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Unauthorized Practice of Accounting and Unauthorized Use of the Designation
Only designated accountants as legislated under the Regulated Accounting Profession Act (the Act) may perform audit or review engagements in Alberta. As one of the designated bodies authorized by the Act, Certified General Accountants have met the education and professional requirements to practice accounting in any field. In addition, Certified General Accountants who are registered as public accounting firms must meet additional registration requirements and must have insurance.
Under the Act, the term "accountants" is not a protected title and individuals who are not designated may still call themselves accountants and perform compilation engagements (also known as Notice to Reader engagements), and business and individual taxes. There is no requirement for them to have insurance or mandatory ongoing learning. If a client has a problem with a non-designated accountant, there is no governing body to whom a client may turn for assistance, or compliance enforcement. CGAs also cannot perform compilation engagements and business and individual taxes without being registered as a public accounting firm. Once an accountant receives their designation, they are held to a higher standard.
If a non-designated accountant performs review or audit engagements, which violate the Regulated Accounting Profession Act s. 3, CGA Alberta may take action, since the non-designated accountant is not registered to practice public accounting, does not have insurance and the public may not be receiving the competent advice a designated CGA can provide.
CGA Alberta monitors non-designated accountants to ensure they are not performing activities outside their scope of practice when these instances are reported to them. The Member Services department fields complaints by other accountants and the public, and provides resources to educate the public on the limitations of services that non-designated accountants can provide.
Audit engagements, review engagements and compilation engagements are defined in the definitions to the Act.