CAs Back Ontario Commitment to Highest Public Accounting Standards

"We commit to the goal of maintaining our existing standard - which is widely seen
as among the world’s highest - and working toward increasing it where required."
– Institute President and CEO Brian Hunt, news release, October 30, 2002

TORONTO: August 29, 2003 – The Institute of Chartered Accountants of Ontario today characterized as "a positive first step" an Eves government plan to safeguard Ontario’s existing, internationally recognized public accounting standard, and drive it even higher where required.

Friday’s statement on the future of public accounting follows last December’s passage of Bill 213, which would grant access to public accounting licences to members of other Ontario accounting bodies – without first determining what the standard of practice should be. Bill 213 remains un-proclaimed pending the development of detailed public accounting regulations to support the new high standard.

"We raised concerns about Bill 213 because it opened access to public accounting to other accounting bodies while leaving unanswered the question of what standards they would need to meet," said Institute President and CEO Brian Hunt. "This plan addresses that question by requiring that the standard initially stays the same as the current high, internationally recognized standard that CAs are required to meet, and that it can only be raised in the future."

Other elements of Ontario’s proposed public accounting reform framework include:

• A new Public Accountants Council (PAC) with a mandate to oversee all designated public accounting bodies
• CA, CGA and CMA organizations would become licensing bodies - CGAs and CMAs would train and regulate their members in public accounting to the new high standard
• New PAC to ensure that CGAs and CMAs achieve and maintain the required high standards in quali.cation and regulatory regimes through "sufficiency tests" - no grand-parenting of their members into eligibility for a public accounting licence
• No common public accounting exam - all three accounting bodies will utilize separate but equivalent exams and other quali.cation requirements
• Representation on the PAC for all three accounting bodies that re.ects the number of their respective members (four CAs, two CGAs and two CMAs) together with seven public representatives
• No change to the current de.nition of public accounting as spelled out in the Public Accountancy Act - all levels of public accounting activity (audits, reviews, compilations) remain regulated.

"The existing high standard is a positive starting point, but we will need to remain vigilant," Hunt said. "Pressures will continue to exist to erode standards over time. That’s why we are pleased that no licences will be issued to members of the other accounting bodies until their organizations can prove they have increased their standards to the level required to protect consumers and the public.

"We will remain equally vigilant through the process of developing the detailed regulations that will enable Bill 213 to be proclaimed into law, to ensure that consumers and the public interest remain protected."

The Institute of Chartered Accountants of Ontario is the governing body of Ontario’s 33,000 Chartered
Accountants and CA students. The Institute protects the public interest through the CA profession’s high
standards of qualification and the enforcement of its rules of professional conduct.

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For more information contact:
Anastasia Vogt
Co-ordinator, Public Affairs
Direct: 416-969-4272; Toll Free: 1-800-387-0735, ext. 272
E-mail: avogt@icao.on.ca