Bill 41 — Third Session, 24Th Legislature, 48 Elizabeth Ii the Legislative Assembly of Alberta Bill 41 Regula Ted A Ccounting Profession A Ct (Legislature 24, Session 3)

L24 S3 916

Alberta — Bills

1999 BILL 41 Third Session, 24th Legislature, 48 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 41 REGULA TED A CCOUNTING PROFESSION A CT MR. MELCHIN First Reading Second Reading Committee of the Whole Third Reading Royal Assent

Bill 41 Mr. Melchin BILL 41 1999 REGULA TED A CCOUNTING PROFESSION A CT (Assented to , 1999) Table of Contents D efinitions 1 Purpose of the Act 2

Part 1 Regulating Restricted Activities and Practice D ivision 1 Restricted Activities and Practice Restricted activities 3 Restriction on practice associations 4 Compliance with Act, regulations, etc. 5 Contravention of Act, regulations, etc. 6 Protected words, abbreviations 7 Court injunction or direction 8 D ivision 2 Practice Arrangements Practice arrangements 9

Part 2 Governance and Public Accountability D ivision 1 Accounting Organization and Governing Body Accounting organization 10 Governing body 11 Carrying out the accounting organization’s functions 12 Exercising governing body’s authority 13 1

Division 2 Governance Governing body regulations 14 By-laws 15 Regulations and by-laws re LLPs 16 Resolutions 17 Rules of professional conduct 18 Membership ratification 19 Division 3 Public Accountability Public members 20 Length of appointment of members 21 D ecision-making in the absence of public members 22 Appointments continue after terms expire 23 Other appointees 24 Report to Minister 25 D ivision 4 Access to Information Retention of information 26 Registrant information 27 Public access to information 28

Part 3 Registration D ivision 1 Applying for Registration Registrar 29 Registration committee 30 Registration decisions 31 Receipt of application 32 Decision on application 33 Appeal 34 D ivision 2 Members and Students Application for registration as a member or student 35 D ivision 3 Professional Corporations

Definitions 36 Use of name 37 Liability of shareholders and employees 38 2

Approval for professional corporation 39 Professional corporation registration requirements 40 Voting of shares restrictions 41 Change in organization 42 Cancellation of p.c. registration 43 Notification of change of status 44 Action for fees 45 Division 4 Public Accounting Firms Public accounting firms must register 46 Public accounting firm registration requirements 47 Division 5 Professional Service Providers Professional service providers must register 48 Professional service providers registration requirements 49 Division 6 Other Persons or Firms Registration requirements of other persons, firms 50 Division 7 Continuing Registration Requirements for continuing registration 51 Maintaining documents 52

Part 4 Practice Review Division 1 Practice Review Committee Practice review committee 53 Practice review 54 Conduct of practice review 55 Practice review committee mandate 56 Appeal to appeal tribunal 57 Division 2 Practice Review Policy Board Definition 58 Practice Review Policy Board 59 Mandatory participation Board’s functions Meetings 3

Annual reporting to the board 63 Costs and administrative support 64

Part 5 Complaints Inquiry Process Division 1 Purpose and Jurisdiction Purpose 65 Jurisdiction over former registrants 66 D ivision 2 Making Complaints, Reviews and Mediation Complaints 67 Complaints against public accounting firms 68 Initial review of complaints 69 Particulars and response 70 Voluntary communication encouraged 71 Voluntary complaint resolution 72 Settlement 73 Sanction agreements 74 Voluntary resignation 75 D ivision 3 Processing Complaints D uty of the CIC chair 76 Investigator’s responsibilities 77 Investigation powers 78 D uty of complaints inquiry committee 79 Appeal from decision to take no further action 80 D ivision 4 D iscipline Tribunal Proceedings Discipline tribunal hearing 81 Notice of hearing and particulars of allegation 82 Amending or deleting allegations of unprofessional conduct 83 Representation before discipline tribunal 84 Evidence and procedure 85 Compellable witnesses 86 Commission evidence 87 Notice to attend and produce records 88 Civil contempt proceedings 89 Proceedings in the absence of investigated party 90 Unprofessional conduct 91 D iscipline tribunal findings 92 Discipline tribunal orders 93 Costs and fines 94 4

Written decisions and dissents 95 Publication of decisions 96 Costs and fines are a debt 97 Failure to comply with orders and undertakings 98 Ability to rehear 99 Hearing records to be retained 100 D ivision 5 Appeal Rights, Disciplinary Proceedings Outside Alberta and Circulating D ecisions Appeal to appeal tribunal 101 D isciplinary proceedings in Alberta or elsewhere 102 Suspension of decisions 103 Circulation of decisions 104 Division 6 Special Suspension and Cancellation Powers Temporary suspension 105 Conviction for indictable offence 106 Falsely obtained registration 107

Part 6 Appeals and Court Enforcement of Decisions Division 1 Appeals to Appeal Tribunal How to appeal 108 Accounting organization’s administrative functions 109 Representation before appeal tribunal 110 Appeal is based on the record of proceedings 111 Appeal tribunal decisions 112 Publication of decisions 113 Appeal records to be retained 114 Suspension of appeal tribunal decisions 115 Finality of appeal tribunal decisions 116 Division 2 Appeal to the Court of Appeal Appeal to the Court of Appeal 117 Appeal on record 118 Power of Court on appeal 119 5

Division 3 Court Enforcement of Decisions Court enforcement of decisions 120

Part 7 Complaints Inquiry Committee, D iscipline Tribunals, Appeal Tribunals and Legal Issues Division 1 Complaints Inquiry Committee, Discipline Tribunals and Appeal Tribunals Complaints inquiry committee established 121 D iscipline and appeal tribunal rosters 122 D iscipline tribunals 123 Appeal tribunals 124 Appointment of secretaries 125 Continuity of office . 126 Public and private proceedings 127 Division 2 Legal Issues D eath or incapacity of committee or tribunal members 128 Confidentiality 129 Commissioners for oaths 130 Protection from liability 131 Service of documents 132 Certificate of status 133 Municipal, settlement licence exemption 134

Part 8 Ombudsman and Other Matters D ivision 1 Ombudsman Complaints to Ombudsman 135 D ivision 2 Custodial Orders Custodian of a practice 136 Additional orders 137 Ancillary orders 138 Prompt service of order 139 Examination and disposal of property 140 Modification or revocation of orders 141 Custodian’s fees and expenses 142 6

Division 3 Offences and Penalties Penalties

Part 9 Transitional Regulations, Consequential Amendments, Repeals and Coming into Force Transitional regulations 144 Consequential amendments 145-150 Repeals 151 Coming into force 152

Part 10 Profession-Specific Provisions

Interpretation 153 Schedules

Schedule 1 - Chartered Accountants

Schedule 2 - Certified General Accountants

Schedule 3 - Certified Management Accountants HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Definitions 1 In this Act, (a) “accountability relationship” means a relationship that exists where one party is answerable to or responsible to another party for a subject-matter or voluntarily chooses to report to that other party on a subject-matter; (b) “accounting organization” means a corporation continued by

section 2 of a

schedule to this Act; (c) “accounting services” includes summarization, analysis, advice or counsel about or

interpretation of accounting matters, but does not include (

i) record keeping, or (ii) any accounting service that is performed incidentally by a provider whose primary occupation is not accounting; 7

(d) “ancillary order” means an order made under

section 138; (e) “appeal tribunal” means an appeal tribunal convened under

section 124; (f) “appeal tribunal roster chair” means the individual appointed under

section 122(2) as appeal tribunal roster chair or vice-chair; (g) “appeal tribunal secretary” means the individual appointed as appeal tribunal secretary under

section 125(

c) or an individual designated by the secretary to act on behalf of the secretary; (h) “assurance engagement” means an engagement where a registrant is engaged to issue a written communication that expresses a conclusion on the subject-matter for which there is an accountability relationship, and includes an audit engagement and a review engagement; (i) “audit engagement” means (

i) an independent examination of records for the purpose of expressing an opinion, or (ii) the preparation of a report or a certificate, or the expression of an opinion, as to whether financial information is presented fairly; (j) “by-laws” means by-laws made under

section 15; (k) “certified general accountant” means an individual who is registered in accordance with

Part 3 as a certified general accountant and whose registration is in good standing; (l) “certified management accountant” means an individual who is registered in accordance with

Part 3 as a certified management accountant and whose registration is in good standing; (m) "chartered accountant” means an individual who is registered in accordance with

Part 3 as a chartered accountant and whose registration is in good standing; (n) "chief elected officer” means the President of the Institute of Chartered Accountants of Alberta, the President of the Certified General Accountants’ Association of Alberta or 8

the Chairperson of the Council of the Society of Management Accountants of Alberta, as the case may be; (o) “CIC chair” means the individual designated as CIC chair under

section 121(2)(

a) or a complaints inquiry committee member designated by the CIC chair to act on behalf of the chair; (p) “CIC secretary” means the individual appointed as CIC secretary under

section 125(

a) or an individual designated by the CIC secretary to act on behalf of the secretary; (q) “competence” means the combined knowledge, skills, proficiency and judgment required by the registrants of an accounting organization to provide professional services; (r) “compilation engagement” means the preparation of a financial statement based on information received from a client that is not reviewed, audited or verified for accuracy or completeness; (s) “complaints inquiry committee” means a complaints inquiry committee established under

section 121; (t) “conduct” includes

an act or omission, whether or not the conduct relates to the professional activities of a registrant or former registrant; (u) “custodial order” means an order made under

section 136; (v) “custodian” means a custodian of property or a practice appointed under

section 136; (w) “discipline tribunal” means a discipline tribunal convened under

section 123; (x) “discipline tribunal roster chair” means the individual appointed under

section 122(2)(

a) as discipline tribunal roster chair or vice-chair; (y) “discipline tribunal secretary” means the individual appointed as discipline tribunal secretary under

section 125(

b) or an individual designated by the secretary to act on behalf of the secretary; (z) “executive head” means the Executive D irector of the Institute of Chartered Accountants of Alberta, the Executive Director of the Certified General Accountants Association of Alberta or the Executive D irector of the 9

Society of Management Accountants of Alberta, as the case may be; (aa) “former Act” means any Act that regulated the accounting profession before this Act began to regulate that profession; (bb) “former registrant” means a person or firm who was but is no longer registered under this Act or a former Act; (cc) “governing body” means the Council of the Institute of Chartered Accountants of Alberta, the Council of the Society of Management Accountants of Alberta and the Board of Governors of the Certified General Accountants’ Association of Alberta, or any of them, as the case may be; (dd) “investigated party” means (

i) a registrant, or (ii) a former registrant in respect of conduct occurring when the person or firm was registered under this Act or a former Act, whose conduct is the subject of proceedings under

Part 5 or

Part 6; (ee) “investigator” means an individual to whom a matter is referred for investigation under

Part 5; (ff) “member”, when used in reference to an accounting organization, means a certified general accountant, certified management accountant or chartered accountant, as the case may be; (gg) ‘Minister” means the Minister determined under

section 16 of the Government Organization Act as the Minister responsible for this Act; (hh) "Ombudsman” means the Ombudsman appointed under the Ombudsman Act, (ii) "practice review” means a review of the practice of a public accounting firm or a professional service provider that practises in any area specified by regulation; (jj) "practice review committee” means the practice review committee of an accounting organization established under

section 53; 10

(kk) “practice standards” means the standards established by a governing body under

section 15(1)(

i) and (m); (ll) “professional corporation” means a professional corporation incorporated under the Business Corporations Act and registered with the appropriate accounting organization; (mm) “professional service provider” means a registrant who is registered in accordance with

Part 3 as a professional service provider; (nn) “public accounting firm” means a registrant who is registered in accordance with Division 4 or 6 of

Part 3 as a public accounting firm; (oo) “public accounting practice” means the providing or offering to provide one or more of the following services to the public: (

i) an assurance engagement; (ii) a specified auditing procedures engagement; (iii) a compilation engagement; (iv) accounting services; (

v) forensic accounting, financial investigation or financial litigation support services; (vi) advice about or

interpretation of taxation matters, (vii) preparation of a tax return or other statutory information filing, if prepared in conjunction with any service referred to in subclauses (

i) to (vi); (pp) “public member” means a public member referred to in

section 20; (qq) “record of proceedings” means all evidence presented at proceedings before a tribunal, including (

i) documents or things received as evidence at the proceedings, and (ii) a transcript of the proceedings; (rr) “records” includes 11

(

i) any financial or non-financial information that is or is capable of being represented or produced in written form, and (ii) the result of the recording of details of electronic data processing systems and programs to illustrate what the systems and programs do and how they operate; (ss) “registrant” means (

i) a chartered accountant, (ii) a certified general accountant, (iii) a certified management accountant, (iv) a professional service provider, (

v) a student, (vi) a public accounting firm, (vii) a professional corporation, and (viii) any other person or firm, registered under

Part 3; (tt) “registrar” means the registrar of an accounting organization; (uu) “registration committee” means a registration committee established under

section 30; (vv) “regulations” means regulations made under

section 14; (ww) “resolution” means a resolution made under

section 17; (xx) “review engagement” means (

i) a review of financial statements or other financial information or assertions for the purpose of providing negative assurance as to whether the subject-matter of the review is, in all material respects, in accordance with generally accepted accounting principles or other practice standards, or 12

(ii) a report or other communication for the purpose of providing negative assurance as to whether financial information is presented fairly; (yy) “rules of professional conduct” means rules governing professional conduct made or adopted under

section 18; (zz) “specified auditing procedures engagement” means the preparation of a written report of the results of applying specified auditing procedures to financial information other than financial statements where those procedures are not for the purpose of performing an audit engagement or a review engagement; (aaa) “student” means an individual who is registered in accordance with

Part 3 as a student. P urpose of the A ct 2 The purpose of this Act is (

a) to protect the interest of the public, (

b) to protect the integrity of the profession governed by this Act, (

c) to promote and increase the competence of registrants, and (

d) to regulate the conduct of registrants. PA RT 1 REGULA TING RESTRICTED A CTIVITIES A ND PRA CTICE Division 1 Restricted A ctivities and Practice R estricted activities 3(1) No person shall perform or purport to perform an audit engagement or review engagement, or represent or imply an ability to do so, unless the person is a public accounting firm. (2) Subsection (1) does not apply to a person who performs an audit engagement or review engagement (

a) in a public accounting firm under the direct supervision of a member of an accounting organization, 13

(

b) without remuneration for a corporation registered under

Part 9 of the Companies Act or the Societies Act, or (

c) that is not intended to be relied on by third parties. Restriction on practice associations 4(1) Unless a complaints inquiry committee or a discipline tribunal otherwise permits, no registrant may associate or engage in a public accounting practice with (

a) a person or public accounting firm whose registration under this Act is suspended, or (

b) a former registrant whose registration was cancelled because of disciplinary proceedings conducted (

i) under this Act or a former Act, or (ii) under legislation governing any organization outside Alberta that regulates accounting and is recognized by the governing body.

(2) Permission under subsection (1) may be made subject to terms and conditions set by the complaints inquiry committee or discipline tribunal. Compliance with Act, regulations, etc. 5 A registrant must comply with (

a) this Act, the regulations, the by-laws, resolutions, rules of professional conduct and practice standards, and (

b) any requirement, prohibition or restriction on the registrant’s practice, or any restriction or undertaking related to the registrant’s practice, imposed, given or provided for under this Act, a former Act or the regulations. Contravention of Act, regulations, etc. 6 A person contravenes this Act who knowingly (

a) obstructs or interferes with a registrant complying with, or (

b) requests, permits or assists a registrant to contravene or to not comply with, this Act, the regulations, the by-laws, rules of professional conduct, practice standards or an undertaking given to or an order or direction made by a complaints inquiry committee, a practice 14

review committee, a discipline tribunal or an appeal tribunal, or an order of a court. P rotected w ords, abbreviations 7(1) No person or group of persons shall represent or imply that the person is a registrant or that the group of persons consists of registrants unless the person is a registrant or the group of persons consists of registrants.

(2) No person or group of persons shall use the full or abbreviated name of an accounting organization, alone or in combination with other words, in a manner that represents or implies that the person or group of persons is an accounting organization unless the person or group of persons is an accounting organization under this Act.

(3) No person other than a registrant authorized by the regulations shall use a title, an abbreviation or initials set out in

section 3 of a

schedule to this Act alone or in combination with other words in a manner that states or implies that the person is authorized to use the title, abbreviation or initials to which

section 3 of the

schedule refers.

(4) Notwithstanding anything in this Act, a registrant of an accounting organization continued under

Schedule 2 or 3 may use the title, abbreviation or initials “certified public accountant” or “CPA” listed in

section 3(

e) of

Schedule 1 if the registrant meets the requirements set out in the regulations made under

section 14(1)(m). C ourt injunction or direction 8(1) The Court of Queen’s Bench, on application by an accounting organization by way of originating notice, (

a) may grant an injunction prohibiting any person from doing any act that contravenes this D ivision, even though other proceedings may be taken and sanctions may be imposed for that contravention under this Act, or (

b) may make an order requiring or directing a person to take some action in order to comply with this Division or to rectify any contravention of this Division.

(2) With the permission of the Court, an accounting organization’s application may be made without notice to the person concerned. 15

Division 2 Practice A rrangements Practice arrangements 9(1) A registrant is responsible, for the purposes of this Act, the regulations, the by-laws, rules of professional conduct and practice standards, for how the registrant engages in a public accounting practice and complies with

section 5, and this responsibility is not affected, modified or diminished by the practice arrangements of the registrant.

(2) Subject to this Part and to the rules of professional conduct, a registrant may engage in a public accounting practice as, in relationship to or on behalf of (

a) a self-employed individual, (

b) an employee, (

c) a partner, (

d) a partnership, (

e) a shareholder, (

f) a director, (

g) a corporation, (

h) a professional corporation, or (

i) an employer.

(3) Nothing in this Act affects, modifies or limits any law or practice applicable to the fiduciary, confidential or ethical relationship between a registrant and a person receiving the professional services of the registrant.

(4) The relationship between a partnership, corporation or professional corporation engaged in a public accounting practice and a person receiving those professional services is subject to all applicable law and practice relating to the fiduciary, confidential and ethical relationship between a registrant and a person receiving professional services from the registrant.

(5) The rights and obligations pertaining to communications made to or information received by a registrant apply to the partners, shareholders, directors, officers and employees of a partnership, a corporation or a professional corporation engaged in a public accounting practice. 16

PA RT 2 GOVERNA NCE A ND PUBLIC A CCOUNTA BILITY Division 1 A ccounting Organization and Governing Body Accounting organization 10 An accounting organization is a corporation that (

a) is continued by

section 2 of the appropriate

schedule to this Act, (

b) consists of its members, and (

c) has the capacity and, subject to this Act, the rights, powers and privileges of a natural person. Governing body 11(1) A governing body of an accounting organization is composed of (

a) at least 3 but not more than 15 elected members of the accounting organization, and (

b) sufficient public members appointed by the Lieutenant Governor in Council in accordance with

section 20 to comprise at least 25% of the governing body’s voting members.

(2) A governing body’s functions are (

a) to govern the business and affairs of the accounting organization, (

b) to fulfil the purposes of this Act, and (

c) to exercise the accounting organization’s powers in the name of and on behalf of the accounting organization. Carrying out the accounting organization’s functions 12(1) When an accounting organization is given a power, duty or function, it is to be carried out by its governing body or the individual, committee or other body prescribed by the governing body, and the delegated power, duty or function may be subdelegated, unless the governing body otherwise prescribes.

(2) If an individual, committee or other body is not designated by this Act or prescribed by a governing body to perform a power, 17

duty or function of the accounting organization, the chief elected officer or a designate of the chief elected officer may perform it.

(3) Any person, on request, is entitled to receive from an accounting organization relevant information about the individual, committee or body that may perform any power, duty or function under this Act, the regulations or the by-laws. Exercising governing body’s authority 13(1) A governing body may fulfil the purposes of this Act and exercise its powers, duties and functions by regulation, by-law, resolution, rule of professional conduct or practice standard unless this Act provides that a power, duty or function is to be exercised in a particular way.

(2) A governing body may not delegate its authority to make regulations, by-laws, resolutions, rules of professional conduct or practice standards, but may delegate authority to act under or in accordance with a regulation, by-law, resolution, rule of professional conduct or practice standard. Division 2 Governance Governing body regulations 14(1) A governing body may make regulations (

a) specifying the period of time during which an accounting organization must maintain information about its registrants and former registrants; (

b) respecting the provision of information under

section 28(5); (

c) respecting requirements for and applications for registration as a chartered accountant, certified general accountant, certified management accountant or student, including but not restricted to (

i) education, experience, enrolment in programs of studies, successful completion of examinations and holding of certificates, diplomas or degrees, (ii) recognizing professions in other jurisdictions for the purpose of

section 35(2)(b), (iii) additional requirements for the purpose of

section 35(2)(b), 18

(iv) providing evidence of being a Canadian citizen or a person lawfully permitted to work or study in Canada, (

v) providing evidence of having good character and reputation, (vi) providing evidence respecting standards of language proficiency, and (vii) for the purposes of

section 35(2)(c), the procedures for determining the combination of education, experience, practice and other qualifications that demonstrates the competence required for registration; (

d) respecting the registration of a public accounting firm or a professional corporation; (

e) respecting requirements for and applications for registration as a registrant within the meaning of

section 1(ss)(viii); (

f) respecting the registration of professional service providers; (

g) respecting and establishing continuing competence programs; (

h) respecting applications for reinstatement of registration following cancellation of registration under

Part 5 or

Part 6; (

i) respecting the requirements for continuing registration under this Act and the conditions to be met and maintained; (

j) respecting and establishing categories of registrants; (

k) respecting conditions or restrictions on categories of registrants; (

l) respecting the use of titles, abbreviations and initials, within the meaning of the schedules to this Act, by a registrant or category of registrant; (

m) respecting the use of the title “certified public accountant” and the abbreviation or initials “CPA” or either of them; 19

(

n) respecting gross revenue threshold amounts for members of accounting organizations, professional corporations or partnerships under

section 46(3); (

o) respecting an application for an exemption from registration as a public accounting firm under

section 46(3)(

b) and the procedures governing that application; (

p) respecting any other matter or thing not provided for in this Act or insufficiently provided for in this Act as is considered advisable by the Minister to carry out the intent of this Act.

(2) A regulation under subsection (1)(

m) may be made only by the governing body of the Institute of Chartered Accountants of Alberta.

(3) A regulation must be approved in principle by a majority of the members of the accounting organization present and voting (

a) at a special meeting called for that purpose, (

b) by a mail vote or a vote authorized by by-law that is conducted by electronic, telecommunication or other appropriate means, or (

c) at the annual general meeting following the governing body’s adoption of the regulation.

(4) A governing body may change the text of a regulation that was approved in principle under subsection (3) if the change (

a) is consistent with the approval in principle, and (

b) is made before the regulation is submitted to the Lieutenant Governor in Council for approval.

(5) A regulation under this

section does not come into force unless it has been approved by the Lieutenant Governor in Council. By-laws 15(1) A governing body may make by-laws (

a) respecting the election, term of office, geographical representation and number of governing body members; (

b) respecting the votes of members or other persons about any matter specified by an accounting organization; 20

(

c) respecting the holding of meetings of an accounting organization simultaneously at more than one location; (

d) providing for the appointment of an individual as an acting registrar or acting executive head who has all of the powers and performs all of the duties of the registrar or executive head, as the case may be, under this Act, the regulations and the by-laws when the registrar or executive head is absent or unable to act or when there is a vacancy in the office; (

e) respecting the appointment of individuals to bodies established or continued under this Act or the regulations; (

f) respecting suspension, cancellation and resignation of registration except under

Part 5; (

g) respecting categories of non-regulated members, including honorary members; (

h) respecting the suspension or cancellation of registration, practice restrictions on registration and the imposition of penalties for failing to meet the requirements of

section 51, including the nature and amount of those penalties; (

i) respecting and establishing practice standards for public accounting practice, including incorporation by reference of international or national practice standards; (

j) respecting forms and notices; (

k) respecting which matters, if any, may be appealed to an appeal tribunal from a decision of the registration committee, practice review committee or other body or person, in addition to the appeal rights specified in this Act, and any conditions related to an appeal; (

l) respecting requirements for registrants to carry professional liability insurance and the minimum amount of that insurance; (

m) specifying areas of professional services for the purposes of sections 48 and 49 and establishing practice standards for those areas of professional services, including incorporation by reference of international or national practice standards; (

n) respecting the evaluation of, and establishing or designating the entity that may evaluate, the education, training, 21

experience, practice and competence required of applicants for registration as a registrant; (

o) respecting requirements for registrants to train students and training standards generally; (

p) respecting whether a registrant or category of registrants may provide an audit engagement or review engagement, or both; (

q) respecting the conditions governing the provision of an audit engagement or review engagement; (

r) respecting how registrants referred to in clause (

p) may supervise others who provide an audit engagement or review engagement; (

s) respecting practice reviews, including specifying which practice areas of public accounting firms and professional service providers are subject to practice review; (

t) respecting the information to be maintained about a registrant or former registrant when there has been a finding of unprofessional conduct, an agreement under

section 74 or a resignation under

section 75; (

u) respecting the publication, posting or notification of resignations under

section 75 and decisions of discipline tribunals and appeal tribunals; (

v) respecting information to be kept and maintained about a registrant or former registrant; (

w) respecting costs to be included and the manner of determining costs for the purposes of an order for costs by a discipline tribunal or appeal tribunal; (

x) respecting the disposal of decisions and records of proceedings received by the discipline tribunal secretary and the appeal tribunal secretary; (

y) establishing specialties for registrants or categories of registrants and the requirements to be met by registrants or categories of registrants in order to hold themselves out as a specialist; (

z) designating the specialty names, initials or abbreviations that may be used by registrants who have met the requirements for a speciality pursuant to clause (y); 22

(aa) prohibiting a registrant from holding out that the registrant is entitled to engage in a speciality unless the registrant has met the requirements for the specialty pursuant to clause (y).

(2) A by-law may be made specifying that all or any of the matters referred to in subsection (1) are no longer to be subject to the by-laws, in which case the matter may then be dealt with in the manner specified in the by-law made under this subsection.

(3) Any power, duty or function under the by-laws may be delegated and subdelegated.

(4) A by-law is effective from the date it is passed by the governing body or any later date specified in the by-law.

(5) A by-law must be ratified by a majority of the members of the accounting organization present and voting (

a) at a special meeting called for that purpose, (

b) by a mail vote or a vote authorized by by-law that is conducted by electronic, telecommunication or other appropriate means, or (

c) at the annual general meeting following the governing body’s adoption of the by-law.

(6) If a by-law is not ratified pursuant to subsection (5), the by-law ceases to have any effect. Regulations and by-laws re LLPs 16(1) A governing body (

a) shall make regulations respecting the type and amount of liability insurance or other protection against professional liability that a partnership must have for the purposes of registration as a limited liability partnership under

Part 2.1 of the Partnership Act, and (

b) may make by-laws governing eligibility requirements that a partnership must meet in order to be registered as a limited liability partnership under

Part 2.1 of the Partnership Act.

(2) Section 14(3), (4) and (5) apply in respect of a regulation made under subsection (1)(a). 23

(3) Section 19 applies in respect of a by-law made under subsection (1)(

b) or (7).

(4) Where the Minister considers that regulations made under subsection (1)(

a) do not provide sufficient protection against professional liability, the Minister may, by notice in writing to the governing body, request the governing body to amend the regulations in the manner specified in the notice within the time set out in the notice.

(5) Where the governing body fails to amend the regulations in accordance with the notice, the Lieutenant Governor in Council may amend the regulations, and in that case the amendments operate as if they had been made in accordance with

section 14. (6) Subsections (1) to (5) do not apply if there is a by-law under subsection (7) in effect.

(7) A governing body may make a by-law providing that, notwithstanding

Part 2.1 of the Partnership Act, no person may engage in a public accounting practice in a limited liability partnership under that Act. Resolutions 17 A governing body may make resolutions (

a) recognizing, for the purposes of sections 4 and 102, organizations outside Alberta that regulate accounting; (

b) respecting reasonable fees, levies and assessments to be paid and the time for payment of those fees, levies and assessments by registrants for continuance of registration and by applicants for registration; (

c) respecting the establishment of committees and task forces; (

d) respecting the governance of the accounting organization and the management and conduct of its affairs; (

e) respecting processes concerning dispute resolution, practice review, registration or any administrative matter not dealt with in

section 15; (

f) respecting any other matter not required by this Act to be dealt with in regulations, by-laws, practice standards or rules of professional conduct. 24

Rules of professional conduct 18(1) Subject to subsection (3), a governing body may make or adopt rules of professional conduct for registrants, including (

a) ethical and professional standards of conduct; (

b) rules regulating the maintenance and administration of trust funds; (

c) rules respecting the professional names or titles that registrants may use; (

d) rules respecting the organization and conduct of a professional practice, including restrictions on practice arrangements and practice associations.

(2) The governing body must provide, for review and comment, a copy of the proposed rules of professional conduct to (

a) the Minister, and (

b) any other person the governing body considers advisable.

(3) A governing body may adopt rules of professional conduct after it has reviewed and considered the comments from a review described in subsection (2).

(4) A governing body must make copies of its rules of professional conduct readily available to the public and registrants, and the copies may be published in the manner directed by the governing body. Membership ratification 19(1) A rule of professional conduct must be ratified by a majority of the members of the accounting organization present and voting (

a) at a special meeting called for that purpose, (

b) by a mail vote or a vote authorized by by-law that is conducted by electronic, telecommunication or other appropriate means, or (

c) at the annual general meeting following the governing body’s adoption of the rule.

(2) A rule of professional conduct that is ratified under subsection (1) is effective from the date it is ratified or any later date specified in the rule of professional conduct, and it remains in effect until it is amended or repealed in accordance with this section. 25

(3) The Regulations Act does not apply to by-laws, rules of professional conduct or practice standards established under this Part. Division 3 Public A ccountability Public members 20(1) Subject to subsection (2), the Lieutenant Governor in Council may, following consultation with the governing body of an accounting organization, appoint public members (

a) to that governing body, and (

b) to a roster of public members who can be selected (

i) by the discipline tribunal roster chair to serve on discipline tribunals, (ii) by the appeal tribunal roster chair to serve on appeal tribunals, or (iii) by the CIC chair for the purposes of

section 74.

(2) The following are not eligible to be public members: (

a) with respect to an accounting organization, a person who is a registrant or former registrant of that accounting organization; (

b) a person who is a member or former member of any other organization that regulates accountants in Alberta or in another jurisdiction. Length of appointment of members 21 Public members appointed under this Act (

a) must be appointed for not more than 3 years, and may be reappointed (

i) once only to a governing body, and (ii) any number of times to the public member rosters, and (

b) are to be paid, at the rates prescribed by the Lieutenant Governor in Council, remuneration by and receive reasonable living and travelling expenses from the 26

Government while away from their ordinary places of residence in the course of their duties as public members. Decision- making in the absence of public members 22(1) The powers and duties of a governing body are not affected by (

a) the failure of a public member to attend a meeting, or (

b) a vacancy in the office of a public member.

(2) The powers and duties of a discipline tribunal and an appeal tribunal are not affected by a vacancy in the office of a public member for up to 2 years from the date that this Act comes into force. Appointments continue after terms expire 23 Notwithstanding

section 21, even though the term of appointment of a public member expires, that member continues to hold office, with the same functions, until the public member is reappointed or a successor is appointed. Other appointees 24(1) The governing body of an accounting organization may appoint as a member of its registration committee, complaints inquiry committee and any other committee or task force an individual who is not a registrant or former registrant of the accounting organization, whether or not such a committee or task force member is required to be appointed under this Act.

(2) The powers and duties of any body under this Act to which a member is appointed under subsection (1) are not affected (

a) by a failure of that member to attend a meeting, or (

b) by a vacancy in the office of that member.

(3) Even though the term of appointment of a member appointed under subsection (1) expires, that member continues to hold office, with the same functions, until the appointment is terminated or a successor is appointed. Report to Minister 25(1) An accounting organization must submit annually to the Minister a report of its activities in a form acceptable to the Minister that contains the information requested by the Minister, including but not restricted to 27

(

a) a statement respecting the number of complaints received, the number of complaints referred to the complaint resolution process under

section 72, the number of complaints disposed of, the number of hearings held, the number of hearings closed to the public in whole or in part and the number of appeals under

Part 6; (

b) information respecting registration, including the number of registrants by category of registrant and the number of applications for registration by category of registrant; (

c) a description of and information about the accounting organization’s continuing competence program and practice reviews; (

d) a statement respecting the committees established under this Act; (

e) audited financial statements.

(2) On receipt of a report under subsection (1), the Minister must lay a copy of it before the Legislative Assembly if it is then sitting or, if it is not then sitting, within 15 days after the commencement of the next sitting.

(3) The Minister may, to ensure that the requirements of this Act are met, require reports from an accounting organization in addition to the report under subsection (1). Division 4 A ccess to Information Retention of information 26 An accounting organization must maintain information about all its registrants and former registrants for the period of time prescribed by regulation. Registrant information 27(1) An accounting organization must keep and maintain the following information about a registrant: (

a) the registrant’s name and business address, (

b) the registration status of the registrant, including the terms of any suspension or restriction, (

c) in the case of a registrant that is a professional corporation, its registered head office, and 28

(

d) any other information required by the by-laws.

(2) The public may, during regular office hours, request information about registrants and the accounting organization must on request provide the information described in subsection (1). Public access to information 28(1) On written request to do so, an accounting organization must provide, within a reasonable time, any of the following information that it has in its possession: (

a) the registration status, practice speciality recognized by the accounting organization and business address of a registrant or former registrant; (

b) the principals, partners, directors or shareholders of a public accounting firm; (

c) any suspension of registration, or any restriction or undertaking affecting the practice, of a registrant or former registrant; (

d) a copy of an agreement under

section 74; (

e) a

summary of the findings of unprofessional conduct made with respect to a registrant or former registrant under this Act and orders made as a result of the findings; (

f) a

summary of the findings of unprofessional conduct made with respect to a registrant or former registrant under a former Act and orders made as a result of the findings when (

i) the registration of the registrant or former registrant has been cancelled or suspended, or (ii) a hearing committee, an appeals committee or a governing body ordered publication of its findings or orders to be made to all chartered accountants, certified general accountants or certified management accountants on a named basis, unless otherwise directed by the hearing committee, appeals committee or governing body.

(2) On payment of the reasonable cost of copying and delivery, a person may obtain from an accounting organization a copy of the decision of which a

summary is provided under subsection (1)(e). 29

(3) Subject to

section 127(3), a complainant may, at the complainant’s own expense, obtain from an accounting organization a copy of the transcript of proceedings of any discipline tribunal and appeal tribunal hearings in which the complainant was involved.

(4) Subject to

section 127(3), a person may, at the person’s own expense, obtain from an accounting organization a copy of (

a) the minutes and any transcript of any meetings of the registration committee and practice review committee, and (

b) the transcript of proceedings of any discipline tribunal and appeal tribunal hearings.

(5) Subject to

section 127(3) and the regulations, an accounting organization may, on request, provide any other information about registrants or former registrants that it considers appropriate. PA RT 3 REGISTRA TION Division 1 A pplying for Registration Registrar 29 A governing body must appoint an individual as registrar of the accounting organization for the purposes of this Act. Registration committee 30(1) The governing body of an accounting organization (

a) may establish a registration committee composed of at least 3 members of the accounting organization, and (

b) if a registration committee is established, may include at least one person who is not a member of an accounting organization appointed by the governing body in accordance with

section 24.

(2) The registration committee may, in the manner prescribed by the governing body, delegate any of its functions, powers or duties. Registration decisions 31 The registrar or registration committee must consider and decide on applications for registration under this Part, including the imposition of conditions on a registration, and must undertake any other functions and duties prescribed by the governing body. 30

Receipt of application 32(1) If an application for registration received by a registrar is not complete, the registrar must, within 30 days of receipt of the application, give notice to the applicant in what respect it is not complete.

(2) The registrar or the registration committee must, within 120 days of the receipt by the registrar of a complete application, consider the application and make a decision under

section 33 and notify the applicant of the decision. Decision on application 33(1) On considering an application for registration, the registrar or the registration committee must (

a) approve the application, (

b) defer the registration if in the opinion of the registrar or registration committee it is in the best interests of the public to defer the registration of an applicant until the applicant complies with conditions imposed by the registrar or the registration committee, or (

c) refuse the application.

(2) On approval of the application under subsection (1)(a), the applicant is registered.

(3) The registrar or the registration committee may impose conditions on an approval under subsection (1)(

a) that in the opinion of the registrar or the registration committee are in the best interests of the public.

(4) On making a decision under subsection (1), the registrar or the registration committee must (

a) give notice of the decision to the applicant, (

b) in the case of the registration committee, give notice of the decision to the registrar, and (

c) in the case of a decision to impose conditions on a registration, to defer a registration or to refuse an application, give reasons for the decision and notify me applicant of how the applicant may appeal under

section 34.

(5) If the accounting organization does not notify the applicant of the decision about the application within the time period prescribed 31

section 32(2), the application for registration is deemed to be refused and the applicant may appeal under

section 34. Appeal 34(1) An applicant whose application for registration is accepted subject to conditions, whose registration is deferred or whose application is refused by the registrar or the registration committee may, within 30 days of being given a copy of the decision, appeal to an appeal tribunal in accordance with

Part 6.

(2) An applicant who is not notified of a decision within the time period prescribed in

section 32(2) may, within 30 days from the expiry of that time period, appeal to an appeal tribunal in accordance with

Part 6.

(3) The appellant and the registrar or the registration committee are the parties to an appeal under this section. Division 2 Members and Students Application for registration as a member or student 35(1) An application for registration as a member or student is complete for the purpose of consideration under D ivision 1 of this

Part if it is in the required form and provided to the accounting organization by the applicant together with (

a) evidence of having met the competence requirements as required by subsection (2), (

b) the fees provided for by resolution, (

c) evidence of being a Canadian citizen or a person lawfully permitted to work or study in Canada, if required by the regulations, (

d) evidence of having good character and reputation, if required by the regulations, and (

e) evidence of meeting standards of language proficiency, if required by the regulations.

(2) An applicant may provide evidence of competence (

a) by fulfilling one or more of the following required by the regulations: (

i) education requirements, that may include being enrolled in a program of studies; 32

(ii) experience requirements; (iii) successful completion of examinations; (iv) holding certificates, degrees or diplomas, (

b) by being registered with a profession in another jurisdiction recognized by the regulations as having substantially equivalent competence and practice requirements, and by fulfilling any additional requirements specified by the regulations, or (

c) by satisfying the registrar or the registration committee of having, as determined in accordance with the regulations, a combination of education, experience, practice and other qualifications that demonstrates the competence required for registration. Division 3 Professional Corporations

Definitions 36 In sections 37 to 44, (a) “articles” means articles as defined in the Business Corporations Act; (b) “Registrar of Corporations” means the Registrar under the Business Corporations Act. Use of name 37(1) No person may engage in a public accounting practice under any name containing the words “Professional Corporation or the abbreviation or initials “P.C.” unless that person is incorporated or continued as a corporation under the Business Corporations Act and (

a) the corporation is currently registered as a professional corporation by the accounting organization, (

b) all directors and shareholders of the corporation are members of the accounting organization, and (

c) the corporation meets the requirements of this Act and the regulations.

(2) A person who contravenes subsection (1) is guilty of an offence and liable to a fine of not more than $1000 for every day on which the prohibited name, abbreviation or initials are use. 33

Liability of shareholders and employees 38(1) Notwithstanding anything to the contrary in the Business Corporations Act, every shareholder of a professional corporation is liable to the same extent and in the same way as if the shareholder were, during that time, carrying on the business of the professional corporation as a partnership or, if there is only one shareholder, as an individual conducting a public accounting practice.

(2) The liability of an individual conducting a public accounting practice under subsection (1) is not affected by the fact that the practice is carried on by the individual as an employee and on behalf of a professional corporation. Approval for professional corporation 39 The registrar may issue an approval of the articles of a proposed professional corporation for the purposes of

section 7(2) of the Business Corporations Act to a registrant who (

a) files an application in the form provided for in the by-laws, (

b) submits a copy of the proposed articles, and (

c) pays all the approval application fees provided for by resolution. Professional corporation registration requirements 40 An application for registration as a professional corporation is complete for the purpose of consideration under Division 1 of this

Part if it is in the required form and provided to the accounting organization by the applicant together with (

a) evidence of compliance with

section 37(1)(

b) and (c), (

b) the fees provided for by resolution, and (

c) any information required under

section 27(1). Voting of shares restrictions 41 No shareholder of a professional corporation shall enter into a voting trust agreement, proxy or any other type of agreement vesting in another person who is not a member of the same accounting organization the authority to exercise the voting rights attached to any or all of the shareholder’s shares. 34

Change in organization 42 A professional corporation must inform the registrar within 15 days in the form provided for in the by-laws of any change in the ownership or directors of the professional corporation or to the name of the professional corporation. Cancellation of p.c. registration 43(1) A registrar may cancel the registration of a professional corporation if

section 37, 41 or 42 is not complied with or if the professional corporation ceases to be in good standing under the Business Corporations Act.

(2) Notwithstanding subsection (1), if a professional corporation ceases to comply with

section 37 or 42 only because of (

a) the death of a member, or (

b) the suspension or cancellation of the registration of a registrant, who is a shareholder of the professional corporation, the professional corporation has 90 days from the date of the death, suspension or cancellation in which to comply with

section 37 or 42, as the case may be, failing which the professional corporation’s registration is cancelled on the expiration of the 90 days.

(3) If the registration of a member who is a shareholder of a professional corporation is suspended, that person may remain as a shareholder of the professional corporation, but the person may not engage in a public accounting practice on behalf of the professional corporation while suspended.

(4) In the event of the death of a member, the governing body may in writing order that the 90-day period provided for in subsection (2) be extended for a further period that it considers reasonable.

(5) A registrar may not delete any information regarding professional corporations except in accordance with the by-laws. Notification of change of status 44(1) If a professional corporation’s registration is suspended or cancelled, the registrar must, within 30 days, notify the Registrar of Corporations and the shareholders of the professional corporation recorded with the registrar.

(2) In addition to the information provided under subsection (1), the registrar may provide information concerning the suspended or cancelled registration to the Registrar of Corporations and the shareholders in accordance with the by-laws. 35

Action for fees 45 A professional corporation may sue for fees for services performed on its behalf and in its name by a person in the person’s capacity as a registrant at any time after the services are performed if the services were performed during the time that the corporation maintained registration in good standing. Division 4 Public A ccounting Firms Public accounting firms must register 46(1) A member of an accounting organization, a professional corporation or a partnership that conducts (

a) an audit engagement, (

b) a review engagement, or (

c) a public accounting practice using the title “chartered accountant”, “certified management accountant” or “certified general accountant”, must register with the accounting organization as a public accounting firm in addition to any other registration held under this Act by that member, professional corporation or partnership.

(2) If 2 or more members of different accounting organizations are partners and conduct a public accounting practice, they must register as a public accounting firm under subsection (1) with one only of those accounting organizations.

(3) Notwithstanding subsection (1)(c), a member of an accounting organization, a professional corporation or a partnership that provides services referred to in

section 1(oo)(iv) or (vi) (

a) is not required to register as a public accounting firm if the gross revenue of the member, professional corporation or partnership from those services is less than the amount specified in the regulations; (

b) may apply, in accordance with the regulations, to the governing body of the accounting organization for an exemption from registration if the gross revenue of the member, professional corporation or partnership from those services is equal to or greater than the amount under clause (

a) but less than the amount specified in the regulations for the purpose of this clause. 36

(4) Where the Minister considers that the regulations under subsection (3) do not provide sufficient protection of the public interest, the Minister may, by notice in writing to the governing body, request the governing body to amend the regulations in the manner specified in the notice within the time set out in the notice.

(5) Where the governing body fails to amend the regulations in accordance with the notice, the Lieutenant Governor in Council may amend the regulations, and in that case the amendments operate as if they had been made in accordance with

section 14. Public accounting firm registration requirements 47 An application for registration as a public accounting firm is complete for the purpose of consideration under Division 1 of this

Part if it is in the form provided for in the by-laws and provided to the accounting organization by the applicant together with (

a) evidence to the satisfaction of the registrar or the registration committee about the nature and scope of the firm’s public accounting practice, (

b) the fees provided for by resolution, (

c) evidence of having the amount and type of professional liability insurance required by the by-laws, (

d) the name of the member of the accounting organization at the public accounting firm who is designated by the firm (

i) to receive correspondence and answer questions from the accounting organization on any matter, including registration, practice reviews and disciplinary proceedings, and (ii) to be the firm’s representative for the purposes of Parts 4 to 6, and (

e) any other information required by regulation. Division 5 Professional Service Providers Professional service providers must register 48(1) A registrant designated by the regulations who, alone or through a professional corporation, a corporation or a partnership, 37

(

a) conducts any aspect of a public accounting practice or provides to the public any professional services as specified in the by-laws, and (

b) is not required to register as a public accounting firm, must register with the accounting organization as a professional service provider in addition to any other registration held under this Act by that registrant.

(2) Notwithstanding subsection (1), a registrant that (

a) provides, through a law firm, no professional services except taxation services to the public, or (

b) meets the requirements of the regulations under

section 46(3), is not required to register as a professional service provider. Professional service providers registration requirements 49 An application for registration as a professional service provider is complete for the purpose of consideration under Division 1 of this

Part if it is in the form provided for in the by-laws and provided to the accounting organization by the applicant together with (

a) evidence to the satisfaction of the registrar or registration committee about the nature and scope of the applicant’s public accounting practice or professional services as specified in the regulations that are provided to third parties, (

b) the fees provided for by resolution, (

c) evidence of having the amount of professional liability insurance required by the by-laws, and (

d) any other information required by regulation. Division 6 Other Persons or Firms Registration requirements of other persons, firms 50(1) A registrant within the meaning of

section 1(ss)(viii) that conducts an audit or review engagement must register as a public accounting firm. 38

(2) Notwithstanding anything in this Act, an accounting organization may, in accordance with the regulations, register any person or firm that it considers competent to conduct a public accounting practice as a registrant within the meaning of

section 1(ss)(viii) and as a public accounting firm, and may impose conditions on the registration and on the public accounting practice. Division 7 Continuing Registration Requirements for continuing registration 51(1) A registrant’s registration continues in effect if the registrant (

a) completes any applicable continuing competence or education requirements in accordance with the regulations, (

b) maintains the amount of professional liability insurance required by the by-laws, (

c) provides information to the accounting organization in accordance with the regulations, and (

d) pays the registration fees in the amount and at the times provided for by resolution.

(2) If a registrant fails to meet the requirements set out in subsection (1), (

a) the registrant’s registration may be suspended, cancelled or made subject to practice restrictions in accordance with the by-laws, (

b) the registrant is liable to any financial penalty for the contravention imposed in accordance with the by-laws, and (

c) the registrar may make a complaint under

section 67 about the conduct of the registrant.

(3) The registrar must notify the registrant in writing of a suspension or cancellation of registration or practice restriction imposed under this section.

(4) A registrant whose registration is suspended, cancelled or subjected to practice restrictions pursuant to this

section may, within 30 days of being notified by the registrar under subsection (3), appeal to an appeal tribunal in accordance with

Part 6.

(5) The appellant and the registrar or registration committee are parties to an appeal under this section. 39

Maintaining documents 52 A registrant must maintain in the manner prescribed by resolution any certificate, permit, confirmation of registration or other document respecting the status of the registrant that is issued under this Act or was issued under a former Act and, on request, must return it to the accounting organization. PA RT 4 PRA CTICE REVIEW Division 1 Practice Review Committee Practice review committee 53(1) A practice review committee is established for each accounting organization.

(2) Members of a practice review committee must be appointed in the manner prescribed by the governing body. Practice review 54(1) The purpose of practice review is to promote high standards of practice in public accounting firms and professional service providers and, generally, to maintain and improve the competence of the profession.

(2) A practice review committee may do anything, subject to the by-laws, to meet the purpose of practice review or perform any other function prescribed by a governing body.

(3) An accounting organization must appoint reviewers to perform, or assist in, practice reviews. Conduct of practice review 55(1)

Section 78 applies to the conduct of a practice review.

(2) For the purpose of conducting a practice review, a reviewer appointed by an accounting organization has the powers of an investigator under

section 78(1), (2), (3) and (6). Practice review committee mandate 56(1) After each practice review, the practice review committee may determine whether the public accounting practice that is the subject of the practice review complies in whole or in part with the rules of professional conduct and practice standards and may do one or more of the following: (

a) recommend practice improvements; 40

(

b) direct a follow-up practice review on the conditions, at the times and for the purpose specified by the practice review committee; (

c) direct the establishment and implementation of a professional development plan or a plan to maintain and improve professional standards; (

d) direct that the public accounting firm or professional service provider carry a specified additional amount of professional liability insurance; (

e) direct that courses, examinations, tutorials or other forms of professional development or skills training be taken; (

f) refer a matter to the CIC chair as a complaint.

(2) After each practice review, a practice review report must be sent to the public accounting firm or the professional service provider reviewed and to anyone else the practice review committee directs.

(3) A public accounting firm or professional service provider that receives a practice review report directing the public accounting firm or professional service provider to do anything under subsection (1)(

d) or (

e) may, within 30 days of being given a copy of the report, appeal to an appeal tribunal in accordance with

Part 6.

(4) The appellant and the practice review committee are parties to an appeal under this section. Appeal to appeal tribunal 57 Subject to

section 56(3) and (4), decisions of the practice review committee are final and may not be appealed unless a by-law permits an appeal to an appeal tribunal, in which case the appeal must be made in accordance with

Part 6 and the appellant and the practice review committee are the parties to the appeal. Division 2 Practice Review Policy Board Definition 58 In this Division, “board” means the Practice Review Policy Board established under

section 59. 41

Practice Review Policy Board 59(1) The Practice Review Policy Board is established.

(2) The board is composed of (

a) the chair of the practice review committee of each accounting organization, (

b) one member of each accounting organization, appointed by the governing body, and (

c) the executive head of each accounting organization or that person’s designate.

(3) A board member under subsection (2)(

b) serves for a term of 3 years and continues to serve after the expiry of the term until the member is reappointed or a successor is appointed.

(4) A board member under subsection (2)(

c) is not entitled to vote on any matter at board meetings.

(5) Board members must elect a chair from the board’s members to serve for a term of one year. Mandatory participation 60 Each accounting organization must (

a) appoint one of its members to be a board member under

section 59(2)(b), and (

b) ensure that its executive head or that person’s designate acts as a board member under

section 59(2)(c). Board’s functions 61 The board must, with respect to the practice review of public accounting firms that perform audit engagements or review engagements, (

a) annually review and approve a practice review checklist developed by the accounting organizations, (

b) establish education and experience qualifications to be met by reviewers appointed by the accounting organizations for the purpose of practice reviews, (

c) establish standard guidelines for use by a practice review committee respecting the frequency with which practice reviews and follow-up practice reviews are to be conducted, 42

(

d) establish the requirements for annual reporting to the board by the accounting organizations, including when the reporting must occur and what kind of non-identifying statistical information must be included, and (

e) establish guidelines respecting practice reviews that in the opinion of the board are necessary (

i) to foster common practice review procedures and standards among the accounting organizations, and (ii) to protect the public interest. Meetings 62 The board must meet at least once every year. Annual reporting to the board 63 Each accounting organization must annually submit a report to the board that contains (

a) a list of reviewers appointed by the accounting organization for the purpose of practice reviews who meet the qualifications established under

section 61(b), (

b) a

summary of each practice review and follow-up practice review conducted by the practice review committee of the accounting organization during the preceding year, including a

summary of the outcome of each review, and (

c) any other information required by the board under

section 61(d). Costs and administrative support 64 Each accounting organization (

a) is liable for an equal share of the costs of operating the board, and (

b) must, on a rotating basis, provide to the board an equal share of any administrative support necessary to carry out the board’s functions. 43

PA RT 5 COMPLA INTS INQUIRY PROCESS Division 1 Purpose and Jurisdiction Purpose 65(1) The purpose of this

Part is (

a) to protect the public interest, (

b) to enforce practice standards and rules of professional conduct for registrants, (

c) to provide a means by which complaints about the conduct of registrants and former registrants can be dealt with in a fair and expeditious way, and (

d) to preserve the integrity of the accounting profession.

(2) This Part does not apply to professional service providers but applies to all other registrants whether or not they are also registered as professional service providers. Jurisdiction over former registrants 66(1) If the registration of a registrant is cancelled or otherwise terminated, the accounting organization continues to have jurisdiction in respect of that person or firm only if (

a) a complaint is made within 2 years of the date of the cancellation or termination, and (

b) the complaint relates to conduct while the person or firm was a registrant.

(2) In the circumstances described in subsection (1), this Part and

Part 6 apply to the former registrant in the same way and to the same extent as they would if the cancellation or termination of registration had not occurred.

(3) A complaint against a registrant is not affected by the person or firm about whom the complaint is made ceasing to be a registrant before the proceedings with respect to the complaint are completed.

(4) Notwithstanding subsection (1), a complaint about a former registrant who was registered under a former Act but has not been a registrant under this Act may be made under this Part only if 44

discipline proceedings under the former Act could be commenced if that Act were still in force. Division 2 Making Complaints, Reviews and Mediation Complaints 67(1) Any person may make a complaint to an accounting organization about the conduct of a registrant or former registrant.

(2) A complaint must be in writing and signed by the complainant.

(3) The CIC secretary may treat as a complaint any questionable conduct of a registrant or former registrant that comes to the attention of the accounting organization other than by way of a complaint, including any information given to the accounting organization by (

a) a registrant respecting conduct or an event about which a registrant is required to give notice, whether in respect of the registrant’s own conduct or activity or the conduct or activity of another registrant or former registrant, (

b) a professional organization in Alberta or another jurisdiction respecting the conduct of a registrant or former registrant, (

c) a governmental or regulatory official or body concerning the conduct of a registrant or former registrant, (

d) the registrar acting under

section 51(2)(c), or (

e) the practice review committee acting under

section 56(1)(f). Complaints against public accounting firms 68 If a complaint relates to a public accounting firm, the complaint may be made in respect of the firm itself or any one or more of the registrants in or associated with the public accounting firm, or both the firm and any one or more of the registrants. Initial review of complaints 69(1) Any conduct of a registrant or former registrant that comes to the attention of an accounting organization under

section 67 must first be reviewed by the CIC secretary.

(2) The CIC secretary, in the course of the review, may require the complainant or a registrant or former registrant to answer any 45

inquiries or to provide any records or other information that the CIC secretary considers relevant for the purpose of the review, and that person must comply.

(3) If the CIC secretary, in the course of a review under subsection (1) or later, becomes aware of the involvement of any other registrant or former registrant in the conduct under review, or any other questionable conduct, the CIC secretary may extend the review in whatever manner the CIC secretary considers appropriate.

(4) In performing any function under this Part, the CIC secretary has the powers of an investigator under

section 78.

(5) On completing a review under this Part, the CIC secretary must refer the complaint and the results of the review to the CIC chair. Particulars and response 70(1) The CIC secretary must, within 30 days of receiving a complaint, provide the complaint or particulars of the complaint to any registrant or former registrant whose conduct is the subject of a review under

section 69.

(2) A registrant or former registrant who receives a complaint or particulars of a complaint under subsection (1) must respond in writing to the complaint or the particulars to the CIC secretary within 30 days of receiving the complaint or the particulars or within any other period agreed to by the CIC secretary. Voluntary communi- cation encouraged 71 The CIC secretary may, at any time before an allegation of unprofessional conduct is referred to the discipline tribunal roster chair under

section 79(1)(c), encourage the complainant and the investigated party to communicate with each other and resolve the complaint. Voluntary complaint resolution 72(1) At any time before an allegation of unprofessional conduct is referred to the discipline tribunal roster chair under

section 79(1)(c), the CIC secretary may, with the agreement of the parties, appoint or facilitate the appointment of a mediator, conciliator or other person who may be able to assist in resolution of the complaint.

(2) The accounting organization is entitled to participate in any complaint resolution process under this section.

(3) Any document prepared or generated for the purposes of a complaint resolution process under this

section is confidential. 46

(4) Any communication and evidence arising from anything said, evidence of anything said or evidence of an admission or communication made in the course of a complaint resolution process under this

section is confidential and not admissible in any proceedings under this or any other Act or in any action, matter or proceeding before a court (

a) without the written consent of the investigated party and the complainant, and (

b) in the case of written evidence, without the written consent of the person who prepared the written evidence, the investigated party and the complainant.

(5) If no resolution under subsection (1) is reached within the time specified by the CIC secretary or as otherwise agreed, the CIC secretary must refer the complaint to the CIC chair under

section 69(5).

(6) If during the complaint resolution process information is introduced that causes the person conducting the complaint resolution process to believe that the matter is substantially different from the original complaint, the person must notify the CIC secretary and the CIC secretary must determine whether to continue proceedings under this section. Settlement 73(1) In the course of proceedings under this Part or in the course of an appeal under

Part 6, a complainant and the investigated party may settle the complaint.

(2) The CIC chair may continue proceedings under this Act even if a complaint is settled by agreement of the complainant and the investigated party or is withdrawn by the complainant. Sanction agreements 74(1) At any time before a discipline tribunal starts to hear evidence about an allegation of unprofessional conduct, the complaints inquiry committee and the investigated party may, in accordance with this section, enter into an agreement (

a) admitting the unprofessional conduct of the investigated party, and (

b) stating the sanction to be imposed on the investigated party, including any one or more of the matters described in sections 93, 94 and 96. 47

(2) The CIC chair must select a panel consisting of 2 members of the complaints inquiry committee, the CIC chair and one public member from the public members roster established under

section 20(1)(

b) to recommend an agreement to the complaints inquiry committee.

(3) If a panel of the CIC is unable to recommend an agreement under subsection (2), the proceedings are continued under this Part.

(4) A member of the panel may not vote as a member of the CIC.

(5) The CIC chair may appoint a chair for a panel, but if the CIC chair does not do so, the members of a panel must choose a chair from among themselves.

(6) The quorum for a panel is 3 members, which must include the public member.

(7) Each member of the panel has a vote and the agreement recommended by the panel must be approved by a majority vote.

(8) On receipt of the agreement recommended by the panel, the complaints inquiry committee may (

a) approve the agreement, or (

b) reject the agreement and continue the proceedings under this Part.

(9) If an agreement is made under this section, (

a) each admission of unprofessional conduct is to be considered and treated, for all purposes, as a finding of unprofessional conduct made by a discipline tribunal, and (

b) the agreement is to be considered and treated, for all purposes, as a decision and order of a discipline tribunal.

(10) The complaints inquiry committee must give the complainant written notification of any agreement made under this section.

(11) An agreement made under this

section may not be appealed to an appeal tribunal.

(12) If the complaints inquiry committee is of the opinion that there are reasonable and probable grounds to believe that the investigated party has committed a criminal offence, the complaints inquiry committee must 48

(

a) direct the CIC chair to send a copy of the agreement made under this

section to the Minister of Justice and Attorney General, and (

b) on request, send a copy of any other information related to the agreement to the Minister of Justice and Attorney General. Voluntary resignation 75(1) If the complaints inquiry committee approves an agreement under

section 74 or a discipline tribunal or appeal tribunal makes a finding of unprofessional conduct, the investigated party may apply to the committee or tribunal for resignation instead of having the proceedings continue.

(2) The complaints inquiry committee, discipline tribunal or appeal tribunal may reject the application to resign or may accept it and (

a) may make acceptance of the resignation subject to any conditions that it considers appropriate in the circumstances; (

b) must, in accordance with the by-laws, give directions about what is to be entered in the information maintained by the accounting organization in respect of registrants and former registrants; (

c) must, in accordance with the by-laws, give directions about the publication, posting or notification of the finding of unprofessional conduct and the resignation; (

d) may specify conditions to be met by the investigated party before the investigated party is entitled to apply for reinstatement of registration; (

e) may discontinue the proceedings in whole or in part. Division 3 Processing Complaints Duty of the CIC chair 76(1) On receipt of a complaint and results of a review from the CIC secretary, the CIC chair must (

a) direct that no further action be taken regarding the complaint if (

i) the CIC chair is of the view that the conduct is not unprofessional conduct, 49

(ii) the CIC chair is of the view that the conduct is not within the jurisdiction of the complaints inquiry committee or a discipline tribunal, or (iii) the CIC chair is of the view that the conduct complained about is too minor to warrant any sanction or further investigation, or (

b) appoint an investigator to investigate any matter.

(2) If the CIC chair directs that no further action be taken, the CIC chair must notify the investigated party and the complainant of the decision and give them a written explanation of it.

(3) If the CIC chair appoints an investigator, the CIC chair must provide a notice of investigation to the investigated party and the complainant. Investigator's responsibilities 77(1) An investigator to whom a matter is referred for investigation pursuant to

section 76 or 79(1)(

a) may also investigate any other conduct that comes to the attention of the investigator in the course of the investigation, whether connected with the matter referred for investigation or not.

(2) The investigator may, in addition to investigating the conduct of the investigated party, investigate the conduct of any other registrant or former registrant who may be involved in any conduct that comes to the attention of the investigator.

(3) The investigator must report to the complaints inquiry committee, in writing, on the results of an investigation. Investigation powers 78(1) For the purpose of conducting an investigation, an investigator (

a) may, at any reasonable time, require a registrant or former registrant (

i) to attend meetings with the investigator or others, (ii) to answer any questions the investigator may have relating to the investigation and to answer the questions under oath, and 50

(iii) to give to the investigator any records, information or thing that, in the opinion of the investigator, is or may be relevant to the investigation that the registrant or former registrant possesses or that is under the control of the registrant or former registrant, and (

b) may require a registrant or former registrant to give up possession of any records, information or thing described in clause (

a) to allow the investigator to take it away to copy, examine or perform tests on it, in which case the investigator must return it within a reasonable time of being given it but must return it after a hearing is completed and any right to an appeal is expired, and the registrant or former registrant must comply.

(2) The investigator may copy and keep copies of any records, information or thing given under subsection (1).

(3) An accounting organization, on the request of an investigator or its CIC chair, may apply to the Court of Queen’s Bench for (

a) an order directing a registrant or former registrant to comply with all or part of subsection (1), (

b) an order directing any other person (

i) to attend meetings with the investigator to answer any questions the investigator may have relating to the investigation and to answer those questions under oath, if the investigator requires, and (ii) to give to the investigator any records, information or thing that, in the opinion of the investigator, is or may be relevant to the investigation that the person possesses or that is under the control of the person, and (

c) an order directing any person to give up possession of any records, information or thing described in clause (

b) to allow the investigator to take it away to copy, examine or perform tests on it and return it within a reasonable time of being given it. 51

(4) Notice of an application for an order under subsection (3) must be given to all affected parties unless the Court is satisfied that it is proper to dispense with notice in the circumstances.

(5) A person may comply with a request to give records, information or things under subsection (1)(a)(iii) or an order under subsection (3)(b)(ii) by giving copies of the records, information or things to the investigator.

(6) If a person gives copies under subsection (5), the person must on the request of the investigator allow the investigator to compare the copies with the original records, information or things at the person’s place of business during regular business hours.

(7) A person who gives records, information or things under subsection (1) or (3) or copies of records, information or things under subsection (5) is not entitled to any indemnification for the expense of producing the records, information or things, except for the reasonable costs of copying them. Duty of complaints inquiry committee 79(1) Within a reasonable time after receipt of the investigator’s report, the complaints inquiry committee must (

a) direct that a further or other investigation be carried out by the same or another investigator under

section 77, (

b) decide that no further action is to be taken, in which case the complaints inquiry committee may also make recommendations or provide guidance in respect of future conduct or practice, or (

c) refer one or more allegations of unprofessional conduct to the discipline tribunal roster chair.

(2) A member of the complaints inquiry committee who conducted the investigation may participate in, but not vote on, a decision under subsection (1).

(3) The complaints inquiry committee must notify the investigated party and the complainant of its decision and provide to each of them a written explanation for it. Appeal from decision to take no further action 80 Within 30 days of receiving notice that (

a) the CIC chair has directed under

section 76(1)(

a) that no further action be taken, or 52

(

b) the complaints inquiry committee has decided under

section 79(1)(

b) that no further action be taken, the complainant may appeal the decision to an appeal tribunal. Division 4 Discipline Tribunal Proceedings Discipline tribunal hearing 81(1) When an allegation of unprofessional conduct is referred to the discipline tribunal roster chair, the chair must, in accordance with

section 123, convene a discipline tribunal to conduct a hearing into the allegation.

(2) A discipline tribunal must commence a hearing within 120 days after an allegation of unprofessional conduct is referred to the discipline tribunal roster chair or within such other time as the roster chair permits. Notice of hearing and particulars of allegation 82(1) Unless the investigated party agrees to a shorter period, the discipline tribunal secretary must give to the investigated party and other persons entitled to be represented at the hearing at least 30 days’ notice of the date, time and place at which a discipline tribunal will hold a hearing into the allegations of unprofessional conduct referred to it.

(2) Unless the investigated party agrees to a shorter period, the CIC secretary must give the investigated party reasonable particulars of the alleged unprofessional conduct referred to the discipline tribunal at least 30 days before the date set for the discipline tribunal’s hearing. Amending or deleting allegations of unprofessional conduct 83(1) The allegations of unprofessional conduct referred to a discipline tribunal may be amended or added to (

a) before the hearing starts, by the CIC secretary giving to the investigated party and other persons entitled to be represented at the hearing reasonable notice of the amendment or addition, or (

b) after the hearing starts, by the complaints inquiry committee applying to the discipline tribunal for approval to amend or add to an allegation.

(2) An allegation of unprofessional conduct referred to a discipline tribunal may be deleted 53

(

a) before the hearing starts, by the CIC secretary giving notice of the deletion to the investigated party and other persons entitled to be represented at the hearing, or (

b) after the hearing starts, by the complaints inquiry committee giving notice of the deletion to the discipline tribunal, the investigated party and other persons entitled to be represented at the hearing.

(3) Where an application is made under subsection (l)(b), the discipline tribunal may accept, with or without conditions, the amendment or addition to the allegation of unprofessional conduct or may refuse it.

(4) If a discipline tribunal accepts an application under subsection (1)(

b) to amend or add to an allegation of unprofessional conduct, the discipline tribunal must grant an adjournment of the hearing for a reasonable period of time to enable the investigated party to prepare to answer the amended or additional allegation, unless the investigated party states that no adjournment is necessary. Represen- tation before discipline tribunal 84(1) The parties to a discipline tribunal hearing are the investigated party and the complaints inquiry committee and each is entitled to be represented.

(2) If an issue at a discipline tribunal hearing concerns (

a) a matter of importance to the accounting organization, or (

b) the

interpretation of this Act, the regulations, the by-laws, rules of professional conduct or practice standards, the accounting organization may be represented and present argument at the hearing.

(3) If the discipline tribunal is advised by counsel acting on its behalf at a discipline tribunal hearing, that counsel must not present evidence or arguments at the hearing on behalf of the complaints inquiry committee or the accounting organization. Evidence and procedure 85(1) A discipline tribunal (

a) may hear and inquire into allegations of unprofessional conduct and related matters in any manner it considers appropriate, 54

(

b) is not bound by the rules of evidence or any other law applicable to judicial proceedings, and (

c) has the power to determine the admissibility, relevance and weight of any evidence.

(2) A discipline tribunal may determine the manner in which evidence is to be admitted.

(3) All questions of evidence and procedure arising in the course of a hearing are to be determined by the discipline tribunal chair, whose decision is final. Compellable witnesses 86(1) The investigated party and any other person who, in the opinion of the discipline tribunal, has knowledge relevant to the allegations of unprofessional conduct referred to it are compellable witnesses in any proceeding under this Act.

(2) A witness may be examined under oath on anything relevant to any matter before a discipline tribunal and is not to be excused from answering any question on the ground that the answer might tend to (

a) incriminate the person, (

b) subject the person to a penalty under

section 143, or (

c) establish liability (

i) in a civil proceeding at the instance of the Crown or of any other person, or (ii) to prosecution under any Act.

(3) Answers to questions given by a person before a discipline tribunal that tend to (

a) incriminate the person, or (

b) subject the person to a penalty or establish the person’s liability, may not be used or received against the person in any civil proceedings, in a prosecution under

section 143 or in any proceedings under any other Act. 55

(4) The protection provided under subsection (3) does not apply in a prosecution for, or proceedings in respect of, perjury or the giving of contradictory evidence under this Act.

Commission evidence 87 To obtain the evidence of a person outside Alberta, the complaints inquiry committee or the investigated party may apply to a judge of the Court of Queen’s Bench, without notice to any person, to direct the issuing of a commission to obtain the evidence of the person concerned, and the commission must be issued and the evidence taken in accordance with the Alberta Rules of Court or otherwise as the Court may order.

Notice to attend and produce records 88(1) The attendance of witnesses before a discipline tribunal and the production of records may be enforced by a notice issued by the discipline tribunal secretary requiring a person to attend as a witness at a date, time and place specified in the notice and to produce the records, if any, that the person is required to produce, and the person must comply.

(2) On the written request of the investigated party or of the CIC secretary, the discipline tribunal secretary must provide, without charge, any notices that are required for the attendance of witnesses or the production of records.

(3) A witness, other than the investigated party, who has been served with a notice to attend or a notice to produce records is entitled to be paid by the party requesting the notice the same fees as are payable to a witness in an action in the Court of Queen’s Bench.

(4) A person who requests a notice under this

section is responsible for serving the notice and must pay all costs incurred in effecting service. Civil contempt proceedings 89(1) Proceedings for civil contempt of court may be brought against a witness (

a) who fails (

i) to attend before a discipline tribunal in accordance with a notice to attend, or (ii) to produce records in accordance with a notice to produce them, (

b) who refuses to be sworn, or 56

(

c) who refuses to answer any question that the person is directed to answer by a discipline tribunal.

(2) The chair of a discipline tribunal may record the failure or refusal of a registrant under subsection (1) and refer the matter to the accounting organization as a complaint. Proceedings in the absence of investigated party 90 A discipline tribunal, on evidence of service of notice of the hearing on an investigated party, may (

a) proceed with the hearing in the absence of the investigated party, and (

b) act and decide on the allegations of unprofessional conduct referred to it. Unprofessional conduct 91(1) A discipline tribunal may find any of the following to be unprofessional conduct: (

a) conduct that is detrimental to the best interests of the public or harms the integrity of the accounting profession; (

b) conduct that contravenes this Act, the regulations or the by-laws; (

c) conduct that contravenes the rules of professional conduct or practice standards; (

d) conduct that displays a lack of competence; (

e) the contravention of or failure to comply with (

i) an order of a discipline tribunal, an appeal tribunal, the Court of Queen’s Bench or the Court of Appeal, (ii) a discipline order or undertaking made under a former Act, or (iii) a restriction, condition or undertaking on registration or practice made under a former Act; (

f) the failure or refusal to abide by a settlement agreement entered into under

section 73; (

g) the failure or refusal to abide by an agreement entered into under

section 74; 57

(

h) the failure or refusal to answer questions or provide information or otherwise co-operate in an investigation of conduct or proceedings under this Part or

Part 6; (

i) the failure or refusal to co-operate in a practice review; (

j) the failure or refusal to comply with an order of, a condition imposed by or an undertaking provided to a governing body, a body established by a governing body or a body established or continued under this Act or under the regulations or a former Act.

(2) A discipline tribunal may make findings and orders whether or not the conduct occurred in Alberta. Discipline tribunal findings 92(1) For each allegation of unprofessional conduct referred to it, a discipline tribunal must determine whether or not the conduct of the investigated party constitutes unprofessional conduct.

(2) If a discipline tribunal is of the opinion that there are reasonable and probable grounds to believe that the investigated party has committed a criminal offence, the discipline tribunal must (

a) direct the discipline tribunal secretary to send a copy of the written decision under

section 95 to the Minister of Justice and Attorney General, and (

b) on request, send a copy of any other information related to the finding of the discipline tribunal to the Minister of Justice and Attorney General. Discipline tribunal orders 93(1) If a discipline tribunal determines that the conduct of an investigated party constitutes unprofessional conduct, the discipline tribunal may make one or more of the following orders: (

a) reprimand the investigated party; (

b) suspend registration for a stated period or pending compliance with specified conditions; (

c) restrict any or all aspects of the investigated party’s public accounting practice or other areas of practice for a stated period of time, pending compliance with specified conditions, or until otherwise ordered by a discipline tribunal or a person or body specified by the discipline tribunal; 58

(

d) impose conditions or requirements on the investigated party for a stated period of time or until otherwise ordered by the discipline tribunal, including conditions that the investigated party (

i) practise under supervision in accordance with specified terms, (ii) not engage in sole practice, (iii) undergo counselling in accordance with specified terms, (iv) permit periodic inspections of practice by an individual authorized by the practice review committee or complaints inquiry committee or the chair of either of those committees, or (

v) report on specified matters to the accounting organization, the CIC secretary or the discipline tribunal secretary; (

e) accept, for a stated period or pending compliance with specified conditions, a voluntary suspension of registration or an undertaking to restrict practice; (

f) direct the investigated party to satisfy a committee or person specified by the discipline tribunal that a disability or addiction can be or has been overcome, and suspend the investigated party until the committee or person is so satisfied; (

g) require the investigated party to take counselling that is appropriate in the opinion of a committee or person specified by the discipline tribunal; (

h) direct the investigated party to successfully complete a particular course of studies or examinations, or both, or to satisfy a committee or person specified by the discipline tribunal as to the investigated party’s professional competence generally or in a specified area of practice; (

i) direct a public accounting firm to develop and implement quality control procedures or professional development policies, to undergo a specific practice review or to increase the amount or change the type of professional liability insurance carried by the public accounting firm; 59

(

j) direct the payment of all or part of the costs of complying with an order; (

k) prohibit, restrict or place conditions on the ability of a member of an accounting organization or a public accounting firm to train students or to supervise how students are trained; (

l) cancel registration under this Act; (

m) specify a time limit within which an order or any part of it must be complied with and specify the consequences of failing to comply, including suspension or cancellation of registration; (

n) direct the publication or posting of a decision in any manner the discipline tribunal considers appropriate to protect the public interest and to notify clients or former clients of the investigated party as the situation requires; (

o) make any further or other order that the discipline tribunal considers appropriate in the circumstances.

(2) Before making any order under subsection (1), the discipline tribunal is entitled to review and the accounting organization must provide (

a) the past disciplinary record of the investigated party, and (

b) any other information the accounting organization possesses about the investigated party concerning findings of unprofessional conduct against the investigated party in disciplinary proceedings by a professional organization in Alberta or another jurisdiction. Costs and fines 94(1) The discipline tribunal may order the investigated party to pay to the accounting organization (

a) the costs or any part of the costs of an investigation and hearing in the manner determined by the by-laws; (

b) a fine not exceeding $20 000 for each finding of unprofessional conduct; (

c) costs and a fine.

(2) Unless the discipline tribunal orders otherwise, the investigated party must pay to the accounting organization, as part of the costs 60

ordered under subsection (1), all of the reasonable costs for the indemnification of the accounting organization for the costs relating to the review of complaints, the investigation and the discipline tribunal hearing, including the legal expenses and legal fees on a solicitor and client basis.

(3) The order may specify when and how the amount is to be paid.

(4) If the investigated party does not pay costs or fines in accordance with the order of a discipline tribunal or appeal tribunal, the registration of the registrant is immediately cancelled unless a discipline tribunal or an appeal tribunal otherwise directs. Written decisions and dissents 95(1) A discipline tribunal must make its decision within a reasonable time after the conclusion of a hearing.

(2) A decision under subsection (1) must be in writing and contain the reasons for the decision.

(3) A member of the discipline tribunal may issue a written dissent, disagreeing in whole or in part with the decision of the tribunal, and the dissent forms part of the tribunal’s decision.

(4) The discipline tribunal secretary must, within a reasonable time after receiving the discipline tribunal’s decision, (

a) serve a copy of the decision on the investigated party, (

b) serve a copy of the decision on the CIC chair, and (

c) send a copy of the decision to the complainant. Publication of decisions 96(1) When a discipline tribunal suspends or cancels the registration or restricts the practice of an investigated party, the discipline tribunal secretary must publish or post the decision or a

summary of it in accordance with the by-laws.

(2) Where other decisions are made by a discipline tribunal, subject to the by-laws, the discipline tribunal secretary (

a) must publish or post the decision of the discipline tribunal, or a

summary of the decision or any aspect of it, in accordance with any direction of the tribunal, or (

b) if there is no direction from the tribunal, may publish or post the decision, or a

summary of the decision or any aspect of it, together with any other information the 61

accounting organization considers necessary to protect the public interest, to any or all of the following: (

i) the general public or segments of the general public; (ii) other registrants; (iii) clients of the investigated party; (iv) former clients of the investigated party; (

v) the employer of the investigated party; (vi) any other accounting organization in Alberta; (vii) any organization outside Alberta that regulates accounting; (viii) any other professional organization the investigated party belongs to, if the accounting organization is aware of the membership.

(3) A notice under subsection (1) or (2) may be published or posted only when all rights of appeal have been exhausted, unless (

a) the investigated party consents to an earlier publication or posting, or (

b) the decision is to suspend or cancel registration or to restrict practice, in which case the decision is to be published or posted as soon as practicable after the decision is issued.

(4) If an appeal of a decision published or posted under this

section is successful, appropriate notices of that fact must be published or posted, or both. Costs and fines are a debt 97 Costs or fines ordered to be paid to an accounting organization by (

a) a public accounting firm that is the subject of a practice review, (

b) an investigated party, or (

c) a complainant who is a registrant of the accounting organization, 62

are a debt due to the accounting organization and may be recovered by the accounting organization in a civil action for debt. Failure to comply with orders and undertakings 98(1) If a registrant contravenes or fails to comply with (

a) a settlement agreement entered into under

section 73, (

b) an agreement with the complaints inquiry committee entered into under

section 74, (

c) an undertaking given to a governing body or any committee, tribunal or court under this Act or under a former Act, or (

d) an order of a governing body or any committee, tribunal or court under this Act or a former Act, and no sanction has been imposed to deal with the non-compliance, the discipline tribunal roster chair may convene a discipline tribunal, or reconvene the discipline tribunal that made the original decision, to deal with the contravention or failure and make an order under this Part.

(2) After notice of a hearing has been given to the registrant under subsection (1) and after being satisfied that the undertaking, agreement or order referred to in subsection (1) has been contravened or not complied with, a discipline tribunal may make an order or further order under this Part or amend the original order.

Ability to rehear 99 On application by the investigated party, the discipline tribunal roster chair or appeal tribunal roster chair may convene or reconvene a discipline tribunal or appeal tribunal to rehear a matter if the chair is satisfied that new, relevant and persuasive evidence respecting a matter previously heard by the tribunal requires a partial or full rehearing. Hearing records to be retained 100(1) A discipline tribunal must send to the discipline tribunal secretary its decision and all exhibits entered as evidence at the proceedings.

(2) The investigated party and the CIC chair may examine and obtain, at their own expense, a copy of the record of proceedings. 63

(3) No decision or record of proceedings received by the discipline tribunal secretary may be disposed of except in accordance with the by-laws. Division 5 A ppeal Rights, Disciplinary Proceedings Outside A lberta and Circulating Decisions Appeal to appeal tribunal 101(1) The investigated party or the complaints inquiry committee may appeal to an appeal tribunal a finding or order of a discipline tribunal, and they are the parties to an appeal.

(2) An appeal to an appeal tribunal must be made in accordance with

Part 6. Disciplinary proceedings in Alberta or elsewhere 102(1) If a finding of unprofessional conduct has been made against a registrant in disciplinary proceedings by another accounting organization in Alberta or by any organization outside Alberta that regulates accounting and is recognized by the governing body, the registrant must give notice of the finding, within 21 days of becoming aware of the decision, to the Alberta accounting organization that did not discipline the registrant.

(2) The Alberta accounting organization that did not discipline the registrant may act under this

section whether it receives notice under subsection (1) or becomes aware of the finding of unprofessional conduct by other means.

(3) After giving the registrant an opportunity to provide information and make representations, the CIC chair may refer the matter to the discipline tribunal roster chair to convene a discipline tribunal.

(4) A discipline tribunal to whom a matter is referred under subsection (3), after giving notice of a hearing to the registrant and holding a hearing, may (

a) adopt a finding of the other organization that disciplined the registrant, (

b) make a finding that the conduct is unprofessional conduct, and (

c) impose one or more orders under this Part.

(5) The complaints inquiry committee or the registrant or former registrant may appeal the decision under subsection (4) to an appeal 64

tribunal in accordance with

Part 6, and the complaints inquiry committee and the registrant or former registrant are the parties to the appeal. Suspension of decisions 103(1) If a discipline tribunal suspends or cancels the registration or restricts the practice of a registrant and the decision is appealed, the decision remains in effect until an appeal tribunal makes a decision on the appeal unless an appeal tribunal otherwise directs on application by the appellant.

(2) If a discipline tribunal makes an order other than the suspension or cancellation of registration or restriction of practice, the order takes effect only after all rights of appeal have been exhausted unless the discipline tribunal otherwise directs. Circulation of decisions 104(1) After the period for appeal has expired, the accounting organization may send a decision of a discipline tribunal or appeal tribunal (

a) to any federal, provincial or territorial minister of the Crown or to any accounting organization, securities commission or other governmental, regulatory or professional association it considers appropriate, together with such part of the record of proceedings or other information as the accounting organization considers appropriate, in order to protect the public interest; (

b) to the practice review committee, together with any part of the record of proceedings the accounting organization considers appropriate.

(2) The provision of any part of the record of proceedings or other information by an accounting organization under this

section is subject to

section 127(3). Division 6 Special Suspension and Cancellation Powers Temporary suspension 105(1) Notwithstanding anything in this Act, the CIC chair, after giving a registrant an opportunity to provide information and make representations, may, by written direction to the registrar, (

a) suspend the registrant’s registration or restrict the registrant’s practice pending the conclusion of an 65

investigation or pending the decision of a discipline tribunal, and (

b) revoke the suspension or restriction at any time.

(2) The registrar must, as soon as practicable, give written notice to the registrant of the imposition or revocation of a suspension or restriction under subsection (1).

(3) A registrant may apply for a direction under subsection (1) to be revoked by filing an originating notice with the Court of Queen’s Bench and serving a copy on the accounting organization. Conviction for indictable offence 106(1) If a registrant is convicted of an indictable offence in any court in Canada or convicted of an offence outside Canada that would be regarded as an indictable offence in Canada, the registrant must give notice of the conviction, within 21 days of its occurrence, to the accounting organization.

(2) An accounting organization may act under this

section whether it receives notice under subsection (1) or becomes aware of the conviction by other means.

(3) The discipline tribunal roster chair must consider the nature and seriousness of the offence and may convene a discipline tribunal, which may, after providing the registrant with an opportunity to provide information and make representations, (

a) cancel or suspend the registrant’s registration or restrict the registrant’s practice pending the expiry of the appeal period or pending the determination of an appeal from the conviction or a proceeding to have the conviction quashed, or (

b) after the appeal period has expired or an unsuccessful appeal from the conviction or an unsuccessful proceeding to quash the conviction is concluded, and whether or not a cancellation, suspension or restriction has previously been ordered, (

i) suspend the registrant’s registration or restrict the registrant’s practice for a stated period or pending compliance with specified conditions, or (ii) cancel the registrant’s registration. 66

(4) A cancellation, suspension or restriction under subsection (3)(

a) may be revoked by the same or another discipline tribunal at any time. Falsely obtained registration 107(1) If a discipline tribunal is satisfied, after a hearing on the matter, that a registration under this Act was obtained by fraud, deceit or misrepresentation, the discipline tribunal may order the registration to be cancelled or suspended or the registrant’s practice to be restricted.

(2) The complaints inquiry committee or a person who is the subject of a decision of a discipline tribunal under subsection (1) may appeal to an appeal tribunal in accordance with

Part 6, and the registrar or the registration committee, the complaints inquiry committee and the person who is the subject of the decision are the parties to the appeal. PA RT 6 A PPEA LS A ND COURT ENFORCEMENT OF DECISIONS Division 1 A ppeals to A ppeal Tribunal How to appeal 108(1) When a person has a right to appeal to an appeal tribunal under this Act, that person may commence the appeal by sending to the accounting organization a written notice of appeal, which must explain (

a) what is being appealed, (

b) why the appeal is being made, and (

c) what results are sought from the appeal.

(2) The notice of appeal must be received by the accounting organization within 30 days from the date of service on the appellant of the decision giving rise to the appeal. Accounting organization’s administrative functions 109 When an accounting organization receives notice of an appeal, its appeal tribunal secretary must (

a) decide if the notice of appeal meets the requirements for a notice of appeal under

section 108; 67

(

b) if the notice of appeal meets the requirements, (

i) refer the appeal to the appeal tribunal roster chair, who must then convene an appeal tribunal to hear the appeal in accordance with

section 124, (ii) set a hearing date for the appeal as soon as practicable, (iii) send a copy of the notice of appeal to the parties to the appeal, other than the appellant, and (iv) serve the appellant and everyone entitled to be represented at the appeal with at least 30 days’ notice of the date, time and place of the appeal hearing and send a copy of the notice to the complainant; (

c) if the notice of appeal does not meet the requirements of

section 108, notify the appellant in what respect it is deficient and set an additional period of time for the appellant to correct the deficiency; (

d) if, after the additional period of time set under clause (

c) has expired, the notice of appeal still does not meet the requirements of

section 108, refuse the appeal by serving written notice on the appellant, with an explanation for the refusal. Represen- tation before appeal tribunal 110(1) The parties to an appeal before an appeal tribunal are each entitled to be represented.

(2) If an issue at an appeal concerns (

a) a matter of importance to the accounting organization, or (

b) the

interpretation of this Act, the regulations, the by-laws, rules of professional conduct or practice standards, the accounting organization may be represented and may present argument at the appeal.

(3) If the appeal tribunal is advised by counsel acting on its behalf at an appeal, that counsel must not present evidence or arguments at the appeal on behalf of the accounting organization. 68

Appeal is based on the record of proceedings 111(1) Unless the parties to the appeal otherwise agree, an appeal must be based on (

a) the decision of the body from which the appeal is made, (

b) the record of proceedings before that body, and (

c) any further evidence that the appeal tribunal agrees to receive.

(2) In proceedings under this Part, (

a) an appeal tribunal, in addition to the authority it has under this Part, has the authority of a discipline tribunal under

Part 5, and (

b) if an appeal tribunal gives special permission to receive further or other evidence, (

i) the appeal tribunal has the same authority as the discipline tribunal has under

section 85; (ii) the appeal tribunal secretary has the same authority to issue notices to attend and produce records as the discipline tribunal secretary has under

section 88 and may issue those notices at the request of any party to the appeal; (iii) the provisions that apply under

Part 5 respecting the compellability of witnesses, the protection provided to them, the proceedings that may be taken for civil contempt and proceeding in the absence of the investigated party also apply to proceedings under this Part; (iv) the complaints inquiry committee or the investigated party may exercise its authority under

section 87. Appeal tribunal decisions 112(1) An appeal tribunal may quash, confirm, vary or reverse all or any part of a decision of the body from which the appeal was made, make any finding or order that in its opinion ought to have been made or refer the matter back to the same or another body with or without directions.

(2) If the appeal tribunal decides that an appeal under

section 80 is frivolous or vexatious, if the appellant is a registrant the appeal tribunal may order the appellant to pay to the accounting 69

organization any or all of the costs of the investigation, the discipline tribunal hearing and the proceedings under this Part.

(3) Unless the appeal tribunal determines otherwise, the appellant must pay to the accounting organization, as part of the costs ordered under subsection (2), all of the reasonable costs for the indemnification of the accounting organization for the costs relating to the investigation, discipline tribunal hearing and appeal, including the legal expenses and legal fees on a solicitor and client basis.

(4) Within a reasonable time after the conclusion of proceedings before it, an appeal tribunal must make a written decision on the appeal, giving reasons for its decision.

(5) A member of an appeal tribunal may issue a written dissent disagreeing in whole or in part with the decision of the tribunal, and the dissent forms part of the tribunal’s decision.

(6) An appeal tribunal may make an award of costs of the appeal determined in accordance with the by-laws.

(7) If the appeal tribunal makes an award of costs against the appellant, if the appellant is the investigated party the award of costs may include and may be determined in accordance with subsections (2) and (3).

(8) The appeal tribunal secretary must, within a reasonable time after receiving an appeal tribunal’s decision, (

a) serve on the appellant and every other person represented at the appeal hearing a copy of the appeal tribunal decision, (

b) serve a copy of the decision on the CIC chair, and (

c) send a copy of the decision to the complainant. Publication of decisions 113(1) When an appeal tribunal suspends or cancels the registration or restricts the practice of an investigated party, the appeal tribunal secretary must publish or post the decision or a

summary of it in accordance with the by-laws.

(2) For other decisions made by an appeal tribunal, subject to the by-laws, the appeal tribunal secretary (

a) must publish or post the decision of the appeal tribunal, or a

summary of the decision or any aspect of it, in accordance with any direction of the tribunal, or 70

(

b) if there is no direction from the tribunal, may publish or post the decision, or a

summary of the decision or any aspect of it, together with any other information the accounting organization considers necessary to protect the public interest, to any or all of the following: (

i) the general public or segments of the general public; (ii) other registrants; (iii) clients of the investigated party; (iv) former clients of the investigated party; (

v) the employer of the investigated party; (vi) any other accounting organization in Alberta; (vii) any organization outside Alberta that regulates accounting; (viii) any other professional organization the investigated party belongs to, if the accounting organization is aware of the membership.

(3) A notice under subsection (1) or (2) may be published or posted only when all rights of appeal have been exhausted, unless (

a) the investigated party consents to an earlier publication or po

Document details

Collection	Alberta — Bills
Citation	L24 S3 916
Type	bill
Volume / chapter	L24 S3 916
Language	en
Format	json
Source	PROVINCIAL
Identifier	1f90f633696e8e53095cb718c8f294f78a64900d

Source file is stored in the law ingest library (json).