Canadian Institute of Chartered Accountants

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The Canadian Institute of Chartered Accountants (CICA) is a private, not-for-profit organization whose primary purpose is to develop Generally Accepted Accounting Principles (GAAP) within Canada in the public's interest. The CICA was incorporated in 1902 by an act of the Government of Canada. ^[1]

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).

History

The CICA was founded in 1902 by a Special Act of the Legislature of Canada as the Dominion Association of Chartered Accountants (DACA). The DACA began its involvement in setting standards for accounting policies in 1934 when the Amendments to Canada Companies Act was passed. In 1938, the provinces agreed that membership should be determined by a uniform evaluation. In 1951, the DACA changes its name to the Canadian Institute of Chartered Accountants. By 1954, all provinces in Canada are writing the same uniform evaluation. In 1968, the CICA released its recommendation of its version of Canadian GAAP, which was published as the CICA Handbook. In 1972, the Canadian Securities Administrators proclaim that provincial securities commissions must consider the CICA Handbook as the basis for GAAP. In 1975, the CICA Handbook was incorporated into the Canada Business Corporations Act and is thereafter used by every company in Canada when preparing financial statements. A merger was proposed between the CICA and the Society of Management Accountants of Canada in 2004, but the merger fell through based on opposition within both organizations. In 2005, the CICA proposes a convergence towards International Financial Reporting Standards, and this is confirmed in 2008 with a set transition date of 2011.

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.

Qualification as a member

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 School of Chartered Accountancy|Atlantic Canada (which includes Bermuda)

• Ordre des comptables agréés du Québec|Québec

• ICAO Professional Program Ontario

• CA School of Business|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.

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.

See also

• Certified General Accountant
• Society of Management Accountants of Canada
• Generally Accepted Accounting Principles (Canada)
• International Financial Reporting Standards
• International Qualification Examination
• Uniform Evaluation

Links

• The Canadian Institute of Chartered Accountants
• The Institute of Chartered Accountants of Alberta
• Institute of Chartered Accountants of Bermuda
• The Institute of Chartered Accountants of British Columbia
• Institute of Chartered Accountants of Manitoba
• The New Brunswick Institute of Chartered Accountants
• The Institute of Chartered Accountants of Newfoundland
• Institute of Chartered Accountants of the Northwest Territories and Nunavut
• The Institute of Chartered Accountants of Nova Scotia
• Institute of Chartered Accountants of Ontario
• Institute of Chartered Accountants of Prince Edward Island
• Ordre des comptables agréés du Québec
• The Institute of Chartered Accountants of Saskatchewan
• Institute of Chartered Accountants of the Yukon Territory

References

1. ^ "Incorporation and Governance". Canadian Institute of Chartered Accountants. http://www.cica.ca/about-the-profession/cica/incorporation-and-governance/index.aspx. Retrieved 8 August 2009.