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Disclosure Requirements FAQs

Find answers to common questions about disclosure requirements

Disclosure Requirements FAQs

  • What is the prescribed disclosure wording that must be used in statements, opinions or reports?

    Please refer to Disclosure Requirements for further information.

  • Please clarify which "statements, opinions and reports" require this disclosure statement.

    Only "statements, opinions or reports" that are provided in respect of a financial statement, or any part of a financial statement, or any statement attached to a financial statement, must contain the disclosure wording. The requirement does not extend to other communications with or on behalf of a client or to a potential client.

    The disclosure must be made in any statement, opinion or report for an assurance or compilation engagement where services may be relied upon or used by a third party, when

    • the engagement is datelined (the report is issued) in Ontario, or
    • the work or procedures for the engagement is or are primarily performed in Ontario.
  • Must the disclosure wording appear on all statements, including those for which a licence is not required?

    Yes. The disclosure wording must be used by a licensee (or a professional corporation) when providing any accounting service, even a service for which a public accounting license is not required.

  • When must the disclosure wording be used by a partner of a firm who is located outside of Ontario?

    A lead engagement partner located outside Ontario must use the “Licensed Public Accountant” disclosure in the statement, opinion or report for any assurance or compilation engagement where services may be relied upon or used by a third party, when

    • the engagement is datelined (the report is issued) in Ontario, or
    • the work or procedures for the engagement is or are primarily performed in Ontario.
  • Should a two-partner firm, where only one partner is a licensed assurance partner, use the disclosure wording?

    Since only the lead engagement person responsible for signing a report must be licensed as a public accountant, the disclosure wording of "licensed public accountant" in singular form is appropriate. In addition, since there is more than one partner in the firm, the report should refer to "we" instead of "I."

  • Is disclosure required when licensees compile financial statements without a report or the report is not in the prescribed form?

    The disclosure wording must be used if the work is performed by a licensee (or a professional corporation). The disclosure would have to be in the covering letter if there is no report attached, or in the report that is not in the prescribed form.

    Note that some firms use software packages, such as Caseware, or internally developed packages that include Notice to Reader wording for filing with the tax returns. The disclosure wording must still be used, irrespective of whether the report is produced electronically or on firm letterhead.

  • Is disclosure required when licensees prepare tax returns?

    The disclosure wording is not required for tax returns for which there are no compiled financial statements attached to the return. However, if compiled financial statements are attached to the tax return and the statements are prepared and signed by a licensee, then the disclosure wording must be used.
  • Do we need to change our letterhead and business cards?

    The wording "Licensed Public Accountant" is not required to be used in your letterhead or business card. However, you may use that wording in letterhead and business cards if you wish to do so, in reference to you personally, provided that "Licensed Public Accountant" follows your name and member designations (for example CPA, CA).

    In respect of the letterhead of a professional corporation, such as John Doe Professional Corporation, any reference to the fact that the professional corporation is authorized to practise public accounting would have to use the wording "Authorized to practise public accounting by the Chartered Professional Accountants of Ontario" after the name of the professional corporation.