The Certified General Accountants Association of Canada (CGA-Canada) today filed an application for judicial review with the Ontario Superior Court of Justice to address longstanding concerns regarding the structure and processes of the Canadian Public Accountability Board (CPAB).

“CPAB – the body set up by governments and securities regulators to oversee the auditing of reporting issuers in Canada – is fundamentally flawed,” said Dany Girard, chairman of CGA-Canada’s board of directors. “Because of CPAB’s close relationship to the profession it oversees, CGA-Canada believes that CPAB is unable to make independent decisions and lacks the procedural safeguards necessary to protect against institutional bias.”

The decision to challenge the work and composition of CPAB comes after months of discussion and ongoing consultation with CPAB in regards to CGA-Canada’s independence standard.

Despite ongoing collaboration with CPAB and CPAB’s acknowledgement that the CGA independence standard is equivalent to the one CPAB has already recognized, CPAB has deferred its approval of the CGA independence standard and has not given effect to the required rule change.

“By virtue of legislation, CGA-Canada has the responsibility to set standards for its members,” explained Girard. “Our provincial and territorial affiliates have the obligation to enforce standards. Our members are required to adhere to those professional standards. This is a matter of public interest. We would be shying away from our professional responsibilities by simply adopting other standards. CPAB actions have in effect interfered with our professional obligation to our members and the public.”

“Canadian governments believe that it is in the best interests of the public to have multiple accounting designations in the marketplace. They have adopted legislation to enact this. Therefore, the accounting profession in Canada exists as a multi-jurisdictional landscape. CGAs have worked collaboratively with CPAB since it was formed in 2002. Despite this, CPAB has failed to recognize the jurisdiction of all accounting bodies to undertake professional standard setting as set out by Canadian legislation. We would be failing in our responsibility to the public if we don’t act,” concluded Girard.