In this series focused on Experience Verification Route (EVR) reporting, CPA Alberta’s Practical Experience team provides information on the technical competency practical experience requirements and tips on reporting EVR experience. If you haven’t read the previous posts, click here for part one, here for part two, here for part three, and here for part four. Part five focuses on licensure.
In the province of Alberta, CPAs as individuals are not licensed to provide professional or public accounting practice services; instead, only professional accounting firms (PAFs) are registered to provide these services. This blog post will walk through what candidates working in, or interested in working in, public accounting should understand about PAF registration.
Firstly, it is important to understand what services require registration in Alberta. The Alberta CPA Act requires registration as a PAF when a registrant is engaged in any professional accounting or public accounting practice services. More information about PAF registration can be found here.
Secondly, it is important to understand that candidates cannot offer professional or public accounting practice services outside of a registered PAF. In order for a candidate, once they are admitted into membership, to gain the practical experience required to register a PAF, they must gain experience in a registered PAF. Providing these services on their own while as a candidate, or providing them through an organization that is not a registered PAF, is a breach of the Rules of Professional Conduct.
Thirdly, candidates should note that PAF registration is not granted upon certification. Rather, this is something that must be applied for once a CPA intends to open their own PAF or become a partner in an existing PAF.
EVR candidates often have questions about this process, so here are the answers to some common questions:
I work in industry. Can I open a firm once I am designated?
Yes, but not right away. PAFs are registered in Alberta under the Varied Registration Model, which contains four categories: audit, review, compilation, and other regulated services. In order to be eligible to register a PAF, a CPA must meet the requirements for the category of registration they are seeking. Each category has specific education, experience, and competency requirements. Those requirements can be found here. Candidates can meet these requirements post-designation.
Once admitted to membership, CPAs who gained all experience in industry would need to gain the required relevant public accounting experience before being eligible to register a PAF.
I work in public practice but all of my experience is in reviews and compilations. Can I register to provide audits once I am designated?
Yes, but not right away. Before being eligible to do so, a CPA would need to meet the audit registration level experience requirements, which involves working for a specified period of time under the supervision of a CPA authorized to practice in audit.
I work in public practice but not in a PPR. Does my experience count towards the registration experience requirements?
Yes. However, if a CPA is seeking registration in audit or review and they did not gain experience in a PPR, they then need to demonstrate that they worked for five continuous years full-time in a PAF registered to provide audit or review engagements.
The most common piece of advice for candidates is that they do not need to be overly concerned about licensure during their term of practical experience. It is unlikely they will seek registration immediately upon certification and there are pathways for them to obtain the necessary experience post-certification.
