The CPA Certification Program
The CPA Certification Program Contents The CPA Certification Program – An Overview .......................................................................... 2 Terminology ........................................................................................................................................................ 3 The CPA Competency Map: Defining the competencies of the newly qualified CPA ..... 4 Details of the Canadian CPA Certification Program .................................................................. 5 Prerequisites for Admission ......................................................................................................................... 5 The CPA Prerequisite Education Program (CPA PREP) ........................................................... 7 The CPA Professional Education Program (CPA PEP) ............................................................. 8 Accreditation of Post-Secondary Graduate Programs .................................................................... 8 CPA Evaluation ....................................................................................................................................9 Examples of Core and Elective Examination Questions .................................................................. 9 Qualifying Practical Experience ..................................................................................................... 11 Practical Experience Training Routes ......................................................................................................11 Experience requirements for transitioning candidates .................................................................. 13 Recognizing prior experience ................................................................................................................... 13 Experience competencies ........................................................................................................................... 13 Public Accounting ............................................................................................................................. 13 A Separate Program for Individuals Aspiring to a Career in Accounting Other than the Canadian CPA .................................................................................................................................... 15 Implementation Timeline ................................................................................................................. 15 Frequently Asked Questions .......................................................................................................... 17 The New CPA Certification Program Overview .................................................................................17 The CPA Prerequisite Education Program (CPA PREP) ................................................................ 18 The CPA Professional Education Program (CPA PEP) .................................................................. 19 Examination .......................................................................................................................................................21 Practical Experience .......................................................................................................................................21 Public Accounting ..........................................................................................................................................22 Transitioning to the New CPA Certification Program ................................................................... 23 Separate Program ......................................................................................................................................... 23 Transitioning CGA Students ..................................................................................................................... 24 Transitioning CMA Students ..................................................................................................................... 25 Transitioning CA Students ..........................................................................................................................27 THE CPA CERTIFICATION PROGRAM – APRIL 2014 1 The CPA Certification Program – An Overview The vision of the new CPA designation is to be “the pre-eminent internationally recognized Canadian accounting and business credential that best protects and serves the public interest.” The new CPA certification program provides the foundation for that vision. It builds on the best of existing education programs, creating a challenging and rigorous certification process that meets the needs of business, public practice and government. The new CPA certification program will meet or exceed all International Federation of Accountants (IFAC) standards for education, assessment and practical experience. It will also meet or exceed the requirements of the leading global accounting bodies, ensuring the new profession can maintain existing and establish new Mutual Recognition Agreements (MRAs). The new program will: • be recognized as being at least as challenging as all current programs • be a nationally developed program that will be delivered by the provincial (or in some cases regional) bodies • require an undergraduate degree and specific subject area coverage for admission to the graduate-level CPA Professional Education Program (CPA PEP) • culminate in a comprehensive multi-day Common Final Examination • include the CPA Prerequisite Education Program (CPA PREP), a part-time accelerated bridging program designed to provide university graduates with non-business degrees the ability to obtain the perquisite courses necessary for entry into the CPA Professional Education Program (CPA PEP) • appeal to employers for its development of accountancy and business skills in a high-quality, cost-effective professional program • meet or exceed the requirements of the leading global accounting bodies, ensuring the new CPA profession can maintain existing, and establish, new Mutual Recognition Agreements (MRAs) or Reciprocal Membership Agreements (RMAs) THE CPA CERTIFICATION PROGRAM – APRIL 2014 2 The specific regulations and bylaws of the Provincial Bodies take precedence over these general guidelines and requirements. CPA Students and Candidates are subject to the specific regulations and bylaws of the Provincial Body with which they have registered. Terminology For the purposes of this document, the following are the definitions of the terms CPA candidate and CPA student. CPA Candidate: Individuals who are registered with a provincial body and: • • are enrolled in a CPA Professional Education Program, either through the profession’s CPA PEP program or through an accredited graduate level program offered by a post-secondary institution; or have completed the CPA PEP and have yet to pass the Common Final Examination, and/or their practical experience requirements Note that the terms “candidate” or “student” may be used by provincial bodies, depending on provincial regulation. CPA Student: Individuals registered with a provincial body and working towards prerequisites for admission to CPA PEP – either in CPA PREP or in recognized courses and programs offered by post-secondary institutions. Note that the term “student” may be used by provincial bodies to refer to CPA Candidates, as defined above, depending on provincial regulation. THE CPA CERTIFICATION PROGRAM – APRIL 2014 3 The CPA Competency Map: Defining the competencies of the newly qualified CPA At qualification, CPAs will demonstrate the competencies expected of leading professional accountants. Specifically, they will be required to demonstrate: TECHNICAL COMPETENCIES in six competency areas core to the vision of the new CPA: • • • • • • financial reporting strategy and governance management accounting audit and assurance finance taxation While financial reporting and management accounting will be core to the program, the CPA certification program will require the demonstration of proficiency in all six competency areas. ENABLING COMPETENCIES, grouped into five broad competency areas: • • • • • professionalism and ethical behavior problem-solving and decision-making communication self-management teamwork and leadership The specific competency expectations of the new CPA are defined in The CPA Competency Map, which describes the knowledge, skills and proficiency levels expected of candidates at the point of qualification. The CPA competency map was developed by a team of education experts, in consultation with accounting academics, practitioners and employers to ensure the needs of public practice, industry, and government would be met. It provides the basis for the development of the CPA certification program, including education, examination, practical experience, as well as standards for recognition of prerequisite requirements and for the accreditation of post-secondary institutions to offer components of the CPA Professional Education Program. The CPA competency map does not specify course requirements required for admission to the CPA program. Rather, it identifies requirements for specific subject area coverage. A separate document, the CPA Competency Map Knowledge Supplement, is available to help post-secondary institutions ensure their programs meet these prerequisite requirements. The CPA Competency Map The CPA Competency Map Knowledge Supplement THE CPA CERTIFICATION PROGRAM – APRIL 2014 4 Details of the Canadian CPA Certification Program The CPA certification program is designed to meet the needs of industry, government and public practice by ensuring that all CPAs have the strong foundation of knowledge and skill as professional accountants to succeed in whatever role or position they take on. It recognizes that not all CPAs will be trained to be auditors at the point of qualification, though that option is provided. The CPA certification program consists of: • academic prerequisites for admission to the CPA Professional Education Program • a graduate-level CPA Professional Education Program • examinations, including a Common Final Examination • relevant practical experience Diagram of Implementation of CPA Professional Education Program Prerequisites for Admission An undergraduate degree is required for admission to the new CPA Professional Education Program. The profession will also partner with Canadian colleges and universities to offer non-degree holders the opportunity to obtain an undergraduate degree while obtaining the required prerequisite courses. For a transition period, legacy candidates will, however, be permitted to enter the program while completing their undergraduate degrees. The degree must be completed before admission to the capstone integrative module. THE CPA CERTIFICATION PROGRAM – APRIL 2014 5 In addition to an undergraduate degree, there will be specific subject area coverage which all candidates will be required to complete. CPA provincial bodies are working directly with the post-secondary institutions in their provinces to develop specific course requirements. Those candidates who did not acquire the prerequisite subject area coverage as part of their undergraduate degree (for example, non-Bachelor of Commerce (Accounting) graduates) will be able to do so through the new CPA Prerequisite Education Program (CPA PREP), an accelerated bridging program, developed nationally by the profession and delivered by the provincial (or in some cases regional) bodies on a part-time basis through either distance learning or in-class sessions. There is no examination to enter the CPA Professional Education Program. THE CPA CERTIFICATION PROGRAM – APRIL 2014 6 The CPA Prerequisite Education Program (CPA PREP) The CPA Prerequisite Education Program (CPA PREP) is an intensive accelerated bridging program for those who have an undergraduate degree in a discipline other than accounting, and lack some or all of the necessary prerequisite courses required for admission to the CPA Professional Education Program. A nationally developed program, delivered provincially (or in some cases regionally) on a part-time basis to offer students maximum flexibility and accessibility, CPA PREP uses a blend of online, self-study, and classroom learning. This is a modularized program made up of 12 modules. Students only need to complete those modules they require. Each module will end with an examination. Modules 1 – 4: All students must have either recognized academic credits or equivalent Module credits for Modules 1 – 4 BEFORE proceeding with ANY of Modules 5 – 10. • CPA PREP Modules 1 – 4 are currently under development and will be launched in 2014. Until these modules are available, the current CMA foundation courses (such as Quickstart and Fundamentals) and CGA foundation and advanced education courses will be accepted as equivalents, as will recognized postsecondary institution courses covering the prescribed subject matter. Modules 5 – 12: The scheduling is arranged to allow students to complete Modules 5-12 as a complete program within one year. Module 5 will be available in 2013; Modules 610 and Modules 11-12 will follow in the period from fall 2013 to summer 2014. The sequence in which Modules 5-10 are taken is important as some modules are prerequisites for others. • Module 5, Intermediate and Advanced Financial Accounting, is a prerequisite for Module 7, Audit and Assurance, Module 8, Tax, and Module 10, Strategy and Governance • Module 6, Corporate Finance, is a prerequisite for Module 9, Intermediate and Advanced Management Accounting • Modules 5 through 9 are prerequisites for Module 10, Strategy and Governance • Modules 11, Business Law, and 12, Information Technology, both brief self-study courses with no prerequisites, can be completed at any time CPA PREP launched across Canada in summer 2013, with the exception of Quebec. For more information on the CPA Prerequisite Education Program, including module start dates, please contact your provincial body THE CPA CERTIFICATION PROGRAM – APRIL 2014 7 The CPA Professional Education Program (CPA PEP) The CPA Professional Education Program (CPA PEP) is a graduate-level program built on the new CPA competency map. CPA PEP comprises a series of modules that focus primarily on enhancing CPA candidates’ ability to apply professional knowledge, values, ethics and attitudes in a professional context. The modules also include some knowledge acquisition beyond the academic prerequisite level. The program will take candidates two years to complete on a part-time basis as they work at relevant employment. CPA PEP’s structure and content are being developed nationally and will be delivered provincially/regionally. The modularized program comprises: • two common core modules which all CPA candidates must take, ensure the development and demonstration of technical competencies in financial reporting, strategy and governance, management accounting and certain elements of audit and assurance, finance and taxation • two elective modules which allow CPA candidates to develop deeper skills in their areas of career interest; four electives will be offered: assurance, performance management, tax and finance. All candidates must choose two. Candidates pursuing careers in public accounting must choose assurance and tax. • a capstone integrative module* that focuses on the development of the enabling competencies such as leadership and professional skills and the integration of core competencies * • a capstone examination preparation module which prepares CPA candidates for the Common Final Examination While the program’s structure is modular, it should be viewed as a continuous build of knowledge and skill over a two-year time frame. Moving from module to module will allow for a change in the context or emphasis, as well as for checkpoints at which progress can be evaluated; each module will end in an examination. Candidates must pass each module examination to proceed to the next module. Accreditation of Post-Secondary Graduate Programs The CPA profession has developed national accreditation standards for postsecondary institutions interested in offering components of the CPA Professional Education Program. Full-time, one-year graduate based programs whose learning outcomes are assessed as being substantially equivalent to those of the professiondelivered program can be accredited. National accreditation standards were released in fall 2013. Guidance documents will follow in 2014. * A “capstone” course is a culminating course where candidates demonstrate all that has been learned over the program of study. THE CPA CERTIFICATION PROGRAM – APRIL 2014 8 CPA Evaluation The CPA Professional Education Program includes individual examinations and teambased assessments throughout. All areas of the CPA Competency Map are subject to examination. • Each core and elective module will culminate in an examination which must be successfully completed for admission to the next module. The core and elective module examinations will be set nationally and include both objective format questions and short cases. • The capstone integrative module assessment will include presentations and team-based assignments, and culminate in a business case completed as part of a team. • The Common Final Examination will be a three-day examination requiring candidates to demonstrate depth and breadth of competency development in accordance with the CPA Competency Map. Candidates prepare for the Common Final Examination by completing the capstone examination preparation module. All module examinations, including the common final examination, will be nationally developed and nationally marked. Examples of Core and Elective Examination Questions The nationally-set core and elective examinations will have a mix of objective format questions and cases. Objective format Questions: The style of the objective format questions will vary, with many of them taking traditional forms- four options, short answer, matching, true or false, etc. However, new forms of objective format questions will be also be used. Within the example of objective format questions you will find: • Example of a Clinical Decision Making Case This sample question from the Qualifying Part 1 examination of the Medical Council of Canada uses the Key Features model of objective format testing. • Example of a Task-Based Simulation: This sample question from the American Institute of Certified Public Accountants Inc.’s sample CPA examination uses the task-based simulation model of objective format testing to simulate what candidate’s “do” at entry-level. THE CPA CERTIFICATION PROGRAM – APRIL 2014 9 Core Cases: Core cases must assess the cross-competency integration, problem-solving and communication elements. The maximum length for an individual case will be 60 minutes. Core 1 Example: Atomic Excellence Inc. This example focuses on Financial Reporting and Assurance competencies, drawing on entry-level learnings. Core 2 Example: Fence Company Ltd. This example requires candidates to assume the role of a business advisor, and tests management accounting concepts in a small business environment. Core 2 Example: Mamma Jill’s Pizza This example draws on prerequisite, Core 1 and Core 2 competencies. This kind of case would be used at the end of Core 2. Elective Cases: Elective cases are larger and more complex than core cases. They require a minimum of 60 and a maximum of 120 minutes to complete. The assessment of professional skill will continue in a multi-competency environment, always building on prior learnings; however, more than 50% of assessment opportunities will be related to the Elective area being examined. Assurance Elective Example: Computer Bazaar Inc. This example focuses on the Assurance Elective competencies, and builds on the Core Financial Reporting competencies. Finance Elective Example: Valair Ltd. This example focuses heavily on the Finance Elective competencies, and includes Core Financial Reporting and Strategy and Governance competencies. This case illustrates the use of preloaded information and forms. Tax Elective Example: Mandrake Construction Ltd. This example focuses on competencies in Taxation Elective competencies and Core Finance competencies. Performance Management Example: Florad Industries. This example focuses on the Performance Management competencies, and draws heavily on Core Finance, Strategy and Financial Reporting competencies. THE CPA CERTIFICATION PROGRAM – APRIL 2014 10 Qualifying Practical Experience In addition to formal education, the new CPA certification program requires candidates to complete a term of relevant practical experience. The minimum required term is 30 months of paid employment during which candidates demonstrate that they have gained the professional knowledge, skills, values, ethics and attitudes required for entry to the CPA profession. (The term for practical experience in Quebec is 24 months.) This minimum 30-month employment period includes allowances for time off (such as vacation, illness, and study leave), and complies with IFAC standards for professional accounting bodies. Practical experience requirements (for certification) are based on the following principles: 1. 2. 3. 4. 5. candidates must be provided with the opportunity to develop ethical behaviour and professionalism candidates must have opportunities for development in accordance with the CPA competency map candidates must demonstrate professional development in accordance with the CPA competency map candidates must be appropriately supervised and mentored practical experience must be subject to oversight by the profession These principles will be applied differently in different work environments and training structures, depending upon the needs of the profession and of employers. The standard for practical experience applies to certification for admission to the profession only. Practical experience requirements for public accounting are being set separately. Public Accounting Standards, and their dates of effective implementation, are expected to be released in 2014. The existing standards of the legacy bodies remain in place until the new CPA standards come into effect. Practical Experience Training Routes CPA Practical Experience Requirements, including transitional requirements, were released in April 2014 and come into effect on September 1, 2014. Until that time, qualifying practical experiences of legacy designations remain in effect and will count towards the practical experience requirements for CPA. CPA students/candidates who register with a provincial body and begin a period of qualifying practical experience on or before August 31, 2014, can complete their experience under the requirements of any legacy program, regardless of the professional education program in which they are enrolled (a legacy professional education program or CPA PEP). The deadline to satisfy the practical experience requirements of a legacy program is September 1, 2018. CPA students/candidates who have not satisfied the requirements of the legacy program at that date must transition to the CPA requirements. THE CPA CERTIFICATION PROGRAM – APRIL 2014 11 Two training routes will be offered: • Pre-Approved Program: Students/candidates gain relevant experience in training positions pre-approved by the profession. Employers offering these programs have had them approved by the profession in advance. The programs have been designed to provide future CPAs all the required experience within 30 months (24 months in Quebec). As a result, less documentation is required from students/candidates taking this path. Assessment by the profession occurs when students/candidates complete the program. The pre-approved program is expected to be appropriate for employers who plan to train CPA candidates on an ongoing basis. These could include large or small CPA firms, government or industry employers. Experience Verification: This flexible route allows students/candidates to demonstrate competence and have relevant experience recognized, as it is gained, at an employer of choice. Students/candidates complete detailed experience reports that are assessed by the profession at key milestones. Supervisors review and attest to the accuracy of experience reports. Experience verification is expected to be appropriate for organizations not training substantial numbers of CPA students/candidates and would likely appeal to many small and medium-sized businesses and departments of larger organizations. This path allows employees to continue working in areas of organizations that do not offer programs pre-approved by the profession, but in positions that meet the profession’s requirements while they pursue their CPA designation. Five common requirements support both practical experience routes: 1. Experience – CPA students/candidates must gain relevant paid employment that is progressively challenging to develop as a professional accountant. The period of practical experience cannot begin until CPA students/candidates have a qualified CPA mentor. 2. Supervision – experience gained must be appropriately supervised by the person to whom the CPA student/candidate reports. • Pre-approved program positions – the supervisor assigns the work specified in the pre-approved program, and provides feedback to the CPA mentor • Experience verification – the supervisor verifies that the experience of CPA students/candidates is accurately reflected in the experience report Supervisors do not need to be a designated accountant. 3. Experience reports and self-assessments – Detailed reports must be completed at key milestones in the profession’s online practical experience reporting tool (PERT). CPA students/candidates will use the report to: • track experience • record information about the employer • record the duration of the experience, including time away from work • self-assess the level of proficiency in technical and enabling competencies 4. CPA Mentorship – CPA students/candidates will meet with a qualified CPA mentor at least twice a year to review their progress against set required competencies. THE CPA CERTIFICATION PROGRAM – APRIL 2014 12 5. Assessment by the profession – At key milestones, the experience report must be assessed by the provincial/regional body of the CPA student/candidate. Equally demanding and challenging, the pre-approved and experience verification routes are both designed to give students/candidates opportunities for advancement, develop the required competencies, benefit from supervision and mentorship, and ensure their experience is reviewed and evaluated consistently and approved by the profession. Experience requirements for transitioning candidates Experience acquired through a legacy program will count towards CPA experience requirements. Transitioning students/candidates who started employment and registered with a provincial legacy body before September 1, 2014 will be able to complete their practical experience requirements under that legacy system. Transition information, including the specific date when all legacy students/candidates will be required to meet the CPA practical experience requirements, are available in the standards document. Recognizing prior experience The CPA profession recognizes that some students/candidates may register with the profession having already obtained relevant work experience. Prior experience of a minimum of three months to a maximum of 12 months may be recognized as qualifying practical experience. To ensure prior experience is relevant, all experience must be gained in positions that ended with the last seven years. Experience competencies Since competencies gained through practical experience differ from those developed through education, refer to the CPA Practical Experience Competency Requirements document for more information on the experience competencies and the required proficiency levels. Public Accounting The new CPA program offers candidates considerable flexibility to pursue areas of interest throughout the qualification process. Candidates pursuing careers in public accounting will be required to follow a specific path within the CPA certification program: • Education: All CPA candidates are required to complete two of four elective modules; public accounting candidates must choose and successfully complete the assurance and taxation elective modules. • Examination requirements: All candidates are required to pass the Common Final Examination. To pass the Common Final Examination they must demonstrate Depth in two competency areas, one of which must be either financial reporting or management accounting, and Breadth in all remaining THE CPA CERTIFICATION PROGRAM – APRIL 2014 13 competency areas. Public accounting candidates must demonstrate depth in financial reporting and assurance. • Practical Experience: Practical experience requirements for public accounting are regulated by provincial bodies or independent provincial regulatory authorities. Standards outlining the specific experience requirements for public accounting are currently under development by the CPA profession and will be released in early 2014. CPAs who do not qualify to practice public accounting at the time of certification will have the opportunity to complete a post-certification public accounting program along with the additional experience requirements as required by the CPA Profession to meet the eligibility requirements to practice public accounting. CPA public accounting standards, and their dates of effective implementation, are expected to be released in early 2014. Legacy standards remain in place until the effective date of new CPA standards. THE CPA CERTIFICATION PROGRAM – APRIL 2014 14 A Separate Program for Individuals Aspiring to a Career in Accounting Other than the Canadian CPA The new CPA certification program is designed to develop Canada’s pre-eminent professional accountants. However, not all individuals interested in accounting will become CPAs. The CPA profession is developing a separate program for individuals who aspire to a career in accounting but not as a qualified CPA. This program will have relevant entrance, education and assessment requirements to meet the market need and the goals of the profession. Education/examination bridges to the appropriate stage of the CPA certification program will also be developed. This new program is expected to launch across Canada in fall 2014. Implementation Timeline One principle of unification is that the profession will evolve towards a new single designation with a new CPA certification program. The legacy qualification programs will not accept new entrants once the CPA certification program becomes available. The CPA certification program timeline is as follows: October 31, 2012: Release of the CPA Competency Map Summer 2013: The CPA Prerequisite Education Program (CPA PREP), an accelerated bridging program designed to prepare students lacking specific subject area coverage for admission to the CPA Professional Education Program, launched nationally, with the exception of Quebec Fall 2013: The new CPA Professional Education Program launched in Western Canada; to be rolled out nationally in fall 2014 2014: CPA Professional Education Program launches across Canada Fall 2014: CPA Practical Experience Requirements comes into effect Fall 2015: The first CPA Common Final Examination will be offered THE CPA CERTIFICATION PROGRAM – APRIL 2014 15 Care will be taken to support a smooth transition to the new CPA Certification Program. The process will be guided by these basic principles: • There will be no legacy examinations offered after the first CPA Common Final Examination is launched in September 2015. • All CA, CMA and CGA candidates who have not successfully completed their programs by September 2015 will be bridged to the new CPA Certification Program via transitional programs. • Failed attempts at CA, CMA and CGA examinations, including CMA Board Report attempts, will not count against the permitted number of attempts on the CPA Common Final Examination. • All education and experience that meets the criteria of a legacy program will count towards the CPA designation. No candidate transitioning from a legacy program will be required to redo education or experience that was successfully completed for their legacy program. • Candidates who begin in a legacy program and finish in the CPA certification program will require additional education, which will be provided by the profession in specifically developed transitional programs. The CPA profession will provide the support needed to prepare them to be successful. As the profession is provincially regulated, this transition timing may be affected by the timing of legislative change across the country. THE CPA CERTIFICATION PROGRAM – APRIL 2014 16 Frequently Asked Questions The New CPA Certification Program Overview How are the competencies of the legacy programs incorporated into the new CPA competency map? The new CPA competency map has been developed by all provincial bodies negotiating merger agreements. It is based on the breadth and depth of the competency maps of the existing legacy professional programs. The new CPA competency map includes the knowledge and skills expected of the pre-eminent Canadian accounting designation, and will ensure we can maintain and negotiate Mutual Recognition Agreements (MRAs) with the world’s leading accounting bodies. The new map meets or exceeds the requirements of regulators, global accounting organizations and the Canadian business community for professional accountants working in both public practice and industry. What does the new CPA certification program consist of? The nationally developed, regionally delivered CPA certification program will consist of: • Academic prerequisites, including an undergraduate degree and specific subject area coverage, which is defined in the CPA competency map. • Graduate-level CPA Professional Education Program (CPA PEP): Candidates complete this program through the profession’s nationally developed, regionally delivered two-year part-time program. Alternatively, post-secondary institute programs can be accredited to deliver components of the program. • Relevant practical experience: All CPA candidates must complete a period of relevant, progressive, qualifying practical experience that is approved by the CPA profession. • CPA Practical Experience Requirements, including transitional requirements, were released in April 2014. They will come into effect on September 2, 2014. Until that time, qualifying practical experience of legacy designations remain in effect and will count towards the practical experience requirements for CPAs. Will the new CPA certification program be recognized internationally? Yes. The new CPA certification program meets or exceeds all International Federation of Accountants (IFAC) standards for education, assessment and practical experience. It also meets or exceeds the requirements of the leading global accounting bodies, ensuring the new profession can maintain existing, and establish new, Mutual Recognition Agreements (MRAs). THE CPA CERTIFICATION PROGRAM – APRIL 2014 17 What are the benefits of taking the CPA certification program? The CPA certification program will provide you with a breadth of highly valued business and accounting skills plus hands-on experience that will ensure you are in high demand by businesses and organizations of all sizes and across all sectors. It will give you a competitive edge in the marketplace and create the foundation for a prosperous and exciting career in Canada or abroad. How does the CPA compare to other business designations or degrees such as the MBA? The CPA is much more than a business degree – it is a professional credential, similar to that of a doctor, engineer or lawyer. The CPA certification program combines education in business and in financial and management accounting with qualifying practical experience, giving CPAs a competitive advantage in the job market. In addition, CPAs must abide by a code of conduct, have a requirement for lifelong professional development, and are subject to uniform standards of entry or exit from the profession, all of which are valuable assets for employers and hallmarks of professional designations. Is the new CPA certification program flexible for different types of students? Yes. The program will be flexible and accessible to many kinds of students, including those entering directly from post-secondary education or the workforce, those with a variety of education backgrounds, and internationally trained applicants. An undergraduate degree and specific subject area coverage in business and accountancy will be required for admission to the CPA Professional Education Program. Those lacking the requisite academic credits can enter the CPA Prerequisite Education Program (CPA PREP), an accelerated bridging program, as preparation for entering CPA PEP. The CPA Prerequisite Education Program (CPA PREP) How can those with undergraduate degrees in areas other than accounting enter the CPA Professional Education Program? The CPA profession is offering the new CPA Prerequisite Education Program (CPA PREP), an accelerated bridging program for those who have an undergraduate degree in a discipline other than accounting, and lack some or all of the necessary subject matter coverage required for admission to the CPA Professional Education Program. Alternatively, subject matter coverage can be acquired through postsecondary institutions. THE CPA CERTIFICATION PROGRAM – APRIL 2014 18 The CPA Professional Education Program (CPA PEP) What will the CPA Professional Education Program look like? The nationally developed, regionally delivered CPA Professional Education Program will consist of six modules: • two common core modules, which all CPA candidates must take, focusing on the development of competencies in management and financial accounting, and the integration of the six core technical competency areas, which all CPAs must have: » » » » » » financial reporting strategy and governance management accounting audit and assurance finance taxation • two elective modules that allow CPA candidates to develop deeper skills in their areas of career interest. Four electives will be offered: assurance, performance management, tax and finance. All candidates must choose two. Note: candidates pursuing careers in public accounting must choose assurance and tax. The electives will be developed to provide CPA candidates with the ability to develop depth in two areas of most interest to them in their future careers. The modules will not make you a “specialist.” They will, however, provide an important foundation should you wish to specialize in these areas in the future. • a capstone integrative module * that focuses on the development of the enabling competencies such as leadership and professional skills and the integration of core competencies. * • a capstone exam preparation module that prepares CPA candidates for the Common Final Examination. The CPA profession is also developing national accreditation standards for postsecondary institutions interested in offering components of the CPA Professional Education Program. When will the new CPA Professional Education Program launch? The new nationally-developed, regionally-delivered CPA PEP will be available in parts of Canada in the fall of 2013 and across Canada in the fall of 2014. Is there an examination required to enter CPA PEP? No. The admission requirements are an undergraduate degree and specific subject area coverage. There will, however, be an examination after each CPA PEP module. CPA candidates must be successful on each exam to proceed to the next module. * A “capstone” course is a culminating course where students demonstrate all that has been learned over the program of study. THE CPA CERTIFICATION PROGRAM – APRIL 2014 19 How long does CPA PEP take to complete? The nationally developed, regionally delivered program is designed to be delivered on a part-time basis over two years, while you gain your practical experience. Accredited full-time graduate programs are expected to take one year. How will the modules be offered? The modules will be delivered using a blended learning model, combining online learning, self-study, classroom learning and teamwork to enable CPA candidates to develop the competencies expected of Canada’s pre-eminent professional accountant. How long is each module? The length of each module will be determined by the course developers to ensure CPA candidates have the opportunity to develop the required competencies. Will there be examinations after every module in the new CPA Professional Education Program? Yes. There will be an examination after every module. Candidates must pass the examination to proceed to the next module. Examples of Core and Elective cases can be found here. How often will the modules be offered? Ultimately, all modules will be offered at least twice each year. Will the new CPA Professional Education Program be offered on a part-time basis? Yes, CPA PEP is a two-year program delivered part time while candidates gain practical experience by working in relevant, progressive positions. Will the CPA Professional Education Program also be available through universities? Yes. The CPA profession will develop national accreditation standards for postsecondary institutions interested in offering components of the CPA Professional Education Program (CPA PEP). The CPA profession expects to accredit full-time graduate education programs. What are the entrance requirements to the new CPA Professional Education Program? To be admitted to the CPA PEP, you must have completed an undergraduate degree and specific subject area coverage. The specific subject area coverage is defined in the CPA Competency Map. CPA provincial bodies are working directly with the postsecondary institutions in their provinces to develop specific course requirements. How do you assess international accounting credentials? The process for determining equivalency is administered by the regional/provincial education bodies. International credentials are compared to the competency requirements of The CPA Competency Map. THE CPA CERTIFICATION PROGRAM – APRIL 2014 20 Examination Will there be a Common Final Examination? Yes. The CPA program will have a multi-day common examination. In addition, each module will culminate in an examination. CPA candidates are required to successfully complete each module before proceeding to the next. What are team-based assessments? Within the CPA Professional Education Program, candidates will have opportunities to work in small groups, sharing the various competencies learned in the program’s common and elective modules, and developing additional critical professional skills such as team management and communication in a professional environment. At the same time, for certification, candidates will be asked to demonstrate the required competencies on an individual basis. How often will the Common Final Examination be offered? The first offering of the Common Final Examination will be in September 2015. Beginning in 2016 it will be offered twice each year. Practical Experience What are the new practical experience training routes? The new CPA certification program offers two experience routes: • Pre-Approved Program: Students/candidates gain relevant experience in training positions pre-approved by the profession. Employers offering these programs have had them approved by the profession in advance. The programs have been designed to provide future CPAs all the required experience within 30 months (24 months in Quebec). As a result, less documentation is required from students/candidates taking this path. Assessment by the profession occurs when students/candidates complete the program. The pre-approved program is expected to be appropriate for employers who plan to train CPA candidates on an ongoing basis. These could include large or small CPA firms, government or industry employers. • Experience Verification Model: This flexible route allows students/candidates to demonstrate competence and have relevant experience recognized, as it is gained, at an employer of choice. Students/candidates complete detailed experience reports that are assessed by the profession at key milestones. Supervisors review and attest to the accuracy of experience reports. Experience verification is expected to be appropriate for organizations not training substantial numbers of CPA candidates and would likely appeal to many small and medium-sized businesses and departments of larger organizations. This path allows employees to continue working in areas of organizations that do not offer programs that have been pre-approved by the profession, but in positions that meet the profession’s requirements while they pursue their CPA designation. Is one practical experience model easier than the other? No. The two practical experience models will be equally demanding, ensuring candidates develop the appropriate CPA competencies through relevant experience, progression, and CPA mentoring. THE CPA CERTIFICATION PROGRAM – APRIL 2014 21 How will practical experience be verified as sufficient for certification? The two models have the same requirement: to verify appropriate experience has been obtained. Mechanisms will be in place to ensure both models can be adequately and appropriately verified by the provincial CPA bodies. CPA Practical Experience Requirements, including transitional requirements, were released in April 2014. They will come into effect on September 1, 2014. Until that time, qualifying practical experience of legacy designations remain in effect and will count towards the practical experience requirements for CPA. Public Accounting Will there be a public accounting route within the CPA certification program? What will it look like? There will be a particular path for CPA candidates interested in practising public accounting. This path is under development; details will be released as they become available. Will accountants who do not currently have the right to practice public accounting receive that right through grand-parenting provisions? No. Today, the requirements for practising in audit and assurance are regulated by each accounting body and in many cases by provincial governments. There will be no changes to any individual member’s right to practise in these restricted areas simply by virtue of the merger. Any member who cannot perform public accounting premerger will not be able to do so post-merger. And, like today, those who wish to begin to practise in a restricted field will be required to complete specific education, examination and practical experience requirements. Will all CPAs be eligible to practice public accounting when they earn the CPA designation? No. Only candidates who chose the path for public accounting will be eligible to practise public accounting on earning their CPA designation. While all candidates will undertake some training in assurance, those pursuing public accounting will be required to complete specific elective modules in assurance and taxation in the CPA Professional Education Program, as well as specific practical experience criteria. CPAs who have not chosen this path can apply to practise public accounting after qualification by meeting the public accounting requirements in their jurisdiction. THE CPA CERTIFICATION PROGRAM – APRIL 2014 22 Transitioning to the New CPA Certification Program What will happen to those registered in one of the current professional education programs? What will be the impact on their program? Transition to the new CPA certification program will be guided by these basic principles: • There will be no legacy examinations offered after the first CPA Common Final Examination is launched in September 2015. • All CA, CMA and CGA candidates who have not successfully completed their programs by September 2015 will be bridged to the new CPA certification program. The CPA profession will provide transitioning programs. • Failed attempts at CA, CMA and CGA examinations, including CMA Board Report attempts, will not count against the permitted number of attempts on the CPA Common Final Examination. • All education and experience that meet the criteria of a legacy program will count towards the CPA designation. No candidate transitioning from a legacy program will be required to redo education or experience that was successfully completed for their legacy program. • Candidates transitioning from a legacy program to the new CPA Prerequisite Education Program or the CPA Professional Education Program will be provided with the support they need to prepare them to be successful. • Candidates who begin in a legacy program and finish in the CPA certification program will require additional education, which will be provided by the profession in specifically developed transitional programs. The CPA profession will provide the support needed to prepare them to be successful. Transitioning candidates should contact their provincial bodies for more information. Separate Program What is the separate program referred to in the program description? What kind of education will students receive? What credentials will graduates earn? The CPA certification program has been developed to produce Canada’s pre-eminent professional accountant. Not all those interested in accounting careers will have the interest, resources and/or need to achieve the full CPA designation. The CPA profession is developing a separate program for individuals who aspire to careers in accountancy, but not as qualified CPAs. The separate program will: • • • • have an appropriate entrance requirement offer a separate, shorter professional education program award a certificate of achievement to successful students provide a path for holders of the separate program certificate to earn a full CPA This program is expected to be available in 2015. THE CPA CERTIFICATION PROGRAM – APRIL 2014 23 Transitioning CGA Students Note: Legacy CGA students and candidates in Quebec can contact CPA Quebec for more information on the following questions and answers. Will three-year undergraduate degrees be accepted for admission to the CPA PREP and CPA PEP programs? Yes. For transitioning students in a legacy program, three-year domestic and international undergraduate degrees will be accepted for admission to CPA PREP and CPA PEP. Degrees must be from post-secondary institutions approved by the appropriate ministry of advanced education and completed before admission to CPA PEP Capstone Module 1. Going forward, the CPA profession will assess these degrees to determine whether they meet recognition and accreditation standards for entry into the CPA PREP and CPA PEP. Must the undergraduate degree be completed by September 2015? No. All CGA students have until September 1, 2018 to complete their undergraduate degrees. • Legacy CGA students who completed all CGA program course requirements, and have only the degree requirement remaining will have until September 1, 2018 to complete the degree. • Transitioning CGA students may enter the CPA PREP or CPA PEP programs at the appropriate point, and have until September 1, 2018 to complete their degrees. They must, however, complete their degrees before beginning the CPA PEP Capstone 1 module. This means transitioning CGA students can enter CPA PREP or CPA PEP and complete their degrees concurrently. Will practical experience earned towards the CGA designation be accepted towards the CPA designation? Yes. All practical experience recognized for qualification for the CGA designation will be recognized equally towards the CPA program. For example, if a CGA student completed 14 months of professional experience that is recognized by the CGA program, then the same 14 months would be accepted towards the CPA designation. • Legacy CGA students completing the CGA program should continue to have their experience evaluated using PERC online. These students will have until September 1, 2018 to complete their professional experience required for certification as a CGA. • Transitioning CGA students will submit experience evaluation forms in accordance with CPA requirements. All experience, both time and competency, now recognized by the CGA program, will count equally toward CPA experience evaluation. Will CGA-approved transfer credits from post-secondary institutions be recognized? Yes. All CGA-approved transfer credits from post-secondary institutions (PSIs), as well as all PSI equivalent courses taken in the CGA Program of Professional Studies, will be recognized for admission to CPA PREP and CPA PEP. THE CPA CERTIFICATION PROGRAM – APRIL 2014 24 Do CGA Levels 1 – 4 meet all the prerequisite knowledge requirements for admission to CPA Professional Education Program? It is expected that CGA Levels 1-4 will adequately cover the prerequisite knowledge requirements for admission to the CPA Professional Education Program. It is expected, however, that all transitioning students – CGA, CMA and CA – will require some bridging to prepare them for CPA PEP. Bridging material will be developed by the CPA profession and provided to all transitioning candidates. Mapping of CGA levels 1 to 4 to the CPA prerequisite requirements is now underway; more details on specific transitioning requirements will be released this fall following the completion of the mapping process. How will candidates in the CGA Certification Program transfer to the CPA Professional Education Program? All CGA Students and Candidates currently enrolled in the CGA program who will not complete all CGA legacy education requirements, including complete PACE requirements, by September 2015 will be required to transition to the new CPA Program. The CPA profession is committed to ensuring that education completed towards a legacy designation will be recognized towards the CPA designation, and these Students and Candidates will therefore transition to the appropriate point in the CPA education programs – in either the CPA Prerequisite Education Program (CPA PREP) or CPA Professional Education Program (CPA PEP). Upon completion of the CPA program, including success on the common final examination, and the passing of legislation in their jurisdiction, they will become CPAs. Transitioning students who have completed CGA courses equivalent to CPA PREP or CPA PEP modules will be exempted from taking the equivalent CPA PREP or CPA PEP modules. Transitioning CMA Students How will candidates in the CMA Strategic Leadership Program (SLP) transition to the CPA Professional Education Program? An important principle of unification is that the education achieved in a legacy program will be recognized towards the CPA program. By mapping the legacy CMA education program to the CPA professional Education Program (CPA PEP), knowledge gaps between the two programs were identified, and it was determined that there are three key bridging categories in which transitioning CMA candidates fall: 1. Completion of the Strategic Leadership Program but either no attempt or an unsuccessful attempt of the CMA Board Report. These candidates will be exempt from CPA PEP Core 1, Core 2 and the Electives. They will be required to take the following: • Bridging modules in tax, audit, and finance if the necessary prerequisite requirements in those topic areas have not been met • Breadth coverage module that covers competency knowledge gaps in tax, finance, and assurance between the CPA PEP Core 1 and Core 2 and the CMA legacy program • CPA PEP Capstone 1 • CPA PEP Capstone 2 • Common Final Examination THE CPA CERTIFICATION PROGRAM – APRIL 2014 25 2. Completion of Year 1 of the Strategic Leadership Program, and success on the Case Exam: These candidates will be exempt from CPA PEP Core 2 and will require: • Bridging modules in tax, audit, and finance if the necessary prerequisite requirements in those topic areas have not been met • challenging the CPA PEP Core 1 examination (if unsuccessful on the Core 1 examination, candidates will be required to complete the Core 1 module) • two CPA PEP electives: Candidates selecting the CPA PEP Performance Management elective will be allowed to challenge the CPA PEP Performance Management elective examination after taking the Performance Management bridging module (if unsuccessful on the Performance Management elective examination, candidates will be required to complete the CPA PEP Performance Management module) • CPA PEP Capstone 1 • CPA PEP Capstone 2 • Common Final Examination 3. Completion of Year 1 of the Strategic Leadership Program without successful completion of the Case Exam: These candidates would require: • Bridging modules in in tax, audit, and finance if the necessary prerequisite requirements in those topic areas have not been met • Challenging the Core 1 and Core 2 examinations (if unsuccessful on the examination challenges, candidates will be required to complete the relevant Core module) • two CPA PEP electives modules • CPA PEP Capstone Modules 1 and 2 • Common Final Exam If I do not obtain my CMA designation before September 2015, how long will my education be recognized by the CPA profession? Transitioning CMA Candidates must enroll in the CPA PEP by March 2017 or in Capstone 1 by June 2017. CMA legacy candidates who fail to enroll in the CPA PEP or in Capstone 1 by these dates may lose their exemption status. When will bridging modules be available? To prepare transitioning students and candidates to the new CPA program, bridging programs to cover the required prerequisite knowledge in Audit, Tax, and Finance modules will be available in June 2014. Other bridging programs such as the breadth module and Performance Management will be available in June 2015. Do I have any options if I disagree with the knowledge gaps for my bridging categories? CMA transitioning candidates who completed Year 1 of the CMA Strategic Leadership Program have the opportunity to challenge specific modules: • CMA Candidates who completed Year 1 and passed the Case Exam are allowed to write challenge exams for Core1 and the Performance Management Elective modules. Candidates selecting the CPA PEP Performance Management elective will be allowed to challenge the CPA PEP Performance Management elective examination after taking a top up of the Performance Management bridging module (If unsuccessful on the Performance Management elective THE CPA CERTIFICATION PROGRAM – APRIL 2014 26 • examination, candidates will be required to complete the CPA PEP Performance Management module.) CMA Candidates who completed Year 1 and failed the Case Exam are allowed to write the challenge exams for the Core 1 and Core 2 modules. All transitioning students are required to complete Capstone 1, Capstone 2, and the Common Final Examination. Will practical experience earned towards the CMA designation be accepted towards the CPA designation? Yes. All practical experience recognized for qualification for the CMA designation will be recognized equally towards the CPA program. For example, if a CMA student completed 14 months of professional experience that are recognized by the CMA program, then the same 14 months will be accepted towards the CPA designation. I have an MBA degree. Will I qualify for some exemption into the CPA PEP? Please contact your provincial registration office about any exemption status for MBA graduates. Transitioning CA Students CA candidates transitioning to the CPA program should contact their provincial/regional body for details. THE CPA CERTIFICATION PROGRAM – APRIL 2014 27
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