Sunday News Roundup 24.07.28: Glacier Media melts CPABC regulation reputation and more Canadian accounting news

Wrapping up the odds and ends from the past week in Canadian accounting news

Jul 29, 2024 Author: Canadian Accountant

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TORONTO, July 28, 2024 – Glacier Media published a scorching, two-part series this past week, attacking the regulatory efficacy of the Chartered Professional Accountants of British Columbia. The first article focused on the contradiction between the high number of enforcement actions taken by US and Canadian audit regulators against BC accounting firms, and the relatively light punishment meted out by CPABC. The second article focused on the complaints and discipline policies of the provincial accounting body.

Glacier Media owns and operates a large number of print and online news platforms in the province. Its parent company, the Madison Group, was founded by three accountants who cut their teeth at Arthur Andersen in Vancouver. The articles appeared in Glacier’s pro-business online platforms Business in Vancouver and Vancouver is Awesome. The chief executive officer of CPABC, Lori Mathison, refused to be interviewed.

While there is a difference between audit regulation, which focuses on audit quality, and accounting regulation, which focuses on rule infractions, including civil and criminal justice, the articles make a number of excellent regulatory points. We would add a few more to consider. First, the TSX Venture Exchange in Vancouver is the wild west of stock exchanges, which makes investor protection and regulatory efficacy critical. Second, British Columbia has been a leader in regulatory governance modernization, which makes the provincial government’s inattention to accounting regulation all the more perplexing.

And finally, provincial regulators across Canada are using antiquated models of self-regulation, mixing advocacy of the profession with public protection. Provincial accounting regulators are involved in advertising, student recruitment, and professional development, all of which present potential conflicts of interest. Accounting is one of the few professions in Canada that has not split its provincial organizations between regulators (public protection) and associations (advocacy). Glacier Media has done a service to the public, including investors, by running its two-part series.

And now, on to the rest of the news from the past week in Canadian accounting.

CPA Canada to offer membership to Ontario, Quebec accountants

The Globe and Mail reported this past week that CPA Canada plans to offer access to Ontario, Quebec accountants after provincial bodies leave national organization. That’s not much of a surprise, frankly, given that the national body is largely an advocacy and standard-setting organization without regulatory power, which rests with the provinces.

One quibble, as an astute commenter points out, is a sentence that has yet to be corrected: “CPA Canada creates the certification exam for chartered accountants ..." Funny how, more than 10 years after unification, media is still referring to chartered accountants.

Violence triggers Tax Court to shut down in Hamilton

It’s not often that accounting and violence are mentioned in the same sentence, but the Tax Court of Canada has closed its operations in Hamilton due to safety concerns. According to the Toronto Star, the Tax Court first shut down its location in September 2023, due to safety issues with local encampments.

A recent daylight shooting, however, seems to be the final straw. No word yet on where scheduled cases will occur or even if there will be a Tax Court in Hamilton. Not only is it an inconvenience to taxpayers but it’s a blow to Hamilton’s downtown. The building that housed the Tax Court was also the location of the Canadian Football Hall of Fame.