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FAQs
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Changes to CA Experience Criteria Frequently Asked Questions: How is CA qualification changing? Why is the profession making these changes? When will these changes take affect? Will candidates need audit and assurance experience to become CAs? Can candidates train for public accounting in corporations? Will all candidates write the UFE? Will candidates with no audit and assurance experience be adequately prepared for the UFE? Why are we allowing corporations to train CAs? Will a CA without public accounting experience be recognized across Canada? Around the world? How much growth in membership do you anticipate from this initiative? How can I get more information? --- The CA profession approves expansion of qualifying experience criteria The CA profession has approved in principle changes to the experience requirements for qualifying CAs. The changes will allow CA firms to create training positions in taxation, business advisory services, and other areas in addition to audit and assurance. They will also allow carefully selected corporations and government departments meeting the CA profession’s high standards to be recognized as Approved Training Offices. Canada and Bermuda are the only countries that do not currently recognize such training positions; these changes will position the profession favourably with our international counterparts. Following a consultation period through the fall, we will reflect these changes through appropriate by-law changes. The CA profession now offers the best training in public practice; expanded experience opportunities will offer the best training in the corporate and public sectors. The changes make it possible for CA firms and for select corporate and public sector organizations to create more entry level positions for CA candidates. In most parts of the country, Canadian universities produce more qualified students than CA firms can produce training positions under the current experience criteria. These changes will help create more opportunities for qualified university graduates to become CAs. They will maintain the excellence of all our admission and qualification standards, and will be implemented across Canada and Bermuda to ensure that the CA continues to be fully portable within Canada and Bermuda, and that all international criteria for mutual recognition agreements continue to be met. The changes are expected to take place in most jurisdictions across Canada and Bermuda for candidates recruited after September 2007 for employment beginning after May 1, 2008, and in Quebec after required regulatory changes are approved. Detailed information on the new standards and criteria will be available in September 2006. Frequently Asked Questions How is CA qualification changing? The CA profession is expanding both what it recognizes as qualifying experience, and the kinds of organizations which can be recognized as Approved Training Offices:
Why is the profession making these changes? The CA profession now offers the best training in public practice; expanded experience opportunities will offer the best training in the corporate and public sectors. Currently, Canadian universities in most parts of the country produce more qualified students than CA firms can produce training positions under the current experience criteria. As a result, we are losing good students who want to be CAs to the competition. These changes will:
Canada and Bermuda are the only countries that do not currently recognize such training positions; these changes will position the profession favourably with our international counterparts. When will these changes take affect? The changes have been approved in principle by the Councils of all Provincial Institutes of Chartered Accountants and the Ordre des comptables agréés du Québec; after consultation they will be reflected in appropriate by-law changes. In most jurisdictions, they will be effective for candidates recruited after September 1, 2007 for employment beginning after May 1, 2008. Information on transition issues will be available in December 2006. Will candidates need audit and assurance experience to become CAs? No. Under the new criteria, candidates will be able to get all their qualifying experience in areas such as taxation and business advisory services. Draft experience criteria will be available in the fall. Audit, assurance and tax experience will continue to be mandatory for public accounting, for which current hour requirements remain unchanged. Can candidates train for public accounting in corporations? No. Only Approved Training Offices providing audit, assurance and taxation hours, as defined under current standards and regulations will be able to offer qualifying public accounting experience (i.e. CA firms and federal and provincial Offices of Auditors General). Candidates who qualify without having acquired all of the experience required for public accounting can achieve the required experience in audit, assurance and taxation post qualification. Draft experience criteria will be available in the fall. Will all candidates write the UFE? Yes. Will candidates with no audit and assurance experience be adequately prepared for the UFE? Yes. Candidates not in audit will be required to gain extensive experience in performance measurement, which is built on the same foundational skills. Further, the concurrent professional development programs which all candidates undertake during their period of experience will ensure all candidates have the required knowledge base in audit and assurance. Will CAs qualifying in areas other than public accounting experience be able to practice public accounting? Yes, by acquiring the necessary experience at a CA firm Approved Training Office at a later date. Why are we allowing corporations to train CAs? Overall across Canada, 70% of CAs work outside public practice; some of the organizations in which they work have both the capacity and the interest to train CAs in accordance with the profession’s rigorous standards. Many qualified students seeking CA careers cannot currently find training positions in CA firms. Other qualified students who are otherwise interested in the CA want to pursue corporate or government careers immediately on graduation. By accommodating these exceptional employers and qualified students, the CA profession will benefit from their talents and abilities. Further, by not accommodating them, we miss a great opportunity to support our members in industry, and leave qualified and interested students to seek professional designations elsewhere, strengthening our competition. Canada and Bermuda are the only countries that do not currently recognize such training positions. These changes will position the profession favourably with our international counterparts. Will a CA without public accounting experience be recognized across Canada? Around the world? Yes. The new CA qualification process will ensure that CA certification continues to be fully transportable across Canada and meet the requirements of all our international recognition agreements. The majority of CAs work outside public accounting. How much growth in membership do you anticipate from this initiative? We believe it is reasonable to expect a 10% growth in student enrolment from this initiative in the first five years of its implementation. It must be clear, however, that membership growth is not our primary reason for making these changes. The CA profession is deeply committed to providing the best possible training for qualified candidates. We are expanding that training from the best public accounting training to include the best training in other areas that are core to CA practice. Will enough corporate and public sector organizations qualify as ATOs and create enough new CA training positions to make the effort worthwhile? Canada and Bermuda are the only countries that currently do not recognize expanded experience opportunities. International experience has shown that, while it takes time to build the necessary relationships with employers, significant uptake from leading organizations is a reasonable goal. Further, we believe it is important for us to begin this initiative even if initial numbers are small. International experience shows it takes time to build numbers from this initiative. What CA Students Need to Know The CA profession is changing the experience criteria for its qualification process. Here are the key facts on the proposed changes. Proposed Changes to CA Qualification: the Key Facts What is changing The CA profession is expanding both what it recognizes as qualifying experience, and the kinds of organizations which can be recognized as Approved Training Offices:
Why the profession is making these changes The CA profession now offers the best training in public practice; expanded experience opportunities will offer the best training in the corporate and public sectors. Currently, Canadian universities in most parts of the country produce more qualified students than CA firms can produce training positions under the current experience criteria. As a result, we are losing good students who want to be CAs to the competition. These changes will:
Canada and Bermuda are the only Global Accounting Alliance (GAA) bodies that do not currently recognize such training positions. These changes will position the profession favourably with our GAA partners. When do the changes take effect The changes have been approved in principle by the Councils of all Provincial Institutes of Chartered Accountants and the Ordre des comptables agréés du Québec; after consultation and with a positive response by members, they will be reflected in appropriate bylaw changes. In most jurisdictions, they will be effective for candidates recruited after September 1, 2007. More information on will be available in the spring of 2007. Expansion of training opportunities Under the new criteria, candidates will be able to get qualifying experience in areas such as taxation and business advisory services. Audit, assurance and tax experience, while encouraged as part of all CA training, will be mandatory only for those pursuing specific requirements for public accounting. Current hour requirements for public accounting remain unchanged. Public accounting experience Only Approved Training Offices providing audit, assurance and taxation hours, as defined under current standards and regulations, will be able to offer qualifying public accounting experience (i.e. CA firms and federal and provincial Offices of Auditors General). Transition rules for students who begin their experience before the new rules take affect. While transition periods are always challenging, our plan is to allow for maximum flexibility for candidates and employers. While CA students who begin work before September 2007 will, strictly speaking, be subject to the rules in effect at the date they began their experience term, their experience will be assessed in accordance with the rules that are in effect at the time they apply for membership at a provincial institute/Ordre (i.e. after passing the UFE and completing experience requirements). This means that students whose period of employment straddles the implementation of the new rules could choose to pursue experience under the proposed new requirements, in anticipation of their acceptance. However, if they do so, the employer and the CA student are accepting the risk that the new rules might not be implemented as planned. In that case, the CA student’s experience would be recognized under the current rules, and if they do not have the mandatory taxation and audit and assurance hours, they would have to get them. To minimize this risk, students should ensure they only accept positions with already Approved Training Offices. Mandatory UFE All CA students will continue to write the same UFE. CA students who are not pursuing specified requirements for public accounting will be well prepared for the UFE by the CA student education programs which they undertake concurrent with their period of experience. The new rules will not affect the date at which students write the UFE; that date is determined by performance in the profession’s professional education programs and by personal choice Achieving public accounting requirements post certification CAs whose pre-certification experience does not meet the requirements for public accounting can acquire the necessary experience at a CA firm Approved Training Office accredited for that purpose at a later date. Training in corporations and government Overall across Canada, over 60% of CAs work outside public practice; some of the organizations in which they work have both the capacity and the interest to train CA students in accordance with the profession’s rigorous standards. In most jurisdictions across the country, many qualified students seeking CA careers cannot currently find training positions in CA firms. Other qualified students who are otherwise interested in the CA want to pursue corporate or government careers immediately on graduation. By accommodating these exceptional employers and qualified students, the CA profession will create more opportunities for those interested in joining the profession. Training in the corporate and public sectors will be possible only if the new requirements are implemented. There will be no recruiting by these prospective employers until they have been recognized as Approved Training Offices and have approved training positions in place
How can I get more information? More details will be available in the fall of 2006. Please continue to check our website for updates or contact: dtrainor@asca.ns.ca. |
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