CPABC Pre-Approved Programs: Details

Requirements for Public Accounting Pre-Approved Programs

The education, evaluation and experience requirements for CPA certification apply to all public accounting paths. CPA offices seeking to offer pre-approved programs in public accounting must be in good standing with CPABC, and meet the following additional requirements:

Audit

Employers must:

Provide candidates with practical experience which will achieve the depth in the audit and assurance competency and overall core and breadth requirements for CPA certification by the end of 30 months of practical experience
Offer diverse and progressive audit experience through a variety of audit clients and/or a variety of audit experiences
Offer each candidate at least 1250 chargeable assurance hours, of which a minimum of 625 hours must be in the audit of historical financial statements
Meet the standards of practice inspection

Review

Employers must:

Provide candidates with practical experience which will achieve the depth in the financial reporting competency and overall core and breadth requirements or CPA certification by the end of 30 months of practical experience
Offer diverse and progressive audit and/or review experience through a variety of assurance clients and/or a variety of assurance experiences
Offer each candidate at least 1250 chargeable assurance hours, of which a minimum of 625 hours must be the audit or review of historical financial statements
Meet the standards of practice inspection

Assurance, Compilation, Tax (ACT)

Employers must:

Offer each candidate sufficient (approximately 425) assurance hours to meet the depth and breadth requirements for CPA certification at the end of 30 months. Completion of the ACT path will depend on each candidate achieving their required competencies.
Inform candidates who will certify under the ACT path that they will not be qualified for licensure in audit or review on certification. Qualification for an audit or review licence would require bridging.
Meet the standards of practice inspection

Compilation, Tax and Advisory

Employers must:

Offer each candidate at least 625 chargeable compilation hours over the 30-month term of practical experience. Hours spent on the audit or review of historical financial statements are accepted as compilation hours
Offer additional experience in advisory and tax services in order to satisfy the overall CPA practical experience requirements for certification. This additional experience could include services in the areas of: business management; business advisory; income tax advisory; wealth management advisory.
Meet the standards of practice inspection

Note: Qualifying experience for registration in the Compilation category may be gained through either a Pre-Approved Program or through the Experience Verification Route in a CPA office registered to offer public accounting services.

Provided they meet the requirements, offices may offer pre-approved programs in any or all of the pre-approved path categories. In addition, there are customized pre-approved paths such as Direct Tax, Enterprise Risk Management and Financial Advisory Services. Furthermore, offices may offer the Experience Verification Route (including compilation via experience verification).

Given this complexity, it will be very important for pre-approved program offices to communicate with each candidate the precise nature of the training route he or she will follow. It is recommended that the specific training path be disclosed in each candidate’s employment contract.