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Are sustainability reports fundamentally different from financial statements? Armand Capisciolto says, not really. Both deliver information that providers of capital seek before making investment decisions.
So, what is the CPA’s role with these information documents?
Through the application of accounting standards, CPAs add credibility to the information in financial statements. Then as auditors, CPAs provide an additional layer of credibility to that information. By applying these core competencies, Armand believes accountants, not MBAs or environmental scientists, are best positioned to set the standard for sustainability reporting.
Armand Capisciolto is the National Accounting Standards partner at BDO Canada and the interim chair of the Canadian Accounting Standards Board.
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
In 2021, Guy Cormier wrote an opinion piece published in the National Observer titled It's Time to Give Capitalism a Do Over.
Mr. Cormier’s editorial is part of a debate that's been gaining momentum in the past few years. Broadly speaking, the debate is between traditional shareholder capitalism and the rise of stakeholder capitalism. A 1997 U.S. Business Roundtable argued that the paramount duty of directors is to serve the interests of shareholders. Guy Cormier has a very different view.
Guy Cormier is the president and CEO of Desjardins Group. Desjardins is a Canadian Financial Services co-operative based in Quebec. It is the largest federation of credit unions in North America. Last year, in 2021, it made nearly $3 billion in after-tax income.
Disclaimer: The views and opinions expressed in this podcast are those of the guest and do not necessarily reflect that of CPA Canada.
The rise of sustainability in business reporting requires CPAs to develop new skills and a new knowledge set. This may seem daunting, but Blake Phillips sees it as a way of future-proofing your career.
Blake Phillips is the director of the School of Accounting and Finance at the University of Waterloo. He is the co-developer of a new program at the university, one that is aimed at training tomorrow’s green financial experts. The Bachelor of Sustainability and Financial Management officially starts in Fall 2022. The program’s fusion of sustainability and financial management is unique in Canada and highlights the integrated set of skills that will be in high demand in coming years.
Phillips makes the point that accountants, who are well versed in financial systems, need to ensure that they gain the appropriate knowledge to understand financial, social and natural systems equally.
University of Waterloo Sustainability and Financial Management program
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
Is the shift toward sustainability an added burden or a new opportunity for CPAs? Bettina Pierre-Gilles argues that we are entering a sort of golden age for accountants.
As Pierre-Gilles explains, this is a fantastic time for CPAs. They have the opportunity to be at the start of this next societal wave where companies, society, and regulators are coming together to achieve a common goal.
Bettina Pierre- Gilles is the founder and CEO and President of Luxeum Renewables Group Inc. in Calgary. She is also a director on multiple boards, a former provincial political candidate, a former CFO and a business consultant to Indigenous groups.
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
The rise in globalization and the ever-increasing sophistication of corruption schemes have exponentially expanded the scope of the professional accountant’s role. The challenges CPAs currently face are significantly different from those encountered 20-25 years ago. It is important that CPAs rise to this challenge and equip themselves with the knowledge and skills to effectively combat misconduct at both a local and global level.
Our first guest, José Hernandez is the Founder and Chief Executive Officer of Ortus Strategies, a consulting firm that helps companies rebuild ethics and compliance programs. Prior to this, he founded FGI Europe and has been closely involved in unraveling many high-profile corruption cases over the past two and a half decades. He frequently offers expert testimony to legislatures, parliament, and governments on combatting corruption.
“The first lesson is that accepting, tolerating corrupt regimes for an extended period of time, does inflict a tremendous human toll” says José, “in many ways, we’ve become too complacent… We really have to fight, and as accountants, custodians of this financial system. We need to fight even harder.”
Michele Wood-Tweel speaks to the need for legislation to keep up with the ever-evolving practices of financial criminals, particularly in this country. Michelle is CPA Canada's Vice President of Regulatory Affairs and supports the council of chief executive's public trust committee.
“Corruption is ramping up across the globe and Canada is not immune. In the CPA profession, we have to be aware that the risk is ever-present.” Michele comments, “we have to be super aware of what is taking place. We have to rise to the occasion to make sure that we're asking the right questions.”
Episode 8 explores the responsibility of the CPA role in a global effort to combat corruption.
Key Takeaways:
1:32 - What the current situation in Russia/Ukraine can teach us about corruption
2:50 – The impact of international fraud on accountants
4:34 - The SNC Lavalin case
6:00 – How corruption has changed in the last few decades
8:29 – New challenges CPAs are facing
15:45 – How the Canadian government is trying to keep up with money laundering, particularly with the rise in virtual currency
19:26 – Examples of money laundering within Canada and what it means for Canadian accountants
21:27 – What to look out for as a CPA and how to stay on top of these rapid changes
For more information on Canada’s anti-money laundering and anti-terrorist financing legislation (AML/ATF), please visit the following:
AML/ATF Guide:
Guide to comply with Canada’s anti-money laundering and anti-terrorist financing (AML/ATF) legislation
AML Resources:
Anti-money laundering resources
Learn more about CPA Canada's Foresight initiative, go to foresight.cpacanada.ca
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
Dans ce septième épisode de la deuxième saison du balado, Jean-Sébastien reçoit Pierre-Yves McSween, un invité qui porte plusieurs chapeaux. Effectivement, Pierre-Yves est non seulement CPA, mais aussi chroniqueur à la radio et animateur de l'émission L'indice McSween sur les ondes de Télé-Québec, en plus d’être l’auteur de plusieurs livres dont le livre : En as-tu vraiment besoin ? Il a aussi un passé en enseignement. Cet homme à tout faire réinvente la profession comptable traditionnelle en vulgarisant les règles du jeu financier au grand public à travers ses livres et les médias.
Au cours de l’épisode, Pierre-Yves nous éclaire sur son cheminement et sa routine hors du commun ainsi que sur sa façon de voir et de vulgariser les finances personnelles. Il explique aussi la plus-value que lui apporte sa formation de CPA au sein des médias. Finalement, il nous partage ses prédictions sur l’avenir de la comptabilité.
« Tu sais, les normes comptables, ça sert aux comptables et aux entreprises, mais les finances personnelles, ça touche 100 % des humains sur Terre. Même ceux qui ne sont pas financiers, ils vivent des conséquences économiques, ils vivent, disons, le mécanisme très violent du capital. Et donc, je me suis dit: Dans la vie, il vaut mieux apprendre aux gens à se servir des règles du jeu que de les combattre parce que les combattre, c'est long, tandis que savoir s'en servir, c'est accessible rapidement. »
[01:16] : Pierre-Yves nous décrit sa semaine typique et sa façon de naviguer la chronique, les enfants, les tournages et l’écriture. Il s’agit de journées très chargées, où il se lève très tôt et se couche très tard.
[04:42] : La formation de CPA est à l’avantage de Pierre-Yves maintenant qu’il travaille dans les médias. La plupart des journalistes et chroniqueurs nécessitent l’aide d’autres personnes pour bien comprendre l’information qu’ils doivent rapporter. Ce n’est pas son cas. Effectivement, il est en mesure de trouver et de comprendre l’information pertinente en seulement quelques secondes.
[05:41] : La vulgarisation devant les médias peut être comparée à l’enseignement, la différence étant le micro et le nombre de personnes qui reçoivent le message. L’enseignement a bien préparé l’invité pour sa carrière actuelle puisque c’est pendant son parcours en tant qu’enseignant qu’il a appris à répondre aux questions non préparées, parler en public et expliquer du matériel théorique en passant par l’humour pour une meilleure assimilation.
[06:42] : C’est à travers sa vie personnelle et en faisant lui-même face aux mécanismes du jeu financier que Pierre-Yves a goûté aux finances personnelles et qu’il s’est rendu compte que les gens n’avaient pas une bonne compréhension. Même certains comptables n’arrivent pas à optimiser leurs affaires. Ses expériences personnelles, jumelées à son expérience dans les banques pendant la crise financière, lui ont permis de développer beaucoup de bagage sur la compréhension technique du système et de se sentir utile.
[08:43] : Pierre-Yves nous explique qu’il ne vend pas du rêve. Il vend plutôt des mécanismes et explique les règles du jeu de la société, ce qui permet aux gens de mieux agir sur le plan financier et d’optimiser leur performance financière. Ces règles sont expliquées à travers ses livres qui nous éclairent notamment au niveau de la consommation, de la création de valeur et du jeu conjugal.
[10:18] : Les règles du jeu sont en constante évolution. Il faut donc revoir notre façon de jouer à chaque fois que le gouvernement sort de nouvelles mesures fiscales.
[14:12] : Si tu gagnes un million par année, ce n'est pas la même chose que si tu es CPA et que tu gagnes 39 000 $ par année en commençant. Toutefois, les deux cas sont soumis au même système et aux mêmes règles du jeu. Le livre de Pierre-Yves est donc universel et peut être adapté à la situation de tous.
[15:06] : À l’avenir, la comptabilité aura des logiciels comptables nuagés qui vont être programmés à l’avance. Les comptables seront donc plus dans l’analyse et le conseil puisque l’audit sera de plus en plus informatisé. Les humains serviront à créer l’architecture et lire les données. Les comptables seront amenés plus rapidement à avoir des rôles stratégiques et le support aux PME deviendra plus important.
Voir Demain est un balado réalisé par CPA Canada. Pour plus d'informations sur le projet Voir Demain, visitez le site: voirdemain.cpacanada.ca
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
In this episode, we're asking how AI can help CPAs make smart decisions about capital allocation? One area that is notoriously difficult to analyze is marketing.
Making smart decisions about marketing expenditures can be challenging because the correlation between marketing investment today and the long-term impact on financial results in the future is not obvious.
AI can help fill in this gap between decisions today and results months or years in the future.
Our first guest Dave Bunce is the CEO of Morphio, a company that uses A.I. to analyze the effectiveness of marketing investments. He says AI is valuable to CPAs because,
“It puts CPAs in the driver's seat of having access to information and insights they otherwise wouldn't have had, and that can apply across functions and across stakeholders.”
Our second guest looks at what CPAs need to do to ensure they remain in the driver’s seat and not become a passenger. Mario Malouin is a professor at the University du Québec de l’Outaouais and a member of the IEEE SBA Technology Experts Group. He breaks down the many steps CPAs need to take to feel confident in the data that they're getting from AI.
He says CPAs need to do more than examine what is the source of the data, how the algorithm has been trained, how it has been tested, and how it has been deployed in real life.
“You need to zoom out and understand what is the task you want to give to what I call those intelligent agents. And this is key.”
If you're interested in learning more about CPA Canada's Foresight Initiative, click on the link below.
Key Moments:
02:50 Dave Bunce describes a case study where his team analyzed the impact of marketing decisions on revenue.
06:50 Mario Malouin breaks down the steps CPAs need to take to ensure they remain in the driver’s seat with AI.
08:50 Mario describes the discussion CPAs need to have with their supplier of AI to feel confident it is the right tool for the right job.
12:27 How CPAs can choose between the various suppliers of off-the-shelf AI solutions.
18:55 How CPAs need to develop guiding principles like integrity or inclusion before embarking on any AI-enabled journey.
Links:
Mario Malouin
Morphio
Dave Bunce
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
>> This is the first of two French episodes this season. English listeners can find show notes below along with links to the English transcript <<
« Un CPA, c'est des professionnels qui ont une très grande polyvalence, mais en même temps la rigueur nécessaire pour faire l'audit. Ça nécessite une certaine vision, une capacité d'analyse, puis être en mesure de prendre tout le fruit du travail et être en mesure de synthétiser et de produire un rapport qui va être le plus porteur possible. »
Dans ce premier épisode en français de la deuxième saison du balado, l’animateur, Jean-Sébastien Marier, s’entretient avec la CPA et commissaire au développement durable au Québec, Mme Janique Lambert. Après plusieurs années à exercer ses fonctions de comptable en audit financier, Mme Lambert a choisi de dévouer la suite de sa carrière à l’audit de performance auprès du Bureau du Vérificateur général du Québec.
Toujours dans l’objectif d’explorer l’avenir de la profession de CPA, l’animateur et son invitée échangent sur l’importance de la multidisciplinarité au sein d’une équipe, la rareté et la portée du poste de commissaire au développement durable et l’ouverture du milieu privé à créer des postes d’auditeurs en matière d’environnement et de développement durable. Au cours de l’entrevue, Mme Lambert décrit également les trois types d’audits effectués au sein du Bureau du Vérificateur général du Québec ainsi que les différences entre chacun, soit :
[01:36] : Le rôle du commissaire au développement durable est visé par la Loi sur le Vérificateur général, qui prévoit essentiellement que le commissaire doit produire un rapport annuel portant sur l’application de la Loi sur le développement durable ainsi que sur le Fonds d'électrification et des changements climatiques.
[02:36] : Le Bureau du Vérificateur général du Québec touche à une grande variété de mandats portant sur une vaste gamme de sujets, allant de la gestion des eaux, à la production agricole jusqu’à la planification des mines au Québec et l’étiquetage des aliments.
[04:59] : Mme Lambert nous décrit son parcours unique. Après trois ans au sein de la firme Ernst & Young, elle s’est dirigée vers l’audit législatif en entrant au Bureau du Vérificateur où elle a d’abord travaillé en audit financier pour ensuite poursuivre en tant que directrice et finalement occuper le poste de commissaire au développement durable.
[07:10] : Dans le cadre des audits sur le développement durable, il est primordial d’avoir une équipe formée de membres diversifiés avec des spécialités et des parcours différents pour favoriser la création des meilleurs rapports d’analyse possibles.
[09:55] : La grande différence entre l’audit financier, plus traditionnel, et l’audit de performance est que l’audit de performance demande une plus grande aisance avec le fait de partir de zéro puisqu’il n’y a pas de rapport de l’année précédente, il faut donc commencer avec une page blanche.
[12:14] : Au niveau provincial, le poste de commissaire au développement durable du Québec est axé spécifiquement sur des mandats en développement durable tandis que les postes similaires au niveau fédéral ou des autres provinces mettent davantage l’accent sur des mandats en environnement.
[14:56] : Avec l’amélioration de l’administration publique via le poste de commissaire au développement durable et la pression venant des consommateurs et des investisseurs, le secteur privé sera sans doute influencé et ainsi forcé à rendre des comptes plus spécifiques sur sa gestion au niveau du développement durable et revoir ses façons de procéder et de rendre des comptes.
[17:05] : Depuis quelques années déjà, plusieurs firmes et grandes organisations sont investies dans la normalisation des ESG, mais on remarque maintenant un besoin de réguler et d’encadrer les informations pertinentes afin que les analyses puissent être comparées d’une entreprise à l’autre.
Pour en savoir plus sur l'initiative Devenir CPA, visitez le site web Devenir CPA
Le commissaire au développement durable
CPA French
CPA's Foresight Initiative
CPA English
Foresight: The CPA Podcast
=======================
Putting the auditing skills of CPAs to work for sustainable development
"A CPA is a professional who has a great deal of versatility, but at the same time the necessary rigour to perform an audit. It requires a certain vision, an ability to analyze, and then to be able to take all the fruits of that labour and be able to synthesize and produce a report that will be as informative as possible."
Janique Lambert, CPA and Commissioner of Sustainable Development at the Office of the Auditor General of Quebec.
In this first French episode of the podcast's second season, host Jean-Sébastien Marier talks with Janique Lambert, CPA and Commissioner of Sustainable Development in Quebec. After several years as a financial audit accountant, Ms. Lambert has chosen to devote the rest of her career to performance auditing with the Office of the Auditor General of Quebec.
Jean-Sébastien Marier and Janique Lambert, explore the future of the CPA profession, discuss the importance of multidisciplinarity within a team, the rarity and scope of the position of sustainable development commissioner, and the openness of the private sector to creating auditor positions in the area of environment and sustainable development.
Ms. Lambert also takes a moment to differentiate between the three types of audits carried out within the Office of the Auditor General of Québec:
Financial audit
Performance audit
Compliance audit
Key Moments
[01:36]: The role of the Sustainable Development Commissioner is covered by the Auditor General Act, which essentially states that the Commissioner must produce an annual report that reviews the application of the Sustainable Development Act and the Electrification and Climate Change Fund.
[02:36]: The Office of the Auditor General of Quebec has a wide variety of mandates on a wide range of subjects, from water management to agricultural production, to mine planning in Quebec and food labelling.
[04:59]: Ms. Lambert describes her unique background. After three years with Ernst & Young, she moved into legislative auditing by joining the Office of the Auditor General where she first worked in financial auditing and then went on to become a director and finally the Commissioner of Sustainable Development.
[07:10]: In sustainability audits, it is important to have a diverse team with different specialties and backgrounds to help create the best possible analytical reports.
[09:55]: The big difference between the more traditional financial audit and the performance audit is that the performance audit requires more comfort with starting from scratch since there is no report from the previous year, so you have to start with a blank page.
[12:14]: At the provincial level, the position of Sustainable Development Commissioner in Quebec is specifically focused on sustainable development mandates while similar positions at the federal level or in other provinces are more focused on environmental mandates.
[14:56]: The work of the sustainable development commissioner along with pressure from consumers and investors, will undoubtedly influence the private sector and force it to be more transparent about its management of sustainable development.
[17:05]: For some years now, many firms and large organizations have been involved in ESG standardization, but there is now a need to regulate and frame the relevant information so that analyses can be compared from one company to another.
To learn more about the Foresight CPA Canada initiative, visit CPA Canada’s Foresight Initiative
Sustainable Development Commissioner
CPA French
CPA English
Foresight: The CPA Podcast
Newly designated CPAs have a wide range of options ahead of them, but for many, the CFO office remains the ultimate goal. However, today’s CFO looks very different from decades past. Advanced technical skills are now just table stakes. CEOs are looking for CFOs to be strategic partners focused on growth and increasing shareholder value.
According to our first guest, this means aspiring CFOs need to accumulate a wide range of experiences beyond finance. Ross Woledge is Partner at Odgers Berndtson, an international executive search firm. He is head of the firm's CFO practice. Ross says CEOs are looking for CFOs who have experience running business lines, managing a wide range of employees and building value for shareholders.
“The technical is absolutely table stakes, and you need that. You can't get to the strategic without that, but having that strategic acumen, CEOs are absolutely adamant that that's what they want,” says Ross Woledge.
Geoff Lowe agrees with this. He is CFO for Enercare, one of North America's largest energy services providers. It's a bit of a switch from positions he held earlier in digital media and publishing with Rogers.
“Today's companies are so dynamic, and they require CFOs to have, really the full range of technical finance knowledge but also combined with having the requisite leadership skills, along with strategic and commercial acumen,” he says.
He adds, “Sometimes it's easier said than done.”
Today’s episode lays out a roadmap to the modern CFO office.
Key Takeaways:
1:15 - What recruiters are looking for when seeking CFO candidates
2:45 - How the CPA designation offers a critical competitive advantage to candidates
6:30 - Examples of CFOs whose career paths moved beyond finance
12:35 - Why we are entering the era of the CFO
14:17 - Judy Adam describes her journey to CFO of Fire and Flower
17:25 - Judy Adam describes how her role as CFO encompasses a lot more than just overseeing finance.
18:42 - Advice to CPAs who've got their sights set on the CFO position
Learn more about CPA Canada's Foresight initiative, go to foresight.cpacanada.ca
To learn more about Foresight: The CPA podcast or CPA Canada's Foresight Initiative visit:
Foresight: The CPA Podcast
CPA Canada's Foresight Initiative
CPA Canada English
CPA Canada (Français)
As organizations generate larger and larger amounts of data, traditional accounting practices like audits are increasingly difficult to perform effectively without the help of technology like AI. And while AI presents CPAs with the opportunity to expand skillsets and manage massive datasets, it also comes with significant risks.
In this episode, David McGuffin speaks with professional accountant Rachel Kirkham about how she navigates a path between the opportunities and risks of AI in her role as Vice President of Analytics and Data Science for the accounting tech firm MindBridge. She says a key risk is the potential for biases to creep into the ways data is collected and interpreted.
Rachel tells David, “There are a bunch of different things that you have to think about and there are techniques to mitigate against biases but it's about being aware of them as a data scientist. An awareness that this is something that you actually need to explicitly consider and manage as a risk.”
The narrow wedge between the promise and the perils of technology is what Laura and Brian Friedrich call the double-edged sword of technology for accountants. They wrote a paper exploring this issue in collaboration with CPA Canada, the International Federation of Accountants (IFAC), the Institute of Chartered Accountants of Scotland (ICAS), and the International Ethics Standards Board for Accountants (IESBA).
Brian tells David that balancing the risks and rewards of technology requires CPAs to bring their public interest mandate to the front of their professional practice,
“That's what has to be held above all else…when things start to look like they're crossing the line, or if there's a risk of them crossing the line that you're able to stand back and ask the important questions about what's this tech really going to be doing? And does it seem appropriate for us to do that? Has there been enough testing of those sorts of things?”
Key Moments:
4:31 Rachel Kirkham discusses the potential dangers of machine learning algorithms
5:42 Rachel describes steps that need to be taken to remove bias from algorithms
9:03 Rachel describes how AI can improve audits.
11:40 How the MindBridge algorithms were audited by University College London
14:03 Rachel speaks to how CPAs can balance the risks and opportunities of AI
16:00 Why the accounting designation came into play when designing and developing the Mindbridge AI
20:00 Brian Friedrich on the critical role CPAs play in managing the opportunities and risks of AI
21:38 Why CPAs need to keep their public interest mandate front and centre as these advanced tools evolve.
Resources:
CPA Canada Foresight Initiative
Technology is a double-edged sword
MindBridge
Rachel Kirkham
friedrich and friedrich corp.
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