Cessation of practice and closing of a firm
Members who cease to practice the CPA profession as set out in section 4 of the Chartered Professional Accountants Act must transfer the records, books and registers they are required to keep as members of the Order to a practicing CPA or, if they are unable to do so, to the Order, as stipulated by the Règlement sur la tenue des dossiers et des cabinets de consultation et sur la cessation d'exercice d'un membre de l'Ordre (the Règlement).
The following situations would result in the cessation of practice:
- closing a firm to take up a position in a business, an institution, the public service, or an educational institution, or to operate a business
- resigning or being struck off the roll of the Order
- the death of a member who offered to the public services included in the definition of the CPA profession as set out in section 4 of the Chartered Professional Accountants Act
The Règlement does not apply when the firm in which the member practiced continues to be operated by other partners who are still practicing. The Order must, however, be notified of any changes to the firm’s structure.
When a member ceases to practice within a firm, he must notify the Order within the time period specified in the Règlement and provide the following information:
- the name and contact information of the transferee
- the date of cessation and a copy of the cessation agreement signed by both parties
- a list of active and inactive files for the past five years, the type of engagements performed and the year they were performed, and the fiscal year end for each one
- confirmation of the physical transfer of the files (active and inactive for the past five years) to the transferee and receipt by the transferee
- a copy of the notice sent to the firm’s clients informing them of the situation and providing the name and contact information of the transferee
- written confirmation of the professional activities of the CPA who is ceasing to practice within a firm
If you have any questions regarding the cessation of practice or closing of a firm, please contact us by email at email@example.com.