When it comes to determining what standards apply to financial reporting refer to the incorporating statutes. These statutes may state that the standards set by the CICA apply to the preparation of financial statements.
The CICA is a source for Big GAAP, those reporting standards used in assurance angagements intended for third party use by medium and large entities. The CGA Association is a source of guidance for small corporations, aka Small GAAP. Small GAAP came about due to an absence of standards in the area of smaller corporations.
Rules of practice are determined by your statutory regulatory body. Regulations for licensing legislation will determine the form for the notice to reader in the future, in Ontario. Note proposed regulations are posted at http://www.e-laws.gov.on.ca .
It is generally accepted that notice to reader reports and the accompanying financial statements are not prepared in accordance with GAAP.
Client confidentiality, requires that a public accountant keep their client’s names private. For example, public accountants are bared from using client’s phones as caller ID will identify the client to unintended persons. This is a breech of client confidentiality.
The following is an exerpt from the July 2006 CMA Ontario Update
Public Accounting Guidelines Must be Followed
Only Certified members whose practice is registered with the Society may use their designation in offering or providing management accounting services to the public. This includes those CMAs who offer their services indirectly through a corporation in which they or persons with whom they do not deal at arm’s length are owners or part owners. The annual practice registration is $50 plus GST.
For more information, contact Bill Fitzgerald,
CMA, Director, Professional Standards at 416-977-7741, ext. 105.
For a practice registration package, contact Connie De Jesus at ext. 106.
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