The main accounting bodies for Ontario and Quebec have suddenly announced plans to withdraw from Canada’s national accounting organization, which calls the unilateral move “disappointing and shocking.”
On Tuesday evening, Quebec CPA Order and CPA Ontario separately announced their intentions to end their formal relationship with Chartered Professional Accountants of Canada. The withdrawal will take 18 months to complete in accordance with the terms of the current collaboration accord between the provincial bodies and CPA Canada.
In a release, CPA Ontario council chair Jean Desgagné cited the “size and complexity” of the province’s economy being “unique” in its decision to end relations with CPA Canada. The move will “enable CPA Ontario to better protect the public, serve members and students, and advance the profession by being more nimble and innovative.”
Quebec CPA Order chief executive Geneviève Mottard echoed the comments of her Ontario counterpart, saying the decision is a result of “in-depth discussions on how best to carry out its mission while anticipating the unique needs of the Quebec economy,” and ensuring compliance with all obligations and responsibilities under the province’s legislative and regulatory framework.
CPA Canada chief executive Pamela Steer told The Globe and Mail that she was “disappointed and shocked” that CPA Ontario and Quebec CPA Order have decided to sever ties with the national organization.
“We were not given any prior notice by either organization, only being informed minutes prior to a notice being sent to members,” Ms. Steer said in an interview.
CPA Canada was born Jan. 1, 2013, with a new “chartered professional accountant” designation. Previously, the profession in Canada was divided by function: Certified general accountants, certified management accountants and chartered accountants had different jobs, certification programs, regulations – and their own national associations.
The three groups proposed a unification framework in 2012, and by late 2014, all three had become part of the new CPA Canada. At the time, the groups said the framework for unification was driven, in part, by having a common certification program, a single set of high ethical and practice standards, and to govern the accounting profession in an effective and efficient manner.
Tuesday’s announcements represent a geographic fracture of the group, rather than a split by job function.
The fracture first began five years ago, Ms. Steer said, when the CPA profession, comprising Canada and the provincial, territorial and Bermudian CPA bodies, began to review the governance structure in its Collaboration Accord, an agreement first set up in 2013 between the three founding professional designations.
“Those discussions on a renewed governance actually started five years ago and has led to essentially where we are today – with Ontario and Quebec’s unilateral notification of withdrawal with no notice to our provincial colleagues, and no opportunity for members to have a full and frank consultation,” Ms. Steer said.
She added that the dispute was around “a few key issues” where the two provinces are seeking to have more control over the profession.
“This decision comes despite the progress made recently and our desire to find a successful resolution. We share the goals of the CPA profession in improving our governance framework, enhancing transparency and accountability so that the profession can continue to prosper, best serve the public interest and attract new members.”
In a release, CPA Canada said they remain “committed to addressing the items raised with a sense of urgency,” but that any resolution must involve all provincial, territorial and Bermudian CPA bodies and not solely focus on the wishes of one or two provinces.
“It is essential to provide sufficient time for consulting with members, relevant stakeholders, federal and provincial governments, and to obtain provincial and territorial board approval.”
Ms. Steer recommends that CPA Ontario and Quebec CPA Order re-engage with CPA Canada, including all provincial, territorial and Bermudian bodies, and work with a conciliator to guide future deliberations.
Quebec CPA Order said they will engage their team throughout the process to ensure a smooth transition and minimize disruption for members, candidates for the practice of the profession and other stakeholders. As well, current candidates of Quebec CPA Order will be able to continue their training activities, meet the requirements of the Professional Education Program and take the Common Final Examination later this year.
Both Quebec and Ontario said they will continue to co-operate with other provincial and territorial bodies, as well as with CPA Canada, when doing so “would be judicious.”
With files from David Milstead
Clare O’Hara