Exemption From Licensing For Public Accounting Services Provided Without Reward

Members who provide public accounting services without reward, under certain conditions, are exempted by Ontario Regulation 402/08 from the requirement to be licensed.   Members who provide these services, however, are required, effective January 1, 2009, to have professional liability insurance coverage.

Public accounting services for this purpose includes one or more of the following:

• assurance including auditing or review engagements;
• compilations not accompanied by the prescribed Notice to Reader if it can reasonably be expected that all or any portion of the compilations or associated materials will be relied upon or used by a third party.
  
  

The additional requirements that must be met are that the assurance engagement must be done:

(a)  by a person who is a member of a professional accounting body that administers a process for addressing public complaints against its members and who is insured against professional liability; and

(b)  on a basis that is independent of the person for whom the services are being provided.

Insurance requirement for members providing public accounting services without reward

To assist members who provide assurance services without reward for small charitable and not-for-profit organizations, the Council has approved the establishment of a policy to provide insurance coverage at no cost to such members, providing that they register with the Institute and meet certain prescribed terms and conditions. One of the conditions is that each organization for which assurance services are provided without reward has annual gross revenue from all sources of $100,000 or less.

To obtain details on the terms and conditions of qualifying for such coverage under the Institute’s policy and to register for coverage, please complete and submit an application form.

Members who provide assurance services without reward for organizations having annual gross revenue in excess of $100,000 or who otherwise do not meet the prescribed terms and conditions must obtain their own insurance coverage. They are also required to file annually with the Institute a declaration confirming the insurance coverage, pursuant to the Mandatory Professional Liability Insurance Regulation.

Obtaining or renewing a public accounting licence – assurance services 

A licence is required for any assurance services (including audit or review engagements) if fees or other reward are received for such services.  Information on how to obtain a licence, if a licence is not currently held, or to to renew a licence is available.

Licence not required for compilation or taxation services

A public accounting licence is not required if a member performs only compilation services but does not provide any assurance services, provided that the compilations are accompanied by a prescribed notice to reader.  A licence also is not required in order to provide taxation services.  More information regarding licensing requirements is available.