The CharTered Professional aCCounTanT ComPeTenCy maP understanding the competencies a candidate must demonstrate to become a CPa Library and Archives Canada Cataloguing in Publication Cataloguing data available from library and archives Canada The Chartered Professional accountant Competency map understanding the competencies a candidate must demonstrate to become a CPa “issued 2012 — efective for 2013” issued also in french under the title: Grille de compétences des comptables professionnels agréés  Comprendre les compétences nécessaires à l’obtention du titre de CPA isBn 978-1-55385-727-3 Copyright © 2012 The Chartered Professional accountant Competency map ii understanding the competencies a candidate must demonstrate to become a CPa Contents 1 Introduction: Overview 1 CPa Certifcation: The foundation for accounting Careers in Canada and around the World 1 The CPa Competency map and its stakeholders 2 The information Contained in the CPa Competency map 3 Section 1: Certifcation and the Professional Education Program 4 The Path to Certifcation 4 The CPa Certifcation Program 5 The Professional education Program 7 Section 2: Enabling Competencies, Technical Competencies, and Profciency Levels 8 Their interrelationship 8 The CPa enabling Competencies 9 The CPa Technical Competencies 10 Profciency levels 11 Section 3: The CPA Enabling Competencies 17 Section 4: Reading the CPA Competency Map by Competency Area 21 Section 5: The CPA Competency Map by Competency Area 29 Section 6: Learning Outcomes by Module 30 exploring the Program modules 30 reading the modular View of the CPa Competency map 32 Common Core module 1 (C1) — financial accounting and reporting 40 Common Core module 2 (C2) — management accounting, Planning, and Control 50 elective module 1 (e1) — Performance management 56 elective module 2 (e2) — finance 61 elective module 3 (e3) — assurance 75 elective module 4 (e4) — Taxation 80 The Capstone modules of the CPa Certifcation Program 80 Capstone module 1 (Cap 1) — integrative module 82 Capstone module 2 (Cap 2) — examination Preparation module 83 Appendix A: Additional Information on Profciency Levels 93 Appendix B: Verb Defnitions The Chartered Professional accountant Competency map understanding the competencies a candidate must demonstrate to become a CPa introduction Overview CPA Certifcation: The Foundation for Accounting Careers in Canada and Around the World The Chartered Professional accountant (CPa) certifcation program provides the foundation on which to build a successful business career. The program is designed to meet the needs of public practice, industry, and government by ensuring that all CPas have a strong foundation of ethics, knowledge and skill to succeed and lead in any professional accounting role or position. By preparing aspiring professional accountants for positions of leadership, trust and authority, it will enable them to pursue opportunities that suit their areas of interest, whether that be as an auditor, chief fnancial ofcer, entrepreneur, or other positions where fnancial decision- making with integrity is essential. Vision for the The Canadian CPa profession commits to meeting the standards as set out in the CPa Profession iaesB’s Handbook of International Education Pronouncements. The standards focus on the professional knowledge, skills and professional values, ethics and To be the pre-eminent, attitudes which a professional accountant must demonstrate. The CPa certifcation internationally program is in accordance with the international federation of accountants (ifaC) recognized standards for professional accountants. The program also prepares CPas to Canadian accounting embark on global careers through reciprocal agreements with the world’s leading designation and accounting organizations. business credential that best protects The CPA Competency Map and Its Stakeholders and serves the public interest. The CPa Competency map (or Competency map) is the map for the CPa profession. it profles the competencies required of a CPa on the path to, and upon, certifcation. The Competency map will also form the basis for experience requirements which will be set out in a separate document entitled Practical Experience Requirements (or Per). The Competency map describes the competencies for all the elements of the CPa program. The Competency map: • helps guide candidates in understanding what is expected of them when enrolled in the CPa professional education program; • establishes the body of competencies developed through an integrated certifcation process that includes education, evaluation and experience; • provides guidance to post-secondary educators and program developers for the further development of learning objectives for the professional education program modules; and • provides guidance to employers for the further development of competency objectives for practical experience (see the Practical Experience Requirements document). The Chartered Professional accountant Competency map understanding the competencies a candidate must demonstrate to become a CPa 1 The Information Contained in the CPA Competency Map The Competency map defnes the specifc competencies developed during the CPa certifcation program, including both the professional education program component and practical experience component. however, the practical experience component is detailed in a separate document. Section 1 provides an overview of the CPa certifcation program, of which the professional education program is one part. Section 2 describes the interrelationships among the CPa enabling competencies, the technical competencies, and the profciency levels expected for entry into the profession. CPas at the point of certifcation are not yet seasoned professionals. Therefore, profciency levels for CPas at the point of certifcation are individually set for each competency. more information on how to interpret each of the three profciency levels and how they should be applied to certifcation is found in Appendix A. The defnitions of the verbs most frequently used in the competency descriptions are found in Appendix B. Section 3 describes the fve areas of enabling competencies, those professional skills that are essential to the CPa profession. The professional education program covers a wide spectrum of technical competencies. To provide maximum guidance to both educators and candidates, the Competency map provides two views of the CPa technical competencies. Sections 4 and 5 present the technical competencies by the six technical competency areas. This allows readers to distinguish those competencies that all CPas must develop from those that are part of the elective modules. The competency area view also highlights the progression in development that occurs from the beginning to the end of the professional education program. Section 6 presents the CPa technical competencies by program module. The second view highlights the integration between the technical competency areas, and contains more detailed learning outcomes for each competency. see The CPA Competency Map Knowledge Supplement (a separate document) for more information on CPa knowledge entry requirements by topic area. The Chartered Professional accountant Competency map 2 understanding the competencies a candidate must demonstrate to become a CPa seCTion 1 Certifcation and the Professional Education Program Certifcation and the Professional education Program The Path to Certifcation CPA Certifcation Final Examination Professional Education Program Prerequisite Education The CPA Certifcation Program The CPa certifcation program comprises the following: Prerequisite Education: There are academic prerequisites for admission to the CPa certifcation program. Before entering the program, candidates must complete an undergraduate degree and cover specifc subject areas. The specifc subject areas may be covered during the undergraduate program, or through additional courses ofered by universities, colleges, or various bridging programs. a separate guidance document is provided for educators to further describe the subject area requirements. see The CPA Competency Map Knowledge Supplement. Professional Education Program: CPa candidates must complete a professional program. it consists of a series of modules that develop professional competence. ethics and other enabling competencies, and prerequisite subject matter in areas such as iT, are integrated throughout the program. Practical Experience: relevant practical experience enhances the education component of the CPa program. Completion of the professional education program may run concurrently with the period of practical experience. a separate document outlines how the CPa competencies apply to practical experience requirements. Final Examination: in addition to formative examinations throughout the program, the CPa certifcation program culminates in a summative fnal examination that evaluates candidates on the competencies defned by the Competency map. a CPa’s learning continues through post-qualifcation professional development courses and specializations, as life-long learning is an important part of the profession. The Chartered Professional accountant Competency map 4 understanding the competencies a candidate must demonstrate to become a CPa seCTion 1 Practical Experience Practical Experience The Professional Education Program n Capstone Capstone Exam Elective Core Modules Integrative Preparation Modules (C1 and C2) Module Module (E1 to E4) (Cap 1) (Cap 2) The professional education component of the CPa program consists of the following: Core Modules (C1 and C2): There are two modules that are common to all candidates. one focuses on fnancial accounting and reporting, and the other focuses on management accounting, planning, and control. The main objective of these core modules is to build the enabling and the technical competencies required of a professional accountant. They are fully integrative. The core modules draw on the disciplines of law, economics, fnance, strategy, statistics, iT and others. They develop competence in incorporating and applying aspects of all areas of the competency map (i.e., fnancial reporting, strategy and governance, management accounting, audit and assurance, fnance, and taxation). The foundation of a CPa’s competencies is formed while earning an undergraduate degree and obtaining the coverage of specifc subject areas, and is then refned and honed during the professional education program and the mandatory practical experience period. CPa candidates are expected to draw upon a body of knowledge covering certain topic areas when demonstrating their professional competence. some of that knowledge will have been previously acquired, and some will be newly acquired in the respective modules. The CPA Competency Map Knowledge Supplement, a separately issued document, outlines the general body of knowledge that supports the CPa Certifcation Program, and describes the expected levels of profciency at the point of entry into the professional program, in the Core modules and in the elective modules. see The CPA Competency Map Knowledge Supplement for more information on CPa knowledge entry requirements by topic area. Elective Modules (E1 to E4): after completion of the two mandatory core modules, candidates will choose two elective modules which allow them to explore a feld of their choice. four elective modules will be ofered, and candidates must choose 1* two based on their interests and career aspirations: 1. Performance management 2. finance 3. assurance 4. Taxation * Candidates who plan to practise public accounting are required to take the assurance and Taxation electives. Certifcation and the Professional education Program 5 seCTion 1 Capstone Integrative Module (Cap 1): This module is common to all CPa candidates. Candidates learn about team management and how to communicate in a professional environment, and they deepen their strategic leadership competencies using the knowledge they have acquired in the prerequisites and earlier modules. Capstone Examination Preparation Module (Cap 2): The fnal examination preparation module is common to all CPa candidates. The module focuses on preparing candidates for entry into the profession by requiring them to apply the competencies they have acquired throughout the CPa program in complex and highly integrative cases. Candidates continue to develop their enabling competencies in situations which simulate real-life projects and assignments that newly certifed CPas may encounter in their careers. in summary, the CPa program modules include: Core: C1 — Financial Accounting and Reporting C2 — Management Accounting, Planning, and Control Elective: E1 — Performance Management E2 — Finance E3 — Assurance E4 — Taxation Capstone: Cap 1 — Capstone Integrative Module Cap 2 — Capstone Exam Preparation Module The Chartered Professional accountant Competency map 6 understanding the competencies a candidate must demonstrate to become a CPa seCTion 1