Key Takeaways:
- Canada’s seven largest accounting firms will sign up their employees to join the national umbrella organization, Chartered Professional Accountants of Canada (CPA Canada), under a new membership model.
- Individual accountants will be able to sign up directly with CPA Canada as of April 1, replacing the previous system where they had to be registered with a provincial regulator.
- The move comes after a contentious departure of two provincial regulatory bodies, CPA Ontario and Quebec CPA Order, from CPA Canada’s membership, resulting in a significant decline in funding.
- The new membership model will allow CPA Canada to become a fully voluntary national body, with members paying $200 annually for membership and voting rights.
- The change is widely supported by the industry, including the seven largest accounting firms and regulatory bodies such as the Canadian Public Accountability Board (CPAB) and FP Canada.
Introduction to the New Membership Model
The accounting industry in Canada is undergoing a significant change with the introduction of a new membership model for the Chartered Professional Accountants of Canada (CPA Canada). As of April 1, individual accountants will be able to sign up directly with CPA Canada, replacing the previous system where they had to be registered with a provincial regulator. This change comes after a contentious departure of two provincial regulatory bodies, CPA Ontario and Quebec CPA Order, from CPA Canada’s membership, resulting in a significant decline in funding. The new model will allow CPA Canada to become a fully voluntary national body, with members paying $200 annually for membership and voting rights.
Background on the Accounting Industry in Canada
The accounting industry in Canada represents over 220,000 chartered professional accountants (CPAs). Previously, the profession was divided by function, with certified general accountants, certified management accountants, and chartered accountants having different jobs, certification programs, regulations, and national associations. However, in 2013, the three groups merged to form CPA Canada, with a new "chartered professional accountant" designation. The agreement began to crumble in 2023 when Quebec CPA Order and CPA Ontario announced their intentions to end their formal relationship with CPA Canada. As a result, CPA Canada’s funding drastically declined, leading to a 20% staff cut in early 2024.
The New Membership Model and Industry Support
The new membership model has been widely supported by the industry, including the seven largest accounting firms in Canada. These firms, including BDO Canada LLP, Deloitte LLP, Doane Grant Thornton LLP, Ernst & Young LLP, KPMG LLP, MNP LLP, and PricewaterhouseCoopers LLP, will sign up their employees to join CPA Canada as of April 1. The Canadian Public Accountability Board (CPAB) and FP Canada, a non-profit trade association, have also expressed their support for the new model. CPAB will fund CPA Canada membership fees for all its members who hold a CPA designation, while FP Canada believes that CPA Canada plays a critical role in advancing harmonized standards and elevating Canada’s influence on the global stage.
The Role of Provincial Accounting Groups
Provincial accounting groups, such as CPA Ontario, are responsible for protecting the public through regulation and discipline of accountants. In Quebec, the provincial government performs this function. CPA Canada, on the other hand, oversees the exam for chartered accountants, manages the CPA Canada Handbook, and advocates for accountants nationally. The new membership model will not affect the role of provincial accounting groups, as they will continue to regulate and discipline accountants in their respective provinces. However, the change will allow CPA Canada to focus on its national role, providing guidance and support to CPAs across the country.
Conclusion and Future Outlook
The introduction of the new membership model marks a significant shift for the accounting industry in Canada. With the support of the industry, including the seven largest accounting firms and regulatory bodies, CPA Canada is poised to become a stronger and more unified national body. The change will allow CPA Canada to focus on its national role, providing guidance and support to CPAs across the country, while provincial accounting groups continue to regulate and discipline accountants in their respective provinces. As CPA Canada’s CEO, Pamela Steer, stated, "A national member body ensures CPAs have a collective voice in shaping their profession – supporting excellence and global relevance." The future outlook for the accounting industry in Canada looks promising, with a unified national body and a strong collective voice for CPAs.
