In Canada, a professional accountant is a Certified General Accountant (CGA), Chartered Accountant (CA) or a Certified Management Accountant (CMA). Okay... but what is a professional accountant!!

A professional accountant is many things. First of all, each of the three accounting designations has received a charter from the Parliament of Canada. In other words, the accounting body has met the education, experience, bylaws, code of ethics and self-regulating criteria to the acceptance of the Government. Any changes to the bylaws and code of ethics must receive government approval.

How much education is required? CGA and CA require an undergraduate university degree. CMA will also have this requirement in the year 2001. CGAs and CAs have a final exam that is written after completion of all the courses. The CMA program has an entrance exam. The passing grade for all CGA courses and exams is 65%. The CA and CMA passing grade is 60%. The CGA program also has 3 practice sets where students do actual review and audit engagements. CGA integrates computer training at the professional level. CGA and CMA have communication requirements such as public speaking and business writing.

How long does it take to get a designation? If starting from scratch, i.e., a high school diploma, the CGA designation takes a minimum of 8 years, the CA and CMA designations 6 years.

How many members and students are there? According to numbers that could be found, CGAs and CAs each have approximately 56,000-58,000 and 48,000 CMAs. These numbers may not be complete, though.

What about practical experience? For all three designations, students are required to obtain between 24 and 30 months of practical experience. This experience must be under a designated accountant if in the public practice environment.

Once designated, are there any further requirements? Yes. All three designations require their members to abide by the designation’s bylaws, code of ethics and the CICA Handbook. The CGA designation also requires ongoing professional development.

What about professional liability insurance? Accountants, like everyone else, are human and can sometimes make mistakes. All designated accountants must carry professional liability insurance. This insurance is available to designated accountants because of the education, experience, bylaws, code of ethics they have established and because each designation is self-regulating. This means individuals and investors potentially have recourse if an accountant’s mistake costs them money.

What is self-regulating? Each designation has members who review the work of fellow accountants that are in public practice. This is done in a 1-4 year cycle. Reports are then filed with the accounting body to determine if any further action is required.

What is the big deal of bylaws and codes of ethics? These, in effect, act as laws to each of the designations. Violation of any bylaw or ethics code can result in a fine or, in more serious situations, loss of one’s designation. Pretty powerful stuff.

What authorities do the designations have? In Saskatchewan, all three designations have the same authorities. They can do audits, review engagements for corporations, proprietorships and partnerships, personal and corporate tax among other things.

Where are the designations recognized? All three are recognized internationally. Under NAFTA, CGAs, CAs, CMAs and CPAs (the American equivalent) are recognized as equal.

Dealing with a designated accountant assures you of a minimum set of standards in the work and conduct of the accountant. You can rest assured that the accountant has met rigorous education and training standards. Each designation also has a system set up to keep their members up-to-date on changes in both the accounting and tax fields. All three designations provide input to the government regarding changes in tax regulations.

While non-designated accountants can do various types of accounting, there are no minimum standards, minimum (maybe a couple weeks) or no required education or training, no self-regulation and no professional liability insurance. In other words, you cannot be entirely sure of just what you are getting.

So, while a professionally designated accountant may cost more, you know you are getting more and professional accountants, in the words of a CGA motto, "Are worth their weight in gold".