams are written in all provinces but Québec, which began writing the uniform exam in 1954.
 : The DACA formed its first research committee, re-named the Accounting Research Committee in 1941 (This committee would produce the CICA Handbook in December 1968).
  • 1940 : DACA’s first attempt to make auditors’ reports uniform and to set a national auditing standard is rebuffed by an advisory committee of DACA past presidents.
  • 1943 : Research committee issues a recommendation on the treatment of the refundable portion of the Dominion Excess Profits Tax. This marks the first time a professional accounting body in Canada had given advice on a technical matter to its members.
  • 1951 : DACA changes name to the Canadian Institute of Chartered Accountants and adopts the French name “l’Institut Canadien des Comptables Agréés”
  • 1954 : For the first time, Quebec students write the same uniform exam as the other provinces
  • 1965 : Study produced on the materiality in auditing
 : Special study group looks into how the research bulletins were being produced and recommends a loose-leaf binder to house the CICA’s version of GAAP. The result was the CICA Handbook, completed in 1968.
  • 1971 : Auditing Standards Committee created.
  • 1972 : The Canadian securities administrators proclaim that provincial securities commissions must consider the CICA Handbook as the basis for GAAP.
  • 1973 : International Standards Committee formed.
 : Agreement signed formalizing the relationship between the CICA and the Institute of Chartered Accountants of Bermuda, particularly in the areas of research and education. Before this agreement, the Bermuda Society of CAs relied heavily on the Institute of Chartered Accountants of Nova Scotia for assistance in training its members. This agreement was restated in 1998.
  • 1975 : The CICA Handbook incorporated into the Canada Business Corporations Act and is used by every company in Canada when preparing financial statements
  • 1977 : International Federation of Accountants founded. CICA was a founding member.
  • 1981 : All organizations in the public and not-for-profit sectors accepted the principles in the CICA Handbook as law
 : Public Sector Accounting Board (PSAB) created to set accounting standards for the public sector.
  • 1984 : CICA forms the Long-Range Strategic Planning Committee who envisioned “a more broadly based profession whose highly skilled members are the recognized experts in meeting the needs of an information society.”
  • 1994 : Inter-Institute Vision Task Force focused on research, education and member services
  • 1996 : Inter-Institute Vision Task Force Report recommends establishment of task forces on governance, standard setting and education
  • 1997 : Governance Re-engineering Task Force established to develop and propose new decision-making and governance structure for the CA profession
  • 1998 : Task Force on Standard Setting was established to review the CICA’s standard-setting activities reports and recommends pursuing the internationalization of standard setting as a goal.

The execution of a Protocol by the Institutes of the CA profession puts the recommendations of the Governance Re-engineering Task Force into practice. The Protocol assigns responsibilities for functions that are common to all the Institutes/Ordre, critical to the success of the Canadian CA profession and shared among the Institutes/Ordre and the CICA. The Common Critical Functions are:

• Strategic Planning
• Protection of the public and ethics
• Communications
• Education and qualification
• Standard setting support
  • 1999 : Education Re-engineering Task Force recommends placing a premium on competency rather than solely on knowledge
  • 2000 : The Accounting Standards Oversight Council (AcSOC) established by CICA as an independent body to oversee the accounting standard-setting process.
  • 2002 : The Auditing and Assurance Oversight Council (AASOC) established by CICA as an independent body to oversee the auditing standard-setting process.
 : The Canadian Public Accountability Board (CPAB) established through the cooperative efforts of the CICA and the federal and provincial regulators to promote high quality, independent auditing of public companies in Canada.
  • 2004 : Canada’s CAs and the Certified Management Accountants (CMAs) of Canada consider, and finally discontinue, discussions of a proposed merger of the CA and CMA professional organizations.
  • 2005 : The Accounting Standards Board with support of the Accounting Standards Oversight Council agree to converge Canadian Generally Accepted Accounting Principles with International Financial Reporting Standards (IFRS).
 : Similarly, the Auditing and Assurance Standards Board, with the support of the Auditing and Assurance Standards Oversight Council agree to converge Canadian Generally Accepted Auditing and Assurance Standards with International Auditing Standards (ISA)
  • 2006 : The CA profession executes the 2006 Protocol, assigning administration of the common critical functions, other than standard setting, to the Council of Senior Executives. Standard setting support is provided by the CICA.
 : CICA joins eight of the world’s leading professional accounting organizations to form the Global Accounting Alliance (GAA), which represents over 700,000 of the world’s leading professional accountants.
  • 2007 : The Public Sector Accounting Board of the CICA approves new standards for local governments requiring full accrual accounting.
  • 2008 : Accounting Standards Board confirms 2011 as the changeover date for publicly-listed companies to use IFRS, replacing Canada’s own Generally Accepted Accounting Principles (GAAP).

[edit] CICA Overview

The CICA is a not-for-profit entity incorporated by a Special Act of the Canadian Parliament in 1902. This Act, now known as the Canadian Institute of Chartered Accountants Act, was last amended in 1990 to reflect the CICA’s current mandate and powers.

Working in collaboration with the provincial institutes/ordre, the CICA endeavours to ensure that the profession is well positioned to respond to the challenges, and capitalize on the opportunities presented in today’s marketplace. It executes its strategy through supporting the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government, and through developing and delivering education programs. It also provides a range of member services and professional literature; undertakes research and development of intellectual property; issues guidance on risk management and governance; and fosters relationships with key stakeholders nationally and internationally.

The CICA’s mission is to foster public confidence in the CA profession by acting in the public interest and helping members excel. The CICA serves the interests of the public and the CA profession by providing leadership to uphold the professional integrity, standards and pre-eminence of Canada’s chartered accountants nationally and internationally. This is accomplished through enhancing the quality and credibility of financial and other information produced and used in the private and public sectors for measuring and improving organizational performance.

[edit] Facts about Canada’s CAs (2009)

• 45% of CAs work in industry, 30% of CAs work in public practice, and the remainder work in education, government and other sectors.
• 6 in 10 CFOs in the 2008 ROB 1000 are CAs. CAs occupy more than 1 in 5 of all C-Suite positions in the ROB 1000.
• 9% of 2008 ROB 1000 companies have a top officer (President/CEO) who is a CA.
• 2008 ROB 1000 companies that have CAs as their top officer outperformed those led by non-CAs.
• About one third of CAs are women
• CAs conduct more than 90% of the audit engagements in Canada.
• 3,000 + publicly traded companies in Canada are audited by CAs


[edit] The Many Roles of a CA

• CAs in public practice provide audit assurance, tax, estate and financial planning advice to clients in a wide range of businesses and industries. In addition, CAs provide consulting and advisory services in areas such as corporate finance, corporate recovery and insolvency, business valuations, mergers and acquisitions, control and risk management, and information and communications technology.
• CAs in industry work in both large and small organizations in a wide range of management capacities. Some CAs lead major corporations as CEOs, CFOs, Vice Presidents of Finance and Controllers. Others start their own businesses.
• Many CAs in government hold strategic positions – such as Auditors General, Deputy Ministers, Controllers General and senior public servants – and are widely regarded for their contributions to the effective management of government programs.
• CAs in education are professors in universities, in colleges, and in professional programs. They help train and prepare the next generation of CAs and they contribute to the advancement of accounting sciences in innovative fields.
• Canadian CAs abroad leverage their CA training to launch themselves into leadership positions in national and international careers.
• The core competencies of Chartered Accountants are buttressed by a professional culture of career-long learning. CAs face rigorous requirements for training, examination and practical experience.


[edit] Qualifying as a CA in Canada

CAs are admitted to the profession through their Provincial Institutes/Ordre. These bodies are responsible for establishing and administering the qualification process, admission criteria and performance standards within their jurisdictions. Pre-qualification education is delivered regionally through one of four systems across Canada:

• Atlantic Canada (which includes Bermuda)
• Québec
• Ontario
• Western Canada (which includes the Territories)

The CICA's role – in concert with all provinces, territories and Bermuda – is to develop and maintain consistent, uniform standards for the profession's qualification process. These rigorous uniform standards ensure the portability of the CA designation across Canada and internationally through numerous individual country agreements.

Individuals with accounting designations from many accounting bodies outside Canada are admitted to the Canadian profession under the terms and commitments of international qualifications.


Admission to the CA profession requires:
• A university degree - While most candidates pursue business studies, a candidate’s university degree can be in any area or discipline. Many highly successful CAs have Bachelor degrees in arts, science, engineering and other disciplines. In addition, some jurisdictions allow degree exceptions for mature students.
• Specified university courses or the equivalent – These can be acquired during undergraduate university studies, on a part-time basis while completing practical experience requirements, or through certain recognized graduate programs.
• Completion of a Provincial Institute/Ordre student professional program or the equivalent. These programs offer graduate-level courses to ensure all candidates acquire the competencies they will need as a CA. All candidates must register with their Provincial Institute/Ordre while completing their practical experience requirements (see below). These programs are designed to complement on-the-job experience.
• Prescribed practical experience with a training office approved by a Provincial Institute/Ordre. Approved Training Offices generally are CA firms, offices of provincial or national Auditors General, and selected leading corporations and government organizations that have recognized CA Training Programs in place.
• A passing grade in the UFE -- the profession's Uniform Evaluation.


[edit] Foreign Trained Accountants

The CICA itself does not admit members and students; its membership is derived from membership in one of the 10 provincial and three territorial institutes of chartered accountants and the Institute of Chartered Accountants of Bermuda, collectively known as the Provincial Institutes/Ordre of Chartered Accountants (PICAs/Ordre). The PICAs/Ordre are empowered by provincial laws to regulate and govern the chartered accountancy profession within their jurisdictions. Individuals holding foreign accountancy designations who want to become a Canadian CA must apply to the PICA/Ordre where they live, or intend to live. The CICA works in partnership with and on behalf of the PICAs/Ordre to:

• Assess the qualification processes of foreign accounting bodies to determine the extent to which they are equivalent to the Canadian process
• Negotiate Mutual Recognition Agreements with accounting bodies whose qualification processes are substantially equivalent;
• Determine the additional education, evaluation and experience requirements for members of reviewed accounting bodies not deemed substantially equivalent.

Assessments of foreign-trained accounting bodies, and negotiations of Mutual Recognition agreements are conducted by the profession’s International Qualifications Appraisal Board (IQAB).

The Canadian CA profession assesses the credentials of foreign-trained accountants according to three categories


Designated Accounting Bodies

These designated accounting bodies are considered by the Canadian CA profession to be substantially equivalent. Members of these accounting bodies generally qualify for membership in the Canadian CA profession with minimal additional requirements.

• Ordre des Experts Comptables (France)
• Japanese Institute of Certified Public Accountants
• Institute of Chartered Accountants in Australia
• Institut des Réviseurs d'Enterprises de Belgique
• Institute of Chartered Accountants in England and Wales
• Hong Kong Institute of Certified Public Accountants
• Institute of Chartered Accountants in Ireland
• Instituto Mexicano des Contadores Publicos
• Nederland Instituut van Register Accountants
• New Zealand Institute of Chartered Accountants
• Institute of Chartered Accountants of Scotland
• South African Institute of Chartered Accountants
• National Association of State Boards of Accountancy in the U.S.


Non-Equivalent Accounting Bodies

Four foreign designated accounting bodies have been determined not to be equivalent. These accounting bodies have been reviewed by IQAB and their qualification processes have been determined not to be equivalent to the Canadian qualification process:

• Australian Society of Certified Practising Accountants
• Philippines Institute of Certified Public Accountants
• Institute of Chartered Accountants of Sri Lanka
• Association of Chartered Certified Accountants of the United Kingdom


Accounting Bodies Currently Under Review

A further four are under review: the Institutes of Chartered Accountants of Bangladesh, India, Pakistan and Zimbabwe.


Members of Non-Assessed Accounting Bodies

Individuals who are members of professional accounting bodies which have not been reviewed by IQAB, or who are not members in any professional accounting body can request individual assessment by the appropriate PICA/Ordre. This review will identify any additional education, examination and/or experience requirements the individual must complete to qualify for membership in the Canadian CA profession.

[edit] Links

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