Some businesses hire temporary foreign workers which can require a Labour Market Impact Assessment. Part of the application process for a Labour Market Impact Assessment includes the submission of certain documents to the Government of Canada to demonstrate that the employer operates a legal business and the job offer is legitimate. The Government of Canada has suggested that attestations from CPAs would meet their requirements.
In light of this suggestion, some practitioners have been providing attestations to the Government of Canada and business owners that confirm or attest that the business is “in good financial standing” and “can be expected to meet all the financial obligations” of having a temporary foreign worker. Click below to view guidelines and a sample attestation letter on the Government of Canada website:
Sample attestation of Labour Market Impact Assessment genuineness – Canada.ca
As there is no definition of “good financial standing” in any of the Canadian professional standards, and the Government of Canada has not specified procedures that a practitioner should execute in order to make this attestation, a CPA cannot make this attestation while being in compliance with professional standards.
Moreover, the attestation that a business “can be expected to meet all financial obligations” requires a prediction on the part of a CPA regarding how well a client’s business will perform at some future date–in essence, an attestation about future information.
Consequently, CPAs are cautioned against providing such an attestation to support their client’s applications related to temporary foreign workers. To avoid issues raised by attestations not meeting professional standards, and since an attestation is not the only option acceptable to the Government of Canada, practitioners might consider helping their clients put together some of the other documentation acceptable to the Government of Canada.
The Business Legitimacy page of the Government of Canada’s website lists several documents that can be provided instead of an attestation, such as: T2 S100 and S125; T2125; T3010; T4, or payroll records for 6 weeks; or the most recent CRA Notice of Assessment. Click below to view the listing:
Business legitimacy – Canada.ca
Where none of the other documents are available and a practitioner still chooses to provide an attestation for their clients, it is imperative to understand that the engagement must be performed through a professional accounting firm registered with CPA Alberta and meet the registration requirements to perform assurance engagements.
As well, all of the applicable CPA Canada Handbook standards must be met in making the attestation. This includes requirements for acceptance and continuance, planning and performing the engagement, obtaining evidence and forming the assurance conclusion. In order to meet CPA Canada Handbook standards, the sample attestation template [20230608-Sample-Attestation-EN.pdf (canada.ca)] must also be modified. The government has confirmed that modified templates are accepted. Update for the following in your attestation report:
- Exclude any forward-looking phrases or statements.
- Depending on the work the practitioner has performed, the attestation can be modified to contain a statement about the current standing of the entity, rather than its future ability.
- Ensure all of the reporting requirements of the applicable CPA Canada Handbook standards are met.
CPA Canada has provided several resources regarding the relevant standards for such engagements–Canadian Standards on Assurance Engagements (CSAE) 3530 or 3531. Practitioners are encouraged to review the standards and the guidance:
Compliance reporting: Briefing for management and third parties – CPA Canada
New assurance reports on compliance: What you need to know – CPA Canada
CPAs must ensure they remain compliant with the CPA Alberta Rules of Professional Conduct and CPA Canada Handbook standards for assurance engagements if undertaking any attestations for the Temporary Foreign Worker applications.
