CPABC uses the information obtained in the questionnaire to assist in the scheduling and assignment of over 1,000 annual inspections to our team of practice review officers. To facilitate this, we need to confirm the size of the firm, the type of work performed by the firm and whether or not an office is home based (see guidance in the FAQs).
We recognize that practice profiles may change and that’s completely fine! If there are any significant changes to your practice after you’ve submitted your questionnaire, please email email@example.com and, if your practice review officer has been in contact with you, please also notify them.
Some examples of significant changes are:
- A firm who has performed compilation and tax engagements has now accepted an audit or review engagement.
- A firm who has only performed private company and not for profit assurance engagements is now registered with CPAB and is accepting public company audit engagements.
- A firm has purchased or merged with another practice.
- A firm has sold its assurance practice.
If you plan to retire and cancel your public practice license, your practice review may be waived upon receipt of a Request for Cancellation of Public Practice License form.
If you have performed and/or if you plan to perform any engagements, even a very small number, you will continue to be required to have a practice review.
All new firms are required to have a practice inspection within one year of registration. We recognize that some firms may not yet have reviewable work at the date that they complete their questionnaire.
Practices considered to be home-based offices
- A firm located inside a practitioner’s home.
- A firm who performs work and stores client records in their home and meets clients in a third party location (ie. clients’ offices or a rental meeting space)
- A firm where the work is performed in various locations, files are stored in the cloud, and there is no separate office where the practitioner meets with clients during normal business hours.
Practices not considered to be home-based offices
- A firm who operates an office on their property, but not in their home (ie. a garage or other building), which is open to the public.
- A firm with a separate office location where clients are met during business hours where a practitioner also occasionally works from home.
All paper files received by the Practice Review team are stored and securely locked in a room with restricted access. These paper files are returned to the practitioner once the practice review is complete. For electronic files, practitioners are provided access through a secure portal. Instructions are provided to the practitioner once it is confirmed that the files will be provided electronically.
Regardless of the method of transmission (paper or electronic), CPABC is governed by a strict confidentiality policy, as noted in Part 9.69 of the CPABC Act and further detailed here.
Special Reports are assurance or attestation reports. They can cover performing assurance procedures at the request of a third party on certain areas such as client revenues, expenses, salary/draws, & other financial statement information. They can also include advising on the results of applying specified procedures to financial information or a report on compliance with a specific agreement.
Some examples of special reports are those prepared under CAS 805, Section 9100 and 9110, and CSAE 3000 and CSAE 3001.
CPABC collects information on firms who perform work in emerging areas in order to monitor trends and develop resources for practitioners.
Blockchain is a digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network.
Cryptocurrency any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions.
Resources on Blockchain technology and Cryptocurrency are available from CPA Canada.
Clients whose primary areas of business relate to the use of blockchain technology or holding, mining or transacting in cryptocurrencies. Some examples are as follows:
- The client sells or significantly relies on technology that uses blockchain.
- The client holds cryptocurrencies for investing purposes.
- The client accepts or provides payment in cryptocurrencies.
A cannabis client is a company whose primary operations relate to cultivating and/or selling cannabis. The following are examples of what would be considered a Cannabis client:
- A licensed cultivator of medical or recreational cannabis, including edibles
- A licensed retailer of recreational or medical cannabis, including edibles
Companies who provide services to clients in the cannabis industry, but who do not cultivate or sell cannabis themselves, would not be considered cannabis engagements for purposes of completing this questionnaire. The following are examples of what would not be considered a cannabis client:
- A company who provides packaging services to a cannabis retailer.
- A company who provides marketing services to clients in the cannabis sector.
- A company who designs logos who has provided services to some cannabis clients.
Federal and provincial law requires that all retailers and/or cultivators of recreational and medical cannabis are appropriately licensed. Firms are reminded of Rule 213 in the Code of Professional Conduct, which requires registrants not to associate with any activity that the registrant knows, or should know, to be unlawful. If firms have any questions regarding client acceptance in the cannabis industry, they are encouraged to email firstname.lastname@example.org.