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2011 CA Reciprocity Examination (CARE)

UPDATE

At its December 14, 2010 meeting, the Public Accounting Council (PAC) concluded that the new one-day Chartered Accountancy Reciprocity Examination (CARE) (as administered in October 2010) is not acceptable on its own for Public Accounting Licensure purposes, and specifically, that Canadian Generally Accepted Accounting Principles (GAAP) and Canadian Generally Accepted Auditing Standards (GAAS) at the CA entry-level must continue to be tested.

The PAC recommended that the CARE be administered as a two-part examination (Part-1 & Part-2) in a single day and that Canadian GAAP and GAAS be tested in Part-2 in a multiple choice question (MCQ) format (consistent with Part-1) at a knowledge proficiency level required from an entry-level CA.

Proficiency at the CA entry-level is defined in The UFE Candidates’ Competency Map, which is available in electronic format on the Institute’s or the CICA’s website.

Become a Chartered Accountant in Ontario?

To become a Chartered Accountant in Ontario, a member in good standing of an accounting body outside Canada that has signed a Mutual Recognition Agreement (MRA) with the CICA and the provincial and territorial CA institutes must apply to the Institute to become an Applicant, and must successfully complete Part-1 of the CARE and the practical experience requirements as prescribed by the Institute’s Council, bylaws and regulations.

Part-1 of the CARE is the means by which the provincial and territorial CA institutes measure the professional competence required of an Applicant in a Canadian context. Specifically, Part-1 of the CARE examines Applicants on their knowledge of Canadian taxation, Canadian business law and the Canadian CA’s Rules of Professional Conduct.

The successful completion of Part-1 of the CARE by an Applicant is required in order to qualify for admission to membership in the Institute, to use the Chartered Accountant designation and CA initials in Ontario, and to hold out to be or to offer services as a Chartered Accountant in Ontario.

Intending to Practise Public Accounting Following Admission to Membership in the Institute?

Anyone who intends to practise public accounting following admission to membership in the Institute is required to have a licence issued by the Institute if he or she is the lead engagement person responsible for signing a statement or report when:

• the engagement statement or report is issued in Ontario, or the engagement work is primarily performed in Ontario; and
• the statement or report is issued in respect of:
  • an assurance engagement for which a licence is required, including an audit or review engagement; or
  • a compilation engagement for which it can reasonably be expected that all or any portion of the compilation or associated materials will be relied upon or used by a third party, and which is not accompanied by the prescribed Notice to Reader.

If you intend to be the lead engagement person on any such engagements, you will be required to apply for a Public Accounting Licence (PAL), and you may do so subsequent to your admission to membership. At the time you apply, you will have to demonstrate that you have the prescribed public accounting experience and other requirements as set out in the Institute’s bylaws and regulations. These additional requirements include the successful completion of Part-2 of the CARE that examines Canadian GAAP and GAAS.

Please note that a member of an engagement team, including the quality control reviewer or other expert, does not require a public accounting licence.

The CARE

The CARE tests knowledge, comprehension and the application of knowledge. It does not test higher cognitive skills like the Uniform Evaluation (UFE) does. The CARE is a closed-book examination, and therefore, Applicants are not permitted to bring any reference materials with them into the examination writing centre. It is also a non-disclosed examination, and therefore, the examination booklets are collected at the writing centres and the examination questions and solutions are not published. Part-1 and Part-2 of the CARE are structured as follows:

The CARE is offered on Monday October 24, 2011 in the Institute’s offices at 69 Bloor St. East, Toronto.

• Part-1 is a three-hour examination that will be written from 9:00 a.m. to 12:00 noon; and
• Part-2 is a two-hour examination that will be written from 1:00 p.m. to 3:00 p.m.

An Applicant need not write Part-2 if he or she has no intention to apply for a PAL. However, the Applicant may write Part-2 in a subsequent year if he or she later decides to apply for a PAL.

Applicants who wrote the CARE in October 2010 and who wish to apply for a PAL at this time must write and successfully complete Part-2 of the CARE.

UPDATE: Part-2 of the CARE in 2011 is ONLY open to  Applicants who successfully wrote the 2010 CARE and were admitted to membership, and to those who register for and write Part-1 of the CARE in 2011. 

CARE Preparation

Please visit the CARE Preparation Program web page for complete details. 

The Institute offers a preparation program for each of Part-1 and Part-2 of the CARE in two versions: in-class and materials-only. Note that the in-class offering is subject to meeting a minimum number of participants.

Part-1 covers Canadian taxation, Canadian business law, and the Canadian CA's Rules of Professional Conduct. Two and a half days are allocated to taxation and half a day to the Rules of Professional Conduct. Business law is covered as materials-only.

Part-2 covers Canadian GAAP and GAAS. Three days are allocated to GAAP and GAAS.

UPDATE: The dates of the CARE Preparation Program are from August 17, 2011 to August 22, 2011.

Practice sets of MCQs can be purchased from the Institute.

Sample MCQs are available for download, free of charge.

Registration Due Dates

CARE Preparation Program

• UPDATE: Registration will be allowed until August 16, 2011 without a late fee.

CARE

• The completed registration form and examination fee is due at the Institute no later than 5:00 p.m. on Friday September 16, 2011.
• A late registration fee of $45.00 will be applicable for forms received at the Institute after Friday September 16, 2011 and before 5:00 p.m. on Friday October 14, 2011.
• NO registrations will be accepted after Friday October 14, 2011.

Release of Results

Results are reported as successful and  unsuccessful attempts.  No alpha or numeric grades are reported.

Part-1 of the CARE

• The results of Part-1 of the CARE will be mailed to Applicants on December 9, 2011.
• The names of the successful Applicants who consented to the publishing of their names will be posted on the Institute website on December 9, 2011, after 10:00 a.m. Applicants who did not consent to the publishing of their names may call Customer Service at the Institute at 416-962-1841 after the website release, if they wish to receive a verbal result.

Part-2 of the CARE

• The results of Part-2 of the CARE will be mailed to candidates on December 9, 2011.
• The names of the successful candidates will not be published on the Institute’s website. Candidates may call Customer Service at the Institute at 416-962-1841 after 10:00 a.m. if they wish to receive a verbal result.

CARE Examinable Standards and Examinability Dates

For detailed coverage of the CARE, please download the 2011 CARE Brochure.

Part-1 of the CARE

You can expect Part-1 of the CARE to examine the following materials to the extent that it is integral to the demonstration of your knowledge of:

Canadian Taxation

• You are responsible for federal taxation legislation enacted as at March 31, 2011.

Canadian Business Law

• You are responsible for the fundamental principles of Canadian business law as at March 31, 2011.

Canadian CA’s Rules of Professional Conduct and Council Interpretations

• You are responsible for the Rules of Professional Conduct and Council Interpretations published by your provincial or territorial CA institute and updated on or before March 31, 2011.

You are not responsible for provincial tax legislation or tax law applicable only to specific industries.

Part-2 of the CARE

You can expect Part-2 of the CARE to examine the following materials to the extent that it is integral to the demonstration of your knowledge of:

Canadian GAAP

• You are responsible for Canadian GAAP in effect as at March 31, 2011.
  • IFRS (CICA Handbook Accounting – Part I).
  • ASPE (CICA Handbook Accounting – Part II).
  • Not-For-Profit (CICA Handbook Accounting – Part III).
  • Public Sector Accounting

Canadian GAAS

• You are responsible for Canadian GAAS as at March 31, 2011.
  • CICA Handbook Assurance (CSQC, CAS, Other Canadian Standards, and Assurance and Related Services Guidelines).
  • Guidance on the Criteria of Control Board.
  • Risk Oversight and Governance Collection.

Questions?

All questions related to RECIPROCITY ELIGIBILITY AND REGISTRATION as a Part-1 Applicant or Part-2 candidate or both should be directed to:

Brenda  Lun
Co-ordinator , Member and Student Records
[T] 416-969-4201
[F] 416-962-8900

Specific questions related to Part-1 and Part-2 of the CARE and related Preparation Programs should be directed to:

Dominique Charles Lecocq, CA
Associate Director, Education
[T] 416-969-4246