Professional Competence for Public Practitioners who perform audit services – The international Education Standard 8 (IES 8)
You may have noticed that your 2019 audit license renewal notice was different than in previous years. If you are not certain why, this article may shed some light on the topic.
When renewing your license you were required to make a declaration that you were compliant with minimum standards.
Wait what are the IES 8 minimum standards?
CPA Canada is a member of the International Federation of Accountants (“IFAC”) and as such is required to meet minimum compliance levels, through the provincial bodies, with professional, ethical, educational and regulatory requirements.
IFAC revised IES 8 in July 1, 2016 which requires all partners performing audit engagements, regardless of the size of your firm or the complexity of your clients, to demonstrate that professional competence in a variety of areas in technical and professional capacities has been maintained
The effect that IES 8 will have on you as a practitioner will depend on the province(s) that you are practicing in, but what it will most certainly mean for all audit partners is that additional CPD requirements are coming to ensure that practitioners performing audits have the necessary tools in an ever changing business landscape.
As we go forward, a much more structured internal CPD program will be needed. The firms CPD program will need to demonstrate that there is regular education and review of relevant professional standards. The determination of relevant will need to be considered in context of the complexities of audits you are responsible for.
What can you do about it?
- Familiarize yourself with the professional requirements in your province of license (this may be self-declaration (BC) or minimum CPD hours (SK))
- Identify the technical and professional skill competences required for your firm
- Develop your firms CPD plan to ensure it covers those competency areas
How Clearline Consulting can help?
Through the provincial CPA bodies or our own customized in-house professional development courses we can provide the training you need. If you would like assistance in developing a customized firm wide CPD plan contact us.
Authors: Justin McLaughlin / Bridget Noonan