On Tue, Apr 5, 2022 at 2:57 PM Dimitris Zacharopoulos <[email protected]>
wrote:

> Hi Moudrick,
>
> CPA Canada is not like a NAB in Europe. NABs supervise CABs which means
> they assess/examine/review audit work of CABs - I believe - on a yearly
> basis and decide on the accreditation of the CAB. CABs are "assessed" by
> NABs similarly as CAs are audited by CABs.
>
> I am not sure CPA Canada works this way. Based on past discussions, please
> correct me if I'm wrong, my understanding is that WebTrust audit firms have
> a peer-review process (not sure if it is annual or not) which means that
> audit firms examine other audit firms' audits.
>
> IMHO CPA Canada is more analogous to ACAB-c than to a NAB but with more
> "power"/authority over the WebTrust program (closer to the powers of EA
> https://european-accreditation.org/). ACAB-c has no authority over
> NABs/CABs or ETSI standards.
>

The analogy there is not quite correct.

For example, to use North Carolina as an example: North Carolina General
Statute Chapter 93 [1] sets forth rules regarding the use of the title
"accountant" (and CPA), and established the Board of Certified Public
Accountant Examiners as a professional licensing board. The Board is
responsible for enforcing the Rules of Professional Conduct, as adopted by
the Board. In North Carolina, for example, the board incorporates, by
reference [2], the statements on auditing standards developed by AICPA [3],
such that it is it is reason for discipline to claim to be a CPA without
being licensed as one, or as a CPA, to fail to adhere to the professional
standards as established by AICPA. AICPA is itself a Professional
Accountancy Organization (PAO) that is a member of IFAC [4], which works to
developed harmonized International standards which can correspondingly be
incorporated (by reference) into various laws, treaties, etc, e.g. ISAE
3000 [5].

Thus, to demonstrate how poorly the concepts map, CPA Canada here behaves
similar to ETSI, with respect to developing audit criteria and standards
that satisfy regulatory needs (e.g. incorporation, by reference, of AICPA
standards, CPA Canada standards or ISAE 3000 standards). The standards for
conducting such audits behave similarly to Implementing Acts with respect
to eIDAS, in that they have legal weight and recognition (and penalties for
violating). IFAC functions as a somewhat mix between ACAB-c, ETSI, and EA,
of which CPA Canada is a member, but that's somewhat orthogonal. Individual
jurisdictions (e.g. North Carolina) can establish agencies (e.g. NC Board
of CPA Examiners) that can function as NAB-like equivalents, while the
WebTrust Task Force and CPA Canada functions akin to a Supervisory Body
with respect to the WebTrust scheme, and like the NAB with respect to CABs
against that scheme.

Hopefully you can see it's a bit of Apples and Oranges, in that these
aren't necessarily equal things, and the concepts don't map cleanly between
them.

For example, under the EA model, you have separate entities enforcing
compliance with various aspects: the NABs enforce standards on the CABs,
but may not supervise scheme-specific activities, which are deferred to a
separate entity (the Supervisory Body, e.g. in the case of eIDAS). ETSI may
develop standards, both TS and EN, with the latter involving votes
according to the ENAP [6], but those don't necessarily have legal weight to
them, although they can (e.g. through implementing or delegated acts). CABs
may incorporate those ETSI requirements (e.g. to fulfill certain legal
objectives), or may develop their own schemes that incorporate parts, or
none, of the ETSI work, if fulfilling market goals rather than legal goals.
The NAB accreditation of the CAB may only extend relevant to the
fulfillment of the legal objective, and not necessarily provide the same
degree of oversight or supervision for those market goals, dependent on the
scheme. ACAB'c, however, provides a degree of voluntary scheme
harmonization and supervision, to address that gap between audits being
used for presumptive legal goals versus those satisfying market needs and
requirements.

Although the comparison to ACAB-c and CPA Canada (since WebTrust is just a
brand of a product by CPA Canada, and the WTTF is partially part of CPA
Canada) may be tempting, I hope you can see that there are differences in
what they provide and do. The comparison might be more apt if ACAB-c was
developing internationally recognized and harmonized standards that were
incorporated (e.g. by implementing or delegated acts by the EC), and if
there were legally-recognized consequences for failing to uphold the code
of conduct of ACAB-c (as there is with respect to CPA Canada's standards),
but that's not quite the case.

This ties back with my explanation to Kathleen, in that the lack of a
WebTrust license may mean that the entity performing the audit is not
recognized as a CPA within the construct of IFAC's standards around audits
and attestations, unless independently verified (as in the case of North
Carolina, above). There's no single role within the "ETSI" framework to
reflect this: it combines portions of the NAB/EA, portions of ISO (e.g.
17065, although ISAE 3000 is _far_ more descriptive and prescriptive),
portions of the Supervisory Body for a particular scheme, and portions of
ACAB-c for verification of suitability.

[1]
https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_93.pdf
[2]
https://regulations.justia.com/states/north-carolina/title-21/chapter-08/subchapter-n/
[3]
https://regulations.justia.com/states/north-carolina/title-21/chapter-08/subchapter-n/section-08n-0403/
[4]
https://www.ifac.org/about-ifac/membership/members/association-international-certified-professional-accountants-aicpa
[5]
https://www.iaasb.org/publications/international-standard-assurance-engagements-isae-3000-revised-assurance-engagements-other-audits-or-0
[6] https://portal.etsi.org/Resources/Standards-Making-Process/Process

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