TheSocietyofProfessional AccountantsofCanada
Codeof Professional Conduct
TheSocietyofProfessionalAccountantsofCanada October3,2024
Approvedon: Preparedby: RPAEthicsCommittee
ApplicationoftheRPACodeofProfessionalConduct
UnderlyingPrinciplesofConduct
Ethicalconflictresolution
PRESIDENT’SSTATEMENT
10.0MATTERSOFGOVERNANCE
10.1 Compliancewithgoverninglegislation,theRPACodeofEthicsandtheRPA CodeofProfessionalConduct
10.2 Matterstobereported
10.3 Falseormisleadingapplications
104 Requirementtocooperate
10.5 Hindrance,inappropriateinfluenceand/orintimidation
20.0PROTECTIONOFTHEPUBLIC
20.1 Maintenanceofthereputationoftheprofession
20.2 Integrityandduecareandobjectivity
20.3 Professionalcompetence
204 Independence
20.5 Falseormisleadingdocumentsandoralrepresentations
20.6 Compliancewithprofessionalstandards
20.7 Unauthorizedbenefits
20.8 Confidentialityofinformation
20.9 BorrowingfromClients
21.0ConflictsofInterest
21.1 DutytoreportbreachoftheRPACodeofProfessionalConduct
21.2 Handlingpropertyofothers
21.3 Unlawfulactivity
21.4 Feequotationsandbillings
21.5 Contingentfees
21.6 Commissionorsimilarcompensationarrangements
21.7 Advertising,solicitationandendorsements
218 Retentionofdocumentationandworkingpapers
RPACODEOFPROFESSIONALCONDUCT
30.0RELATIONSHIPSWITHPEERSANDCOLLEAGUES
30.1 IntentionallyLeftBlank
302 Communicationwithpredecessor
30.3 Provisionofclientinformation
30.4 Jointengagements
30.5 IntentionallyLeftBlank
30.6 Responsibilitiesowedtoanincumbent
40.0PUBLICPRACTICE
40.1 CertificateofAccountingPractice
40.2 Associationwithnon-memberinpublicpractice
PRESIDENT’S STATEMENT
I am proud to announce the official publication of the “RPA Code of Professional Conduct” a cornerstone of integrity and ethical practice for all Registered Professional Accountants (RPAs). This Code serves as the foundation for our profession, ensuring that we uphold the highest standards of responsibility, trust, and professionalism in our work By adhering to these principles, we reinforce the trust that clients, colleagues, and the public place in our members.
I would like to extend my sincere gratitude to the RPA Ethics Committee for their hard work and dedication in developing this vital document. In particular, I would like to recognize Robert Finlay, Chair of the Committee, whose leadership and commitment have been instrumental in bringing this Code to fruition. The time and effort invested by the entire committee reflect the passion we all share for maintaining the integrity of our profession.
Thank you once again to everyone involved in this important milestone for RPA Canada. Together, we will continue to lead the way in promoting ethical practices within the accounting profession
Sincerely,
Zubair Choudhry, RPA, APA
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ApplicationoftheRPACodeof ProfessionalConduct
TheRPACodeofProfessionalConductsetsoutspecificdutiesforsoundandfair financialandmanagementreportingandbusinesspracticesowedbyall memberstoclients,employers,theprofessionandthepublic.
TheRPACodeappliestoallmembersregardlessoftheprofessionalservices beingprovided.
Membersnotengagedinthepracticeofpublicaccountingmustobservethe RPACodeofProfessionalConductunlessthereisaspecificexceptionmadein anyguidelineorrule.
Thetermprofessionalserviceswillapplytoallmembersorstudentswhether undertakenforremunerationornot,whereclients,employers,thepublicortheir peersareentitledtorelyontheirmembershiporregistrationasaRegistered ProfessionalAccountant(RPA)asgivingthemsomeimpliedcompetence requiringintegrity,objectivity,professionalcompetenceandduecare, confidentialityandprofessionalbehavior.
TheRPACodeofConductalsoappliestoeverymemberorstudentactingin respectofamatterofpersonalconcern,ajob,afunction,oroffice.
ThisCodeofConductestablishesthecharacteristicsofamemberorstudent, theirresponsibilityforcompliance,theprinciplesgoverningtheirconduct,their character,andtheirethicalbehavior.
Itisafeatureofanyprofessionthatthereisavoluntaryassumption,byallits membersandstudents,oftheethicalprinciplesaimed,firstandforemost,at servingthepublicinterest.
Compliancewiththeserulesandguidelinesismandatory.
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RPACODEOFPROFESSIONALCONDUCT
UnderlyingPrinciplesofConduct
TheRPACodeofProfessionalConductisderivedfromfivefundamental principlesofethicsasexpressedintheRPACodeofEthics:integrity,objectivity, professionalcompetenceandduecare,confidentiality,andprofessional behavior
Integrity:Bestraightforwardandhonestinallprofessionalandbusiness relationships.
Objectivity:Donotcompromiseprofessionalorbusinessjudgmentsbecauseof bias,conflictofinterestorundueinfluenceofothers
ProfessionalCompetenceandDueCare:
Attainandmaintainprofessionalknowledgeandskillatthelevelrequiredto ensurethataclientoremployingorganizationreceivescompetent professionalservice,basedoncurrenttechnicalandprofessionalstandards andrelevantlegislation.
Actdiligentlyandinaccordancewithapplicabletechnicalandprofessional standards.
Confidentiality:Respecttheconfidentialityofinformationacquiredbecauseof professionalandbusinessrelationships.
ProfessionalBehavior:Complywithrelevantlawsandregulationsandavoid anyconductthattheRegisteredProfessionalAccountantorstudentknows(or shouldknow)mightdiscredittheprofession.
Ethicalconflictresolution
Wheninitiatingaprocessfortheresolutionofanethicalconflict,amemberor studentshouldconsiderthefollowingissuesindividuallyortogetherwithothers, aspartoftheirresolutionprocess: therelevantfacts, ethicalissuesinvolved, fundamentalprinciplesand provisionsoftheRPACodeofConductapplicabletothematterinquestion, anyestablishedprocedures,and anyalternativecoursesofaction.
10.0MATTERSofGOVERNANCE
10.1-Compliancewithappropriategoverninglegislation,theRPACodeof EthicsandtheRPACodeofProfessionalConduct
10.1.1(a)Allmembersandstudents,regardlessoftheirresidence,shallcomply withtheRPACodeofConduct.
(b)Allmembersandstudents,regardlessoftheirresidence,shallcomplywith:
Anylegislation,bylaws,andregulationsoftheRPAasmaybeapprovedandin forcefromtimetotime;andanyorderorresolutionofanyotherregulatorybody actingonbehalfoftheSocietyofProfessionalAccountantsofCanada,made underitsgoverninglegislationorbylaws.
(c)Notwithstandingtheaforementionedprovisions,ifamemberorstudentis prohibitedbylawfromcomplyingwithanypartoftheRPACodeofProfessional Conduct,CodeofEthicsoritsbylaws,regulations,thememberorstudentshall complywithallotherpartsofthosegoverningdocuments
(d)WhereamemberholdsmembershipasanRPAandanotherprofessional body,whetherinCanadaorelsewhere,andthereisaconflictbetweenthe requirementsoftheRPAandtheotherprofessionalbody,thememberorstudent shallcomplywiththerequirementthatestablishesthemorestringent requirement.
10.1.2WhenamemberorstudentidentifiesthattheyhavebreachedtheRPA CodeofConductorCodeofEthics,theyshall:
Takewhateveractionmightbeappropriateorrequiredbylaw,assoonas possible,toaddresstheconsequencesofanysuchbreach;anddetermineifthe breachissuchthatitneedstobereportedtotheSocietyofProfessional AccountantsofCanada,andifso,reportitpromptly
10.2.0-Matterstobereported
10.2.1Illegalactivities
MembersorstudentsshallpromptlynotifyRPAafterhavingbeen: convictedoffraud,theft,forgery,money-laundering,extortion,counterfeiting, criminalorganizationactivities,chargingcriminalinterestrates,financing TheSocietyofProfessionalAccountantsofCanada
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RPACODEOFPROFESSIONALCONDUCT
terrorismoranysimilaroffencerelatedtofinancialmattersorconvictedof anoffenceofconspiringorattemptingtocommitsuchoffences.
convictedofanyseriouscriminaloffencethatisnotrelatedtofinancial mattersbutwhichinvolvesconductthatisofsuchanaturethatitdiminishes thegoodreputationoftheprofession.
convictedofanycriminalrepeatoffence.
foundguiltyofaviolationoftheprovisionsofanysecuritieslegislationor havingenteredintoasettlementagreementwithrespecttosuchmatters.
foundguiltyofaviolationoftheprovisionsofanytaxlegislationthatinvolves, explicitlyorimplicitly,dishonestyonthepartofthememberorstudent,or havingenteredintoasettlementagreementwithrespecttosuchmatters;or dischargedabsolutelyoruponconditionafterpleadingguiltytoorbeing foundguiltyofanoffencedescribedabove.
10.2.3-Otherprofessionalregulatorybodies
MembersorstudentsshallpromptlynotifyRPAimmediatelyafterhaving,in relationtoadisciplinaryorsimilarprocessofanotherprofessionalregulatory body: beenfoundguiltyofafailuretocomplywiththerequirementsofthat professionalregulatorybody. enteredintoasettlementagreementwiththatprofessionalregulatorybody withrespecttoamatterreferredtoin(a);or resignedfrommembershipinorvoluntarilyderegisteredfromaprofessional regulatorybody,wherepermittedtodoso,toresolveadisciplinarymatter.
10.2.4-Otherregulatoryauthorities
MembersorstudentsshallpromptlynotifyRPAafterhaving:
(a)beenfoundguiltyofafailuretocomplywiththerequirementsofthatother regulatoryauthority;or
(b)enteredintoasettlementagreementwiththatotherregulatoryauthority withrespecttoamatterreferredtoin(a)
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10.3.0-Falseormisleadingapplications
Amemberorstudentshallnotsignorassociatethemselveswithanyletter, report,statementorrepresentationrelatingtoanyapplicationtoRPAwhichthe memberorstudentknows,orshouldknow,isfalseormisleading.
10.4.0-Requirementtoco-operate
10.4.1Amemberorstudentshallco-operatewiththeregulatoryprocessesof RPA.
10.4.2Amemberorstudentshall: immediatelyreplyinwritingtoanycommunicationfromRPAinwhicha writtenreplyisspecificallyrequired. immediatelyproducedocumentswhenrequiredtobyRPA;and attendinpersoninthemannerrequestedwhenrequiredtodosobyRPA.
10.5.0-Hindrance,inappropriateinfluenceand/orintimidation
10.5.1Amemberorstudentshallnot,directlyorindirectly,hinderanyregulatory processofRPAorotherwiseattempttoexertinappropriateinfluenceorpressure ontheoutcomeofaregulatorymatterofRPA.
10.5.2Amemberorstudentshallnotthreatenorintimidateacomplainant, witness,oranyotherpersonrelatedtoaregulatorymatterofRPA,norshalla memberorstudentthreatenorintimidateofficers,staff,volunteersoragents actingonbehalfofRPA.
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20.0PROTECTIONOFTHEPUBLIC
20.1-Maintenanceofthereputationoftheprofession
20.1.1Amemberorstudentshallalwaysactwithcourtesyandrespectandina mannerwhichwillmaintainthereputationoftheprofessionandservethepublic interest.
20.1.2Thereisarebuttablepresumptionthatamemberorstudenthasfailedto maintainthereputationoftheprofessionorservethepublicinterestwhenthe memberorstudentischargedunderRule20.1.1onaccountofanymatterinRule 10.2.1andacertifiedcopyofadocumentwhichprovidesproofofguiltinrespect ofsuchmattersisfiledwiththeappropriatedisciplinecommittee.Forpurposes ofthisrule,documentswhichprovideproofofguiltincludeacertificateof conviction,order,decision,settlementagreementwhichincludesanadmission ofguilt
20.1.3Thereisarebuttablepresumptionthatamemberorstudenthasfailedto maintainthereputationoftheprofessionorservethepublicinterestwhenthe memberorstudentischargedunderRule20.1.1onamatterreferredtoinRule 10.2.2wheretheresolutionofthematterincludes:
afindingofguiltby,orasettlementagreementwith,anotherregulatory authorityordesignatedbody,andthememberorstudentwassuspended, revoked,expelled,orderegisteredvoluntarilytoresolveadisciplinarymatter, orwhenrestrictionswereplacedonpracticerights,oraformermemberwas barredfromreadmission;or
afindingofguiltby,oranadmissionofguiltbythememberorstudentto, anotherprovincialbodyoranotherdesignatedbodythatRule20.1.1was breachedbythememberorstudent
andacertifiedcopyoftheorder,decision,settlementagreementorother relevantdocumentfromtheotherregulatoryauthorityisfiledwiththediscipline committee.
20.2-IntegrityandduecareandObjectivity
20.2.1IntegrityandduecareAmemberorstudentshallperformprofessional serviceswithintegrityandduecare.
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20.2.2ObjectivityAmemberorstudentshallnotallowhisorherprofessionalor businessjudgmenttobecompromisedbybias,conflictofinterestortheundue influenceofothers.
20.3-Professionalcompetence
Amemberorstudentshallmaintaintheirprofessionalcompetencebykeeping informedofandcomplyingwithdevelopmentsinprofessionalstandardsinall functionsinwhichthememberprovidesprofessionalservicesorisreliedupon becauseofthemember'sorstudent’scalling.
20.4-Independence
20.4.1IndependenceonEngagements
Amemberorstudentwhoengagesorparticipatesinanengagementshallbe andremainindependenttothedegreethatthememberorstudentshallbeand remainfreeofanyinfluence,interestorrelationshipwhich,inrespectofthe engagement,impairstheprofessionaljudgmentorobjectivityofthememberor studentwhich,intheviewofareasonableobserver,wouldimpairthe professionaljudgmentorobjectivityofthememberorstudent.
20.4.2CompliancewithRule20.4.1
AmemberorstudentwhoisrequiredtobeindependentbyRule20.4.1shall,in respectofaparticularengagement,complywiththeprovisionsofRules2043 and20.4.4.
20.4.3IdentificationofThreatsandSafeguards
AmemberorstudentwhoisrequiredtobeindependentpursuanttoRule20.4.1 shall,inrespectofaparticularengagement,identifythreatstoindependence, evaluatethesignificanceofthosethreatsand,ifthethreatsareotherthan clearlyinsignificant,identifyandapplysafeguardstoreducethethreatstoan acceptablelevel.Wheresafeguardsarenotavailabletoreducethethreator threatstoanacceptablelevel,thememberorstudentshalleliminatethe activity,interestorrelationshipcreatingthethreatorthreats,orrefusetoaccept orcontinuetheengagement.
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20.4.4SpecificProhibitions-Engagements Financialinterests
Amemberorstudentshallnotparticipateinanengagementwithaclientif thememberorstudent,oranimmediatefamilymemberofthememberor student,holdsadirectfinancialinterestoramaterialindirectfinancial interestintheclient
Amemberorstudentshallnotparticipateinanengagementwithaclientif thememberorstudent,oranimmediatefamilymemberofthememberor student,holds,astrustee,adirectfinancialinterestoramaterialindirect financialinterestintheclient.
InspiteofRule20.4.4,iftheclientisaco-operative,creditunion,asocialclub, suchasagolfcluborcurlingclub;orasimilarorganization,thefinancialinterest intheclientheld,eitherpersonallyorasatrustee,byamemberorstudentoran immediateorclosefamilymemberofthememberorstudentshallnotpreclude thememberorstudentfromparticipatingontheengagementteamprovided that:
suchafinancialinterestisrestrictedtotheminimumamountthatisa prerequisiteofmembership.
theassetsoftheorganizationcannotbyvirtueoftheorganization’sby-laws bedistributedtotheindividualmembersoftheorganizationotherthanas patronagedividendsorincircumstancesofforcedliquidationor expropriation,unlessthereisawrittenundertakingwiththeorganizationto forfeitentitlementtosuchdistributedassets;and themember,studentorimmediateorclosefamilymember:
(i)doesnotserveonthegoverningbodyorasanofficeroftheorganization.
(ii)doesnothavetherightorresponsibilitytoexercisesignificantinfluenceover thefinancialoraccountingpoliciesoftheorganizationoranyofitsassociates
(iii)doesnotexerciseanyrightderivedfrommembershiptovoteatmeetingsof theorganization;and
(iv)cannotdisposeofthefinancialinterestforgain.
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20.4.5-Documentation
Amemberorstudentwho,inaccordancewithRule20.4.3,hasidentifiedathreat thatisclearlysignificant,shalldocumentadecisiontoacceptorcontinuethe particularengagement.Thedocumentationshallincludethefollowing information:
(i)adescriptionofthenatureoftheengagement
(ii)thethreatidentified.
(iii)thesafeguardorsafeguardsidentifiedandappliedtoeliminatethethreator reduceittoanacceptablelevel;and
(iv)anexplanationofhow,inthemember’sorstudent’sprofessionaljudgment, thesafeguardseliminatethethreatorreduceittoanacceptablelevel
20.4.6-MembersorStudents'MustDiscloseProhibitedInterestsand Relationships
Amemberorstudentwhohasarelationshiporinterest,orwhohasprovided aprofessionalservice,thatisprecludedbythisRuleshalladviseinwritinga designatedpartneroftheinterest,relationshiporservice.
Amemberorstudentwhohasbeenassignedtoanengagementshall advise,inwriting,adesignatedpartnerofthefirmofanyinterest,relationship oractivitythatwouldprecludethepersonfrombeingontheengagement team.
20.4.7-DisclosureofImpairedIndependence
Amemberorstudentengagedinthepracticeofaccountingoranyrelated businessorpractice,whoprovidesaservicenotsubjecttotherequirements ofRules20.4.1to20.4.9,shalldiscloseanyactivity,interestorrelationship which,inrespectoftheengagement,wouldbeseenbyareasonable observertoimpairthemember’sorstudent’sindependencesuchthatthe professionaljudgmentorobjectivityofthemember,firmormemberofthe firmwouldappeartobeimpaired,andsuchdisclosureshallbemadeinthe member’sorstudent’swrittenreportorotherwrittencommunication
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RPACODEOFPROFESSIONALCONDUCT
accompanyingfinancialstatementsorfinancialorotherinformationandthe disclosureshallindicatethenatureoftheactivityorrelationshipandthenatureand extentoftheinterest.
20.5-Falseormisleadingdocumentsandoralrepresentations
Amemberorstudentshallnot:
signorassociatewithanyletter,report,statement,representationorfinancial statementwhichthememberorstudentknows,orshouldknow,isfalseor misleading,whetherornotthesigningorassociationissubjecttoadisclaimerof responsibility,nor
makeorassociatewithanyoralreport,statementorrepresentationwhichthe memberorstudentknows,orshouldknow,isfalseormisleading.
20.6-Compliancewithprofessionalstandards
20.6.1Amemberorstudentshallperformservicesinaccordancewithgenerally acceptedstandardsofpracticeoftheprofession.
20.6.2Amemberwho,asamemberofanentity'sfinancialmanagementteamor boardofdirectorsorequivalent,isrequiredtoparticipateintherevieworapproval, bysuchmanagementteamorboard,oftheentity’sfinancialstatementsprepared inaccordancewithanappropriatefinancialreportingframework,shallcarryout thatresponsibilitywiththecareanddiligencethatacompetentmemberwould exercise.
20.7-Unauthorizedbenefits
Amemberorstudentshallnot,withoutconsent,inconnectionwithanytransaction, involvingaclientoranemployer,hold,receive,bargainfor,becomeentitledtoor acquire,directlyorindirectly,anyfee,remunerationorbenefitforpersonal advantageorfortheadvantageofathirdpartywithouttheconsentoftheclientor employer.
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20.8-Confidentialityofinformation
20.8.1Amemberorstudentshallnotdiscloseanyconfidentialinformation concerninganyclient,formerclient,employerorformeremployerexcept when: properlyactingwhilecarryingoutprofessionalduties. suchinformationshouldproperlybedisclosedforpurposesofRules10.1,21.1 or30.2; suchinformationisrequiredtobedisclosedbyorderoflawfulauthorityor,in theproperexerciseofitsduties,byRPA.
justifiedtodefendthemember,firmoranyassociatesoremployeesofthe memberorstudent,againstanylegalproceedingoragainstalleged professionalmisconductorinanylegalproceedingforrecoveryofunpaid professionalfeesanddisbursements,butonlytotheextentnecessaryfor suchpurpose;or
theclient,formerclient,employerorformeremployer,hasprovidedconsent tosuchdisclosure.
20.8.2Amemberorstudentshallnotuseconfidentialinformationofanyclient, formerclient,employerorformeremployer,obtainedinthecourseof professionalworkforsuchclientoremployer: fortheadvantageofthememberorstudent, fortheadvantageofathirdparty;or tothedisadvantageofsuchclientoremployer withouttheconsentoftheclient,formerclient,employerorformeremployer
20.8.3Amemberorstudentshall: takeappropriatemeasurestomaintainandprotectconfidentialinformation ofanyclient,formerclient,employerorformeremployer,andtoensurethat accesstosuchinformationbyanotherpersonislimitedtothosewith legitimatepurposetoaccesstheinformation;and obtainthewrittenagreementofanysuchpersontocarefullyandfaithfully preservetheconfidentialityofanysuchinformationandnottomakeuseof suchinformationotherthanasshallberequiredintheperformanceof appropriateprofessionalservices.
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20.9-BorrowingfromClients
20.9.1Amemberorstudentshallnot,directlyorindirectly,borrowfromorobtain aloanguaranteefromaclientunlesseither: theloanorguaranteehasbeenmadeundernormalcommercialtermsand conditions,and theclientisabankorsimilarfinancialinstitutionwhosebusiness includeslendingmoneytothepublic;or theclientisapersonorentity,asignificantportionofwhosebusinessis theprivatelendingofmoneyor inthecaseofamember,theclientisafamilymemberoranentity overwhichafamilymemberexercisessignificantinfluence;or inthecaseofafirm,theclientisafamilymemberofapartneror shareholderofthefirmoranentityoverwhichafamilymemberofa partnerorshareholderofthefirmexercisessignificantinfluence.
20.9.2Rule20.9.1doesnotapplyto: thefinancingofabonafidebusinessventurebetweenamemberor student amountsreceivedfromaclientasaretainerorasadepositon accountoffutureservicestobeprovidedbythememberorstudent;or aloanreceivedfromamember’semployer.
20.9.3ForpurposesofRule20.9.1,aclientincludesapersonorentitywho has,withintheprevioustwoyears,engagedthememberorstudentto provideaprofessionalserviceandwhoreliesonmembershipinor registrationwithRPAasgivingthememberorstudentparticular competencetoprovidethatprofessionalservice.
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21.0-CONFLICTSOFINTEREST
21.0.1Amemberorstudentshalldetermine,inrelationtoaparticularmatter,and beforeagreeingtoundertakeorcontinuingtoprovideanyprofessionalservice, whetheraconflictofinterestmayexist
21.0.2(a)SubjecttotheprovisionsofRule21.0.3,amemberorstudentshallnot undertakeorcontinuetoprovideanyprofessionalservicetoanyclientor employerincircumstanceswherethereisaconflictofinterestbetween:
(i)theinterestofthememberorstudentandthatoftheclientoremployer.
(ii)theinterestsoftwoormoreclientsoremployers;or
(iii)theinterestsoftheclientoremployerandthoseofathirdparty,wherethe interestofthethirdpartyandthememberorstudentarealigned.
(b)SubjecttotheprovisionsofRule21.0.3,amemberorstudentshallnot undertakeorcontinuetoprovideanyprofessionalservicetoanyclientor employerincircumstanceswhereaninterestdescribedinparagraph(a) relatingtoaformerclientorformeremployercreatesaconflictofinterestin respectofanysuchproposedorcurrentprofessionalservice.
21.0.3Wheretheagreementtoprovideanyprofessionalservicewouldresultina conflictofinterestunderRule21.0.2orwhereapreviouslyunidentifiedconflictof interestunderRule21.0.2arisesorisdiscoveredwhileprovidinganyprofessional service,thememberorstudentmustdeclinetoprovidetheprofessionalservice orwithdrawfromprovidingalltheaffectedprofessionalservicesunless:
(a)thememberorstudentcanrelyuponconflictmanagementtechniquesthat aregenerallyaccepted,andtheuseofsuchtechniqueswillnotbreachthe termsofanyagreementtoprovideprofessionalservicesoranydutytoanother client,employerorthirdparty.
(b)thememberorstudentinformseachaffectedpartyoftheexistenceofthe conflictofinterestandthetechniquesthatwillbeusedtomanageit;and
(c)thememberorstudentobtainstheconsentofeachaffectedpartytoaccept orcontinuetheprofessionalservicesengagementorengagements;or
(d)theaffectedpartieshaveknowledgeoftheconflictofinterestandtheir agreementforthememberorstudenttoacceptorcontinuetheprofessional servicesengagementisimpliedbytheirconduct,inkeepingwithcommonly acceptedpractice.
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21.0.4Whereamemberorstudenthasdetermined,inaccordancewithRule 21.0.3,thataprofessionalserviceinrespectofwhichaconflictofinterestexists maybeundertaken,thememberorstudentshalldocument:
(a)inthecaseofaconflictofinterestinrelationtowhichconsentisnotimplied bytheaffectedparties’conductinkeepingwithcommonlyacceptedpractice:
(i)thenatureoftheconflictofinterestthathasbeenidentified.
(ii)theconflictmanagementtechniquethathasbeenusedtomanagethe conflictofinterest.
(iii)therationaleforthechoiceofthetechniqueanditseffectiveness;and
(iv)thedisclosurethathasbeenmade,asnecessary,toeachoftheaffected parties;or
(b)inthecaseofaconflictofinterestinrelationtowhichconsentisimpliedby theaffectedparties’conductinkeepingwithcommonlyacceptedpractice,the basisonwhichthememberorstudenthasconcludedthat:
(i)theaffectedpartieshaveknowledgeoftheconflictofinterest;and
(ii)theiragreementforthememberorstudenttoacceptorcontinuethe professionalservicesengagementhasbeenimplied.
21.1-DutytoreportbreachoftheRPACodeofProfessionalConduct
21.1.1AmemberorstudentshallimmediatelyreporttoRPAanyinformation concerninganapparentbreachofthisoranyinformationraisingdoubtasto thecompetence,integrityorcapacitytopracticeofanothermemberorstudent, unlesssuchdisclosurewouldresultin:
(a)thebreachofastatutorydutynottodisclose.
(b)thereportingofinformationbyamemberorstudentexemptedfromthisrule
(c)thelossofsolicitor-clientprivilege.
(d)thereportingofamatterthathasalreadybeenreported;or
(e)thereportingofatrivialmatter.
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21.1.2AmemberorstudentrequiredtoreportunderRule21.1.1andwhois engaged,orisinconsultationwithaviewtobeingengaged,withrespecttoa civilorcriminalinvestigationneednotreporttoRPAanyinformationobtained duringsuchengagementorconsultationconcerninganapparentbreachofthis RPACodeoranyinformationraisingdoubtastothecompetence,integrityor capacitytopracticeofanothermemberorstudentuntilsuchtimeas:
(a)theclientoremployerhasprovidedconsenttothereleaseofthe information.
(b)thememberorstudentbecomesawarethattheinformationisknownto thirdpartiesotherthanlegaladvisors;or
(c)itbecomesapparenttothememberorstudentthattheinformationwillnot becomeknowntothirdpartiesotherthanlegaladvisors.
21.2-Handlingpropertyofothers
21.2.1Handlingoftrustfundsandotherproperty
(a)Amemberorafirmthat,receiving,handlingorholdingmoneyorother propertyinanycapacityasatrustee,orasareceiverorreceiver/manager, guardian,administrator/managerorliquidator,shalldosoinaccordancewith thetermsoftheengagement,includingthetermsofanyapplicabletrust,and thelawrelatingtheretoandshallmaintainsuchrecordsasarenecessaryto accountproperlyforthemoneyorotherproperty;unlessotherwiseprovidedfor bythetermsofthetrust,moneyheldintrustshallbekeptinaseparatetrust bankaccountoraccounts.
(b)Whenamemberorafirmreceivesaretainerfortheprovisionoffuture servicesandnowrittenagreementhasbeenexecutedregardingtheterms whichmustbemetfordisbursementoftheretainer,thememberorstudentshall considerandhandletheretainerasfundsheldintrustinaccordancewith paragraph(a)above.
21.2.2Handlingpropertyofothers
Amemberorstudent,whileprovidingprofessionalservices,shallhandlewithdue careanyentrustedproperty.
21.3-Unlawfulactivity
Amemberorstudentshallnotassociatewithanyactivitythatthememberor studentknows,orshouldknow,tobeunlawful
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21.4-Feequotationsandbillings
Amemberorstudentshall
(a)obtainadequateinformationbeforeprovidingafeequotationtoperform anyprofessionalservice;and
(b)renderbillingsforprofessionalservicesonafairandreasonablebasisand providesuchappropriateexplanationsasarenecessarytounderstandthe billing.
21.5-Contingentfees
21.5.1Amemberorstudentengagedinthepracticeofpublicaccountingorina relatedbusinessorpracticeshallnotofferorengagetoperformaprofessional serviceforacontingentfee,wheretheserviceis:
(a)oneinrespectofwhichindependenceisrequiredinaccordancewiththe provisionsofRule20.4
(b)acompilationengagement;or
(c)preparationofanincometaxreturn.
21.5.2OtherthaninrespectofanengagementdescribedinRule21.5.1,amember orstudentengagedinthepracticeofpublicaccountingorinarelatedbusiness orpracticemayofferorengagetoperformaprofessionalservicefora contingentfeeprovidedtheclienthasagreedinwritingtothebasisfor determiningthefeebeforethesubstantialcompletionoftheengagementand:
(a)thefeearrangementdoesnotconstituteaninfluence,interestorrelationship whichimpairsor,intheviewofareasonableobserver,wouldimpairthe professionaljudgmentorobjectivityofthememberorapartnerofthemember inrespectofanengagementforwhichindependenceisrequiredinaccordance withtheprovisionsofRule20.4;or
(b)thefeearrangementisnotonewhichinfluences,orintheviewofa reasonableobserverwouldinfluence,theresultofacompilationengagement performedoranincometaxreturnpreparedbythememberorapartnerforthe sameclient.
21.6-Commissionorsimilarcompensationarrangements
21.6.1 Amemberorstudentengagedintheprovisionofprofessionalservicesto aclientmaypayorreceiveanycompensationinrelationtoobtainingaclientor thereferralofproductsorservicesofothers,providedthat:
(a)theprohibitionsoutlinedinRule21.6.2donotapply.
(b)thememberorstudent,inrespectoftheproductsorservicestowhichthe compensationrelates,shall:
(i)identifythreatstotheobjectivityofthememberorstudentarisingfromthe proposedpaymentorreceiptofcompensation.
(ii)evaluatethesignificanceofthosethreats;and
(iii)ifthethreatsareotherthanclearlyinsignificant:
(A)disclosethecompensationtotheclientinwriting.
(B)obtaintheconsentoftheclientpriortopaymentorreceiptofthe compensation;and
(C)identifyandapplyanyadditionalsafeguardsasappropriatetoreducethe threatstoanacceptablelevel.
Wheresafeguardsarenotavailabletoreducethethreatorthreatstoan acceptablelevel,thememberorstudentshallnotpayoracceptthe compensation
21.6.2[IntentionallyLeftBlank]
21.6.3Amemberorstudentengagedoremployedinthepracticeofpublic accountingmaypay,inrelationtoobtainingaclient,acommissionorother compensationtoanypersonwhoisapartner,shareholderoremployeeofthe memberorstudentorwhoisanothermemberorstudentengagedoremployed inthepracticeofpublicaccounting.
21.6.4Amemberorstudentmaypayoracceptcompensationinconnection withthesaleandpurchaseofapublicaccountingpractice.
21.7-Advertising,solicitationandendorsements
21.7.1AdvertisingandpromotionAmemberorstudentmayadvertiseorseek publicityforthemember’sorstudent’sservices,achievementsorproductsand mayseektoobtainnewengagementsandclientsbyvariousmeans,butshall notdoso,directlyorindirectly,inanymanner:
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(a)whichthememberorstudentknows,orshouldknow,isfalseormisleadingor whichincludesastatementthecontentsofwhichthememberorstudent cannotsubstantiate.
(b)whichmakesunfavorablereflectionsonthecompetenceorintegrityofthe professionoranymemberorstudent;or
(c)whichotherwisebringsdisreputeontheprofession.
21.7.2NotwithstandingRule21.7.1,amemberorstudentshallnot,eitherdirectlyor indirectlysolicit,inamannerthatispersistent,coerciveorharassing,any professionalengagement.
21.7.3Amemberorstudentmayadvertiseorendorseanyproductorserviceof anotherpersonorentitythatthememberorstudentusesorotherwisehasan associationwith,providedthememberorstudenthassufficientknowledgeor expertisetomakeaninformedandconsideredassessmentoftheproductor service.However,indoingso,
(a)thememberorstudentmustactwithintegrityandduecare.
(b)thememberorstudentmustbesatisfiedthattheendorsement
(i)isnotfalseormisleadingordoesnotincludeastatementthecontentsof whichthememberorstudentcannotsubstantiate,
(ii)doesnotmakeunfavorablereflectionsonthecompetenceorintegrityofthe professionoranymemberorstudent,and
(iii)doesnototherwisebringdisreputeontheprofession;and
(c)whenassociatingtheRPAdesignationwithanendorsement,thememberor studentmustconductappropriateprocedurestosupporttheassertionsmade abouttheproductorservice.
21.8-Retentionofdocumentationandworkingpapers
Amemberorstudentshalltakereasonablestepstomaintaininformationfor whichthememberorstudentisresponsible,includingretainingforareasonable periodsuchworkingpapers,recordsorotherdocumentationwhichreasonably evidencethenatureandextentoftheworkdoneinrespectofanyprofessional service.
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30.0-RELATIONSHIPSWITHPEERSANDCOLLEAGUES
30.1-[IntentionallyLeftBlank]
30.2-Communicationwithpredecessor
30.2.1Amemberorstudentasasuccessor,shallnotacceptanengagement wherethesuccessorisreplacinganothermember,firmorotherprofessionalas predecessor,withouttakingreasonablestepstocommunicatetoenquire whetherthereareanycircumstancesthatshouldbeconsideredwhichmight influencethedecisiontoaccepttheengagement.
30.2.2Amemberorstudentshallrespondimmediatelytothecommunication referredtoinRule30.2.1.
30.2.3(a)WhenrespondingasrequiredbyRule30.2.2,ifamemberorstudent wasunabletocontinuewithanengagementwithrespecttothepracticeof publicaccounting,thememberorstudentshallinformthesuccessorofthefact ofthewithdrawalorresignation.
(b)Whenamemberorstudenthasbeeninformedofthecircumstances describedinRule30.2.3(a),thememberorstudentshallobtainthenecessary informationtomakeaninformeddecisionastowhethertoaccepttheclientby:
(i)requestingsuchfurtherinformationfromtheclient;or (ii)requestingpermissionfromtheclienttoobtainsuchfurtherinformationfrom thepredecessor.
30.3-Provisionofclientinformation
30.3.1(a)Amemberorstudentshall,uponwrittenrequestoftheclientandona timelybasis,supplyreasonableandnecessaryclientinformationtothe member’sorstudent’ssuccessor.Suchco-operationisrequiredwithany successoraccountantincludinganon-member.
(b)Amemberorstudentshallcooperatewiththesuccessoronanengagement.
30.3.2Amemberorstudentshalltransferpromptlytotheclientor,ontheclient’s instructions,toanotherparty,allpropertyoftheclientwhichisinthemember’s orstudent’spossessionorcontrol.
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Suchpropertyshallbetransferredinthemediuminwhichitismaintainedbythe memberorstudent,orsuchothermediumthatismutuallyagreeable,thatwill facilitateatimelyandefficienttransferwhichbestservestheclient’sinterests. Ordinarily,whenelectroniccopiesofthepropertyoftheclientarereadily available,theclient’sinterestswillbebestservedwhensuchinformationis providedaselectronicdata,ratherthaninprintedformprovidedthatsupplying theinformationinsuchaformwillnotviolatelicensing,copyrightorsimilarlegal agreementsorproprietaryrights.
30.4-Jointengagements
Amemberorstudentacceptinganengagementjointlywithanothermemberor studentshallacceptjointandseveralresponsibilitiesforanyportionofthework tobeperformedbyeither;nomemberorstudentshallproceedinanymatter withinthetermsofsuchjointengagementwithoutduenoticetotheother memberorstudent.
30.5-[IntentionallyLeftBlank]
30.6-Responsibilitiesowedtoanincumbent
30.6.1Responsibilitiesonacceptingengagements
Amemberorstudentacceptinganengagement,whetherbyreferralor otherwise,toprovideprofessionalservicestoaclientofanothermemberor studenthavingacontinuingprofessionalrelationshipwiththatclientshallnot takeanyactionwhichmayimpairtheongoingrelationshipoftheothermember orstudentwiththeclient.
30.6.2Responsibilitiesonreferredengagements
Amemberorstudentreceivinganengagementforservicesbyreferralfrom anothermemberorstudentshallnotprovideoroffertoprovideanyadditional servicestothereferredclientwithouttheagreementofthereferringmemberor student.Theinterestoftheclientbeingofoverridingconcern,thereferring memberorstudentshallnotunreasonablywithholdsuchagreement.
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RPACODEOFPROFESSIONALCONDUCT
40.0-PUBLICPRACTICE
40.1-CertifiedAccountingPractitionerCertificate
AmemberisrequiredtosuccessfullycompletetheRPACertifiedAccounting Practitionerprogrambeforetheycanofferaccountingand/ortaxservices,of anykind,tothepublic.
40.2-Associationwithnon-memberinpublicpractice
40.2.1Amemberorstudentshallnotassociateinanywaywithanon-member inapracticeofpublicaccounting,orinarelatedbusinessorpractice,unless:
(a)suchassociationmaintainsthegoodreputationoftheprofessionandserves thepublicinterest;and
(b)suchbusinessorpracticeestablishesandmaintainspolicies,procedures andarrangementssuitableforensuringthat:
(i)everysuchnon-memberisknowledgeableofandcomplieswith
(a)RPA'sgoverninglegislation,bylaws,regulationsandtheRPACode;and
(b)theethicalandotherregulationsapplicabletomembersofarecognized professionalorganizationorregulatedbodyofwhichthenon-memberisa member;and
(ii)nostyleorpresentationorcommunicationisusedwhichimpliesthatthe non-memberisamember.
40.2.2Amembermayassociatewitharelatedbusinessorpracticeasa proprietor,asapartner,orasadirector,officerorshareholderofacorporation andmayassociatewithanon-memberforthispurpose.
THANKYOU
This document has been prepared by the RPA Ethics Committee 2024:
Robert W (Bob) Finlay, RPA, APA - Chair
Gowry Nirmaiyan RPA - Secretary
Andres Mauricio Rojas Diaz, RPA
Laura Humphrey, RPA
Nayana da Silva, RPA
Ola Ajayi, RPA
Disclaimer:
The information provided in this RPA Professional Code of Conduct report is intended for general informational purposes only and is not intended to serve as financial, legal, or professional advice Every effort has been made to ensure the accuracy and completeness of the information contained within this report. However, the Society of Professional Accountants of Canada (RPA Canada) makes no warranties, express or implied, regarding the accuracy, reliability, or completeness of the content
Adherence to the RPA Professional Code of Conduct is crucial for all RPA members Following this code is fundamental in building and maintaining trust and confidence among the public, as well as among fellow members of the profession Upholding these standards ensures that RPA members demonstrate integrity, professionalism, and accountability in all their actions and decisions
The Society of Professional Accountants of Canada has invested significant resources and undertaken due diligence to develop this RPA Professional Code of Conduct. The code is designed based on current industry standards and professional expectations as of the date of publication However, market conditions and standards may evolve, and the information contained herein may not reflect the most recent developments Users of this report are advised not to rely solely on the information provided but to seek independent advice and conduct their own due diligence when making professional decisions.
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