Practice Review Process

The following process is followed during a practice review: 

 

The firm is notified by email that it due for practice review and will be asked to complete a Scheduling Questionnaire and Tax Management Questionnaire. If the firm is a non-assurance office, it will also be asked to complete a Confidential Client List used for file selection.

Once the firm has returned the Scheduling Questionnaire, it is reviewed to determine the length of time needed to conduct the review. The firm will then be contacted by Practice Review to schedule the dates(s) for the review.

These general procedures will be followed before and during the practice review:

Logistics

For assurance reviews, the Practice Reviewer will contact the practice review contact prior to the review to confirm logistics and request an up-to-date client list (organized by partner and engagement type) to support file selection. Files are selected in consultation with the practice review contact, with notice typically provided one to two days before the review. Firms must ensure selected files are accessible (paper or electronic) and include relevant working papers, financial statements, tax returns, permanent files, and correspondence.

For non-assurance (desk) reviews, the client list is submitted earlier alongside with the questionnaires. Files are selected by CPA Alberta, and firms are notified approximately one week in advance. Selected files will need to be submitted electronically or by courier, and any physical files are returned shortly after the review.

Files will be selected by the reviewer in consultation with the member in charge. The firm will be given enough time prior to the visit to ensure that the files are either printed and organized in files or transferred onto electronic hardware/software for the reviewer to access. Notice of the selected files is typically given one to two days before the scheduled review date. The files provided normally include the current working paper file(s) for the most recent year-end, financial statements, tax return, permanent file and billing and correspondence.

*For a non-assurance review (desk review): The client list will be requested by the practice review coordinator much earlier in the review process. Files will be selected in-house from the client list and the selected files will then be forwarded electronically or by courier to the CPA Alberta office for review. The coordinator will notify the firm approximately one week prior to the review date as to which files have been selected for review. All physical files will be returned to the firm within a few days of the review.

The selected engagement files are reviewed on the scheduled review date to assess compliance with professional standards. During the review, findings are discussed with the member in charge of the engagement, and copies of the reviewer’s notes are provided.

An exit interview is then held to review observations, address any questions, and allow the member to provide additional information where applicable.

The reviewer will summarize the findings on the engagement files and will determine if additional procedures are required. This summary of findings (Deficiency Report) as well as the reviewer’s recommendation of 'Comply' or 'Non-Comply' will be discussed with the practitioner in charge of the review (and, at the practitioner's discretion, with other partners or staff members) at the exit interview.

The firm will be asked to sign-off on the Deficiency Report at that time. The firm will be provided a copy of the final Deficiency Report at the end of the practice review for reference.

The firm will sign the report to indicate that a discussion had occurred with the reviewer. The firm will be notified at a later date when to formally provide their comments to the Practice Review Committee.

The reviewer will prepare a Draft Practice Review Report for presentation to the Practice Review Committee with the following features:

  • An assessment as to whether anything has come to the attention of the reviewer that causes them to believe that the firm is not in compliance with professional standards;
  • A summary of the findings and recommendations for improvement; and
  • An office profile.

The reviewer provides their recommendation to the committee and the Practice Review Committee makes the ultimate decision regarding the result of the review.

Copies of the Draft Practice Review Report will be posted to the firm portal and a notification email forwarded to the firm for review from the Director of Practice Review in advance of presentation to the Practice Review Committee.

Prior to submitting the report to the Committee, the firm must acknowledge the contents by completing the online declaration in the CPA Alberta portal by the specified deadline. The Committee encourages members to submit written comments concerning the content of the Draft Practice Review Report.

There may also be times when a response from the firm is required and this will be noted in the report. The Committee considers both the Draft Practice Review Report and the firm’s comments when forming its assessment of the firm.

The report is presented to the Committee in a manner which protects the identity of the firm, its members and clients. The Committee makes the decision regarding adherence to professional standards.

The Committee may reject, modify or accept the recommendation concerning compliance by the reviewer. The Committee may also request additional information from the firm prior to making its final assessment.

After the Practice Review Committee meeting, the firm will be notified of the Committee's decision and recommendations.

Firms registered with the Canadian Public Accountability Board (CPAB) with reporting issuer clients will have their Practice Review Report sent to the CPAB directly from the Practice Review Committee.

The Practice Review Report, Decision Letter, Scheduling Questionnaire and Tax Management Questionnaire are retained for a period of four years once a firm has been found to comply and practice review fees are paid.

All other working papers, detailed notes, client lists, etc. are destroyed after one year.

For firms receiving a non-comply decision, a follow-up Practice Review will be scheduled within 12 months of the initial practice review visit. The time frame is at the discretion of the Practice Review Committee.

 

 

Tips for a Successful Practice Review

Firms that are compliant generally:

  • Encourage members to attend professional development courses
  • Are aware of events within the profession
  • Are aware of revisions to the CPA Canada Handbook
  • Have adequate working paper file documentation
  • Maintain a strong system of quality management 
  • Prepare for the practice review by maintaining high standards of practice on a continual basis
  • Have a cooperative attitude that makes the process more time and cost efficient for both parties

If you have any questions or require further information prior to your practice review, please contact the Director of Practice Review at practicereview@cpaalberta.ca.

Share this page  
2026 CPA Alberta Board Vote