What is a Certificate of Public Practice (CPP)?

It’s an additional qualification required by Chartered Accountants who are principals in public practice. The position titles they use may vary but what they all have in common is that they are principals of the firm. For example, this includes directors of corporate practices, partners in partnerships and trustees.

Factors to consider in determining whether you are a principal of a practice entity include whether:

• You have responsibility for the standard of professional work undertaken by the practice entity and management of the practice's activities, including: client selection and retention, determining the terms of the professional engagement, the type and quality of professional services provided, risk management, and the exercising of professional judgement in ethical and technical matters
• Your individual acts are binding on the practice or other principals of the practice
• You have the potential for personal liability for the practice's liabilities
• You have a role in the governance of the practice
• You have responsibility for signing off on professional engagements
• You are acknowledged in the PI policy of the practice as a person responsible for professional engagements
• You are promoted to clients and potential clients as the person responsible for professional engagements
• The perception of clients and suppliers of you is of a person who is able to bind the practice.

A principal, partner, director, officer or trustee of a related entity of the practice may also be considered to be a principal of a practice entity.

More information on who is required to hold a CPP can be found in Regulation 702.1 of the Member’s handbook.

Alternatively, you can ascertain whether you need a CPP by using the interactive guide ‘Do I need a CPP’.

Article last updated 22 December 2011