On April 10, 2024, the Quebec government introduced Decree 716-2024, bringing about significant changes to the Professional Code and the Code of Ethics for Chartered Professional Accountants. This decree, which focuses on the regulation of professional fees, has far-reaching implications for accounting practices in Quebec and could potentially influence practices across Canada. This article delves into the key provisions of the decree and examines its impact on the accounting profession
Decree 716-2024 places a strong emphasis on ensuring that clients are fully informed about the financial aspects of the services they receive. Before any work is undertaken, CPAs must provide comprehensive details regarding billing methods, estimated costs, and must obtain the client's consent. If there are any changes in costs, CPAs are required to notify the client promptly. This focus on transparency is designed to build and maintain trust between CPAs and their clients.
The decree mandates that CPAs gather all relevant information before proposing fees for their services. This requirement ensures that fee proposals are well-informed, fair, and justifiable, reflecting the complexity and scope of the work involved. By adhering to this standard, CPAs can avoid disputes and ensure that their fees align with the value of the services they provide.
A cornerstone of Decree 716-2024 is the requirement for CPAs to charge fees that are fair and reasonable. Fees must be proportionate to the services rendered and justified by the circumstances of the engagement. This provision aims to protect clients from being charged excessive fees and ensures that CPAs maintain ethical billing practices.
The decree also highlights the importance of ongoing communication between CPAs and their clients. CPAs are required to keep clients informed about the progress of their work and to bill them regularly. This regular communication helps to manage client expectations, reduce the likelihood of disputes, and enhance overall client satisfaction.
In cases where fees are conditional on specific outcomes, the decree ensures that CPAs maintain their objectivity and independence. CPAs must obtain written consent from the client and document the agreed-upon terms and measures to mitigate any potential risks. This provision is crucial for upholding the integrity of the profession.
The implementation of Decree 716-2024 is likely to bring about substantial changes to accounting practices in Quebec. By prioritizing transparency, ethical billing, and continuous communication, the decree fosters greater trust between CPAs and their clients. Clients are better positioned to make informed decisions and can have confidence in the fairness of the fees charged.
While the decree is specific to Quebec, its principles may inspire similar regulatory changes in other provinces. The emphasis on transparency and ethical billing could prompt national accounting bodies to consider integrating these standards into their own codes of ethics. This would promote consistency and elevate professional practices across Canada.
Quebec's Decree 716-2024 represents a significant advancement in the regulation of professional fees within the accounting profession. By emphasizing transparency, fairness, and client communication, the decree sets a new standard for ethical practices. As the accounting landscape continues to evolve, these provisions may serve as a model for best practices throughout Canada. At Write-Up, we are committed to supporting accountants in navigating these changes and maintaining the highest standards of professional ethics. Explore our platform to learn how we can help you manage your accounting practice with efficiency and integrity.