PATHWAY TO CPA CANADA UNVEILED

CPA Canada designation prepares Finance and Accounting professionals for long, sustainable and rewarding career. It offers unlimited potential. It is the gateway to a diverse universe of exciting opportunities.

CONNOTATION OF CPA CANADA

Chartered Professional Accountants of Canada(CPA Canada) is one of the largest organizations of its stature in promoting the profession of accounting. It is national organization representing the accounting profession through the unification of the three largest organizations and 40 national and provisional accounting bodies.

OBJECTIVES OF CPA CANADA

• To conduct research on business issues.
• To support setting up of accounting, auditing and assurance standards of business.
• To issue guidance for:
  – Accounting.
  – Auditing.
  – Assurance.
  – Financial literacy.

QUALIFICATION SYSTEM OF CPA CANADA

CPA PROFESSIONAL PROGRAMME

INDIAN CAs EXEMPT FROM

PRE-REQUISITES FOR CPA PROFESSIONAL PROGRAMME

• Complete a bachelor’s degree concentration e.g. B.Com. with accounting as Major.
• Complete the pre-requisite learning as defined in the CPA COMPETENCY MAP.
• Complete at least 120 Credit Hours.

CPA COMPETENCY MAP

CPA Competency Map lays the foundation for the CPA Certification Programme which includes:

• education
• accreditation
• examinations
• practical experience requirements (PER)

It also prescribes:

• knowledge
• skills
• proficiency levels

required to be achieved for CPA Certification.

In this context, it lays down:

Technical Competencies

• financial reporting
• management accounting
• strategy and governance
• audit and assurance
• corporate finance
• taxation

Enabling Competencies

• ethics for code of conduct
• demonstration of professional values.
• leadership
• collaborating
• managing staff
• adding value
• problem solution and making decisions
• communication

DESCRIPTION OF CFE

CFE is 3 days long

• Day 1 – Based on Capstone 1 (1 case – 4 hours).
• Day 2 – Comp (1 case – 5 hours).
• Day 3 – Multis (3 cases – each between 70-90 minutes – 4 hours in total).

CFE covers 6 Competencies:

  1)   Audit & Assurance

  2)  Financial Reporting

  3)   Management Accounting

  4)   Finance

  5)   Taxation

  6)   Strategy and Governance

Day 1 of the CFE:

• 1 Case for 4 hours.
• Based on the case used in Capstone 1 – i.e. same company, 5 or 10 years later.
• Marked separately from Day 2 and 3.
• Simple “PASS” or “FAIL”.
• Not technical – encompasses strategy, governance, SWOT etc.

Day 2 of the CFE:  

• 1 Case for 5 hours – called the Comp.
• The case will have financial accounting or/and management accounting issues.
• Students will choose 1 of 4 roles before the CFE and address issues in this role.
• The 4 roles are:  Audit  or  Tax  or  Performance Mgmt.  or  Finance.
• Therefore, the comp will have 2 or 3 competencies:
  • Financial accounting or/and management accounting + the 1 chosen role.

Day 3 of the CFE:

• 3 Cases for 4 hours – these cases are called “Multi Cases” – 70 – 90 minutes.
• Each case contains more than 1 competency (probably around 4-5).
• Everyone answers the same questions – no choice.
• Day 2 and 3 marked together.
• If unsuccessful – only have to repeat the day(s) that you failed.
  • i.e. if fail Day 1 – repeat day 1   /   if fail Day 2/3 – repeat day 2/3

KEY FACTS ABOUT CFE

Course will mainly include a combination of live online lectures (or their recordings), recorded video lectures explaining the technical contents and also on how to write answers to case study-based questions and practice cases (evaluated and marked by professionals)

CORE AREAS

Case Writing
Includes:

• Self-Study:  Write and self-mark cases.
• Formal Instruction:
  • Write Day 1, 2 and 3 cases that are handed in for marking.
  • Combination of live online and video case take-up sessions.

BREAKDOWN OF CPA EXAM

CPA Canada Examination is segregated into 4 sections of accounting knowledge.

• Auditing and Attestation.
• Business environment and concepts.
• Financial accounting and reporting.
• Regulation.

The candidate is required to score at least 75 percent marks in each section to receive Licensure.

EXAM FORMAT

• All exam sections are computerised and delivered in English.
• Test questions are presented in smaller chunks called Testlets.
• A Testlet in composed of:
  • MCQs
  • Task-Based simulation
  • or a mix of both
• Some of the task-based simulations contain written communication tasks.
• A task-based Simulation provides relevant information in a sample case study.
• The candidates must demonstrate their accounting skills by completing tasks.
• Examples may include:
  • Working in spreadsheets.
  • Researching a database.
  • Creating or completing forms.
• Additional research materials are made available in the form of Professional Standards, Tax Code, FASB rulings.
• Scoring in these simulations is based on accuracy.

Written Communication Tasks require the candidates to craft communications in the form of letters or memorandum based on data provided.

• Scoring in written communication is based on:
  • Proper organisation and presentation of ideas.
  • Presentation of clear supporting evidence.
  • Good communication in English.
• Multiple Choice Question are delivered in adaptive modes.

TESTLET REQUIREMENTS

(A) Auditing and Attestation (AUD)

Time: 4 Hours
Skills Tested

• Planning the engagement.
• Internal controls.
• Obtain and document Information.
• Review engagement and evaluate information.
• Prepare communications.

Format:

• 3 MCQs Testlets (60%)
• One simulation testlet with seven test-based simulations (40%)

(B) Business Environment and Concepts (BEC)

Time : 3 hours
Skill Tested

• Business structure.
• Economic concepts.
• Financial management.
• Information technology.
• Planning and measurement.

Format

• 3 MCQ Teslets (85%).
• One simulation Testlet with three communication tasks (15%).

(C) Financial Accounting and Reporting (FAR)

Time: 4 Hours
Skills Tested

• Concepts and standards for financial statements.
• Typical items in a financial statement.
• Specific type of transactions and events.
• Accounting and reporting for government entities.
• Accounting and reporting for non-government and not-for-profit organisations.

Format

• 3 MCQs testlets (60%)
• One simulation teslet with seven task-based simulations ( 40%)

(D)  Regulation (REG)

Time : 3 Hours
Skill Tested

• Ethics and professional responsibility.
• Business law.
• Federal tax procedures and accounting issues.
• Federal taxation of property transaction.
• Federal taxation – individuals.
• Federal taxation – entities.

Format

• 3 MCQ testlets (60%)
• One simulation testlet with task -based simulations (40%)

PRACTICAL EXPERIENCE REQUIREMENTS FOR QUALIFICATION

CPA EXAM RESULT AND SCHEDULE

Key Facts About the CFE

• Everyone in Canada writes the same CFE exam
• 3 attempts to pass. After that, pay student fees again to register.
• Exam is written on the computer using word and excel.
• Exam is open book – you have access to the Handbook and Tax Act on the computer.
• Does not matter which Canadian Province you write the exam.

CONTENT DESCRIPTION

1 Case for 5 hours – called the Comp.

The case will have Financial Accounting or/and Management Accounting issues.

Students will choose 1 of 4 roles before the CFE and address issues in this role.

The 4 roles are Audit or  Tax or  Performance Management or Finance. Therefore, the comp will have 2 or 3 competencies:

– Financial accounting or/and management accounting + the 1 chosen role.

PREPARATION FOR DAY 1 OF CFE

Case Writing
Includes:

• Self Study :  Write and self-mark cases.
• Formal Instruction:
  • Write Day 1, 2 and 3 cases that are handed in for marking.
  • Combination of live online and video case take-up sessions.

CPA CANADA QUALIFICATION FOR CAS FROM INDIA

CPA Canada has finalized the Memorandum of Understanding (MOU) on Reciprocal Membership Arrangement with the Institute of Chartered Accountants of India (ICAI) on behalf of the CPA provincial and territorial bodies and the Chartered Professional Accountants of Bermuda.

If you are a fully qualified ICAI member in good standing (obtained a membership through completion of the accounting body’s qualification process and not through a recognition agreement with another accountancy body), and you obtained your designation while not a resident of Canada, you may have rights to advanced standing in the CPA certification program through the MOU.

VITAL STATUS OF CPA CANADA PROFESSIONALS

Vital status CPA Canada stems from the key roles they play in diverse segments of the economy. Their role ranges from industry, public accounting, government, education and non-profit sector. CPA professionals are well- equipped with a set of accounting and managerial skills. These are the essential inputs required for success in the midst of the fast-changing dynamics global environment.

SPECTRUM OF SERVICES BY CPA CANADA

A. Industry

Applying a unique blend of expertise, CPAs in industry aid key decision areas to:

• identify new market opportunities
• ensure corporate accountability
• manage risk
• help company maintaining long term competitive advantage.

CPA professionals assume key responsibility in diverse roles as: CEOS, President, Treasurer, Controller, Consultant and Systems Developer.

B. Public Practice

CPA practitioners render services to their clients in a variety of forms:

• start-up counselling
• purchase and sale of business
• business valuations
• financial projections
• process deployment and improvement
• funds procurement strategies
• corporate and personal text planning
• audit and assurance
• preparation and analysis of financial information
• acting as trustees for receivership, insolvency and bankruptcy
• developing management controls
• management consulting
• forensic accounting
• litigation support

C. Government

As Auditors, policy planners and financial analysts, CPAs guide financial planning and maintain fiscal control.

D. Education

As educators, CPAs teach future leaders about business, values and ethics.

E. Non-Profit

CPAs help non-profit organizations with effective strategy development, accounting stewardship and delivery of transparent annual reports.

RATIONALE FOR PURSUIT OF CPA CANADA

1.Demand

With CPA Canada designation, the students are trained to meet various international market needs.

2.Handsome Compensation and Perks

CPA designation ensures handsome compensation and perks in the range of$ 1,41,000 to $ 1,63,000 depending upon sectors of employment.

3. Growth Potential

CPA designation helps professional elevation from bottom to top in the organizational hierarchy to roles of- CEO, President, CFO, Treasurer, and Board of Directors.

OPPORTUNITIES GALORE

CPAs have multiple opportunities in multiple roles in diverse sectors of the economy, be it, at home or abroad.

1. Vast Work Arena

As a forward-thinking financial leader, there are ample of opportunities to apply knowledge and involve in important financial and business decisions.

2. Travel Opportunities

Umpteen number of travel opportunities are offered for travel for work and consulting all over the world. This gives top global exposure to enrich professional status.

3. Selection of Niche

Economic, industrial and technological developments help specialized work to CPAs in the variety of domains covering finance and accounting.

CRAFTING EXAM STRATEGY

Spectacular success in CPA CANADA Exams warrant a compound of inputs containing:

3 Cs:

1. Confidence

2. Concentration

3. Conviction

3 Ds:

1. Determination

2. Diligence

3. Discipline

10 MAIN REASONS WHY STUDENTS FAIL IN EXAMINATION

1. Lack of preparation.
2. Lack of time management.
3. Procrastination.
4. Distractions.
5. Lack of perseverance.
6. Low self-esteem.
7. Overconfidence.
8. Lack of interest.
9. Faulty study strategies.
10. Lack of proper information.

 PRE-REQUISITES FOR EXAM SUCCESS

• Adopt a positive mental attitude.
  – Consider exam as a challenge to demonstrate your knowledge.
  – Avoid last-minute panic and cramming.

ATTITUDINAL RECAST : RE-ORIENT YOUR DAILY REGIMEN

• Wake up early morning.
• Continue with normal routine sleep.
• Do workouts, exercise, yoga and meditation.
• Maintain good health, hygiene and take nutritious diet full of fresh fruits and vegetables, carbohydrates and vitamins.
• Relax and take periodic breaks to concentrate and rejuvenate.
• Plan routine for better time management.
• Learn something new every day.
• Strictly avoid all distractions like – TV, Mobile, Facebook, Parties – at least three months prior to exams.
• Believe in yourself.
• Prepare overnight for tomorrow.

SUCCESS FORMULA FOR CPA CANADA EXAM

• Be a positive thinker and innovative person.
• Create a self-confidence.
• Take Coach as a Facilitator rather than a Guru in traditional avatar.
• Emphasis on understanding concepts rather than having a sole motto of just passing the exams.
• Identify your strong and weak subjects. Strengthen your base in strong subjects to obtain higher aggregate marks. Convert you weak subjects to a stronger base.
• A continuous study from the beginning is essential rather than starting late 2/3 months prior to exams.
• Concentrate on our exhaustive study material and solve critical problems.
• Enjoy mock test and solve previous years’ question papers.
• Smart study rather than page-by-page study ensure success.
• Never, ever dither from your cherished goal of Cracking Exams at any cost.

PREPARATION FOR CPA CANADA EXAM

Personal Timeline

• Choose test date for Appearance.
• Work backwards from the selected date for more effective planning.
• Consider the timeframe of prometrics.

Preparation

Preparation time required for each test is recommended by AICPA to be 8 to 12 weeks.

Recommended Time Allotments

• Auditing and Attestation (AUD) 100 Hours.
• Business Environment and Concepts (BEC)  – 80 Hours.
• Financial Accounting and Reporting (FAR) – 160 Hours.
• Regulation (REG) – 110 Hours.

Preparation Schedule must consider:

• Work obligations
• Family commitments.
• Vacations.
• Unforseen periodic interruptions.

STUDY STRATEGY : NOTABLE PARAMETERS

• Exam Success does not depend upon memorisation.
• Exam success warrants deployment of application skills set for an emerging situation.

STUDY TOOLS

Visual Learners – Flashcards, mnemonics  & formulae

Audio Learners – Podcasts or audio books

Hands-on Learners – Traditional preparation classes to illustrative concepts.

GUIDELINES FOR SUCCESSFUL PREPARATION

• Prepare extensive notes and make a summary.
• Answer each question within the time allotted. Strict compliance with time management is imperative.
• Consume time to read the case study to identify issue involved.
• Prepare an outline and structure of each answer.
• Revisit case studies to determine what you have done and what should be done to improve the answer.

TIPS, TRICKS AND TACTICS

• Develop  a 12-month plan to complete exam preparation.
• Use extra six months provision to meet contingencies of unforeseen interruptions.
• Avoid cramming at any cost.
• Compartmentalize study material into weekly chunks- one chapter and review per week.
• Complete all test review work one week prior to exam date.
• Schedule practice in the last week.
• Select the section based on your strengths and weaknesses.
• Easy sections provide you with instant familiarity with the test environment.
• Taking up intimidating sections create self-confidence.
• Avoid distractions of social media and past time activities of leisure and entertainment.
• Schedule breaks to rejuvenate.
• Explore the free preview tests, tutorials and online study materials.
• Visit the prometric testing centres to avoid last-minute panic and anxiety.

START CPA CANADA ANYTIME

Indian students can begin anytime, but starting earlier is always advantageous.

May 2021 – Latest time to start studying:  Jan. 1, 2021

Sept. 2021 – Latest time to start studying:  Apr. 15, 2021

Hours per Week (suggested)

10 – 15 hours per week

Working

Yes – you can work full time while studying for the CFE

CPA CANADA FEE STRUCTURE

Registration Fees – One time – 125 Cdn $

Annual Student Fees (valid for one year) – Approx. 675Cdn $

CFE Exam Fees – 1500 Cdn $

Total – Approx. 2300 Cdn $ or Rs 1,20,000

CHANAKYA EDU-CULTURE

under the aegis of its Franchise Partners Navkar Institute, Ahemdabad, established in 1997,

offers Coaching for CPA Canada in collaboration with PASS.

NAVKAR / PASS offer a Course specifically designed for Indian and other CAs which include:

• Technical Training
• Case Writing Training
• Personal Training

IN RETROSPECT

CPA Canada designation stands as an enviable profession in the vital domain of Finance and Accounting.

Journey of CPAs at work traverses a five-ladder progression.

• CPA mindset
• Assess the situtaion
• Analyse major issues
• Conclude and advise
• Communicate

CPA Canada professionals address the need of decision-making in 3 stages.

Stage 1 : Interprof Individual Qualification of Quality results.

Stage 2 : Establish and use decision criteria for overall concludion.

Stage 3 : Provide further advice for implementation.

In ultimate dissection, the CPA Canada professionals perform high quality engagement. Their valuable guidance in consistent application of professional standards render yoemen service for interest of clients. Indeed, it speaks volumes for the top echelon of accounting profession they have attained on international plane.