Every year, Alberta’s 30,000+ CPAs must self-report compliance with the Continuing Professional Development (CPD) requirements established under the governing authorities. The action of reporting compliance or, in rare circumstances, non-compliance with the CPD requirements starts a chain of events that may result in an Alberta CPA being selected for verification (sometimes referred to as an “audit”) of their CPD declaration. Here are some helpful tips to remember as you make your yearly CPD declaration.
Honesty, integrity, and due diligence
Ensure you gather your CPD records and reflect on your annual and three-year CPD learning activities before you make your declaration each year. The most common mistake that members make when reporting their CPD is assuming that they have met the CPD requirements when, in fact, they did not or cannot provide evidence of having met the requirements.
The hallmarks of the CPA profession include personal integrity, trustworthiness, and due diligence. Misunderstanding the CPD requirements (including failure to ask questions when uncertain) cannot be an excuse for lack of due diligence. Remember, providing false or misleading statements, even when done accidently, may call into question an individual CPA’s integrity or jeopardize the public’s trust in the CPA profession. Be sure to check your CPD records every year—and simply make a correct and honest declaration, and one that can be supported by your records and evidence.
Alberta CPAs often express some concern about making a declaration of non-compliance. However, despite some trepidation, all CPAs must place their ethical and professional obligation to act honestly and with integrity above all else. CPA Alberta understands that extenuating circumstances may cause a member to find themselves not in compliance with the CPD requirements and will consider temporary or short-term allowances for those who find themselves in a rare situation of non-compliance. However, ongoing or frequent periods of non-compliance can result in membership being suspended and ultimately cancelled. This action is necessary to ensure the reputation of the CPA designation and the public’s trust in the designation remains strong.
For the 2019 CPD reporting year, 13 Alberta CPAs had their membership suspended for CPD non-compliance. Only three of those 13 that were suspended subsequently had their membership registration cancelled.
Maintain CPD records for no less than five years
Section 17(1) of the Regulations made under the Chartered Professional Accountants Act requires that all Alberta CPAs keep a record of their CPD for five (5) years and must provide the record to CPA Alberta’s Registrar, along with supporting documentation, when requested to do so. More information about maintaining CPD records and acceptable CPD evidence can be found at https://www.cpaalberta.ca/Members/CPD-Reporting/Maintaining-CPD-Evidence.
The COVID-19 pandemic resulted in many Alberta CPAs leaving their typical office locations behind while they began working remotely from home. In doing so, they may also have left behind their CPD files and records. CPA Alberta encourages all members to maintain their CPD records and verifiable evidence in a secure file that they would typically have access to at any time and possibly from anywhere. All members who are selected by CPA Alberta to supply evidence of CPD must be able to do so, regardless of any extenuating circumstances, including an unexpected work layoff, or personal move.
CPA Alberta also has an online CPD Tracker tool available and recommends Alberta CPAs take advantage of this useful tool. The CPD online tracker is part of the secure member portal and is available to every Alberta CPA. The CPD tracker is a straightforward way to monitor your learning activities, regardless of where you are in world.
Be prepared and be timely
Each year, all Alberta CPAs must make their CPD Declaration by no later than March 1. More than 97% of members report their CPD each year by the deadline. Those who do not submit their CPD report on time are subject to a late filing penalty and may have their membership suspended if they neglect to submit their CPD Declaration and pay the penalty by April 1.
Similar to submitting the CPD Declaration (as indicated above), failure to respond to the request for information through the CPD verification process may also result in penalties, and eventual suspension/cancellation of membership. CPA Alberta verifies the CPD records of approximately 2-3% of its members every year. The majority of those who are “audited” are selected randomly, while the remainder are identified through a risk-based process or are being monitored by direction of one of CPA Alberta’s statutory committees.
Being prepared for possible CPD verification selection—by having your CPD records readily and easily accessible, accurate and up-to-date, and summarized to ensure ongoing compliance with verifiable requirements—will make the time, energy, and effort of being audited, a breeze. Your advanced preparation, due diligence, and honesty will lessen the pressure when the CPD “auditor” comes calling.
