CPA Breakup – Ontario and Quebec Leave CPA Canada
On June 20th, 2023, CPA Ontario members received a surprising email from the provincial body stating that the provincial CPA body of Ontario has elected to change its existing relationship with the national body (CPA Canada). CPA Quebec members received a similar email at the same time. The email itself and potential implications are discussed below.
The Email: A New Approach for CPA Ontario
Dear Member,
We are writing to share an update with you about CPA Ontario.
As the regulatory body responsible for overseeing Chartered Professional Accountants and accounting firms in Ontario, it is our role to protect the public, ensure our more than 100,000 members and 20,000 students meet the highest standards of expertise, and advance the profession by staying ahead of global economic and technological trends.
Ontario’s economy is unique in Canada. It is home to Canada’s capital markets, one of the largest information technology and innovation clusters in North America, as well as robust manufacturing industries. This size and complexity, and the critical role that CPAs play in safeguarding it, demands responsive, streamlined and efficient management of our professional body.
That’s why, following thoughtful consideration by the CPA Ontario Council and discussions with other provincial and territorial CPA bodies, as well as with CPA Canada, CPA Ontario has provided notice that it intends to conclude its current arrangement with CPA Canada and align on new working relationships. This decision will enable CPA Ontario to better protect the public, serve our members and students, and advance the profession by being more nimble and innovative.
This change in our relationship with CPA Canada, which coordinates certain services and programs for provincial and territorial CPA bodies, will take effect in 18 months, per the terms of our agreement.
We will ensure the continuity of member services, your mobility across provincial and international borders, and student learning. CPA Ontario’s regulatory functions will not change. When the transition is complete, you will notice a significant cost reduction reflected in your annual membership dues, which currently includes both CPA Ontario and CPA Canada’s fees.
We remain committed to working closely with our provincial and territorial counterparts across the country on matters important to the profession, including maintaining a world-class, portable CPA designation.
Why Leave CPA Canada?
At this point in time, one can only speculate as to the reasoning for CPA Ontario and Quebec’s decisions to separate from CPA Canada. One popular opinion is that this may be the provincial body’s attempt to take the shape of the CPA educational program (PREP, PEP, CFE, and PERT) into their own hands. The reason this is a popular opinion is due to the recent changes announced by CPA Canada in terms of the candidate program. These changes include things like a reduced focus on technical knowledge, a refreshed focus on communication, diversity, and inclusion, and several changes to the program structure and testing (Ex. MCQs replaced with cases, overhauls of PREP and PEP, and even changes to PERT). This has caused much outrage from existing CPAs in Canada as well as candidates who feel like these changes reduce the difficulty of obtaining the CPA designation, thereby potentially reducing its value.
The email coming from CPA Ontario stated specifically that province’s size and complexity, and the critical role that CPAs play in safeguarding it, demands responsive, streamlined and efficient management of our professional body. This stressing of size, complexity, and safeguarding, does suggest that the provincial body may be unhappy with CPA Canada’s departure from testing technical competencies – the province may be looking to take this into their own hands given Ontario’s importance to the Canadian economy. Further, the 18-month breakup timeline aligns with CPA Canada’s plans to overhaul the program in 2025.
What Does This Mean for Students, Candidates, and Existing CPAs?
One thing which is certain is that the Ontario and Quebec provincial bodies would not have undertaken this change without a purpose. Unfortunately, what that purpose is exactly remains unclear at this time.
However, as with all impending changes, it is generally best to get the designation out of the way as soon as possible in order to not get caught in the mess that is sure to take place after. When CPA Canada had originally undergone the roll-out of the program which exists today (unified CPA body with PREP, PEP, CFE, and PERT), the first few waves of candidates had to suffer through unclear instructions, glitches, and inconsistencies in the program. If you are a student or candidate committed to obtaining the CPA designation I would encourage timely completion of the requirements in an effort to avoid potential hiccups. In terms of changes across the various provinces, I do believe that there is no intention to cause unnecessary hardships to those who obtained the CPA designation in one province but practice in another – the system may be similar to that of the USA in this regard where one simply clarifies that they hold the designation from a different state (province in this case). Given CPA Ontario’s statement that CPA Canada dues will be eliminated, it will certainly be interesting to see what impact this has on the remaining provinces and the national body, given that Ontario and Quebec are two of the largest provincial CPA bodies in Canada.
