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CPA Ontario Serving the Public Members Firms / ATOs Students Become a Member

Exemption From Licensing For Public Accounting Services Provided Without Reward 

Members who provide public accounting services without reward, under certain conditions, are exempted by Ontario Regulation 238/05 from the requirement to be licensed.   Members who provide these services, however, are required to have professional liability insurance coverage.

Public accounting services for this purpose includes one or more of the following:

  • assurance including auditing or review engagements;
  • compilations not accompanied by the prescribed Notice to Reader if it can reasonably be expected that all or any portion of the compilations or associated materials will be relied upon or used by a third party.

The additional requirements that must be met are that the assurance engagement must be done:

(a)  by a person who is a member of a professional accounting body that administers a process for addressing public complaints against its members and who is insured against professional liability; and

(b)  on a basis that is independent of the person for whom the services are being provided.

Insurance requirement for members providing assurance services without reward

To assist members who provide assurance services without reward for small charitable and not-for-profit organizations, CPA Ontario's Council have approved the establishment of a policy to provide insurance coverage at no cost to such members, providing that they register with CPA Ontario and meet certain prescribed terms and conditions. One of the conditions is that each organization for which assurance services are provided without reward have annual gross revenue from all sources of $100,000 or less.

To determine if  you qualify for such coverage under CPA Ontario’s policy and to apply for coverage, please complete and submit an application form.

Members who provide assurance services without reward for organizations having annual gross revenue in excess of $100,000 or who otherwise do not meet the prescribed terms and conditions must obtain their own insurance coverage. They are also required to file annually with CPA Ontario a declaration confirming the insurance coverage, pursuant to the Regulation 4-4.

Obtaining or renewing a public accounting licence

A licence is required for any assurance services (including audit or review engagements) if fees or other reward are received for such services.  Information on how to obtain a licence, if a licence is not currently held, or to renew a licence is available on CPA Ontario's website under Public Accounting.

More information regarding licensing is available on CPA Ontario's website under Public Accounting.