What is the Canadian Institute of Chartered Accountants (CICA)?
The Canadian Institute of Chartered Accountants (CICA) is a professional organization that previously represented chartered accountants in Canada. Its primary purpose was to provide leadership on behalf of the accounting profession, establish accounting and auditing standards, and promote high standards of competence and integrity among its members.
Key Functions of CICA
- Standard Setting: CICA was responsible for developing and implementing accounting and auditing standards tailored to Canadian businesses and organizations.
- Guidance: The institute provided comprehensive guidance on accounting practices, financial reporting, and governance.
- Professional Development: CICA offered educational resources, certification programs, and continuing education opportunities to ensure accountants remained at the forefront of industry knowledge.
- Advocacy: Representing the interests of chartered accountants nationally and internationally, advocating on regulatory and policy issues.
Examples of CICA’s Influence
- Handbooks: The CICA Handbook, now the CPA Canada Handbook, has been a cornerstone resource providing detailed accounting and auditing guidelines essential for professionals in the field.
- Standards: CICA played a pivotal role in the development and promotion of Canadian Auditing Standards (CAS) and Accounting Standards for Private Enterprises (ASPE).
Frequently Asked Questions (FAQs)
What happened to the CICA?
In January 2013, the CICA merged with The Society of Management Accountants of Canada (CMA Canada) and The Certified General Accountants Association of Canada (CGA Canada) to form the Chartered Professional Accountants of Canada (CPA Canada).
Was the CICA only responsible for standards in Canada?
While its primary focus was Canadian accounting and auditing standards, the CICA also worked internationally, participating in global discussions to influence and stay aligned with international accounting practices.
What kinds of resources did the CICA provide?
The CICA provided handbooks, publications, guidelines, webinars, and educational material to support ongoing professional development and keep accountants informed of current best practices.
Related Terms
- CPA Canada (Chartered Professional Accountants of Canada): The unified body that now represents Canadian accountants, formed from the merger of CICA, CMA Canada, and CGA Canada.
- CAS (Canadian Auditing Standards): The set of standards for auditing and assurance services in Canada, influenced by the work done by the CICA.
- ASPE (Accounting Standards for Private Enterprises): Specific accounting standards for private enterprises in Canada, initially developed with guidance from the CICA.
Online References
- CPA Canada
- International Federation of Accountants (IFAC)
- Financial Reporting & Assurance Standards Canada (FRAS Canada)
Suggested Books for Further Studies
- “Financial Accounting Theory” by William Scott and Patricia O’Brien
- “Canadian Advanced Financial Accounting” by Thomas H. Beechy and Joan E. Conrod
- “Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Accounting Basics: “CICA” Fundamentals Quiz
### What was the full name of CICA?
- [x] Canadian Institute of Chartered Accountants
- [ ] Chartered Institute of Canadian Accountants
- [ ] Canada Institution of Certified Accountants
- [ ] Chartered Institute of Commercial Accountants
> **Explanation:** The full name of CICA stands for "Canadian Institute of Chartered Accountants."
### Which organization did CICA merge with?
- [ ] Canadian Bureau of Standards
- [x] CMA Canada and CGA Canada
- [ ] Canadian Revenue Agency
- [ ] International Auditing Board
> **Explanation:** In January 2013, the CICA merged with The Society of Management Accountants of Canada (CMA Canada) and The Certified General Accountants Association of Canada (CGA Canada) to form CPA Canada.
### What was one of the key resources CICA provided?
- [ ] CICA Tenure Book
- [ ] Canadian Accountants Directory
- [x] CICA Handbook
- [ ] International Trade Guidelines
> **Explanation:** The CICA Handbook, now the CPA Canada Handbook, provided detailed accounting and auditing guidelines.
### What primary function did the CICA serve?
- [x] Standard Setting
- [ ] Tax Collection
- [ ] Employment Services
- [ ] Loan Facilitation
> **Explanation:** One of the primary functions of the CICA was to set accounting and auditing standards.
### When did CICA merge to form CPA Canada?
- [ ] 2005
- [ ] 2010
- [x] 2013
- [ ] 2018
> **Explanation:** CICA merged with other bodies in January 2013 to form CPA Canada.
### What is CPA Canada?
- [ ] An international trade organization
- [x] A unified body representing Canadian accountants
- [ ] A technology consultancy firm
- [ ] A provincial tax authority
> **Explanation:** CPA Canada represents Canadian accountants formed from the merger of CICA, CMA Canada, and CGA Canada.
### What are Canadian Auditing Standards (CAS)?
- [ ] Guidelines for marketing accountants
- [ ] Standards for managerial reforms
- [x] Auditing and assurance service standards in Canada
- [ ] Rules for international trade
> **Explanation:** CAS stands for the set of standards for auditing and assurance services in Canada.
### What type of standards did the CICA help develop for private enterprises?
- [x] ASPE (Accounting Standards for Private Enterprises)
- [ ] CIS (Commercial Income Standards)
- [ ] GPI (General Practice Instructions)
- [ ] LPI (Limited Profit Indicators)
> **Explanation:** CICA helped in developing ASPE, tailored for private enterprises.
### CICA was involved in international discussions for what purpose?
- [x] To align Canadian standards with global practices
- [ ] To create statewide legislations
- [ ] To promote local retail businesses
- [ ] To sponsor educational institutions
> **Explanation:** CICA participated in international discussions to ensure that Canadian accounting practices remained aligned with global standards.
### The merger that formed CPA Canada ensures what primary focus?
- [ ] Tax reduction for citizens
- [x] Unified representation and advocacy for all Canadian accountants
- [ ] Establishing real estate guidelines
- [ ] Monitoring international migration
> **Explanation:** CPA Canada's primary focus is to provide unified representation and advocacy for all Canadian accountants.
Thank you for exploring the detailed world of the Canadian Institute of Chartered Accountants (CICA). Keep striving for excellence in your financial knowledge and accounting prowess!
