When is a Public Accounting Licence Required in Ontario?
CPA Ontario recently made updates to website guidance around when a Public Accounting Licence (PAL) is required in Ontario.
A PAL is required in Ontario if you:
- Are the lead engagement person responsible for signing reports or statements:
- for any assurance engagement relating to a financial statement or any part of a financial statement or any statement attached to a financial statement; or
- any compilation engagement in respect of which it can be reasonably expected that the services will be relied upon or used by a third party and the prescribed wording for the Compilation Engagement Report is not used.
- The report or statement is issued in Ontario.
- The work for the engagement is primarily performed in Ontario.
The work is primarily performed in Ontario if the engagement is physically performed in Ontario or if the engagement is performed remotely and the client is in Ontario. See factors that may assist in determining whether a client is in Ontario.
Engaging in the practice of public accounting without holding a valid Ontario PAL is prohibited under the Public Accounting Act, 2004. Please note that if a PAL is required, membership and firm registration are always required. If a PAL is not required, membership and/or firm registration may still be required. Find more information on requirements for membership and firm registration.
Protecting the Public
As part of its public protection mandate, CPA Ontario has a duty to investigate and, in appropriate cases, prosecute individuals and firms who are not registered with or licensed by CPA Ontario but nonetheless practice as chartered professional accountants and/or public accountants in Ontario. To encourage full, voluntary, and timely self-reporting of potential breaches, CPA Ontario may offer Credit for Cooperation to firms and individuals who may be offside.
Find further guidance on unlawful practice and credit for cooperation.
For more information, please contact [email protected].