CPA PEP vs. Master’s or Graduate Program (CPA Canada)
To become a Chartered Professional Accountant (CPA) in Canada, one must follow a specific process outlined by CPA Canada. The process generally includes specific university-level education, passing the CPA Professional Education Program (PEP) and the Common Final Examination (CFE), and obtaining sufficient qualifying practical experience as well. Review the below graphic outlining the CPA Canada program structure/pathway:
Most Canadian universities offering an undergraduate accounting program will ensure the program is structured in such a way that it meets the academic pre-requisites which allow a student to qualify for entry into the Professional Education Program (which begins with Core 1 above and concludes with the CFE).
An alternative method of completing the above Core, Elective, and Capstone modules, is to enroll in a CPA-accredited master’s or other graduate program which allow students to complete the above pathway through a university as opposed to through their provincial CPA body via PEP. Note that the same CFE is written regardless of the path taken to get there.
Master’s or Graduate Program vs. CPA PEP: What’s the Difference?
Given that the content is largely the same, the difference lies in the way the content is delivered. A comparison of key considerations is provided below:
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Master’s and Graduate programs are full-time study programs whereas the CPA PEP is intended to be completed part-time.
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Since Graduate programs are designed for full-time study they progress faster and are generally completed over the course of 8 months of study whereas PEP is designed to take between 1.5 and 2 years of part time study.
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Graduate programs are typically delievered in a familiar university class/lecture setting by professors whereas PEP is predominately completed via self-study online.
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Program costs vary by university, degree and program type and are typically at least as expensive as PEP.
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Upon succesful completion of a graduate program, students will receive a Master’s degree or diploma depending on the program they have completed. This is an additional credential when compared to completing PEP which grants no certificate.
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Students enrolling in a Master’s or graduate program though a university gain access to several benefits whereas PEP offers no such thing.
Campus and amenities (library, gym, etc.)
University career center
On-campus recruitment by firms and other employers
Opportunity to re-brand via the university brand
Access to university alumni network
Which Path is Right for Me?
In my opinion, CPA candidates who are already working in a career or job which aligns with their goals and that they are happy with should opt for moving through the CPA PEP program part time. The reason why I recommend this is because the program is designed to be completed while working full-time and therefore the workload is manageable (refer to article: How Much Study Time to Become a CPA in Canada). Further, PEP is always going to be the cheapest option, especially when considering the opportunity cost of being a full-time student and foregoing earning a salary and accumulating professional work experience which would progress your career more quickly.
Master’s and other graduate programs provide substantial value for CPA candidates who have not yet obtained their ideal employment or landed on the career path that they want. This is largely due to the fact that enrolling in one of these programs through a reputable university grants students access to the university’s resources such as advisors, on-campus recruitment, and access to the university’s branding and alumni network. When done correctly, enrolling in one of these programs can transform a student into a top tier candidate for their accounting dream job and offers a “second chance” at on-campus recruitment for students who could not land the job they wanted coming out of undergrad. The commitment to the CPA designation that is inherently shown by a student enrolling in one of these programs is a very strong signal to top accounting firms that a student is committed to a career in accounting and it is an immediate boost to the student’s strength as an applicant.
Available Master’s and Graduate Programs
If you find yourself falling into the latter group described above, it is likely worthwhile to look deeper into the Master’s and Graduate level programs offered across Canada to help achieve your CPA and career goals. A full list of CPA Canada accredited programs can be found on CPA Canada’s website here.
Note that many university programs are only open to internal candidates (those students who obtained their undergraduate degree from the same institution). However, there are a handful of strong programs that are open to external students as well which can be very appealing to someone looking to kickstart their career. My personal top choices will be published in a separate article at a future date.
How Much Does It Cost to Become a CPA in Canada?
While many firms or employers will reimburse candidates for CPA fees as they progress through the program (see article: Which Employers Pay for the Canadian CPA), students who are either struggling to land their first job out of university or have found a job with an employer who does not offer financial support for the CPA will have to bear the burden of either paying for PEP or their graduate program out of pocket.
Assuming a candidate has graduated with a bachelor’s degree which grants entry directly into CPA PEP, candidates will have to pass through the following modules with the following costs (based on CPA Ontario):
Core 1: $1,425
Core 2: $1,325
Elective Module 1: $1,325
Elective Module 2: $1,325
Capstone 1: $1,325
Capstone 2: $1,325
Final Exam (CFE): $1,700
Total CPA Canada Cost: $9,750
It costs almost $10,000 to go through the CPA Canada program, and that’s without the costs of any additional study materials, exam deferrals, or rewrites. Keep this in mind when comparing to the tuition cost of a university program that you are considering.
Note that many employers who would cover the cost of PEP for their employees would also cover costs of a master’s or graduate program up to the same dollar amount. For example, if a student is hired out of a master’s program for which they paid $20K in tuition, they may potentially be reimbursed the $9,750 that the firm would have ordinarily paid for that employee to go through PEP anyway. This offsets some of the costs of pursuing a route outside of PEP. Refer to the article Which Employers Pay for the Canadian CPA for more information on the employers in Canada which are typically willing to cover a candidate’s PEP costs.
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