The CPA profession in Alberta has the privilege of self-regulation. Professions regulating the conduct of their own members evolved because the knowledge and expertise of external regulation was understood to be less effective than the knowledge and expertise within the profession itself. This self-regulation imposes a high level of responsibility upon the regulators to protect the interest of the public and ensure the competence of the members of the profession. Foundational to preserving the privilege of self-regulation is the cooperation of the members of the profession with the regulator and the regulatory processes.
Over the last year, CPA Alberta has noticed the growing trend of registrants failing to cooperate with the regulatory processes that have been designed to protect the public and the integrity of the profession, to promote the competence of the registrants and to regulate the conduct of the registrants. Ensuring these purposes are met, through all registrants cooperating with the regulatory processes, better ensures that the privilege of the self-regulation is maintained.
The CPA Alberta Rules of Professional Conduct with Guidance (the Rules) place an obligation for CPAs and firms to cooperate in CPA Alberta’s regulatory processes. Specifically, Rule 104 states:
104.1 A registrant shall co-operate with the regulatory processes of the CPAA as set out in Parts 3, 4, 5, 6 and 7 of the Act.
104.2 A registrant shall:
(a) promptly reply in writing to any communication from the CPAA in which a written reply is specifically required;
(b) promptly produce documents when required to do so by the CPAA; and
(c) attend in person in the manner requested when required to do so by the CPAA in relation to the matters referred to in Rule 104.1
Under the province’s Chartered Professional Accountants Act, any conduct that violates the Rules, including failing to cooperate with regulatory processes, is considered to be unprofessional conduct and can be grounds for a complaint to CPA Alberta and subject to CPA Alberta’s disciplinary processes.
Increasing Instances of Non-cooperation
In 2021, CPA Alberta noticed an increase of incidents where registrants failed to cooperate with regulatory processes in the following areas:
Registrations
The Registrar and the Manager of Registrations Compliance referred three matters to the Complaints Inquiry Committee (CIC) Secretary as complaints, due to failure to respond to the communications of the Registrations department or failure to cooperate with the registration processes.
This was an increase compared to the four years prior, when only two instances of a failure to respond or cooperate resulted in the referral of a complaint.
Practice Review
During the Practice Review Committee (PRC) meetings held in each of September, October, and December 2021, the PRC directed complaints be made against firms for failing to cooperate with the practice review process. These firms did not provide the required information to proceed with the practice review process and also failed to respond to the Practice Review department’s communications. In each instance, the firm was reminded several times of Rule 104.1 of CPA Alberta’s Rules of Professional Conduct and the requirement to cooperate with CPA Alberta’s regulatory practice review process.
This was an increase compared to 2020. In that year, the PRC directed two complaints against registrants for failing to respond or cooperate with the Practice Review process. In the prior four years, only one instance of a failure to respond or cooperate resulted in the referral of a complaint.
Conduct
In addition to the complaints from the other regulatory departments about failing to cooperate with the regulatory processes of CPA Alberta, the CIC Secretary also opened a complaint against a registrant and firm for failing to cooperate with the Complaints Inquiry Process relating to complaints made by members of the public against the registrant and firm.
Consequences of Failing to Cooperate
Impact on Registrants
In 2020 and 2021, eight allegations against registrants for failing to cooperate with CPA Alberta resulted in findings of unprofessional conduct—these were either through admissions or through the findings of discipline tribunals. In each case, sanctions were ordered ranging from reprimands to significant fines (up to $10,000), and the payment of some or all of the costs of the conduct proceedings.
Impact on CPA Alberta
Dealing with registrants who are not cooperating with regulatory processes or responding to CPA Alberta’s regulatory staff is time consuming and a drain on regulatory resources. In each case, time and resources were required for CPA Alberta staff to repeatedly contact the registrant about the same matter, then document and report on the failure to respond for the purposes of the conduct processes. As well, the Complaints Inquiry Process, which includes investigation and discipline hearing if necessary, requires additional resources to complete.
These consequences are costly to all registrants of the profession and, ultimately, may impair the ability of the profession to maintain self-regulation.
Notify CPA Alberta of Your Extenuating Circumstance
CPA Alberta understands CPAs, like many, juggle multiple personal demands, family emergencies, and/or health issues can effect one’s ability to respond to CPA Alberta in a timely manner and adhere to the regulatory processes. If you find yourself in a similar circumstance, notify CPA Alberta of your situation as soon as possible.
In many cases, arrangements can be made to accommodate your current circumstances and, almost certainly, conduct complaints can be avoided entirely if you communicate with CPA Alberta about extenuating circumstances that may result in your failure to comply with the regulatory processes of CPA Alberta.
If you have any questions about this information or CPA Alberta’s regulatory processes, please email conduct@cpaalberta.ca.
