Accounting in Canada Overview
Can a foreign designated Accountant practice in Canada? What Foreign qualifications are recognized in Canada? What is the process for an internationally trained Accountant to get a Canadian Accounting designation? Which Canadian Accounting designation is right for me? This piece tries to address these questions and more.
Accounting in Canada is a regulated profession, if you want to work in public practice, provide audit assurance, tax, estate and financial planning advise clients in a wide range of businesses and industries, provide consulting and advisory services in areas such as corporate finance, corporate recovery and insolvency, business valuations, mergers and acquisitions you will require registration as being certified in one of Canada’s Accounting designations. The three regulated accounting designations within Canada are as follows: Chartered Accountants (CAs), Certified General Accountants (CGAs), and Certified Management Accountants (CMAs).
All three designations are admitted to the profession through their Provincial Institutes or Organizations. These bodies are responsible for establishing and administering the qualification process, admission criteria and performance standards within their jurisdictions.
Within Canada there are a number of finance and accounting positions that can be performed without holding an accounting designation. For example, a bookkeeping is not a licensed profession in Canada and as such can be the ideal position for foreign designated Accountants to earn money while they complete their Canadian designation. But generally speaking if you want good career prospects you will need to gain a Canadian designation.
In broad brush strokes, in Canada, CA’s tend to hold more traditional tax and audit positions often referred to as Public Practice; CGA’s also perform traditional tax and audit services but tend to hold positions within industry as internal accountants holding positions as CFOs, Controllers, Vice Presidents of Finance, etc. ; and CMA’s are primarily employed in industry with an emphasis on management accounting. Which designation you choose will be informed by your goals and previous experience.
Individuals with accounting designations from many accounting bodies outside Canada can be admitted to the Canadian accounting profession. The requirements will vary depending upon which designation they choose.
Financial Managers, Financial Auditors and Accountants are occupations on the Occupation in Demand List in Canada and as such qualify eligible candidates to apply through the Federal Skilled Worker program and go straight into processing. Current processing times are 6 to 12 months. Find out more about your eligibility to Immigrate as a skilled worker by completing our online eligibility form at CIP Consulting
Path to Becoming a CA within Canada
Individuals holding foreign accountancy designations who want to become a Canadian CA’s must apply to the regional institute where they live, or intend to live.
The Canadian CA profession assesses the credentials of foreign-trained accountants according to three categories
Membership Candidacy
Ref: The Institute of Chartered Accountants of British Columbia http://www.ica.bc.ca
“To apply as a membership candidate, your accounting body – either through current or previous membership –must be a Designated Body and you must:
- have passed its final examination
- have the level of public or other accounting experience required by the provincial institute to which you are applying
- be a member in good standing of a foreign body with which they have a Mutual Recognition Agreement
The public accounting experience you obtained in earning your foreign credential generally will count toward the Canadian requirement. If you meet these requirements, you will be exempted from the education and examination requirements for the CA qualification program. You will be required only to take the CA Reciprocity Examination (CARE).
CA Reciprocity Examination
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The CA Reciprocity Examination (CARE) allows Canadian provincial CA institutes to measure the professional competence – from a Canadian perspective – of members of foreign accounting bodies who have been assessed by the International Qualifications Appraisal Board as having education, examination, and experience requirements substantially equivalent to the Canadian CA qualification program. CARE examines candidates on their knowledge of Canadian accounting and assurance standards, the rules of professional conduct, Canadian taxation and Canadian business law.
CARE consists of two three-hour papers written over two days. It is offered annually in late October/early November.
The CARE exam does not directly test your proficiency in analysis, synthesis, evaluation and similar higher-order skills. The closed-book CARE exam involves multiple-choice and single-subject questions, problems and short situation cases. You cannot bring any reference materials into the examination writing center.
Designated Accounting Bodies
These designated accounting bodies are considered by the Canadian CA profession to be substantially equivalent. Members of these accounting bodies generally qualify for membership in the Canadian CA profession with minimal additional requirements.
• Ordre des Experts Comptables (France)
• Japanese Institute of Certified Public Accountants
• Institute of Chartered Accountants in Australia
• Institut des Réviseurs d’Enterprises de Belgique
• Institute of Chartered Accountants in England and Wales
• Hong Kong Institute of Certified Public Accountants
• Institute of Chartered Accountants in Ireland
• Instituto Mexicano des Contadores Publicos
• Nederland Instituut van Register Accountants
• New Zealand Institute of Chartered Accountants
• Institute of Chartered Accountants of Scotland
• South African Institute of Chartered Accountants
• National Association of State Boards of Accountancy in the U.S.
Non-Equivalent Accounting Bodies
Four foreign designated accounting bodies have been determined not to be equivalent. These accounting bodies have been reviewed by IQAB and their qualification processes have been determined not to be equivalent to the Canadian qualification process:
• Australian Society of Certified Practicing Accountants
• Philippines Institute of Certified Public Accountants
• Institute of Chartered Accountants of Sri Lanka
• Association of Chartered Certified Accountants of the United Kingdom
Please note that use of the U.S CPA designation is not permitted in BC unless you are a member of the BC Institute.
Path to Becoming a CGA within Canada
(CGA) is the designation of professionals who are jointly members of the Certified General Accountants Association of Canada (CGA-Canada) and a provincial or territorial CGA association, or a CGA association overseas. Provincial, territorial and offshore CGA affiliate associations work collaboratively with CGA-Canada as a federation.
A CGA is an accounting professional with expertise in finance, taxation, business strategy, auditing, management and business leadership. CGAs must meet the education, experience and examination requirements established, and regularly enhanced, by CGA-Canada.
International Candidates and those considering moving here to earn their Certified General Accountant designation.
These resources are for:
- New Canadians, International students studying in B.C., foreign-trained accountants living in Canada or abroad, permanent residents and citizens of Canada who received their education outside of, this country, and immigrant service providers helping newcomers to Canada.”
What is required for Certification as a CGA?
ref: Certified General Accountants of BC http://www.cga-bc.org/
“To earn your certification as a CGA in B.C. or elsewhere in Canada, you need to complete the academic component, the degree requirement, and the practical work experience requirement.
1. Academic Component
The CGA program comprises 19 courses and examinations approved by CGA-Canada. This consists of Foundation Studies, Advanced Studies and Professional Studies (PACE). In addition, students must complete two Business Cases, which apply financial management concepts in a practical manner. The courses make extensive reference to ethical issues. All courses and exams are in English only. Many students will need to take Communications 1 (CM1) if they have not taken courses at a university level where English is the main language of study.
For foreign educated individuals, CGA-BC can evaluate foreign education to determine if any course exemptions can be awarded. However, regardless of your prior post-secondary or professional education, all exams at the final PACE Level must be written through the CGA Association.
2. Degree Requirement
A bachelor’s degree is required to be certified as a CGA. The degree may be from most post secondary degree granting institutions and may be in any field. A degree is not necessary to enter the CGA program, but must be obtained prior to certification as a CGA. CGA has partnerships with post-secondary institutions to allow students to combine their previous education and their studies on the CGA program to earn a bachelor’s degree.
For foreign educated individuals, CGA-BC can evaluate foreign degrees to determine if they meet the program’s degree requirement. However, in some situations an independent evaluation may be required.
3. Practical Work Experience Requirement
The CGA program is designed to offer individuals the opportunity to study part-time while pursuing full-time employment and career advancement. If you are not currently working in the accounting field, it is strongly recommended that you obtain this employment in order to meet the CGA’s experience requirements for certification—prior to completion of all CGA course requirements.
CGA certification requires a wide range of accounting and financial management experience on the job. In general, a minimum of three years’ work experience is required— approximately two years of this must be at an intermediate to senior level. Normally, a beginning student will start in a clerical/junior position and then progress to an intermediate/senior position.
Other practical experience considerations:
International work experience may count for up to two of the three years’ practical work experience requirements. At minimum, one year of the experience must be obtained at the intermediate/senior level within Canada. Individuals who are interested in having their foreign work experience assessed must have letters from their employers confirming their work experience.
In BC, CGA students may work in a variety of accounting areas, but they may not be self employed in the practice of public accounting. However, they may be employees of Public Practice firms. Upon admission into membership of CGA-BC, they may become a proprietor or partner of a public accounting firm.
Mutual ecognition greements (MRAs)
As a member in good standing with any of the organizations described in the MRAs below, you are eligible to obtain the CGA designation at the completion of few additional requirements.
On 18 December 2006, CGA Canada and the Association of Chartered Certified Accountants (ACCA) announced a Mutual Recognition Agreement to take effect on 1 January 2007. Details.
On 8 April 2008, CGA Canada and CPA Australia entered into a Mutual Recognition Agreement to extend the global reach of both organizations into new continents. Details.
On 3 June 2009, CGA Canada and CPA Ireland entered into a mutual recognition agreement. The MRA establishes a strategic partnership between the two leading accounting organizations and gives members the opportunity to qualify for another designation. Details.
Labor Mobility within Canada
Effective April 1, 2009, the Trade, Investment and Labour Mobility Agreement (TILMA) and the Canadian Agreement on Internal Trade (AIT) came into effect. The terms of TILMA and AIT provide for labour mobility for Certified General Accountants throughout Canadian jurisdictions.
If you are a CGA from another Canadian jurisdiction, you may qualify for recognition in CGA-BC.”
Path to Becoming a CMA within Canada
Certified Management Accountants are strategic financial management professionals who have gained the knowledge and skills necessary to provide leadership, innovation and an integrating perspective to organizational decision making in the global marketplace.
CMAs actively apply a unique mix of financial expertise, strategic insight, innovative thinking and a collaborative approach to help grow successful businesses.
Working in organizations of all sizes and types, CMAs provide an integrating perspective to business decision making, applying best management practices in strategic planning, finance, operations, sales and marketing, information technology, and human resources to identify new market opportunities, ensure corporate accountability, and help organizations maintain a long-term competitive advantage.
CMAs have unique competencies in cost management, strategic performance measurement, process management, risk management and assurance services, and stakeholder reporting, coupled with the ability to connect strategy with operations and anticipate customer and supplier needs. They have a holistic view of business, are able to identify issues, envision and chart solutions, and engage the appropriate measures and people within the organization to achieve the desired results.
A landmark agreement between Certified Management Accountants of Canada (CMA Canada) and CPA Australia has extended the global reach of both organizations into new continents. The agreement details how members of CMA Canada and CPA Australia can gain reciprocal membership. CMA Canada members who qualify for membership in CPA
Australia will have full rights to use the CPA designation in Australia and in other CPA Australia jurisdictions. Conversely, CPA Australia members who qualify for membership in CMA Canada will have full rights to use the CMA designation in Canada. CMAs will be eligible for membership in CPA Australia if they have completed either a course in audit as part of an undergraduate degree program, or the auditing and assurance services component of the CPA Australia program. CMAs who wish to practice as public accountants in Australia will be required to complete assurance, auditing, law and tax programs as prescribed by CPA Australia, as well as meet regional regulatory requirements where they exist. CPAs in Australia who have met educational, professional development and work experience requirements that are equivalent to CMA Canada accreditation requirements, and who satisfy admission requirements determined by the provincial or territorial affiliate in which they live or work, will be eligible for membership in CMA Canada. CPAs who wish to practice as public accountants in Canada will be required to complete CMA Canada’s post-designation program in public accounting and meet regulations established by governments and/or the CMA Canada affiliate in the province or territory in which they live or work.
Useful links
A useful resource for all new Immigrants seeking information on credentials recognition and all Canadian professions, designations and licensing issues is the Foreign Credentials Referral Office.
The Canadian Institute of Chartered Accountants http://www.cica.ca
The Institute of Chartered Accountants of British Columbia http://www.ica.bc.ca
The Institute of Chartered Accountants of Alberta http://www.icaa.ab.ca
Certified General Accountants of BC http://www.cga-bc.org/
Certified Management Accountant Organization http://www.cma-canada.org/ http://www.cmabc.com/
To contact Matthew visit CIP Consulting
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