Practice Reviews

Practice reviews are being performed using a hybrid approach of remote and on-site reviews. At the time of your review, you may be asked to submit your firm’s files electronically. CPA Alberta has implemented a secure electronic file transfer system to facilitate the remote practice review process. For firms that do not have electronic files, you may be requested to scan or convert to electronic the paper files selected for review.

Practice Review Alert

Across Canada, a significant number of firms are not compliant in performing CSRS 4200, Compilation Engagements.

Over the last several months, practice reviews of compilation engagements across Canada have highlighted some significant deficiencies in the application of the new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. Click here to read this important Practice Review Alert. 

Objectives

The Practice Review program fulfills a mandatory requirement for CPA Alberta to review all registered professional accounting firms (PAFs) and professional services providers (PSPs) who perform assurance, compilation and/or tax services, while providing an educational experience to members and firms.

The objective of a practice review is to protect the public by assessing the firm's compliance with professional standards and, in instances of non-compliance, to take appropriate follow-up or remedial action.

Overview

The purpose of a practice review is to determine whether the practice of a professional accounting firm (PAF) or professional service provider (PSP):

  1. Complies with the standards set out in the CPA Canada Handbook - Accounting and Assurance and the CPA Canada Public Sector Accounting Handbook;
  2. Complies with the standards of practice as set out in the CPA Alberta Rules of Professional Conduct;
  3. Maintains sufficiently high standards in regards to generally accepted standards in the profession; and
  4. Adheres to the identified tax practice standards as approved by the CPA Alberta Board.

The scope of the practice review covers primarily the assurance and accounting practice of the firm and its system of providing of tax services. Other services such as bankruptcy or management advisory services are not directly encompassed by the review, except to the extent that they are associated with professional standards.

Quality control policies and procedures adopted by a firm provide reasonable evidence that assurance, non-assurance, tax service and other engagements are carried out in accordance with the standards set out in the CPA Canada Handbook, CPA Canada Public Sector Accounting Handbook, CPA Alberta Rules of Professional Conduct, tax standards approved by the CPA Alberta Board, and other general standards of the profession.

Practice reviews are primarily intended to evaluate whether a firm's quality control policies and procedures for its accounting, assurance, non-assurance and tax services are appropriately comprehensive and suitably designed. A professional accounting firm or professional service provider may find it useful to document its quality control procedures prior to the practice review.

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