Public Accounting Act, 2004, S.O. 2004, c. 8

• Jurisdiction: Ontario

Public Accounting Act, 2004

S.o. 2004, chapter 8

Consolidation Period: From April 30, 2021 to the e-Laws currency date.

Last amendment: 2021, c. 4, Sched. 7, s. 1-12.

CONTENTS

Definitions and Application

Definitions

1 In this Act,

“CPA Ontario” means the Chartered Professional Accountants of Ontario continued under subsection 4 (1) of the Chartered Professional Accountants of Ontario Act, 2017; (“Ordre”)

“CPA Ontario by-laws” means the by-laws and any other instruments made by CPA Ontario’s council under section 65 of the Chartered Professional Accountants of Ontario Act, 2017; (“règlements administratifs de l’Ordre”)

“Minister” means the Attorney General or such other member of the Executive Council to whom responsibility for the administration of this Act is assigned or transferred under the Executive Council Act; (“ministre”)

“prescribed” means prescribed by the regulations made under this Act; (“prescrit”)

“professional corporation” means a corporation incorporated under the Business Corporations Act; (“société professionnelle”)

“public accountant” means a person who either alone or in partnership or through a professional corporation practises public accounting or offers to practise public accounting; (“expert-comptable”)

“public accounting standards” means the public accounting standards established and maintained by CPA Ontario’s council under section 19. (“normes d’expertise comptable”). 2021, c. 4, Sched. 7, s. 1.

Section Amendments with date in force (d/m/y)

2006, c. 19, Sched. B, s. 16 (1) - 22/06/2006

2010, c. 6, Sched. B, s. 76 - 18/05/2010

2017, c. 8, Sched. 3, s. 77 (1) - 17/05/2017

2021, c. 4, Sched. 7, s. 1 - 30/04/2021

Public accounting services

2 (1) For the purposes of this Act and subject to any limitations that are prescribed, the practice of public accounting means providing, on a basis that is independent of the person for whom the services are being provided, either of the following services:

1. Assurance engagements, including an audit or a review engagement, conducted with respect to the correctness, fairness, completeness or reasonableness of a financial statement or any part of a financial statement or any statement attached to a financial statement, if it can reasonably be expected that the services will be relied upon or used by a third party.

2. Subject to subsection (3), compilation services, if it can reasonably be expected that all or any portion of the compilations or associated materials prepared by the person providing the services will be relied upon or used by a third party. 2004, c. 8, s. 2 (1).

Inclusion of opinion in assurance engagements

(2) Assurance engagements described in paragraph 1 of subsection (1) may or may not include the rendering of an opinion or other statement by the person who is providing the services. 2004, c. 8, s. 2 (2).

Exception to public accounting

(3) If the compilations or associated materials prepared by the person in providing compilation services that otherwise fall within paragraph 2 of subsection (1) contain a notice in the prescribed form that provides that any assurance given by the person is limited to the accuracy of the computations required in order to complete the compilation, the provision of the compilation services does not constitute public accounting for the purposes of this Act. 2004, c. 8, s. 2 (3).

Licensing of Public Accountants

Public accounting licence required

3 (1) A person who is engaged in the practice of public accounting shall,

(a) in the case of an individual, be licensed in accordance with this Act; and

(b) in the case of a professional corporation, hold a certificate of authorization in accordance with this Act. 2004, c. 8, s. 3 (1).

Exception

(2) Despite subsection (1), a person is not required to be licensed in accordance with this Act if the person provides public accounting services exclusively in respect of,

(a) any public authority or any commission, committee or emanation of a public authority, including a Crown corporation;

(b) any bank, loan or trust company;

(c) any transportation company incorporated by an Act of the Parliament of Canada; or

(d) any other publicly-owned or publicly-controlled public utility organization. 2004, c. 8, s. 3 (2).

Other practices not precluded

(3) A person is not required to be licensed in accordance with this Act for providing services as,

(a) a bookkeeper or for engaging in bookkeeping, in cost accounting or in the installation of bookkeeping or business systems, solely by virtue of engaging in those activities; or

(b) a person preparing or offering to prepare financial statements solely as part of tax returns, if the person offers,

(i) no opinion independent of the taxpayer in respect of the financial statements or in respect of the returns, or

(ii) no other service requiring a licence under this Act. 2004, c. 8, s. 3 (3).

Mandatory CPA Ontario membership

4 (1) To be eligible to be licensed under this Act, a person must be a member of CPA Ontario. 2021, c. 4, Sched. 7, s. 2.

Loss of licence on ceasing to be a member

(2) A person’s licence under this Act is revoked on the day the person ceases to be a member of CPA Ontario. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Licensing

5 A person is entitled to be licensed as a public accountant under this Act if the person,

(a) is a member of CPA Ontario;

(b) applies in the manner set out under the CPA Ontario by-laws and pays the fees established by CPA Ontario; and

(c) meets the requirements set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Licensing of persons from other jurisdictions

6 (1) CPA Ontario may license any person from another jurisdiction who is permitted to practise as a public accountant in that jurisdiction to practise as a public accountant in Ontario if the person,

(a) is a member of CPA Ontario;

(b) applies in the manner set out under the CPA Ontario by-laws and pays the fees established by CPA Ontario; and

(c) meets the requirements set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Same, period of licence

(2) In exercising its discretion under subsection (1), CPA Ontario may issue to the person either,

(a) a temporary licence for a specified period; or

(b) a licence for the same period as a licence issued under section 5. 2021, c. 4, Sched. 7, s. 2.

Terms, conditions

(3) A temporary licence or licence issued under this section is subject to such terms and conditions as CPA Ontario may specify. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Renewal of licence

7 (1) A person who is licensed under this Act is entitled to have the licence renewed if the person,

(a) applies in the manner set out under the CPA Ontario by-laws and pays the fees established by CPA Ontario; and

(b) meets the requirements set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Non-application

(2) Subsection (1) does not apply with respect to temporary licences. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Period of licence

8 (1) Every licence that is issued or renewed under this Act is effective as of the date on which it is issued or renewed and, unless revoked, expires on the date set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Date of issuance or renewal and expiry

(2) A licence shall bear the date on which it is issued or renewed and the date on which it expires. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Revocation of licence

9 (1) CPA Ontario may revoke a licence in the circumstances and in the manner set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Issuance of new licence

(2) CPA Ontario may, in accordance with the procedures set out under the CPA Ontario by-laws, issue a new licence to a person whose licence is revoked, if the person meets the requirements set out under the CPA Ontario by-laws. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Fees

10 CPA Ontario may establish fees payable to it in respect of licensing under this Act. 2021, c. 4, Sched. 7, s. 2.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 2 - 30/04/2021

Professional Corporations

Professional corporations permitted

11 (1) A person or two or more persons licensed under this Act to practise public accounting as individuals or as a partnership may establish a professional corporation for the purpose of practising public accounting and the provisions of the Business Corporations Act that apply to professional corporations within the meaning of that Act apply to such a corporation. 2004, c. 8, s. 11 (1).

Requirements

(2) CPA Ontario may establish requirements,

(a) governing certificates of authorization to permit professional corporations to carry on practice as a public accountant;

(b) establishing conditions or restrictions that apply to professional corporations carrying on practice as a public accountant; and

(c) setting out the terms and conditions upon which any licensee in good standing may be permitted to incorporate a professional corporation for the purpose of carrying on practice as a public accountant and to be a director or shareholder, or both, of the corporation. 2004, c. 8, s. 11 (2); 2021, c. 4, Sched. 7, s. 3.

Section Amendments with date in force (d/m/y)

2021, c. 4, Sched. 7, s. 3 - 30/04/2021

Application of Act and regulations

12 This Act and the regulations apply to an individual who is licensed under this Act even if the individual practises as a public accountant...