Ethics Update

December 8, 2023

 

Hello Members,

 

As CEO, I maintain responsibility for overseeing the CPB Canada Ethics portfolio. I do this in conjunction with several groups, and each year, I must deliver an annual report to the Board of Directors.

 

This report documents the volume of ethics complaints received by CPB Canada, those investigated with recommendations/next steps outlined, and the resources utilized by the association.

 

CPB Canada will now provide a similar update each year to the membership. Without direct attribution or personal information, the following outlines the activity and outcomes related to how CPB Canada managed its Code of Ethics and Professional Conduct regime over the past year.

Total Numbers of Ethics Complaints Received

9

Valid Ethics Complaints (related to a member of CPB Canada)

5

Complaints that went to the Investigation Panel

3

Number of Complaints with Recommendations from an Investigation Panel and a Decision/Sanction from the Ethics and Discipline Committee

3

Complaint #

Decision/Sanction

2023-02

• The CPB holding member was found to have issues in providing appropriate Duty of Care to their client surrounding filing a terminal return and estate claim.
• The Ethics and Discipline Committee required this member to complete targeted training and development within an agreed-upon 6–9-month period.

2023-03

• The CPB holding member was found to have fallen short of the Duty of Care for a client, leading to CRA penalties. The member failed to provide sufficient support and communication following the error due to a lack of business continuity.
• The Ethics and Discipline Committee required the member to take the appropriate tax training and consult a professional service to strengthen their engagement process around roles, responsibilities, and continuity provisions.

2023-04

• A non-certified member of CPB Canada was found to be in dispute with the client over a non-refundable deposit. As part of the investigation, it was revealed that the member was exaggerating and misrepresenting credentials – including the CPB designation.
• The Ethics and Discipline Committee recommended membership suspension pending verification of falsified credentials. The member is currently suspended.

The table above notes the outcomes of a fulsome complaint, review, and investigation process (guided by approved policy) that concludes with recommendations from the Ethics and Discipline Committee. Please see the visual depiction below for a more detailed review of our process.

Additional Updates from 2023:

1. CPB Canada offered a four-part Ethics Seminar Series this year from Michael Lewis. This well-attended series introduced ethics training more regularly to the membership – following the requirement for one CPD unit dedicated to ethics-related training/development. Keep an eye out for more training in 2024.

2. The CPB Canada Board of Directors has approved a new mechanism for the association to suspend any member involved in criminal activity. From now on, CPB Canada will automatically institute a temporary membership suspension for any members charged with a criminal offence or face serious civil litigation, pending the outcome of the legal proceedings.

This decision was rendered considering recent events involving a former CPB Canada member who was recently convicted of theft and fraud.

This decision mirrors many regulatory and professional credentialing bodies. It allows the association to protect the reputation of our membership and community while allowing time for due process to occur.

 

Conclusion

As CPB Canada members, your association must remind you that you are bound to deliver your bookkeeping and professional services to a high standard of professional conduct and ethics. In doing so, the bookkeeping profession is elevated in Canada through greater respect, credibility, and trust with clients in small businesses and employers across Canada.

CPB Canada – through each of you – is setting this standard. With each passing year, we grow taller as professionals because of it.

 

Sincerely,

Rick Johal, CAE, MPA
Chief Executive Officer