Profession National Strategy

Ontario, Quebec accounting bodies announce planned split from CPA Canada

Why the Collaboration Accord, which outlines the roles and finances of the governing bodies, defines the challenges facing the accounting profession

Author: Canadian Accountant

TORONTO, June 21, 2023 – The provincial accounting bodies regulating chartered professional accountants in Ontario and Quebec have split with CPA Canada over the future governance of the Canadian accounting profession. 

Both organizations, CPA Ontario and CPA Quebec, say their provincial economies are “unique” and their decision to sever ties with Chartered Professional Accountants of Canada is in the public interest. The change will take effect in 18 months when the current collaborative agreement ends between the provincial and national bodies. 

The announcements have exposed a rift between the governing bodies of chartered professional accountants. Governance of the profession is circumscribed in the Collaboration Accord, which outlines the roles, standards and cost-sharing structures. It was created during unification of the profession in 2013 and includes a five-year review built into its terms. 

The agreement has been under review by a task force for several years and negotiations were ongoing. In a press release, CPA Canada said it was “disappointed and surprised” by the announcement, and urged Ontario and Quebec to “re-engage” and work together with a “world-class conciliator.” CPA Canada chief executive office Pamela Steer told the Globe and Mail that the “dispute was around ‘a few key issues’ where the two provinces are seeking to have more control over the profession.” 

Ontario, Quebec represent significant opposition to CPA Canada

The move comes exactly 10 years after the former Institute of Chartered Accountants of Ontario announced the creation of Chartered Professional Accountants of Ontario. Not only is CPA Ontario the largest provincial accounting body, its membership comprises the powerful partners of the Big Four accounting firms and the business interests of Bay Street. 

Similarly, as the francophone voice of Canadian accounting, CPA Quebec Ordre des CPA du Québec) has political clout, as seen recently in its opposition to the transparency reforms of the Canadian Public Accountability Board. The two organizations together represent significant opposition to CPA Canada. 

The profession has also undergone significant challenges in recent years. Members complain that their annual fees to provincial and federal bodies are too high. (CPA Ontario members pay about $1,200 per year, which is less than doctors, lawyers and dentists in the province.) CPA Ontario addressed this issue in an email to members, stating: “When the transition is complete, you will notice a significant cost reduction reflected in your annual membership dues, which currently includes both CPA Ontario and CPA Canada’s fees.” 

The high-profile breakdown of the national online accounting exam in 2019 embarrassed the profession and symbolized a technology deficit in delivery and training. And the brief tenure of former CPA Canada head Charles-Antoine St-Jean surprised the profession. 

As reported by Canadian Accountant, the new Canadian Sustainability Standards Board is expected to cost about $10 million, in addition to the costs of the legacy standard-setting bodies, which in the past was paid for through membership fees. Sustainability standards have been largely driven by CPA Canada, whose national initiatives have overshadowed the provincial bodies, including CPA Ontario, which had a legacy history of substantial influence. 

Similarly, anticipated changes to the CPA program — the education program for future accountants — has concerned members. According to CPA program coach Gevorg Grigoryan, the new Competency Map 2.0 may “gut” the program of electives and the national accounting exam. Legacy chartered accountants still resentful of unification see the future direction of the program as a further watering down of standards and their reputations. 

As professional regulators, the provincial accounting bodies are unusual in terms of governance, as they combine regulatory powers with advocacy initiatives. Professional bodies have largely moved away from this model of self-regulation. The Government of Ontario in particular has emphasized governance modernization in health-care regulation. Both CPA Ontario and CPA Quebec, however, emphasized the public interest in their press releases, and pledged to cooperate with other provincial and territorial bodies, as well as with CPA Canada, in the interim. 

By Canadian Accountant staff.

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(16) Comments

Tony Simon
Tony Simon Jun 21, 2023 -- 2:12 PM
War of the bureaucracies!
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Douglas
Douglas Jul 4, 2023 -- 11:37 AM
Exactly. This is nothing but a power grab by the alleged governing bodies. All they do is offer over priced courses and charge ridiculous fees.
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Ontario CPA
Ontario CPA Jun 22, 2023 -- 10:31 AM
What's with that kind of back handed comment "(CPA Ontario members pay about $1,200 per year, which is less than doctors, lawyers and dentists in the province.) ". Ya, sure, but as a % of total yearly earnings we pay way way more.
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Joseph Lawson
Joseph Lawson Jun 22, 2023 -- 12:05 PM
This is the important consideration.
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Joseph Lawson
Joseph Lawson Jun 22, 2023 -- 12:07 PM
Just how much of the "war of the bureaucracies" is the membership expected to stomach?
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CPA
CPA Jun 22, 2023 -- 1:48 PM
All sounds like they are trying to make money however they can and want to welcome every idiot a CPA, as long as they pay. The new competency map is a joke and would destroy the prestigious nature attached to obtaining a CPA. This should be about adhering to strict standards and creating reliable well equipped future generations of COAs but instead we have another corporate bull shot money grab scheme.
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Retired CA
Retired CA Jun 23, 2023 -- 5:08 PM
The profession I was so proud to join almost 50 years ago has been going steadily downhill for decades. Unification was just one major issue (my CA suddenly became the equivalent of a bookkeeping certificate earned over years in a single position) with a fees driven mindset undermining the professionalism and probity that used to be the hallmarks of the profession. In my last 20 years in the workforce I was a client and was often appalled by the limited amount of work done by the auditors before an opinion was issued. You only have to look at what is now considered by the profession as the client’s responsibility to realize the major concern is the avoidance of legal liability while doing a bare minimum of work.
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industry accountant
industry accountant Jun 28, 2023 -- 3:02 AM
This comment describes well what is wrong with the profession. A bunch of old school CA’s who think it’s just the equivalent of a bookkeeping certificate. I guess it really went up to your head that there is no place but for the almighty CAs who have already screwed over the profession with their unattainable ( perhaps arrogant) standards. Your industry accountants, the folks that could get it with just “one position” never wanted any of this. They wiped out CMA and CGA. We on this end suddenly were expected to teleport 10 years back to start out as interns in a PA firm after years of industry, or we can’t get a designation. If at this stage in your career you don’t know what working in industry entails a why it should still be recognized then I question your qualification as an accountant. I don’t imagine you wrote an exam session so difficult as the CFE even back in the good old and clear CA days. Do not belittle people. Keep up with the times
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Gunner
Gunner Jun 29, 2023 -- 11:53 AM
Could not agree more. I went through the legacy CGA program which was great for me as I never wanted to be a public accountant and work in a CA firm for little money. The "unification" was just a clever strategy by the CA's to eliminate the competition. I knew it would never work due to the massive ego of some Canadian accountants. I left the CGA just before the merger. This entire "merger" was a joke as many times we were told how the accounting world is becoming more and more complex and you'll have to specialize, then suddenly the "CPA" is supposed to cover everything? I was getting so tired of hearing how tough the UFE was for the old time CA's. I had tons of encounters with CA's who saw my CGA just as a bookkeeping certificate.
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Gunner
Gunner Jun 29, 2023 -- 11:53 AM
Could not agree more. I went through the legacy CGA program which was great for me as I never wanted to be a public accountant and work in a CA firm for little money. The "unification" was just a clever strategy by the CA's to eliminate the competition. I knew it would never work due to the massive ego of some Canadian accountants. I left the CGA just before the merger. This entire "merger" was a joke as many times we were told how the accounting world is becoming more and more complex and you'll have to specialize, then suddenly the "CPA" is supposed to cover everything? I was getting so tired of hearing how tough the UFE was for the old time CA's. I had tons of encounters with CA's who saw my CGA just as a bookkeeping certificate.
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Professional Accountant
Professional Accountant Jun 25, 2023 -- 3:35 AM
As a current cpa, the new competency map 2.0 (cpa training) is an embarrassment and has many current CPAs wanting to disassociate with the profession. It is taking away much of the technical and replacing it with political and non technical topics. I am happy to hear that there are provincial bodies willing to recognize this and take a stand. You wouldn’t want your doctor or lawyers to have non-technical fluff for their professional training so I don’t see how this is acceptable for CPAs. If the competency map doesn’t change from their proposal and Ontario & Quebec form their own, you can be sure there will be many accountants looking to abandon their Canadian CPA for the Ontario or Quebec one and I for one welcome this possible alternative!
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industry accountant
industry accountant Jun 28, 2023 -- 3:06 AM
You can be sure the ones who wanted to be a CMA or CGA would welcome it. Many CA’s would want to disassociate. But by the looks of these comments they are the problem anyways. It’s all just a power trip. It shouldn’t all be just for you. I call for another tier of professional designation. I don’t need to be an almighty CA anyway. At least not if it gets to my head so badly
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Borat
Borat Jul 3, 2023 -- 1:55 PM
IF Canada passes a law that says that only CAs can practice accounting just as doctors and lawyers, then everyone should bow to them. Until then, their self proclaim superiority is just a delusions of grandeur :)
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Jamie Anderson
Jamie Anderson Jul 16, 2023 -- 8:46 AM
Who wants to be a CPA in Ontario anyways? The accounting designation is useless unless you are or want to be a donkey and work for an accounting firm. If that is your goal go for it.

They should have a separate designations for those who desire to be a donkey and work for a donkey accounting firm. Long hours, low pay, if that is you the CFE as it exists is for you.

The new model recognizes no one wants to be a donkey.
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