CAREERS IN ACCOUNTING
Presentation – July 20, 2009
• By Gaelen Fisher, B.Comm, MBA, CMA, CGA
– Co-coordinator CPA Prep Program Windsor
– Self – employed professional accountant
Outline of Topics
• History of the Accounting Profession
• Licensing legislation – USA and Canada
comparison
• Pros and Cons of professional designations
• Advocacy Bodies
• Career Planning
HISTORY OF ACCOUNTING
PROFESSION
• 1950 first licensing legislation in Ontario
– CPAs, CAs, CGAs and APAs can be licensed.
– Established Public Accountants Council – a
body elected by licensed individuals and
appointed by the Institute of Chartered
Accountants (ICAO)
1962 Mergers
• Merger of CPA and CA organizations in Ontario
and other provinces, caused the removal of CPAs
as a “qualifying body” for licensing purposes.
CPAs were given CAs.
• Concurrently – CGA Ontario was removed as a
“qualifying body”. Practicing CGAs were given
CAs
• Some 69 CGA students in public practice were
ignored. Too bad – so sad
Why?
• Ontario Government felt that their model
would be accepted by other Provinces as the
licensing model.
• Only Quebec – adopted the licensing model.
Cont….
• Other Provinces decided:
– Not to regulate / not to license (the west in
particular AL, SK, MA)
– Felt that a professional designation was
sufficient credentials for the public to determine
who to hire.
– Or developed a broader based licensing system
open to all “authorized” designations (British
Columbia)
1978
• Ontario Government appoints the
Professional Organizations Committee
(POC).
– To look at all “professions” and make
recommendations for change
Why?
• Self – governing professions received their
mandate by provincial legislation with the
power to grant “professional designations”
• Ontario had a basket of various private and
public acts and had no clear system for the
creation of a statutory regulatory body “SRB”
Powers of the SRBs
• Will vary depending on Act to “incorporate”
• Members rights also unclear, to:
–
–
–
–
–
elect a board of governors
assess dues,
appoint auditors
approve executive compensation
approve standard for the members
POC Recommended
• An Omnibus statute “The Professional
Designations Act” applicable to all
professions.
• Never passed!
Regina vs Venn - 2000
• David Venn – a CGA is found guilty of practicing
without a license in Ontario
• 2002 appealed to Ontario Court of Appeal where
decision was upheld – but fine was nominalized
and Court ruled “Ontario Public Accounting
Legislation is fundamentally flawed”. ICAO
controls the PAC and no licenses are granted
under 14(2) to other qualified accountants.
Cont…
• Second round of Grandfathering for the
69 CGA students, CAs granted
– disciplinary system will weed out
undesirables.
2003
• Conservative Government proposes changes
to Public Accountancy Act to enable
applicants under 14(2) process.
• Government defeated!
Liberal Government Takes Over
• 2004 – rewrites legislation completely.
• To be licensed one must be a member of a:
– Designated / Authorized Licensing body
– PAC – changed to 9 public appointees not members of a
designated body and 8 accountants
• 4 CAs, 2 CMAs, and 2 CGAs
– PAC to set standards for licensing
• http://www.pas.gov.on.ca/scripts/en/BoardDetails.asp?boardID
=141281
Cont….
• To date no CGAs or CMAs have been
licensed under this Act.
• CGA Ontario has been in the approval
process to become an authorized licensing
body for an extended period.
What is Licensed?
• Varies from State to State and Province to
Province. Generally – includes all
assurance work, audits and reviews where a
3rd party may rely on statements.
• David Venn – guilty because he talked to
prospective investors and failed to attach
appropriate disclaimers on financial
statements. “not for use by 3rd parties”.
New status for Compilations
(3) A person is not required to be licensed in
accordance with this Act for providing services as,
• (a) a bookkeeper or for engaging in bookkeeping,
in cost accounting or in the installation of
bookkeeping or business systems, solely by virtue
of engaging in those activities; or
• (b) a person preparing or offering to prepare
financial statements solely as part of tax returns, if
the person offers,
– (i) no opinion independent of the taxpayer in respect of
the financial statements or in respect of the returns, or
– (ii) no other service requiring a licence under this Act.
2004, c. 8, s. 3 (3).
(2) The Notice to Reader in English shall use the following
language:
On the basis of information provided by [management or by
proprietor, specify], I have compiled the balance sheet of
[name of client] as at [date] and the statements of income,
retained earnings and cash flows for the [specify period] then
ended.
I have not performed an audit or a review engagement in
respect of these financial statements and, accordingly, I
express no assurance thereon.
Readers are cautioned that these statements may not be
appropriate for their purposes.
[Place] [Printed or signed name of accountant, and
designation, if any]
[Date]
O. Reg. 248/07, s. 1 (3).
Regulation 238/05 as amended
Notice re compilations
5. (1) Subject to subsection (4), the notice in
subsection 2 (3) of the Act shall be comprised of,
(a) a notice that in English is entitled "Notice to
Reader" using the language set out in subsection
(2) and a conspicuous notice on each page of the
compilation or associated materials stating in
English "Unaudited — see Notice to Reader"; …
O. Reg. 238/05, s. 5 (5).
• (5) The Lieutenant Governor in Council
shall review any recommendation from the
Council in respect of the wording of the
notice under this section and shall replace,
modify or confirm the wording of the notice
within 120 days after receiving the
recommendation of the Council.
Old and New systems
• Old system – PAC granted licenses
• New systems – Authorized designated body
grants license.
• Reviews for management internal use only
gone.
Conclusions
• Designation “certification” and licensing
separate
• Membership in a “club” is required in
Canada to be licensed – not required in
USA.
• Governor of a State grants “CPA license”
Status of “CPAs” in Ontario
• 6. (1) An authorized designated body may,
subject to any terms and conditions that are
prescribed, license any person from another
jurisdiction who is permitted to practise as a
public accountant in that jurisdiction to practise as
a public accountant within Ontario if,
• (a) the person is a member of the designated body;
and
• (b) the person meets the qualifications to be
licensed as a public accountant established by the
designated body. 2004, c. 8, s. 6 (1).
CA system
• Access controlled by employer
• Process:
–
–
–
–
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Qualifying examination -cost $
School of Accountancy – 1 month – cost $
Article for 3 years
Write UFE - $
Membership fee $1K approx / year, licensing
and insurance extra
CGA General Accountant
• Correspondence - course by course program –
cost $ 650 per course – e.g. 10 courses X 650 =
$7K
• May specialize at 5th level – public accounting
option
• Work in approved office and gain recognized
experience – 3 years
• Membership cost $775, no public practice
registration fees but must take advances auditing
and advanced tax $1,300 approx.
CMA – Strategic Planning
• Entrance exam required – cost $
• Courses – cost up to $12K depending on
undergrad studies
• No courses in Windsor
• Work in approved office and gain
recognized experience – 2 – 3 years
• Membership cost approx $1K, public
practice registration fees -$50
CPA
• Windsor program www.cpaprepwindsor.com
• 5 courses (15 credit hours) :
–
–
–
–
–
US Federal Taxation (Regulations -1)
US Commercial Law (Regulations -2)
Advanced Auditing (US – GAAS)
Advanced Financial Reporting (GAAP)
Business Environment and Concepts (economics, business
organizations and management accounting)
Each course $750 - pay 20 days prior to start date $600 (a 20%
discount for registering early)
CPA
• No entrance exams
• Assessment by foreign evaluator may be required
– 150 credit hours – college / university level
– Core area – 24 credit hours
Pass exams and get experience after, no concurrent
requirements for testing and working.
Possible concerns
• B. Comm. – 120 credit hours / MBA –
deemed qualified to write
• CPA Prep course Windsor – 15 credit hours
• Need 150 – short 15 credit hours
• Additional university courses or take CGA
PACE level.
CPA PASS RATES
• Good discussion
http://www.newaccountantusa.com/newsFe
at/pdf/cpavjdzz.pdf
• 2004 http://www.cpaexam.org/alerts/download/dec_jan05_5.pdf
CPA - New system –2004
•
•
•
•
•
Write one exam at a time – when ready
Obtain 75% to pass
Exam cost – each exam < $200
Nominal application fee varies State to State
Experience requirement – 1 year under the
supervising of a CPA in industry or public
accounting.
• Licensing – does have additional requirements,
e.g. ethics courses, nominal annual fee, peer
review and errors and omissions insurance
2004 Pass Rates
•
•
•
•
AUDIT 48.42% 42.99% overall 44.79%
BEC 44.12% 44.66% overall 44.48%
FAR 46.60% 43.74% overall 44.88%
REG 47.47% 42.32% overall 44.23
FLOWTHROUGH
• Flow through measures the candidates
completing the programme and obtaining a
professional designation
– Ask before you enroll in any membership SRB
Are you smarter that a
th
5
Grader
• Good approach to use for CPA exams
• Write hardest first – if successful continue
• Don’t apply too early – must be ready to
write
• Exam windows – none in March and April,
not a major concern but be aware
ADVOCACY BODIES
Medicine
• Canadian Medical Association – advocacy
• College of Physicians - SRB
Law
• Canadian Bar Association – advocacy
• Law Society – SRB
Others
• Same structure for architecture,
engineering, social work etc…
• Accounting – dual purpose bodies, ICA,
SMA, CGAA
• Advocacy – www.canmapp.ca
Career Planning
•
•
•
•
Keep a portfolio
Resume always up to date
Network
Get education that does not require dues to
“rent” certification
• Remember your environment – Essex
County is a peninsula surrounded by the
USA.
Carrers in Accounting
• http://www.cpaprepwindsor.com/upload/cpa
prepwindsor/carrers_in_accounting.doc