MRA between US CPA and Canada CPA

Introduction

A Mutual Recognition Agreement (MRA) is an agreement between two national accounting institutes/bodies that provides a window for its members to practise the accounting profession in both countries without having the need to undergo the entire process of qualification. This is more like having a dual degree thereby allowing one to have an international presence of their accreditation. It gives wings to dreams of business expansion across the countries and truly becoming an MNC.

A prime example of such an MRA is one between the AICPA and Canada CPA wherein member CPAs of both these institutes can freely carry out professional activities in each other’s country. This MRA between all Canadian CPA bodies and all state boards of AICPA came into effect in January 2018.

Both AICPA and Canada CPA have signed MRA/MOUs with many similar institutes across the world. Listed below are the countries that these two have agreements with:

US CPAs seeking Canada CPA membership

MRA between the US CPA and Canada CPA allows a US CPA-holder following rights and benefits:

• Use the CPA designation in Canada
• Be registered in Canada
• Provide audit services to Canadian firms
• Provide other services or licensure

Eligibility Requirements

Only a member with good standing with a US State Board along with the following requirements would be eligible to obtain a Canadian CPA degree:

• Possess at least 150 CPE credits including a baccalaureate or higher degree
• Must have passed all 4 US CPA exams.
• Must have at least 30 months of relevant professional experience (2 yrs of post qualification exp. is eligible)

Further, the US CPAs who are or have been Canadian residents must meet two additional requirements:

• Obtain a university degree having attended curriculum in person on a full-time basis
• Have at least one year of practical working experience in the field of accounting in the USA

Exclusion notes: The US CPA members who have obtained this credential on the basis of an MRA/MOU between AICPA and other institutes are not eligible for this facility.

Process for General Membership

A US CPA member seeking Canada CPA designation must comply with the following steps to obtain this credential:

• Register with an apt Canadian regional/provincial body (click here for a list)
• Apply by filing the International Candidate Application Form with a regional/provincial body
• Obtain a letter from the US State Board confirming your good standing directly to the Canadian CPA body
• Provide a government ID proof of your legal name
• Provide a detailed resume mentioning your past work experience
• Pay appropriate fees determined by respective regional/provincial CPA body
• Adhere to any additional requirements which may be warranted by the regional/provincial CPA body

Note: A candidate must also complete a 20-hour CPA Reciprocity Professional Development (CPARPD) course within a period of two years from the date of admission as a member. This course seeks to provide insights into Canadian tax, law and ethics.

Process for Canada CPA License

The following conditions must be met before one is eligible to practise license in Canada:

• Meet additional Canadian CPA requirements incl. a minimum of 1,250 chargeable hours in assurance services wherein at least 625 hrs. are for auditing historical financial information. This auditing experience can also include the past experience of practising in the USA, subject to it being obtained within a period of 5 years from your application for the Canada CPA
• Adhere to any additional experience requirements specific to the respective provincial/regional CPA body
• Complete the CPA Reciprocity Education and Examination (CPARE) programme.