Exceptions to reporting There are a few exceptions to rule 211 . You do not have to report breaches of the CPA Code if :
• Reporting would result in a breach of solicitor-client privilege ;
• The matter has already been reported to CPABC ;
• The matter is trivial , as mentioned in the previous paragraph ;
• You are specifically exempted by the CPABC board ( for example , if you are a CPABC practice review officer or professional standards advisor ); or
• You have a statutory duty of confidentiality , such as a statutory requirement of confidentiality contained in the Income Tax Act or the Securities Act .
Note that the exception regarding statutory confidentiality does not include civil nondisclosure agreements . For example — subject to the discussion that follows — even if you ’ ve signed an employment agreement or a commercial / professional agreement that requires confidentiality , you must still report any suspected breaches of the CPA Code to CPABC , regardless of the terms of those agreements . We recognize that the CPA Code requirements might create a dilemma for you — in the absence of an exemption , employers or clients might assume that you will not disclose any information without their consent and might resist your obligation to report about a CPA ’ s conduct ( including your own ). Some might even be reluctant to engage you because of the reporting obligation . Since reporting to CPABC without an employer ’ s knowledge or consent could result in a claim against you , be careful about the terms of any employment agreement you sign ; in fact , you should consider obtaining legal counsel before signing employment agreements . In client situations , you should inform your client that while you will seek their consent to report the information , the CPA Code obliges you to report even if their consent is not forthcoming . Moreover , you should make it clear that your obligation to the public and to the profession must prevail .
Rule 211 also contains exceptions for those involved in litigation support engagements that are criminal or civil in nature . If you are engaged in a civil or criminal investigation , you do not need to report the matter to CPABC until :
• The client or your employer consents to the release of information ;
• You become aware that third parties ( other than legal advisors ) are aware of the information ; or
• It becomes apparent to you that the information will not become known to third parties , other than legal advisors .
ACCOUNTANTS VALUE DIANE ’ S OPINION
Diane is an AIC-designated appraiser , a Canadian real estate valuation expert . Accountants , investors and fi nancial planners rely on AIC appraisers – AACI ™ and CRA ™ – for unbiased opinions and trusted advice on the value of real estate , including expert testimony before judicial and quasi-judicial bodies . Property taxes , estate settlement , foreclosure , retirement planning , capital gains tax , asset management , IFRS , mergers , acquisitions , and more – if it involves real estate , involve an AIC-designated appraiser .
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CPABC in Focus • Mar / Apr 2017 33