PA1 | mm0220

Core Competencies
1. Financial Accounting
  1. GAAP application: Ethics
    1. Conceptual framework:
      1. no one method under GAAP is always appropriate
      2. technical competence in accounting is not enough.
      3. must choose from among the alternatives allowed under GAAP by applying professional judgement in an ethical manner to ensure financial statements are a fair representation of the financial position, results of operation, and cash flows of an entity.
      4. choosing an alternative that does not truly reflect reality is unethical even though the method is acceptable under GAAP.
    2. CEPROC
      1. Confidentiality
      2. Competence
      3. Objectivity
      4. Integrity
      5. Professional accountants cannot associate themselves with financial information they know, or should know, is false or misleading.
  2. CICA HB
    1. IFRS
      1. Fair Presentation in accordance with GAAP
      2. Presentation
      3. Sufficient information about transactions/events having an effect on the entity’s financial position, results of operations, and cash flows for the periods presented
      4. size
      5. nature
      6. incidence
      7. detail necessary to understand effect
      8. materiality
      9. clear and understandable
      10. going concern basis
      11. management assessment of company's ability to continue
      12. must disclose
      13. material uncertenties: events/conditions that may cast significant doubt upon the entity’s ability to continue as a going concern
      14. the financial statements are not prepared on a going concern basis
      15. the basis on which the financial statements are prepared
      16. reason why the entity is not regarded as a going concern.
      17. comparative basis
      18. must include p/y information
      19. Statements
      20. financial position
      21. results of operations
      22. cash flows
      23. Control/Significant Influence
      24. Control
      25. Must consolidate (Acquisition Method)
      26. IAS 10
      27. principles for presentation/preparation of consolidated FS
      28. one entity controls one or more other entities
      29. Control
      30. all relevant facts and circumstances
      31. power over investee
      32. ability to direct activities that affect investor's returns
      33. exposure or rights to variable returns from investment
      34. can use power over investee to affect returns
      35. power >> rights
      36. straightforward (voting control)
      37. complex (embedded contractual arrangements)
      38. protective rights != control
      39. must be exposed to variable returns from investee
      40. (vary with performance)
      41. must have ability to use power
      42. Significant Influence
      43. Equity method & disclosure
      44. Ownership of enough shares/rights/entitlements to influence operations
      45. No S.I./Control
      46. HFT
      47. AFS (IAS 39)
      48. Business Combinations IFRS 3
      49. Definition
      50. Combination
      51. transaction or event in which an acquirer obtains control of one or more businesses.
      52. Business
      53. an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return directly toinvestors or other owners, members or participants.
      54. Not a joint venture, combination of entities or businesses under common control
      55. Acquisition method
      56. Identify acquirer
      57. Entity that gains control
      58. Determine the acquisition date
      59. date on which control is obtained
      60. recognize and measure
      61. identifiable assets acquired
      62. liabilities assumed
      63. FMV at acquisition date (excluding contingent liabilities)
      64. non-controlling interest
      65. goodwill or gain from a bargain purchase
      66. The acquirer shall recognise goodwill as of the acquisition date measured as the excess of (a) over (b) below:
      67. (a) the aggregate of:
      68. (i) the consideration transferred measured in accordance with this IFRS, which generally requires acquisition-date fair value (see paragraph 37);
      69. (ii) the amount of any non-controlling interest in the acquiree measured in accordance with this IFRS; and
      70. (iii) in a business combination achieved in stages (see paragraphs 41 and 42), the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree.
      71. (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed measured in accordance with this IFRS.
      72. NCI
      73. FMV (full goodwill)
      74. % share of net assets
      75. separate from equity of parent
      76. each component of profit/loss and OCI pro-rata (present ownership interests)
      77. total CI reported pro-rata even if NCI has debit
      78. Operating Segments (IFRS8)
      79. Must use segment reporting
      80. > 10% profit/loss
      81. > 10% of all net assets
      82. component of an entity
      83. engages in business activity --- earns revenues, incurs expenses
      84. operating results reviewed regularly by entity's chief operating decision maker re: resources allocated and performance
      85. discrete financial information available
      86. Disclosures
      87. general information about segments and types of products/services for each
      88. segment p/l
      89. total segment revenues, p/l, expenses, assets, liabilities
      90. entity-wide disclosures even when entity has only one segment -- products, services, groups of products, etc.
      91. analysis of revenues and non-current assets by geographical area
      92. information about transactions with major customers
      93. Consolidation (IFRS 10)
      94. parent prepares CFS
      95. uniform accounting policies
      96. does not have to prepare CFS if
      97. wholly-owned sub or partially owned sub of group of owners (informed of and do not object to)
      98. debt or equity not traded in public securities markets
      99. did not file or in the process of filing FS with securities commission/regulatory org. for purpose of public offering
      100. intermediate parent whose parent produces CFS
      101. procedures
      102. combine like items of asssets, liab, equity, income, expenses & cash flows
      103. elminate the carrying amount of parent's investment in each sub
      104. elminate any intragroup assets, liab. equity, income, expenses & cash flows
      105. eliminate any intragroup p/l recognized in assets
      106. must have same financial periods
      107. if impracticable, adjusted FS are used
      108. account for NCI
      109. changes in ownership interests
      110. no loss of control
      111. Investment entities
      112. more than one investment
      113. more than one investor
      114. investors not related parties of entity
      115. ownership interests in the form of equity or similar interests
      116. measures investment in subsidiary at FM, through p/l (IFRS 9 or 39)
      117. must consolidate if provides services related to sub's investment activities
      118. exemption applies only to entity itself --- parent must still consolidate
      119. Inventories
      120. IAS 2 Inventories (IFRS) and pre-IFRS CICA Handbook section 3031 Inventories are converged and there are no significant conflicts.
      121. lower of cost and net realizable value (NRV)
      122. includes land held for resale but does not include financial instruments.
      123. NRV
      124. is the estimated selling price in the ordinary course of business
      125. MINUS
      126. estimated costs of completion
      127. MINUS
      128. the estimated costs necessary to make the sale.
      129. Costs [IAS 2.10]
      130. purchase (including taxes, transport, and handling) net of trade discounts received
      131. conversion (including fixed and variable manufacturing overheads) and
      132. other costs incurred in bringing the inventories to their present location and condition
      133. NOT [IAS 2.16 and 2.18]
      134. abnormal waste
      135. storage costs
      136. administrative overheads unrelated to production
      137. selling costs
      138. foreign exchange differences arising directly on the recent acquisition of inventories invoiced n a foreign currency
      139. interest cost when inventories are purchased with deferred settlement terms.
      140. LIFO cost flow assumption not permitted under IFRS.
      141. Financial Instruments
      142. IFRS 7
      143. 2-5 years
      144. amort cost
      145. IFRS 9 - initial measurement
      146. debt instruments at amortized cost
      147. business model test (hold for cashflows rather than sell for FV changes)
      148. cash flow characteristics: cash flows are solely payments on principal and interest on o/s principal
      149. fair value (all others)
      150. can designate even if asset meets amort. cost tests.
      151. equity instruments except for those elected to report changes in OCI
      152. no cost exception for unquoted equities
      153. can make an irrevocable election to measure at FV throuh OCI (not HFT), dividend income in p/l
      154. eliminates/significantly reduces accounting mismatch (g/l on different bases)
      155. liability part of group of liab/assets managed and performance evaluated on FMV basis --- document risk management strategy
      156. derecognition
      157. asset in entireity
      158. specifically identified cash flows
      159. fully proportionate share of cash flows from asset
      160. determine if asset has been transferred
      161. no obligation to pay amounts unless equivalent amounts on original asset are collected
      162. prohibited from selling or pledging the original asset (but can be security to the eventual recipient)
      163. obligation to remit cash flows to recipient without delay
      164. all risks/rewards of ownership
      165. if risks/rewards are retained, cannot derecognize
      166. removed from balance sheet when obligation is cancelled, discharged or expired
      167. g/l in p/l
      168. Derivatives
      169. measure at FV
      170. g/l in p/l unless hedged (OCI)
      171. Embedded derivative
      172. IAS 39
      173. HFT
      174. Short term (< 1 year)
      175. FMV
      176. AFS
      177. long term
      178. FMV
      179. Loans & receivables
      180. long term
      181. amort cost
      182. Held for sale (noncurrent) IFRS 5
      183. Conditions
      184. management committed to sell
      185. disposal through sale not write down/off or wound down/abandoned
      186. asset available for immediate sale
      187. active program to locate a buyer
      188. sale is highly probable (12 months)
      189. actively marketed for sale
      190. unlikely to be withdrawn from sale
      191. measured at lower of carrying amount or FMV less costs to sell
      192. Disposal group
      193. group of assets & associated liabilities
      194. disposal in a single transaction
      195. Impairment testing required
      196. No depreciation charged
      197. PPE [IAS 16]
      198. IAS 16 Property, Plant and Equipment, IAS 36 Impairment of Assets and Pre-IFRS GAAP Section 3061 are converged, except that:
      199. revaluation of property, plant and equipment to fair value permitted
      200. initial measurement at cost less accumulated depreciation and impairment
      201. If revaluation results increase in value, credit to OCI/Revaluation surplus
    2. ASPE
    3. NFPO
    4. Public Sector
    5.  Impairment of assets
    6.  Canadian GAAP and IFRS are similar in the treatment of asset impairments. However, there are four major differences in the requirements, namely:
    7.  (i) Generally, Canadian GAAP uses a two-step impairment testing approach, whereas IFRS’s section on asset impairments outlines a one-step approach
    8.  (ii) Canadian GAAP determines an impairment loss as the excess of the carrying amount over the fair value. Impairment loss in IFRS is defined as the excess of the carrying amount over the recoverable amount (the higher of fair value less costs to sell and value in use);
    9.  (iii) Where necessary, Canadian GAAP requires impairment testing to be performed on an asset group (long-lived assets) or at a reporting unit level (goodwill and indefinite lived intangible assets). Impairment testing under IFRS is performed at an individual asset level or, if this cannot be done, at the lowest cash generating unit (CGU) level; and
    10.  (iv) Canadian GAAP prohibits any reversals of impairment losses. IFRS standards require a reversal of an impairment loss where there has been a change in estimates used to determine the recoverable amount. The only time this is not the case is in relation to Goodwill.
    11.  Impairment of Long live assets
    12.  The impairment model under IFRS (IAS 36) differs substantially from that under the old CICA Handbook (section 3063).
    13.  The entity assesses as at the balance sheet date, whether there is any indication that an asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset. (Pre-IFRS: whenever events or changes in circumstances indicate that is carrying amount may not be recoverable)
    14. • An impairment loss is recognized immediately net income (P & L) and by writing down the carrying amount of the asset. (Pre-IFRS: Impairment losses are recognised in expense and the carrying amount of the asset)
    15. • After the recognition of an impairment loss, the depreciation (amortization) charge for the asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.
    16. • If there is any indication that an asset may be impaired, the recoverable amount is estimated for that asset. If it is not possible to estimate the recoverable amount of the individual asset, the entity determines the recoverable amount of the cash generating unit (CGU) to which the asset belongs (the asset's cash generating unit).
    17.  Impairment of Intangible assets
    18.  Impairment — Intangible Assets
    19.  [IAS 36 p 10] Irrespective of whether there is any indication of impairment, the entity conducts impairment testing of an intangible asset with an indefinite useful life or an intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount.
    20.  Impairment — Goodwill
    21.  [IAS 36 p 10] Irrespective of whether there is any indication of impairment, the entity conducts impairment testing of goodwill acquired in a business combination for impairment annually.
    22.  Impairment — Goodwill
    23.  IFRS requires annual impairment testing (pre-IFRS GAAP required impairment testing whether events or changes in circumstances indicate that its carrying amount may not be recoverable
    24.  Reversal of Impairment Loss
    25.  IFRS requires the reversal of an impairment loss when there has been a change in estimates to determine recoverable amount. Under the old CICA Handbook, reversals were not permitted.
    26.  Impairment of Assets
    27.  Conclusion
    28.  In general, the principles related to impairment under Canadian GAAP and IFRS are similar. However, major differences exist between the two standards in four areas, broadly:
    29.  i) the frequency when to test an asset for impairment;
    30.  ii) the level that the impairment test is performed at – a CGU compared to an asset group or reporting unit; and
    31.  iii) the approach taken for the impairment test
    32.  iv) except for goodwill, reversals of previously recognized impairment losses are required.
    33.  Leases
    34. A lease that transfers substantially all of the benefits and risks of ownership related to the leased property from the lesser to the lessee should be accounted for as a capital lease by the lessee and as a sales-type or direct financing lease by the lesser.
    35. A lease where the benefits and risks of ownership related to the leased property are substantially retained by the lessor should be accounted for as an operating lease by both the lessee and the lesser.
    36. The primary factors to consider when determining whether substantially all of the benefits and risks will be transferred under the lease are: ownership at the end of the lease term, duration of the lease, investment recovery along with return on investment, credit risk, measurement of unreimbursable costs, and so on.
    37. A direct financing lease normally arises when a lesser acts as a financing intermediary between a manufacturer/dealer and the lessee. Finance income over the term of the lease would be recognized by the lesser. A sales-type lease normally arises when a manufacturer/dealer is also the lesser. Profit on the initial sale and finance income over the term of the lease would be recognized by the lesser.
    38. A capital lease would be recognized as an asset and liability by the lessee. Operating leases would be recognized as rental income or expense accordingly.
    39.  LEASE-IFRS
    40.  LAWSUIT/PROVISIONS
    41.  Section 3290 and IAS 37 are converged, except that when a contingency under IAS 37 meets recognition criteria it is treated as a provision, or if it is a debit balance it is recognized as an asset when realization of income is virtually certain.
    42.  (Source: The CICA’s Guide to IFRS in Canada, 2009 Edition)
    43. Lawsuits
    44. A provision (and a loss) for a lawsuit is recorded if the lawsuit is probable to result in a payout and the amount can be measured. (Under IFRS an unrecorded liability is called a contingency. If an amount is recorded, it is called a Provision).
    45. Provisions
    46. IFRS contain a specific standard related to ‘Provisions’ – a liability of uncertain timing or amount. Such liabilities are recorded if they meet the recognition criteria.
    47. IFRS requires a continuity schedule for all estimated liabilities. This schedule would list the opening balance and specific increases and decreases during the year to arrive at a closing balance.
    48. Provision for lawsuits:
    49. Opening balance 20x1 $200,000
    50. Payment under court order (40,000)
    51. Additional provision during the year 100,000
    52. Closing balance Dec 31 20x1 $260,000
    53.  Revenue Recognition
    54. Revenue should be recognised when it is earned. The criteria for revenue recognition are as follows:
    55. • Performance
    56. • The seller has completed their part of the agreement. For example, the seller delivers the item to the purchase
    57. • Measurability
    58. • The amount can be measured – usually, the agreed upon sales price.
    59. • Collectibility
    60. • Collection is reasonably assured. However, this is not always the case and the accountant must establish an allowance for bad and doubtful accounts
    61. For the rendering of services and long-term contracts, revenue should be recognized using either the percentage of completion method. The percentage of completion method is used when performance consists of the execution of more than one act and revenue would be recognized proportionately. The completed contract method is not IFRS compliant.
    62.  INCOME TAX
    63. The objective of accounting for income taxes is to reflect the benefit or cost related to an income tax asset or liability in a manner consistent with the transaction/event that gave rise to the asset or liability.
    64. A future income tax liability should be recognized at each balance sheet date for all taxable temporary differences, except for those arising from any portion of goodwill that is not deductible for tax purposes. Temporary differences are the differences between the tax basis of an asset or liability and its carrying amount. A taxable temporary difference is a temporary difference that will result in taxable amounts in determining taxable income in future periods.
    65. Similarly, a future income tax asset should be recognized at each balance sheet date for all deductible temporary differences, unused tax losses, and income tax reductions. A deductible temporary difference is temporary difference that will result in deductible amounts in determining taxable income in future periods. However, the amount recognized should be limited to the amount that is more likely than not to be realized. In forming a conclusion that it is appropriate to recognize a future income tax asset, all evidence (both favourable and unfavourable) must be carefully considered.
    66. Future income tax liabilities and assets should be measured using tax rates and laws as at the balance sheet date (typically those that are enacted) that are expected to apply when the liability is settled or the asset is realized.
    67. Future taxes under the old CICA Handbook are called deferred taxes under IFRS.
    68. Under IFRS, deferred tax account balances are always presented as long term
    69.  Control, significant influence, and no significant influence
    70. Control, significant influence, and no significant influence are concepts that are applied to the level of influence the investing company has over the operating, strategic, and investing decisions of the investee company in which it has made an equity investment.
    71. The IFRS-based term “investment in associates” refers to investments where significant influence is exercised. IAS 28 defines associate as an “an entity.. over which the investor has significant influence that is neither a subsidiary nor an interest in a joint venture.”
    72. The equity method should be used to report any investment where significant influence exists.
    73. Investments that do not allow control or significant influence should be classified as held for trading or available-for-sale and accounted in accordance with IAS 39.
    74.  Business Combination-Control
    75. Business combinations occur when one company obtains control of the assets of another company in either of the following ways:
    76. - One company purchases the net assets (assets less liabilities) that constitute a business directly from another organization
    77. - One company purchases all or a significant percentage of voting shares of another company such that control over the company is achieved.
    78. (IFRS 3 and Section 1582 Business Combinations are harmonized)
    79. The Acquisitions Method is the method required by IFRS 3 in accounting for Business combinations:
    80. - Identify the acquirer
    81. - Determine the acquisition date
    82. - recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree and
    83. - recognising and measuring goodwill or a gain from a bargain purchase
    84.  Foreign Currency Translation
    85.  Section 1651 defines the temporal method (integrated operations) as the method of translating financial statements in terms of the Canadian dollar and the current rate method (for self sustaining operations) as the method of translating financial statements in a manner that retains their basis of measurement in the underlying foreign currency. Although IAS 21 does not use these terms, the application of the standard leads to the same result.
    86.  Once a foreign subsidiary has been acquired, the parent must determine how to translate its financial statements into the parent’s currency. The method used to translate the financial statements of a foreign subsidiary depends on the way in which it is financed and operates in relation to the foreign enterprise.
    87.  IAS 21 p17-19 introduce two methods of accounting for foreign subsidiaries: either as "foreign currency transactions" or as "foreign operations." The decision about which method to use depends on the substance of the relationship between the parent and the subsidiary. If the foreign subsidiary is independent, then its statements are translated as if it were a foreign operation – the only exchange risk the parent is exposed to is its original investment in the company.
    88.  A subsidiary that is to be accounted for using the foreign currency transactions approach is one in which there are many interrelationships between the parent and the foreign operation (if it is an appendage of the domestic company, then the transactions are translated as if they were just foreign transaction of the domestic organization).
    89.  Foreign currency translation
    90. Foreign Currency Transactions:
    91. • Transaction date- translate using current rate in effect
    92. • B/S date- translate monetary items at a rate ay B/S date
    93. • B/S date- translate non- monetary items at a historical rate (unless carried at market)
    94. • Exchange gain and loss in profit and loss
    95. Translation of Foreign operation:
    96. • Functional Currency= Presentation currency
    97.  Monetary items at B/S date
    98.  Non monetary items at historical rate
    99.  Revenue/ Expense historical rate
    100.  Depreciation at historical rate
    101.  Foreign exchange gain/loss in profit/Loss
    102.  Foreign currency translation
    103. Translation of Foreign operation:
    104. • Functional Currency= Local currency
    105.  Assets/Liabilities at rate at B/S date
    106.  Revenue/ Expense including depreciation at average rate of the year
    107.  Foreign exchange gain/loss deferred and included in other comprehensive income
  3. PSAB
  4. Competencies
    1. PK:FA:01 Formulates, analyzes, and processes transactions in accordance with applicable professional standards (standards for not-for-profit, public and private corporations, and the public sector)
    2. PK:FA:02 Evaluates, interprets, and advises on accounting policies and procedures in accordance with professional standards (standards for not-for-profit, public and private corporations, and the public sector)
    3. PK:FA:03 Researches, evaluates, and advises on the appropriate accounting treatment for complex transactions (step-by-step acquisitions, fair value determinations, encumbrances, endowment trusts, financial instruments)
    4. PK:FA:04 Implements and updates accounting policies and procedures in accordance with professional standards (appropriate accounting policies for amortization and inventory valuation, revenue recognition, and capitalization)
    5. PK:FA:05 Interprets and advises on the organization’s reporting obligations (determining appropriate basis of accounting, determining required reporting to shareholders and to government and regulatory agencies)
    6. PK:FA:06 Ensures the preparation of timely, reliable, and relevant financial information (financial system design, quality control systems for financial reporting, internal controls)
    7. PK:FA:07 Develops policies and procedures for documenting and maintaining supporting information for transactions and events (record retention policy, preservation of the audit trail)
    8. PK:FA:08 Prepares financial statements and related disclosures appropriate for external users and in compliance with regulatory standards (interim financial statements, pro forma statements, environmental impact, longrange forecasts, management discussion and analysis [MD&A])
    9. PK:FA:09 Develops, prepares, analyzes, and interprets relevant financial and nonfinancial performance measures (comparative financial results, trend/ratio/industry analysis, key performance indicators)
    10. PK:FA:12 Evaluates and advises on financial accounting and related systems (cash management, accounts payable, accounts receivable, credit control, inventory)
2. Assurance
3. Taxation
  1. PK:TX:01 Determines and advises on taxpayer’s regulatory requirements and exposure (filings, use of special elections, reporting requirements)
  2. PK:TX:02 Determines and advises on taxpayer’s tax liability (taxes related to income,consumption, payroll, property)
  3. PK:TX:03 Ensures compliance with all taxation reporting and filing requirements (timely filing of income tax returns and elections, appropriate withholding and remittances)
  4. PK:TX:04 Reviews, advises on, and replies to assessments and reassessments
  5. PK:TX:06 Analyzes and advises on tax-planning issues (purchase or sale of shares or assets, succession planning, reorganizations)
  6. PK:TX:08 Evaluates and advises on tax implications of alternative business decisions (lease versus buy, dividend versus salary, sharing small-business deductions, contract versus employee)
  7. Types of Income
    1. Employment
4. Ethics & Trust
  1. Competencies
    1. PR:ET:01 Applies professional ethical standards (understands and follows the word and spirit of CGA-Canada Code of Ethical Principles and Rules of Conduct, takes action in response to situations that are contrary to the ethical code of the profession)
    2. PR:ET:02 Exercises integrity and a high level of professional judgment
    3. PR:ET:03 Maintains objectivity and independence in appearance and fact (avoids real and perceived conflicts of interest)
    4. PR:ET:04 Protects the public interest (maintains and raises the visibility of the ethical nature of the profession and professional accounting standards)
    5. PR:ET:05 Plans and exercises due diligence (plans and constructs due diligence checklist for mergers and acquisitions or public listing cases; conducts financial statement reviews with financial due diligence; conducts operations and manages with due diligence)
    6. PR:ET:06 Ensures confidentiality of stakeholder information (protects proprietary information)
    7. PR:ET:07 Demonstrates prfessional courtesy (notifies another firm that an issue has arisen about its work)
  2. CEPROC
    1. Principles
      1. Responsibilities to society
      2. overview
      3. safeguard & advance interests
      4. act with
      5. trustworthiness
      6. integrity
      7. objectivity
      8. beyond a member's own behaviour to colleagues and association/professional standards
      9. Compatible activities
      10. professional practice other than accounting (don't use CGA)
      11. no referral for commission
      12. no solicitation of clients with which the member is associated
      13. Don't
      14. Discredit
      15. Unlawful activity
      16. Discrimination (CHRA)
      17. Breach of Rules
      18. notify CGA
      19. unless law forbids disclosure (member exempt)
      20. Criticism of colleague
      21. first submit for explanation
      22. Reporting acts detrimental to profession
      23. independence
      24. state of mind
      25. forming an opinion free from influences that compromise professional judgement
      26. act with integrity, exercise objectivity professional scepticism
      27. appearance
      28. avoid facts and circumstances that would cause a reasonable party to conclude integrity, objectivity and professional scepticism have been compromised
      29. Assurance
      30. free of interest, influence, relationship with client's affairs that would impair judgement or objectivity (reasonable observer)
      31. CGA Independence Standard
      32. Communication
      33. Do not issue unless any threats to independence
      34. identified
      35. evaluate significance
      36. eliminated
      37. apply safeguards to reduce/remove
      38. decline to accept engagement
      39. Compliance of the firm
      40. staff are free of influence, interest, relationship that would preclude firm from engagement
      41. Document
      42. threats to independence
      43. decisions to continue or decline the engagement
      44. Disclose
      45. prohibited interest
      46. influence
      47. relationship
      48. advise in writing
      49. Compilation
      50. appropriate disclosure
      51. disclose in engagement report
      52. Threats
      53. self-interest
      54. financial/other interest will inappropriately influence judgement or behaviour
      55. team
      56. member
      57. network firm
      58. self-review
      59. member will be asked to review work resulting from previously-provided services
      60. real or apparent probability that reviewer will not appropriately evaluate results
      61. advocacy
      62. member promotes client or employer's position at risk to independence/objectivity
      63. eg. promoting shares in client
      64. act as advocate in litigation or disputes (not consulting engagement)
      65. familiarity
      66. long or close relationship
      67. too sympathetic to interests, too accepting
      68. loss of objectivity, integrity, professional scepticism
      69. intimidation
      70. deterred from acting objectively
      71. actual or perceived pressure
      72. client attempts to exercise undue influence
      73. Do not use confidential information for personal advantage
      74. Custody of client assets in trust
      75. client assets held separate from firm assets
      76. use assets only as intended
      77. maintain proper records to account for use
      78. comply with laws
      79. Trust and duties
      80. act in the interest of
      81. clients
      82. employers
      83. interested third parties
      84. sacrifice own self-interest
      85. strive to be independent in mind and appearance
      86. fiduciary duties
      87. clients
      88. employers
      89. interested third parties
      90. trust relationship for stakeholders--- place stakeholder interests above own
      91. do not act in privileged position without principal's knowledge/consent
      92. Due care and professional judgement
      93. in areas of practice, continually upgrade and develop tech. knowledge & skill
      94. apply skills with due care & prof. judgement
      95. competence
      96. informed of developments in acknowledged standards
      97. all areas of practice or reliance
      98. ongoing professional development
      99. standards and policies of CGA
      100. adhere to acknowledged principles & standards
      101. GAAP
      102. CAS
      103. CEPROC
      104. Independence Standard
      105. CPA Handbook
      106. Tax legislation & regs
      107. terms of engagement
      108. state clearly in writing
      109. nature and scope
      110. Communication
      111. do not issue communication which might be misleading
      112. use of name/endorsement
      113. only if sufficient awareness/review
      114. do not allow name to be used otherwise
      115. do not associate with false/misleading information
      116. Deceptive information
      117. knows or ought to know
      118. false or misleading
      119. statement or omission
      120. Practice of the profession
      121. openly and fairly toward others in profession
      122. professional courtesy
      123. no unfair methods of competition
      124. do not impair position of incumbent accountant
      125. don't expand or alter the scope of a referral without consent of referrer
      126. inquire from predecessor in writing if reasons not to accept engagement
      127. takeover
      128. respond promptly to request for B&R
      129. respond to letter/communication
      130. client's interest is vital
      131. fee
      132. fee quoted & charged is sufficient
      133. independence not prepared (bargain work)
      134. qualified staff assigned
      135. appropriate time commitment
      136. quality not impaired/due care applied
      137. pro-bono must meet this condition
      138. commissions
      139. do not accept
      140. contingent fee
      141. disallowed
      142. assurance
      143. compilation
      144. tax return preparation
      145. allowed
      146. consulting
      147. no impairment of judgement/objectivity
      148. must be written agreement
      149. advertising
      150. cannot be false or deceptive
      151. no harrassment
      152. unjustified expectation of favourable results
      153. mislead with name or trade style of practice
      154. name of firm
      155. under member's name
      156. non-member name not used
      157. cannot use CGA if < 50% of partners are CGAs
      158. partners who are members must exercise > 50% control
      159. title of specialist
      160. all requirements met
      161. practice review requirements
      162. comply with all CGA requirements
      163. standards
      164. professional liability insurance
      165. employee must be licensed to provide services
      166. only bargain for member's own use fee, remuneration or benefit from 3rd party unless written permission
      167. students cannot practice independently
      168. general business principles
      169. recognize stakeholders, governments, public at large may rely on work
      170. prepare/present all information fairly, honestly, in accordance with standards
      171. encourage ethics-based culture
      172. influence events
      173. practices
      174. attitudes
      175. importance of ethical behaviour
      176. Responsibilities to the profession
      177. act in accordance with duties & responsibilities of profession
      178. carry on work in manner that will enhance image of the profession
      179. comply with CGA by-laws
      180. discipline
      181. breach of professional conduct
      182. by prov. association or BoD, CGA Canada
      183. fraudulent membership
      184. don't do it
      185. notify of third party
      186. report known facts of any person whose admission may be detrimental
      187. no association with letter, report, representation known to be false/misleading
      188. firm must abide by CEPROC
      189. detrimental actions
      190. don't participate
      191. report
      192. evidence of professional misconduct
      193. fraud, theft, forgery, tax evasion
      194. violation of securities legislation
      195. criminal or similar offence for conduct in professional capacity
      196. bankruptcy
      197. immediately notify
      198. public statements cannot appear to represent CGA
      199. reply in writing to any request from CGA
      200. comply with a request of the Board/committees
      201. produce any documents in possesion
      202. obtain facts before employing expelled/suspended member
      203. notify CGA of any pending legal action between members
    2. Heuristic
      1. Not formulas/one-size-fits-all
      2. Autonomy (respect for all persons)
      3. would I be disregarding someone's autonomy?
      4. none-maleficience (do no harm)
      5. would I be harming anyone?
      6. Beneficience (do good)
      7. am I neglecting someone that I should be benefitting?
      8. Justice (be fair)
      9. am I acting fairly?
      10. understanding of role as accountant
      11. modern society
      12. wide variety of contexts
    3. Role of the CGA
      1. tasks
      2. production, analysis, distribution of information
      3. truthful: avoid misleading or deceiving relevant stakeholders
      4. stakeholders
      5. public interest
      6. interest of client or employer
      7. in the event of a conflict, first obligation is to public at large
      8. courage of one's convictions
      9. various identifiable third parties
      10. creditors
      11. government
      12. investors
      13. stakeholders
      14. professional colleagues and the Association
Core-Related
1. Management Accounting
2. Finance and Financial Planning
3. Business Environment
4. Information Technology
  1. Competencies
    1. PK:IT:01 Advises on the development of IT strategy (IT strategic plans for financial accounting, reporting, and management information systems; strategies to support end-user computing; standards and practices for information systems as they relate to financial information, green IT)
    2. PK:IT:02 Selects and uses appropriate business technology tools in the workplace (spreadsheets, tax compliance software, generalized audit software, online knowledge bases)
    3. PK:IT:03 Aligns financial and related information systems with the organization’s strategic and business plans (advises on systems that monitor and report on organizational performance, manages or controls the organizational information system as it relates to financial information)
    4. PK:IT:04 Evaluates and advises on the impact of new technologies on business processes (e-commerce; Internet, intranet, and extranet technologies; biometrics)
    5. PK:IT:05 Advises on the design, development, and implementation of IT projects including specific applications software (enterprise resource planning systems, user-acceptance testing, business requirements definition, installation upgrades; systems, methods, and procedures design; processing, data storage, input, and output design; conversion strategies for system delivery, design for application controls)
    6. PK:IT:06 Advises on implications of IT acquisitions and vendor selection (prepares requests for proposals and quotations and evaluates responses; evaluates financial and contractual aspects of acquisition of hardware and software)
    7. PK:IT:07 Evaluates and advises on the safeguarding of IT assets to ensure organizational ability to meet business objectives (analyzes and evaluates IT controls, control environment, systems acquisition and/or development)
  2. New IT system
    1. Investigation
    2. Analysis
    3. Design
    4. Implementation
    5. Maintenance & Review
  3. Acquiring HW & SW
    1. RFQ when complete specs known
    2. RFI --- ability of vendors to meet system requirements
    3. RFP detailed proposals from prospective suppliers
      1. comprehensive solutions
      2. sofware
      3. support
      4. implementation plans & costs
  4. Off the shelf (small businesses)
    1. identify needs & requirements
    2. research possible solutions
    3. investigate
    4. short-list
      1. preliminary evaluation
      2. eliminate obvious "does not meet"
      3. generate short list
      4. get demo (if possible) of short listed alternatives
      5. real data (not live) if possible
      6. processes
      7. group consensus
      8. cost/benefit
      9. benchmarking
      10. point evaluations
    5. determine hardware requirements
    6. compare solutions
      1. final evaluation
    7. order hardware & software
  5. System development process
    1. participants
      1. stakeholders (outcome is important)
      2. users (interact)
      3. system analysts (coordinate development/liaise tech and non-tech)
      4. business analysts (key department/coordinate tech and non-tech)
      5. outside consultants
      6. auditor
      7. steering committee (senior management)
      8. project team leader
    2. major reasons
      1. existing problems
      2. new opportunities (e-commerce)
      3. increasing competition
      4. more effective use of information
      5. organizational growth
      6. merger or acquisition
      7. new laws/regulations
      8. government incentives
  6. Disaster recovery
    1. business resumption/disaster plan
      1. backup
      2. hot site
      3. data in parallel
      4. cold site
      5. only selective backup
  7. Controls
    1. General
      1. hardware
      2. software
      3. data security
      4. operations
      5. management
    2. Application
      1. input (batch control totals)
      2. processing controls
      3. range test
      4. automatic error detection
      5. output
      6. distribution lists
      7. verification of output results
      8. protection of confidential output
      9. backup of data
      10. encryption
    3. Administrative/management
      1. segregation of duties
      2. manuals
      3. up-to-date operating instructions
      4. review by senior administrators
      5. system controls
      6. standardized procedures
      7. documentation
      8. testing
      9. user manuals
      10. authorization levels
      11. procedural controls
      12. work schedule for input
      13. processing
      14. storage
      15. output
      16. control over master files and transaction files