Anonymized Guidance and Admonishment

The Professional Conduct Committee (PCC), in accordance with the Chartered Professional Accountants of Ontario Act, 2017, by-laws, and regulations, is charged with the responsibility to review complaints and determine whether a breach of the CPA Code of Professional Conduct (the Code) or Student Code of Conduct may have taken place.

A summary of noteworthy matters that were recently reviewed by the PCC and resolved through the issuance of guidance or admonishment has been included below, on an anonymized basis.

Case A - Rule(s): 201.1 and 303.2

The respondent had been retained to prepare personal and corporate tax returns for their client for a number of years. The member failed to promptly return client documents and was not responsive to their client’s communications.

Reminder #1

Members are required to transfer promptly to the client or, on the client’s instructions, to another party, all property of the client which is in the member’s or firm’s possession or control.

Reminder #2

Members are reminded to ensure timely courteous communication with their clients. When a client is difficult to reach, communications should be documented in writing.

Case B – Rule(s): 201.1 and 202.1

The respondent had been retained to prepare financial statements and tax returns for a corporation over a period of five years. The respondent did not provide an updated engagement letter outlining the scope of their services. The last engagement letter had been signed four years earlier. The respondent prepared inaccurate and unreliable financial statements.

Reminder #1

Members are required to exercise care and diligence in executing their work to uphold professional obligations. Members are reminded of the importance, and need, for accurate and consistent information to avoid careless errors.

Reminder #2

Engagement letters are an important part of good practice management as they clarify the nature of the mandate, the scope of services to be provided, the basis for fees that will be charged, and the deliverables to ensure all parties are aware of each other’s responsibilities in connection with the engagement.

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In addition to the above all members, students and firms of CPA Ontario are reminded to ensure that their contact and employment information on record with CPA Ontario is up to date and accurate, and that updates are to be made through the My Portal section of the CPA Ontario website within 30 days of the change.