The Certified General Accountants Association of Canada (CGA-Canada) welcomes the Canadian Public Accountability Board's (CPAB) decision to accept the CGA Independence Standard, giving effect to the required rule change as of June 20, 2006.
"CGA-Canada is responsible for setting professional standards for its
members and has an obligation to protect the public and ensure CGAs maintain the highest ethical standards," says Anthony Ariganello, FCGA, CPA (Delaware), President and Chief Executive Officer of CGA-Canada. "The CGA Independence Standard provides an assurance engagement framework for auditors and meets stringent international and Canadian regulatory requirements."
Corporate wrongdoing, which resulted in a widespread loss of public trust in financial reporting, increased pressure for transparency and better governance. CGA-Canada, recognizing the need to restore that public trust, developed the CGA Independence Standard in 2004 to strengthen accountability and transparency.
The CGA Independence Standard requires an auditor to identify threats to independence and adopt appropriate safeguards to protect the public. It also addresses the concerns that accounting firms be able to conduct engagements and provide an audit opinion free from client influence or other conflicts of interest.
"Already acknowledged by the CGA Code of Ethical Principles and Rules of Conduct (CEPROC), this rule change requires CGA firms that are participants in CPAB's oversight process to adhere to the CGA Independence Standard," adds Ariganello. "We are pleased the CGA Independence Standard has been endorsed and that CGAs will continue to provide high quality assurance services under CGA rules."
The CGA-Canada Independence Standard can be viewed at www.cga-online.org/canada.