End of CFEs and PERT from 2025

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Update May 2024: CFEs to continue to 2027

Please see this NEW BLOG POST on the update that the CPA Canada New Certification Program is expected to be released in 2027.

Original post: CPA Canada New Certification Program

Per January 2024 updates, the CFEs may be offered until at least 2026. According to the CFE registration portal and stakeholder update meeting (see screenshots below), CFEs are planned to be offered in 2025, 2026 and 2027 (May and September).

More recent May 2024 update is available here. The program has been postponed to 2027.

I believe this extension was necessary because students enrolled in the current CPA education program need time to complete their certification under the existing program. 

Additionally, according to CPA Canada FAQs, you may be given a choice to transition to the new Certification Program once it’s live. For example, if the new program goes live in 2025, and you’re in your electives, capstones, or the 1st or 2nd attempt of CFE, you may be given a choice to finish under the current program, or transition to the new program. There are no further details at this point, it’s not clear if you’ll need to start the new program from scratch or you’ll be placed at a higher level. It’s also not clear whether students who have not passed CFE 3 times and were de-registered will be allowed to re-enroll into the new program. I will update this post as I get new information.

 

Changes to the CPA Canada education program

If you’re a CPA candidate or an accounting professional, you may have heard of the CPA Canada Competency Map, a document that outlines the technical and enabling competencies required to become a Chartered Professional Accountant (CPA) in Canada. The Competency Map has undergone a massive transformation with the introduction of Competency Map 2.0, a new roadmap for CPAs.

As a result of the implementation of Competency Map 2.0,  the current education program (PREP, PEP, CFE, PERT) will be fully replaced from 2025-2027.

In this post, I’ll take a closer look at Competency Map 2.0, its impact on the CPA education program, and what you can expect if you’re planning to become a CPA in the next few years.

What is Competency Map 2.0?

Competency Map 2.0 is the newest edition of the CPA Canada Competency Map. As a result of the update, the CPA certification program (PREP, PEP, CFE, PERT) will undergo changes from 2025 to 2027. The new program will be called the New Certification Program.

The New Certification Program will focus on specific and foundational competencies, such as diversity, equality, inclusiveness, and indigenous views. The program will be divided into specific, foundational, sub-foundational, and decision-making competencies.

The move towards Competency Map 2.0 and the New Certification Program is driven by CPA Canada’s belief that technical questions can be easily answered using AI, Google and Excel, and that the focus should be on critical thinking skills instead. As a result, the new program will feature complex cases instead of multiple-choice questions (MCQs) and potentially introduce other ways of testing, such as interviews, group projects, and presentations.

What are the New Certification Program changes?

Competency Map 2.0 will bring a number of significant changes to the CPA education program. Here are the most notable changes:

  • No more CFEs: From 2025 to 2027, the entire CPA education program is planned to be replaced, and there may be no more Common Final Examinations (CFEs) as we know it. Instead, the new program will be designed from the ground up. CFEs may be continued to be offered beyond 2025 until all current students finish their certification, however new students will be placed into the new certification program.
  • No more PREP, PEP, electives: The concept of studying PREP then PEP, and choosing electives, will disappear.
  • New PERT: With the high volume of complaints against PERT, it will be removed and replaced by a new experience reporting system.
  • Micro-credentials: The new program may introduce micro-credentials, allowing candidates to earn mini-certificates as they advance through different levels of the program.
  • Focus on critical thinking: The new program will focus more on critical thinking skills and less on technical knowledge. Technical and enabling competencies will be replaced by new competencies.
  • New ways of testing: There may be other methods of testing, such as interviews, group projects, and presentations.

What can you expect?

If you’re a CPA candidate, or planning to become one, you may have questions about what to expect from Competency Map 2.0. Here are some things to keep in mind:

  • Legacy path: If you’re already in the CPA program or planning to write the CFE in 2025, there will be a legacy path to help you complete the program using the current CFE exam. More info on CPA Canada’s website here.
  • Switching programs: If you’re already in the CPA PREP or PEP programs, you may be thinking of waiting and switching to the new program. This policy is still under development and I will update this post as I get information whether this will be allowed.
  • Glitches and bugs: As with any major change, there may be glitches and bugs in the new program. It may be a good idea to wait for a few months or a year before starting the new program to allow other students to go through it first and identify any issues.
  • Input: CPA Canada is seeking feedback from stakeholders, including educators and employers, on what the new program should look like. If you have suggestions, feel free to provide your input to me and I’ll send those to them on your behalf.

It’s important to note that the new program is being build from ground up and there will be several feedback sessions. No one knows what the new education program will look like. Though unlikely, we may still have a three-day final examination if stakeholders ask to keep it. The new program will undergo several iterations before it’s finalized.

Conclusion

The New Certification Program is a the biggest change to the CPA education program since the unification of CA, CGA and CMA legacy designations in 2014. The new program will focus on specific competencies, potentially introduce micro-credentials, and feature complex cases and other ways of testing. While there are many unknowns, CPA Canada is seeking input from stakeholders, and legacy paths will be available for current CPA candidates.

If you’re planning to become a CPA, it may be a good idea to subscribe to my YouTube channel to stay informed about the changes and how they will impact you.