Guiding Questions

and Practical
Experience Rubric
CPA PER Appendix A
April 2023

PRACTICAL EXPERIENCE REPORTING TOOL (PERT) | CPA STUDENTS/CANDIDATES

© 2023 Chartered Professional Accountants of Canada

All rights reserved. This publication is protected by copyright and written

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Table of contents
Am I performing at a Level 0, Level 1 or Level 2 proficiency?. . . . . . . . . . . . . . . . 1

Overview of Technical Competencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Financial reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Financial reporting needs and systems (FR1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Accounting policies and transactions (FR2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Financial report preparation (FR3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Financial statement analysis (FR4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Management Accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Management reporting needs and systems (MA1). . . . . . . . . . . . . . . . . . . . . . . . . 11
Planning, budgeting and forecasting (MA2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Cost, revenue, profitability management (MA3). . . . . . . . . . . . . . . . . . . . . . . . . . 15
Organizational/Individual performance Measurement (MA4). . . . . . . . . . . . . . 17

Audit and Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Internal control (AA1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Internal audit or external assurance requirements,
basis and risk assessment (AA2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Internal audit projects or external assurance engagements (AA3). . . . . . . . . 23

Taxation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Income tax legislation and research (TX1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Income tax compliance corporate or personal (TX2). . . . . . . . . . . . . . . . . . . . . 25
Tax planning: corporate or personal (TX3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Financial analysis and planning (FN1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Treasury management (FN2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Capital budgeting/valuation/ corporate finance (FN3) . . . . . . . . . . . . . . . . . . . 32

Strategy and Governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Governance, mission, vision, values and mandate (SG1). . . . . . . . . . . . . . . . . . 34
Strategy development/implementation (SG2). . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Enterprise risk management (SG3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
1 Guiding Questions and Practical Experience Rubric

Do you need to document your technical competency responses, but don’t

know where to start? This document will help guide you through the process!
Please click on the competency area that you feel applies to your role and use
the guiding questions to format your response.

Following this guide will help you meet our Practical Experience Requirements.
Please note that if you’re reading through the questions and they do not seem
to apply to your role, you may be filling out the wrong competency area.

Am I performing at a Level 0, Level 1 or Level 2

proficiency?
For each sub-competency area, please explain the work you do in this area
and the general frequency that the work is performed at a high-level. You
must ensure your response addresses all of the guiding questions and meets
the rubric requirements for the level you are targeting.

Clear, concise communications is essential for a successful CPA student/

candidate. All responses must stay within the borders of each PERT response
box and not exceed the 5,000-character limit. Any answers outside of the
PERT response box cannot be properly verified by your supervisor. Examples
must be kept within the PERT character limit, unless otherwise requested.

Prior to reporting on any sub-competency, keep the following in mind:

• Have an understanding of the competency area before reporting.
• Focus on the 8 to 10 sub-competencies that are key to your role.
• Use the Guiding Questions to facilitate and document your response.
• Use clear, concise writing instead of story writing.
• Focus on your most complex examples.

Please reference chart on the next page.

2 Guiding Questions and Practical Experience Rubric

Level 0 Retrieval and • Experience at an administrative or clerical level.

comprehension:
information
gathering, explain,
record, calculate

Level 1 Analysis: analyze, • Experience at the professional level but lower than what is
identify, research, expected of a newly certified CPA.
prepare • This can include experience with tasks that are routine in
nature, of a low to moderate level of complexity, and/or
are executed with a low to moderate level of autonomy.
• Tasks or issues are straightforward and can be compe-
tently achieved with a routine approach.
• Works under supervision with a lower level of autonomy.
• Performs some analysis, which would be reviewed by a
supervisor as part of a decision-making process.
Please provide 1-2 specific examples and specify how often
you perform this analysis.

Level 2 Knowledge utili- • This is likely a key requirement of your role.

zation: evaluate, • The experience level expected of a newly certified CPA
develop, review, with skills that are transferrable outside of your present
advise/recommend role/organization.
• This can include experiences on tasks that have a mod-
erate to high level of complexity and are non-routine or
require significant judgment with a moderate to high level
of autonomy.
• Medium to considerable difficulty is associated with a
number of variables and ambiguities that must be con-
sidered simultaneously; circumstances which may be
less clear and require approaches that are not practiced
frequently.
• Examples include evaluating analysis prepared by either
yourself or a junior staff member for the purpose of deci-
sion-making process or used to reach recommendations
or conclusions.
You can focus on one example per experience report, but
you must provide at least 3+ complex examples across your
duration and identify how often you perform this work. In
addressing the requirements of the sub-competency area, you
must show how you apply your judgment to specific work and
provide examples with complete and concise walk-through
descriptions.
Complexity considerations: significant judgment, solution is
not easy to get to, tasks where research is required, multiple
forms of analysis or alternatives considered, and/or multiple
systems or sources of information.
3 Guiding Questions and Practical Experience Rubric

Overview
of Technical
Competencies
FINANCIAL REPORTING
Do you assess the financial reporting needs of external financial statement
stakeholders? Additionally, do you adjust your approach and process to ensure
that those needs are met? Do you evaluate accounting policies or prepare
accounting transactions? Do you research within the Financial Reporting
Handbook to prepare accounting entries? Do you prepare or review parts of or
full sets of financial statements and note disclosures for external stakeholders?
Do you evaluate year-over-year actual changes as part of a financial statement
analysis?
• Financial reporting needs and systems (FR1)
• Accounting policies and transactions (FR2)
• Financial report preparation (FR3)
• Financial statement analysis (FR4)

MANAGEMENT ACCOUNTING
Do you prepare internal reports to support management decision making?
Are you involved in planning, budgeting or forecasting? Do you analyze
cost, revenue or profitability for your organization? Do you analyze the key
performance indicators of your organization’s employees and business units?
• Management reporting needs and systems (MA1)
• Planning, budgeting and forecasting (MA2)
• Cost, revenue, profitability management (MA3)
• Organizational/Individual performance measurement (MA4)
4 Guiding Questions and Practical Experience Rubric

AUDIT AND ASSURANCE

Do you perform internal audit or external assurance engagements? Do you
assess the control environment and the impact to the information systems
and related internal control processes? Do you perform audit planning and/or
testing procedures?
• Internal control (AA1)
• Internal audit or external assurance requirements, basis and risk assessment
(AA2)
• Internal audit projects or external assurance engagements (AA3)

TAXATION
Are you involved with tax research, tax planning, or preparing tax returns,
either for your organization or for an external client?
• Income tax legislation and research (TX1)
• Income tax compliance: corporate or personal (TX2)
• Tax planning: corporate or personal (TX3)

FINANCE
Do you assess any risks and ratios that could impact the overall health of the
organization? Do you evaluate or review financial risk management policies
and/or recovery plans? Do you assess the financial viability of business
proposals? Do you analyze financial models and evaluate the feasibility of
capital projects? Do you analyze cash flows and make recommendations?
• Financial analysis and planning (FN1)
• Treasury management (FN2)
• Capital budgeting, valuation, corporate finance (FN3)

STRATEGY AND GOVERNANCE

Does your role include analyzing and assessing the entity’s risk management
process and/or strategies? Do you provide recommendations on the strategic
plan, considering internal and external factors? Do you prepare information to
ensure your organization remains compliant with regulatory requirements?
• Governance, mission, vision, values and mandate (SG1)
• Strategy development and implementation (SG2)
• Enterprise risk management (SG3)
5 Guiding Questions and Practical Experience Rubric

Financial Reporting
Do you assess the financial reporting needs of external stakeholders (i.e. the
Board of Directors, investors, financers)? Do you adjust your processes to
ensure that those needs are met? Do you evaluate accounting policies or
accounting transactions in accordance with a financial reporting framework
(i.e. ASPE, IFRS, PSAS, etc.)? Do you research the Handbook to prepare
memos and/or accounting entries? Do you prepare or review parts of or full
sets of financial statements and note disclosures for external stakeholders in
accordance with this financial reporting framework? Do you evaluate year-over-
year historical changes as part of a financial statement analysis?

Notice to Public Accounting Students/Candidates

Depth in financial reporting requires you to work within a financial reporting
framework.

It is expected that Compilation engagements would allow you to achieve Level

1 (subject to the specifics of your experience meeting the requirements). At
least 425 assurance hours along with a duration requirement with sufficient
complexity and diversity in the client industries would be required to support
the Level 2’s needed.

OR

425 hours spent on complex accounting transactions where clients:

• follow a recognized framework, and
• are subsequently audited/reviewed by another firm and/or through
outsourced accounting duties that are determined to be sufficiently
complex in lieu of the required assurance hours.
6 Guiding Questions and Practical Experience Rubric

FINANCIAL REPORTING NEEDS AND SYSTEMS (FR1)

GUIDING QUESTIONS
To meet these requirements, you must include: who are the external
stakeholders of these financial statements and how do you assess their
financial reporting needs? What are their reporting or regulatory requirements?
Specialized financial reporting requirements could include developing reporting
for new external stakeholders. Also discuss one of the following:

1) How have you identified the appropriateness of the basis of the financial
reporting framework (i.e. ASPE, IFRS) and why were you required
to evaluate the financial reporting framework in your role? Providing
a discussion of why your organization follows a specific accounting
framework would be considered a Level 0 proficiency.

2) How have you evaluated the financial reporting systems, data

requirements or financial reporting business processes or controls to
ensure that the reporting needs of external users are being met? What
significant improvements have you made to support reliable external
financial reporting in accordance with the financial reporting framework?
Running existing reports from the system or completing straight forward
reconciliations without improving the financial reporting process would be
a Level 0 in this sub-competency area.

To be eligible for a Level 2 you must (1) be independently or autonomously

determining the needs of external users and (2) include your recommendation
to management and demonstrate how you have made significant
improvements to financial reporting systems or financial reports based on a
financial reporting framework (for example, creating new control processes,
automation, system improvements, ERP system implementations). Please
provide at least 1-2 examples for a Level 1, and at least 3 complex examples for
a Level 2.
7 Guiding Questions and Practical Experience Rubric

RUBRIC

Level 0 Level 1 Level 2

Use the accounting system to Analyze the financial Evaluate financial reporting
process transactions and/or reporting information information required by
generate reports. required by external external stakeholders,
stakeholders, including including regulatory
Verify mathematical accuracy
regulatory requirements (can requirements (can include
of financial information (sub-
include specialized financial specialized financial reporting
totals, totals).
reporting requirements); plus requirements); plus
Perform simple
(a) Analyze/identify the (a) Evaluate the
reconciliations.
appropriateness of the basis appropriateness of the basis
of financial reporting; or of financial reporting; or
(b) Analyze reporting (b) Evaluate reporting
systems, data requirements or systems, data requirements or
business processes to support business processes to support
reliable financial reporting reliable financial reporting
8 Guiding Questions and Practical Experience Rubric

ACCOUNTING POLICIES AND TRANSACTIONS (FR2)

GUIDING QUESTIONS
Please document how you have analyzed or reviewed accounting policies
or transactions in accordance with a financial reporting framework. Please
ensure you indicate the financial reporting framework you’re working within,
how frequently you perform this type of work, and provide examples that
demonstrate how you are researching, preparing and/or reviewing these
accounting policies or transactions. Please provide at least 1-2 examples for a
Level 1, and at least 3 complex examples for a Level 2.

To be eligible for a Level 2, you must include at least 3 examples from multiple
areas of a framework over the course of your duration. These examples
must be complex/non-routine accounting policies and/or transactions you
worked on that involve reviewing various sections of the Handbook, preparing
an analysis and using professional judgment to prepare or conclude the
transaction. This work must be performed as a part of your regular job duties.

Complexity would include work performed on non-routine transactions where

you had to determine the proper accounting treatment (i.e. the accounting
treatment is not already pre-determined). This requires you to research the
Handbook and apply your own judgment in determining how to capture the
transaction.

Foundational accounting concepts (i.e. matching principle, prepaids, cash

transactions, accruals) would be a Level 0 in this sub-competency area.

Make sure to include the resources you used, the financial reporting
framework, the Handbook section reference, and discuss why the transactions
were complex and recommendations you made as a result of your analysis.

RUBRIC

Level 0 Level 1 Level 2

Record accounting entries for Research the appropriate Evaluate appropriate

routine transactions. accounting policies and accounting policies and
procedures (or explains the procedures; or
Roll forward provisions from
basis in which they were
prior years. Evaluate treatment for
selected and applied to an
routine and non-routine
organization); or
transactions; or
Research and analyze
Research and evaluate
treatment for routine
treatment for complex
transactions
events/transactions.
9 Guiding Questions and Practical Experience Rubric

FINANCIAL REPORT PREPARATION (FR3)

GUIDING QUESTIONS
Please document your role in preparing/reviewing the external facing financial
statements (Income Statement, Balance Sheet, Cashflow Statement, Statement of
Equity, external note disclosures, etc.) and which entities you prepared them for.

How frequently have you worked on these statements in accordance with

the external financial reporting requirements (i.e. annually, quarterly)? Do
you prepare/review the full set of statement and disclosures and if not, which
sections do you work on? What work is essential in preparing the Financial
Statements (i.e. adjustments made, presentation, classification, consolidation;
NOT analysis of accounting policy as this is FR2)?

Do you prepare note disclosures in accordance with a financial reporting

framework? What work is inherent in assessing the disclosure requirements?
How do you ensure that the presentation and disclosures are in line with
the financial reporting framework? Please provide at least 3 examples of
disclosures prepared.

Are the financial statements subsequently audited or reviewed? What makes

your financial statement preparation and review process complex?

Please note that verifying mathematical accuracy of the statements or

completing statements that do not follow a financial reporting framework
would be a Level 0 in this area.

For a Level 2, students/candidates must have exposure to statements that

offer diversity and complexity. This includes preparing full sets of statements,
including note disclosures at small/mid-sized organizations and exposure to
preparing sections of the financial statements with accompanying notes at
larger organizations. In addition, you must have exposure to multiple cycles
(i.e. 2 annual, OR 1 annual and 3+ quarters) to achieve a Level 2 in this area.

RUBRIC

Level 0 Level 1 Level 2

Verify mathematical accuracy Prepare or review financial Evaluate financial

of the financial statements statements, including note statements, including note
and note disclosures. disclosures. disclosures.
10 Guiding Questions and Practical Experience Rubric

FINANCIAL STATEMENT ANALYSIS (FR4)

GUIDING QUESTIONS
This analysis must support external reporting for the preparation of external
reporting financial statements for period end (i.e. period end analysis, or
analysis to support preparation of the MD&A).

Please document the scope of the analysis you’re responsible for (i.e. line
items, financial statements) and how you have reviewed historical period-to-
period actual results and drew conclusions based on the interdependencies
and analysis (ex: variances, ratios, trends). Who are the end-users of your
analysis and how do you present/communicate your analysis to them? Please
indicate the frequency of your analysis and what sections of the financial
statements you prepare this analysis for.

Please note, forward looking financial analysis (i.e. budgeting/forecasting)

is not captured in this sub-competency area (but rather MA2 in addition to
preparation of the budget).

To be eligible for a Level 2 you must demonstrate how you are examining
multiple line items, considering interrelationships between financial statements,
performing multiple forms of analysis, and making recommendations (i.e. to
support higher level strategic decision making). This must also be completed for
multiple accounting cycles (i.e. monthly, quarterly, annually). Please provide at
least 1-2 examples for a Level 1, and at least 3 complex examples for a Level 2.

RUBRIC

Level 0 Level 1 Level 2

Calculate ratios and/or % Prepare or review the Evaluate management com-

changes in account balances. management communication munication (e.g., MD&A) or
(e.g., MD&A) or
Evaluate financial reporting
Prepare or review financial results for stakeholders
reporting results for stake- (internal or external) or
holders (external or internal)
Evaluate the impact of
or
strategic, and operational
Prepare or review the impact decision on financial results
of strategic and operational (external or internal).
decision on financial results
(external or internal).
11 Guiding Questions and Practical Experience Rubric

Management
Accounting
Do you prepare internal reporting for the purpose of management decision
making? Are you involved in planning, budgeting or forecasting? Do you
analyze cost, revenue or profitability for your organization using managerial
accounting techniques? Do you analyze the key performance indicators of your
organization’s business units?

To demonstrate proficiency in this area, your reporting should be focused on

internal management and the impact of your analysis on operating decisions
and forward-looking management decision making. Please note that external
reporting in accordance with a financial reporting framework would be
captured in FR.

MANAGEMENT REPORTING NEEDS AND SYSTEMS (MA1)

GUIDING QUESTIONS
There are three sections to this sub-competency area that you must address
to be considered proficient. All sections must be clearly addressed within your
response.

1) Analyze management information requirements: who are your internal

reporting stakeholders? How do you determine their information
requirements, and what are they? What internal processes are they using
this information for?

2) What recommendations or improvements have you made to enhance

these internal reports, business processes, data requirements or reporting
systems? Have you created any new reports or dashboards in your role?
How are your internal reports and/or system changes/implementations
used in your organization to help facilitate management decision making?
How did you understand the internal stakeholder reporting needs and how
did you recommend any improvements or create reports to help facilitate
these internal decisions?
12 Guiding Questions and Practical Experience Rubric

3) How do you ensure data integrity and confidentiality? Some examples

include ethical and privacy considerations, safeguarding of information, or
validating system generated information to ensure it can be relied upon.

Using information systems to generate reports that have already been

established would be considered a Level 0 proficiency.

Please provide at least 1-2 examples for a Level 1, and at least 3 complex
examples for a Level 2. For a Level 2, your examples must demonstrate how
you independently evaluated the information needs of management in order to
create or significantly improve new management report(s) or were involved in a
system improvement/implementation. Complexity can include: scope of role and
length of the project, level of autonomy in analyzing management information
needs and incorporating multiple systems that information is sourced from.

RUBRIC

Level 0 Level 1 Level 2

Use existing information Analyze management infor- Evaluate management infor-

systems to generate manage- mation requirements, plus mation requirements, plus
ment reports.
Analyze business processes, Evaluate business pro-
Recognize ethical and systems and data require- cesses, systems and data
privacy issues related to ments or analyze potential requirements and evaluate or
information technology. improvements to meet recommend improvements to
information needs plus meet information needs plus
Analyze ethical and privacy Evaluate ethical and privacy
issues related to information issues related to information
technology and its use. technology and its use.
13 Guiding Questions and Practical Experience Rubric

PLANNING, BUDGETING AND FORECASTING (MA2)

GUIDING QUESTIONS
Please document your involvement in the preparation of operational/financial
budgets, plans and/or forecasts.

There are three categories in this sub-competency that you must address in
order to be obtain proficiency:

1) Inputs: Please describe what type of analysis you prepared to assess the
inputs for the budget, plan or forecast. Identify your sources of information,
the judgment applied in reviewing the assumptions made, and your
approach for assessing the reasonability of the inputs. Please elaborate on
at least 3 examples of the inputs you analyzed.

2) Preparation of the budget, plan and/or forecast: Are you responsible for
the entire estimate or specific sections? Is the exercise performed for the
full organization or an operating unit? What is the scope? How frequently
do you do this (i.e. annually, monthly or quarterly forecasting)? What
makes this estimate process complex?

3) Variance analysis: Do you explain/calculate variance analysis (i.e., estimate

to actual) and how often is this done (i.e. monthly, quarterly)? What is
the impact? What are your recommendations? Please provide at least 3
examples of the variance analysis performed you performed.

For a Level 2, you must have experience in preparing operational/financial

budgets, plans and/or forecasts for multiple cycles (i.e. two annual or 1
annual and multiple forecasts), analyzing multiple inputs, relevant scope and
complexity in the sections you’re responsible for (i.e. materiality of the section
responsible for, exposure to various line items requiring analysis from multiple
sources of information to assess reasonability) and recommendations made
on variance analysis. It is expected that you have exposure to working on the
majority of the budget for a small organization and exposure to working on
sections of the budget for a large organization.

Please reference rubric on the next page.

14 Guiding Questions and Practical Experience Rubric

RUBRIC

Level 0 Level 1 Level 2

Verify mathematical accuracy Analyze or prepare data Evaluate data and

of plans, budgets and/or and information inputs for information inputs (including
forecasts. operational plans, budgets assumptions) for operational
and forecasts; plus plans, budgets and forecasts;
plus
Prepare operational plans,
budgets, or forecasts; plus Evaluate operational plans,
budgets, or forecasts; plus
Analyze variances.
Evaluate implications of
variances.
15 Guiding Questions and Practical Experience Rubric

COST, REVENUE, PROFITABILITY MANAGEMENT (MA3)

GUIDING QUESTIONS
For this sub-competency you need to demonstrate proficiency in one of the
three requirements (cost OR revenue OR profitability management), rather
than all three.

Please indicate in which of the three areas you will be demonstrating

proficiency (you may target more than one but must fully address the
requirements of the area that you are claiming) and what your business group
is responsible for.

Cost management: Using examples, discuss what cost management

techniques you are applying along with any decisions that your work supports
(i.e. fixed/variable, direct/indirect, standard costing, activity-based costing,
job costing, etc.). Ensure you describe the steps that you take in performing
this analysis, along with the frequency that you complete this work. Discuss
any analysis of potential changes you make to cost management techniques
or process improvements, including recommendations/conclusions used
to support decision making (i.e. pricing decisions, purchasing decisions,
maximizing production, reducing overhead). Describe the impact of your
recommendations to the business. Please note, ensuring the mathematical
accuracy of costs recorded, or validating GL coding would not demonstrate
proficiency in this area towards management accounting.

Revenue management: Discuss the analysis (i.e. product mix, sales by product
line, sensitivity analysis) you perform to analyze revenue growth sources/
drivers and any recommendations/conclusions you made. Ensure to indicate
who your stakeholders are and the frequency with which you perform this task.
Please also describe the outcome of this analysis and the impact it had on the
business.

Profitability management: Using examples, discuss any sensitivity analyses

you perform and include the recommendations you made. Next, discuss the
tasks you perform to provide alternatives for profit maximization or capacity
management performance, including recommendations/conclusions, using
examples (i.e. break-even analysis, contribution margin analysis, etc.). Describe
the impact your recommendations made to the business.

Please note to gain proficiency in MA3, students/candidates need to ensure

they are examining more than just variance analysis (as this is covered in
MA2). For a Level 1, students/candidates need to provide at least 3 examples
16 Guiding Questions and Practical Experience Rubric

of analysis to support potential cost saving opportunities, sources or drivers

of revenue growth, or calculate the sensitivity analysis for profitability
management and analysis to support profit maximization.

For a Level 2, students/candidates are required to provide at least 3 complex

examples across the course of their duration in one or more of the above
areas. Complexity would require you to be performing multiple steps in your
analysis or multiple forms of analysis and would require you to be responsible
for making recommendations to management.

RUBRIC

Level 0 Level 1 Level 2

Collect information to assist Cost management: Cost management:

with cost, revenue or profit-
Apply the appropriate cost Evaluate appropriate cost
ability management.
classifications and costing classifications and costing
methods for management of methods for management
ongoing operations, apply of ongoing operations, and
cost management techniques evaluate cost management
appropriate for specific techniques appropriate
decisions, and analyze for specific decisions, and
potential changes identified evaluate and recommend
by applying process improve- either: (a) change identified
ment methodologies; or by applying process improve-
ment methodologies or (b)
Revenue management:
cost management improve-
Analyze or prepare infor- ments across the entity; or
mation to understand the
Revenue management:
sources/drivers of revenue
growth; or Evaluate sources and drivers
of revenue growth; or
Profitability management:
Profitability management:
Prepare the sensitivity anal-
ysis and analyze alternatives Evaluate the sensitivity
for sustainable profit maximi- analysis, and evaluate sus-
zation/capacity management tainable profit maximization
performance. and capacity management
performance.
17 Guiding Questions and Practical Experience Rubric

ORGANIZATIONAL/INDIVIDUAL PERFORMANCE
MEASUREMENT (MA4)

GUIDING QUESTIONS
This sub-competency area is directed to the performance analysis of the
business (or units within the business) for management decision making.
Impact of analysis is forward looking and assesses the impact on management
decision making. Include how you have determined whether the organization,
team or responsibility center is performing to plan as part of your analysis.

Also indicate which one of the three areas of this sub-competency you are
targeting to analyze the root causes of performance issues: management
incentive schemes, KPIs or another accepted performance framework, or
responsibility centers. Please provide at least 1-2 examples for a Level 1, and at
least 3 complex examples for a Level 2.

Management Incentive Schemes: Note that this area does not include
individual performance reviews. Are you analyzing the implications of
management incentive schemes and/or employee compensation methods?
What alternatives did you consider and what were their strengths and
weaknesses? How did you assess their effectiveness? What were your
conclusions and recommendations? What was the length of this project? Did
you monitor the performance of this incentive scheme after implementation to
assess if it met the objective? What was the impact?

For a Level 2, you must demonstrate how you have either (1) created a
management incentive scheme or (2) made material recommendations to an
existing incentive scheme based on the considerations analyzed above.

Key Performance Indicators (KPIs): Please document which KPIs you are
analyzing. Are you responsible for determining whether the KPIs in your
organization are appropriate? How often do you perform this analysis (i.e.
monthly, quarterly)? For your specific examples: (1) describe the KPI; (2)
the root causes of performance issues noted as a result of your analysis to
plan; and (3) how you came to a conclusion and/or advised management on
any changes to operations or measuring the KPIs. For a Level 2, you must
provide at least 3 examples that demonstrate that you are routinely making
recommendations.
18 Guiding Questions and Practical Experience Rubric

Responsibility Center: What is the scope of your responsibility center?

Are you involved in establishing responsibility centers and/or creating
guidelines for performance? How are you analyzing the performance of this
responsibility center (i.e. balanced scorecard, ROI, metrics)? For a Level 2, you
must provide at least 3 examples that demonstrate you are routinely making
recommendations.

RUBRIC

Level 0 Level 1 Level 2

Calculate/prepare perfor- Analyze possible root causes Evaluate root causes of

mance scorecard/KPI based of performance issues, performance issues through
on information supplied by through one of: one of:
units
Analyze the implications Evaluate the implications
of management incentive of management incentive
schemes and employee com- schemes and employee com-
pensation methods, or pensation methods, or
Analyze performance using Evaluate performance using
accepted frameworks or accepted frameworks or
KPIs, or KPIs, or
Analyze performance of Evaluate performance of
responsibility centers. responsibility centers.
19 Guiding Questions and Practical Experience Rubric

Audit and
Assurance
Do you perform internal audit or external assurance engagements in accor-
dance with the relevant assurance standards (i.e. CAS, ISA, Institute of Internal
Auditors Framework)? Do you assess the control environment and the impact
to the information systems and related internal control processes? Do you
perform audit planning and/or design and execute testing procedures in accor-
dance with these standards?

Notice to Public Accounting Students/Candidates

If you are in public accounting, at least 425 chargeable hours in assurance
with sufficient complexity and diversity in your work experience is required
in this competency area to support a Level 2 for breadth and at least 1,250
hours for depth.

INTERNAL CONTROL (AA1)

GUIDING QUESTIONS
The focus on this sub competency area is the risk assessment around
processes (not individual tasks or policies) and the impact to the audit
approach OR assessing the work done around controls related to information
systems and associated processes. Please identify which section of the sub-
competency area you are addressing.

Analyzing the risk assessment process: This area focuses on the risk
assessment of key processes, not individual tasks, policies or controls.
Please provide concrete examples of how you assessed the internal control
environment. Which processes are you responsible for? What are some of
the operational and financial reporting implications arising from these key
processes and controls? How does it impact the risk of material misstatement?
What recommendations have you made to address these issues in the audit
approach (i.e. addressing the control risk)? Complexity in this area for a Level
2 would consider multiple processes (including significant risk processes) and
their impact to the external or internal audit approaches. Please note that
20 Guiding Questions and Practical Experience Rubric

executing an existing internal control, analyzing individual controls, or being

involved in executing the testing of a control without the risk assessment will
not grant you proficiency in this area.

Evaluating the information system and processes: Which information

systems have you evaluated? How do you evaluate the design and operating
effectiveness of the information system (including general and application
controls)? What recommendations have you made? If you are in internal/
external audit, what is the impact to the risk of material misstatement?
Exposure to this area may be seen in roles outside of internal or external audit,
if the department and company have significant information systems with
controls which they rely on to perform their duties (for example, month-end
analysis) and students/candidates are tasked to look for improvements in the
controls. Please note that executing existing system controls would be a Level
0 in this sub-competency area.

You can focus on one example per experience report, but you must provide at
least 3 complex examples across the course of your duration and identify how
often you perform this work.

To achieve Level 2, you are likely in an internal or external audit role OR we will
need to see that you have ongoing and significant involvement in evaluating
internal controls, identifying deficiencies or redundancies and making
recommendations for the impact to the audit approach including factors of
complexity in the internal controls/recommendations provided.

RUBRIC

Level 0 Level 1 Level 2

Execute procedures that Analyze or prepare the Evaluate the entity’s risk
relates to existing internal entity’s risk assessment assessment processes; or
controls. processes; or
Evaluate the information
Analyze the information system and processes, using
system and processes, using knowledge of data require-
knowledge of data require- ments and risk exposures.
ments and risk exposures.
21 Guiding Questions and Practical Experience Rubric

INTERNAL AUDIT OR EXTERNAL ASSURANCE REQUIREMENTS,

BASIS AND RISK ASSESSMENT (AA2)

GUIDING QUESTIONS
To obtain proficiency in AA2 you need to be working on the audit plan for
an internal or external audit engagement. This is typically achieved in public
accounting or in the role of an internal auditor as you would be completing
these requirements in accordance with the relevant standards (i.e. CAS). You
must address all 3 sections to get proficiency in this area.

There are 3 requirements you must address:

1) What are the assurance needs of your client or engagement and why?

2) Basis: What are the standards that you’re following for this engagement
and what is expected of this engagement in accordance with these
standards? How did you apply these standards in planning the
engagement?

3) Risk Assessment: Describe the analysis for the risk assessment for the
overall engagement (i.e., key engagement risks, considerations for
calculating materiality, evaluating the risk of material misstatement) and
the resulting impact on the engagement (i.e. scoping, testing procedures).
Please provide at least 3 examples.

For Level 2, you must have had exposure to planning multiple internal or
external assurance engagements at a high level of autonomy, including multiple
forms of risk assessment. We will need to understand the factors of complexity,
recommendations you have made as a result of your analysis and how many
engagements you have completed planning for.

Please reference rubric on the next page.

22 Guiding Questions and Practical Experience Rubric

RUBRIC

Level 0 Level 1 Level 2

Assemble information about Analyze an entity’s assurance Evaluate an entity’s assur-

the business (external), or needs, plus ance needs plus
department (internal).
Basis: Analyze which set of Basis: Evaluate which set of
criteria to apply to the sub- criteria to apply to the sub-
ject matter being evaluated, ject matter being evaluated,
or analyze which standards/ or evaluate which standards/
guidelines to apply based on guidelines to apply based on
the nature and expectations the nature and expectations
of the assurance engage- of the assurance engage-
ment/project; plus ment/project; plus

Risk assessment: Analyze Risk assessment: Evaluate

issues related to the under- issues related to the under-
taking of the engagement or taking of the engagement or
project, prepare and analyze project, or evaluate material-
materiality for the assurance ity for the assurance engage-
engagement/project, or ana- ment/project, or evaluate
lyze the risks of the project the risks of the project (for
(for audit engagements, audit engagements, eval-
analyze the risks of material uate the risks of material
misstatement at the financial misstatement at the financial
statement level and at the statement level and at the
assertion level for classes assertion level for classes
of transactions, account of transactions, account
balances, and disclosures). balances, and disclosures).
23 Guiding Questions and Practical Experience Rubric

INTERNAL AUDIT PROJECTS OR EXTERNAL ASSURANCE

ENGAGEMENTS (AA3)

GUIDING QUESTIONS
To obtain proficiency in AA3 you need to have experience working on the
execution of an internal or external audit engagement. This is typically
achieved in public accounting or in the role of an internal auditor as you would
be executing an audit plan in accordance with the relevant standards (i.e.
CAS).

Please provide at least 3 examples of internal or external assurance

engagement testing plans you developed or executed. What type of testing
procedures did you complete (i.e. Substantive/Combined/Internal/Data
analytics)? What areas of the file did you work on (i.e. FSLIs, assertions,
accounts, etc.)? How many engagements have you worked on? Data
visualization can be achieved through Excel graphics, Power BI Dashboard or
Tableau dashboard from the data tables loaded through power queries.

For Level 2, you must have worked on multiple audit engagements, including
the complex (high risk) sections of the file which required you to apply your
professional judgment in developing procedures in these areas.

Please evaluate your testing and provide the results (i.e. impact on audit
plan or planned audit procedures, issues found, additional testing required),
plus how you communicated these results to your stakeholders (i.e.: drafting
sections of the audit committee report or memos to management).

RUBRIC

Level 0 Level 1 Level 2

Compile planning Work plan: Perform the work Work plan: Evaluate or
documentation. plan on less complex/riskier develop appropriate proce-
areas, analyze the evidence dures, considering the use of
Coordinate third party and results of analysis, doc- data analytics, based on the
confirmations and identify uments the work performed identified risk of material mis-
outstanding items. and its results; plus statement, evaluate the work
plan, evaluate the evidence
Draw conclusions, communi- and results of analysis, doc-
cate results, and contribute uments the work performed
to a report for stakeholders, and its results; plus
using data visualization
where possible. Draw conclusions, communi-
cate results, and contribute
to a report for stakeholders,
using data visualization
where possible.
24 Guiding Questions and Practical Experience Rubric

Taxation
Are you involved with tax research, tax planning, or preparing tax returns
either for your organization or for an external client? Please note that if you are
working for a tax-exempt organization, you likely cannot support proficiency
in this competency area. To support a depth in this competency area you must
be working within Canadian tax legislation (i.e. the Income Tax Act). Com-
plexity within this competency area can mean: large corporations, complex
business transactions (i.e. consolidation, amendments, amalgamations), interna-
tional transfer pricing, general anti-avoidance rule assessments, tax avoidance
schemes, issues with business expenses, partnerships, more complex individual
income tax issues, and small and medium corporation (T2) related issues.

Notice to Public Accounting Students/Candidates

If you are in public accounting in general at least 1,250 hours would be the
benchmark to support a depth.

INCOME TAX LEGISLATION AND RESEARCH (TX1)

GUIDING QUESTIONS
Please provide clear and concise examples of research on tax issues. What
sections of the Income Tax Act or other relevant resources did you consult
with (i.e. Income Tax Folios, Interpretation Bulletins, Information Circulars, Case
Law, Canadian Tax Foundation Articles)? What analysis did you perform and
what was the outcome?

For a Level 2, please ensure you have documented the frequency of such
research, as well as several examples that demonstrate the complexities
involved in your research as well as recommendations you made. Please
provide at least 1-2 examples for a Level 1, and at least 3 complex examples for
a Level 2.

RUBRIC

Level 0 Level 1 Level 2

Use Income Tax Act to Analyze the relevant section Evaluate treatment for trans-
assemble rates, filing dead- of the Income Tax Act, tax actions/events, plus
lines and requirements. conventions and/or treaties,
as it relates to specific trans- Draw conclusions and com-
actions/ events. municate results.
25 Guiding Questions and Practical Experience Rubric

INCOME TAX COMPLIANCE CORPORATE OR PERSONAL (TX2)

GUIDING QUESTIONS
This sub-competency has two areas that must be addressed: general tax issues
and completing a corporate and/or personal tax return.

How frequently are you preparing tax returns? What areas of the tax return
have you prepared? Please identify which schedules you worked on in the
return. Explain some of the relevant tax issues (i.e. notice of objections, filing
deadlines) you encountered and how these items are treated in the tax return.
Provide details on the work performed for an example of a complex return you
completed. Working on Indirect and/or Excise tax returns and informational
level returns (i.e. T4, T5) does not support proficiency in this area unless there
are relevant factors of complexity to support this.

For example: Are you identifying adjustments to schedules within the tax
returns (i.e. Schedule 1, Schedule 3, Schedule 6)? What different factors are
you considering when preparing these returns (i.e. CDA, RDTOH, ACB, PUC)?
Are you identifying opportunities for tax credits? Are you identifying additional
compliance requirements based on the information provided (i.e. T106/T1134/
T1135/T1141?)

For personal tax returns: Who were you preparing these returns for (i.e.
owner-operator, high net worth individual)? What factors made these returns
complex? Are you evaluating residency status? Are you preparing Schedule 3
additions and adjustments?

For Level 2, you must be working on complex returns (i.e. addressing many
general tax issues, completing a significant number of schedules within the tax
return), at a high level of autonomy, and applying judgment above and beyond
rolling forward the prior year return for multiple periods. Please provide at
least 1-2 examples for Level 1, and at least 3 complex examples for Level 2.

RUBRIC

Level 0 Level 1 Level 2

Assemble information for Analyze the relevant tax Evaluate the relevant tax
a tax return and explains issues, plus issues, plus
required information.
Analyze or prepare informa- Analyze or prepare a tax
Use tax software to process tion to support the prepara- return.
corporate tax returns. tion of the tax return.

Prepare schedule of due

dates.
26 Guiding Questions and Practical Experience Rubric

TAX PLANNING: CORPORATE OR PERSONAL (TX3)

GUIDING QUESTIONS
Provide clear and concise examples of times you worked on assessing tax
planning opportunities and/or any relevant Indirect Tax or Excise Tax planning
considerations for your company/your clients. Did you prepare a memo?

This competency is typically achieved by students/candidates working within

the tax department of their organization (doing corporate tax planning for
the company) or in a public practice firm preparing tax planning for clients
(personal or corporate).

In comparison to TX1, tax planning involves the consideration of alternatives

to tax planning opportunities, and you must discuss the analysis performed.
If you are not considering multiple alternatives and there is only one option
to consider in accordance with the ITA, this would likely be a tax compliance
issue and relevant for TX1 or TX2. Did you identify any special elections that
could be made (i.e. s.85, s.93(1), PLOI election, S.83(2), 85.1 or for indirect tax,
intercompany transactions election, JV elections, agency relationships)? Did
you provide an estimate on the tax savings and your recommendation? How
often have you worked on tasks like this?

Please provide at least 1-2 examples for Level 1, and at least 3 complex
examples for Level 2. To be eligible for Level 2, you must provide examples
that demonstrate complexity (i.e. analyzing viable alternatives and considering
multiple factors before making a recommendation), consider more than one
alternative, ensure compliance with the ITA and make a recommendation.

RUBRIC

Level 0 Level 1 Level 2

Use information prepared Analyze specific tax-planning Evaluate specific tax-plan-

internally/externally to opportunities for individuals ning opportunities for
explain changes arising or corporations, and applica- individuals or corporations,
from Federal or Provincial ble GST implications, such as: and applicable GST implica-
budgets. (a) income tax implications tions, such as: (a) income tax
of death of an individual implications of death of an
Use tax software to calculate (b) compensation planning individual (b) compensation
pro-forma taxes payable between shareholders and a planning between share-
under various tax planning corporation, or (c) purchase holders and a corporation,
opportunities. and sale of a corporation. or (c) purchase and sale of a
corporation.
27 Guiding Questions and Practical Experience Rubric

Finance
This competency encompasses the management of company finances includ-
ing cash flow and working capital, investing, borrowing and funding related
decisions. Do you assess any risks and ratios that could impact the overall
health of the organization? Do you evaluate or review financial risk manage-
ment policies and/or recovery plan(s)? Do you assess the financial viability of
business proposals? Do you analyze financial models and evaluate the feasibil-
ity of capital projects? Do you analyze cash flows and make recommendations?

FINANCIAL ANALYSIS AND PLANNING (FN1)

GUIDING QUESTIONS
There are two areas in which you can demonstrate proficiency in this sub-
competency area. Please provide at least 1-2 examples for Level 1, and at least
3 complex examples for Level 2.

1) Assessing the financial health of the organization: This area relates to

the overall financial position of the organization as a whole (i.e. assessing
going concern, liquidity issues, operating issues) and not day-to-day
transactions. Document the tasks you performed to analyze the financial
health (i.e. liquidity, solvency, profitability and operating efficiency) of the
organization using examples, including any recommendations you made
and to whom. What type of analysis did you perform and why? Please
note that while FS analysis (i.e. FR4) can be a component of the analysis
performed for this sub-competency area, other types of analysis must be
considered. Analysis for FN1 pertains to decisions that are more capital
in nature or focused on investing opportunities. Analysis can include
ratio analysis, industry benchmarking, trend analysis, multi-year cash flow
analysis, income tax considerations, or a capital structure assessment.
How did you draw a conclusion as to the impact on the entity’s financial
state? Complexity would consider your level of autonomy, the scope (i.e.
entity wide) and how you determined the appropriate analysis to perform
including recommendations made. How are you considering the integrity of
data used in this analysis?

OR
28 Guiding Questions and Practical Experience Rubric

2) Evaluating financial proposals and financing plans: Please document any

analysis you performed on financial proposals and financing plans (i.e. ex,
how much financing is needed for large M&A proposals, debt factoring, AR
securitization), including any recommendations made and to whom those
recommendations were made. Include the frequency of this analysis or
how many proposals you have analyzed. You must include any examples
of underlying assumptions, any alternative actions or identify any risks/
opportunities which may affect financing, including any recommendations
you made. Complexity would consider your level of autonomy, the scope of
the proposal or plan analyzed, and the judgment applied in performing the
analysis and analyzing alternatives. How are you considering the integrity of
data used in this analysis?

For Level 2 in this area, you must provide at least 3 examples that demonstrate
how the work and analysis was complex and how you drew a conclusion to
provide meaningful recommendations.

RUBRIC

Level 0 Level 1 Level 2

Perform calculations to sup- Analyze the entity’s financial Evaluate the entity’s finan-
port analysis (ratios and/or state, or cial state, considering an
per cent changes in account assessment of reporting
Analyze or prepare financial
balances). systems, data quality and the
proposals and financing
analytical models used to
plans.
support financial analysis and
decision-making; or
Evaluate financial proposals
and financing plans consider-
ing an assessment of report-
ing systems, data quality and
the analytical models used to
support financial analysis and
decision-making.
29 Guiding Questions and Practical Experience Rubric

TREASURY MANAGEMENT (FN2)

GUIDING QUESTIONS
There are three requirements to demonstrate proficiency at any level in this
sub-competency area: (1) working capital management, (2) cash flow manage-
ment and (3) one additional from the list. All three requirements must be met
in order to gain proficiency.

1) and 2) Please clearly document your role in the calculation/analysis of the

entity’s working capital and cash flow analysis. How often do you complete
this task? This sub-competency is related to managing the cash flow of an
organization. It involves more than assessing the cash flow/cash levels at
the organization. You must also document how you make recommendations
about what to do with any excess cash or cash shortfall. For example, are
you recommending how excess cash should be invested, engage in profit
distribution, update the capital structure of the organization, or financing? Who
are you making recommendations to?

3) Next, describe how you meet one of the additional four items, using
examples and including any recommendations made.
— Investment portfolio: Discuss the work you have done to evaluate and
assess the entity’s investments in assets and securities and identify/miti-
gate any associated risks and/or opportunities for decision making. Level
2 would consider more complex financial instruments (i.e. derivatives,
real estate) and how you are making recommendations in the investment
portfolio.
— Financing availability and/or decisions affecting capital structure:
Discuss what tasks you have performed to assess sources of financing
needs based on the strategic and operational business plans. Describe
what alternatives you identified and how you evaluated the conse-
quences, cost/benefit and operational impacts (including cash flow or
tax implications) to make a recommendation. Complexity would consider
comparing new or alternative sources of financing, analyzing of pros
and cons of each option and implications for future financing decisions,
and include both qualitative and quantitative analysis (i.e. optimal capital
structure, ownership/control considerations, financial leverage). Solely
discussing existing methods of financing would not support Level 2 in
this area.
— Cost of capital: Document why you’re performing this analysis, what
your process is for determining the entities cost of capital and what
methodology you’re using. For Level 2, describe what work you have
30 Guiding Questions and Practical Experience Rubric

done to evaluate changes within the market (i.e. sensitivity analysis) and/
or operations and how you have assessed the risk factors that would
have an impact on capital structure.
— Profit distribution: Describe your process for evaluating risks and
opportunities, and how you identified the appropriate method of allo-
cating the entity’s profits. For Level 2 consider: have you analyzed and
recommended an appropriate method to distribute profits (i.e. creating
a dividend policy, alternatives to cash dividends, tax considerations)?
Please note that following an existing distribution plan (i.e. calculation
and allocation of dividend payments) would not support proficiency in
this area.

For Level 2, you must demonstrate autonomy and show how you are adding
value to decision making. Please provide at least 1- 2 examples for a Level 1,
and at least 3 complex examples for a Level 2.

Please reference rubric on the next page.

31 Guiding Questions and Practical Experience Rubric

RUBRIC

Level 0 Level 1 Level 2

Record investment/FX Analyze the entity’s cash Evaluate the entity’s cash
transactions based on confir- flow and working capital, flow and working capital,
mations and update market plus plus
values from third-party
Analyze or research the Evaluate the entity’s invest-
sources, if applicable.
entity’s investment portfolio ment portfolio, or
Reconcile differences (less complex), or
between records and third- Evaluate sources of financ-
Analyze or research sources ing and decisions affecting
party statements.
of financing and decisions capital structure, or
affecting capital structure, or
Evaluate the entity’s cost of
Analyze or research the capital, or
entity’s cost of capital, or
Evaluate decisions related to
Analyze or research deci- distribution of profits.
sions related to distribution
of profits.
32 Guiding Questions and Practical Experience Rubric

CAPITAL BUDGETING/VALUATION/ CORPORATE FINANCE (FN3)

GUIDING QUESTIONS
For this sub-competency area, you must describe how you are analyzing
or preparing a financial model or business plan to support one of the 7
requirements from the list. Please indicate which area you are targeting.

For Level 2, include how you are evaluating the financial models used to
conduct the analysis, providing judgment in analyzing inputs and assumptions
and to whom you are making recommendations. Please provide at least 1-2
examples for Level 1, and at least 3 complex examples for Level 2.

Capital budgeting process and decision: This area considers the evaluation
of major projects or investments that are capital in nature (i.e. in capital
heavy companies this focuses on the capital not operating budget, and/or the
budget to analyze the feasibility of capital investments). Please document how
you are involved with evaluating and reviewing the entity’s capital budgeting
processes and decisions. What financial models are you using (i.e. DCF, hurdle
rate, payback period, NPV, IRR)? Is this project worth the investment? What
alternatives did you consider? What are the expected returns of the options
considered? Discuss what you have done to evaluate and review the feasibility
of capital projects and make recommendations for the best investment based
on the model.

Valuation of a tangible/intangible asset: Do you identify the values of a

tangible or intangible asset or strategies, risks and impacts on decision-making
on a purchase, expansion or sale of the entity? Describe what methods you
have used to determine, explain and identify the value of a tangible and/or
intangible asset (i.e. DCF, enterprise value), and identify the pros and cons of
any alternatives. Ensure you explain what work you did to determine the value
of the asset(s) through analysis.

Valuation of the business: Describe what methods you have used to determine,
explain and identify the value of a business (i.e. DCF, ABV, multiples, etc.) and
identify the pros and cons of any alternatives. Ensure you explain what work you
did to determine the value of the business through analysis.

Financial risk management: Describe how you developed/reviewed policies

that would help monitor and manage financial risks. Ensure to explain how you
evaluated changes in the economy and the business model in order to assess
any impacts that indicated the need for changes in any policies and how you
came to a recommendation.
33 Guiding Questions and Practical Experience Rubric

Evaluating and analyzing the use of derivatives as a form of financial risk

management: Describe what tasks you have done to evaluate and analyze the
use of derivatives as a form of financial risk management. Explain how you
evaluated changes in the economy and the business model in order to assess
any impacts that indicated the need for changes in any policies and how you
came to a recommendation.

Purchasing, expansion, or sale of a business: Describe how you have

evaluated risks, opportunities and financial implications of a specific purchase,
expansion or sale. Ensure you explain how you analyzed and assessed the
alternatives in order to recommend an appropriate course of action.

Aid a financially troubled entity: While this sub-competency references

‘assisting a financially troubled entity’, the scope refers to bankruptcy/
preparing business recovery plans and/or calculating net realizable value on
assets for disposition/liquidation. Describe the work you have done to develop
or provide recommendations on a business recovery plan and identify financial
difficulty through analysis.

RUBRIC
Level 0 Level 1 Level 2

Coordinate the capital Analyze or prepare Evaluate financial models or

budgeting process. information to aid in the business plans as part of or
capital budgeting processes in addition to:
Calculate market value of and related decisions, or
publicly traded security. Evaluate capital budgeting
Analyze or estimate the processes and decisions, or
Calculate/collect multiples value of a tangible asset, or
for market-based valuations. Evaluate the value of a
Analyze value of a business, tangible asset or analyze
or or estimate the value of an
intangible asset, or
Analyze financial risk
management policies, or Evaluate the value of a
business, or
Analyze the use of
derivatives as a form of Evaluate financial risk
financial risk management, or management policies, or

Analyze the purchase, Evaluate the use of

expansion or sale of a derivatives as a form of
business, or financial risk management, or

Analyze possible solutions Evaluate the purchase,

to aid a financially troubled expansion or sale of a
entity. business, or

Evaluate or advise a
financially troubled entity.
34 Guiding Questions and Practical Experience Rubric

Strategy and
Governance
Is your role and responsibilities focused on governance or organization wide
strategic advisory for long term planning? Does your role include analyzing
and assessing the entity’s risk management process and/or strategies? Do you
provide recommendations to the strategic plan, considering internal/external
factors? Do you prepare information to ensure your organization remains com-
pliant with external regulatory requirements?

To support a depth in this area you likely need to be in a senior role where you
are making strategic decisions for your organization.

GOVERNANCE, MISSION, VISION, VALUES AND MANDATE (SG1)

GUIDING QUESTIONS
There are two areas you can achieve proficiency in for this sub-competency
area. Please indicate which area you are targeting:

1) Please describe how you are responsible for analyzing the entity’s
governance policies/processes/code AND how you evaluate information
and analysis to ensure that the entity remains compliant with these external
regulatory/compliance requirements. You must discuss which regulatory
requirements/bodies are part of your entity’s governance structure and
how you ensure compliance with these policies.

2) Alternatively, you can describe how you are responsible for analyzing
the alignment of management decisions with the entity’s mission, vision
and values. Are you evaluating the computability of recommendations
made that impact the entire organization? Solely understanding your
organizations vision/mission/values does not contribute to proficiency in
this area.
35 Guiding Questions and Practical Experience Rubric

For both alternatives, you must describe how you perform these functions as
part of your regular job duties. Include how often you perform this task and
for whom you are preparing this for. Please include who your stakeholders
are for these scenarios. If you are working within policy, what are the policies
mandating? Who are the regulators involved, if any?

For Level 2, you must discuss how you have analyzed alternatives and made
recommendations on governance, policies, processes or code to help ensure
the organization is in compliance. Please provide at least 1-2 examples for Level
1, and at least 3 complex examples for Level 2.

RUBRIC
Level 0 Level 1 Level 2

Describe the entity’s gover- Analyze the entity’s gover- Evaluate the entity’s
nance policies, processes, nance policies, processes, governance policies,
and/or code. and/or code, and prepare processes, and/or code,
information to aid in the and evaluate information
analysis to ensure entity and analysis to ensure
remains compliant with entity remains compliant
regulatory/compliance with regulatory/compliance
requirements; or requirements; or

Analyze management deci- Evaluate whether manage-

sions to the entity’s mission, ment decisions align with
vision and values. the entity’s mission, vision
and values.
36 Guiding Questions and Practical Experience Rubric

STRATEGY DEVELOPMENT/IMPLEMENTATION (SG2)

Guiding Questions
There are 3 options to this sub-competency area, please identify which one
you are addressing.

1) Evaluate the entity’s strategic objectives and related performance

measures. This section of the sub-competency area would focus on
developing the performance measures to track strategic initiatives
developed. Executing operational initiatives in relation to strategy with no
input on the development of the strategy itself would belong in MA.

2) Evaluate the entity’s internal and external environment and analyze its
impact on strategic development or analyze strategic alternatives. Please
provide examples of tasks and analyses you have performed that impact
the overall organizational strategy. For example how do you consider:
internal and external factors and the impacts on strategy development,
market analysis, economic, cultural, and demographic, and/or key success
factors driving forces of competition. Please also explain why you are
completing this analysis and why this was requested of you in your role.

3) Analyze key operational issues including the use of information assets (i.e.
data mining and business intelligence tools) and analyze alignment with
strategy. How are you analyzing the entity’s control systems (i.e. policies,
directives, guidelines, codes) in alignment with strategy? Are you analyzing
operational decisions (i.e. employee recruitment, training & retention,
performance measurement) and strategic implications?

Please provide at least 1-2 examples for Level 1, and at least 3 complex
examples for Level 2. For these examples, please identify who your internal
stakeholders were and how analysis impacted the overall organizational
strategy. For Level 2, your examples must be complex (i.e. significant project
for your organization, consideration of multiple stakeholders and perform
multiple forms of analysis) and involved. You must demonstrate how you drew
conclusions or made recommendations to management.

Please reference rubric on the next page.

37 Guiding Questions and Practical Experience Rubric

RUBRIC

Level 0 Level 1 Level 2

Explain the entity’s strategic Analyze the entity’s strategic Evaluate the entity’s stra-
objectives. objectives and related per- tegic objectives and related
formance measures, or performance measures, or
Collect information on the
entity’s internal and external Analyze the entity’s internal Evaluate the entity’s internal
environment. and external environment and external environment
and its impact on strategy and its impact on strategy
development and analyze development and evaluate
strategic alternatives, or strategic alternatives, or

Analyze the key operational Evaluate the key operational

issues including the use issues including the use of
of information assets and information assets and ana-
explains the alignment with lyzes alignment with strategy.
strategy.
38 Guiding Questions and Practical Experience Rubric

ENTERPRISE RISK MANAGEMENT (SG3)

GUIDING QUESTIONS
There are two options to this sub-competency area. Please identify which area
you are addressing.

1) Evaluate components of an effective risk management program and

evaluate the impact on shareholder value. This should address enterprise-
wide risk as a whole (i.e. IT/IS, regulatory/compliance, financial, operational,
strategic).

2) Evaluate the impact of IT/IS risks on enterprise risks and recommend

appropriate risk management strategies. Please describe the analysis.

Please note that risk management in this area is broader than control or
financial risk. Please consider the nature of your role when addressing this
area. Please describe how you research/analyze/review components of a risk
management program. What is the risk, what analyses did you perform, what
processes or strategies have you recommended to mitigate this risk, and what
is the impact on shareholder value?

For Level 2, your examples must demonstrate how you were able to draw
a recommendation/decision and reflect on how this made an impact on
shareholder value. Please provide at least 1-2 examples for Level 1, and at least
3 complex examples for Level 2.

RUBRIC

Level 0 Level 1 Level 2

Record risk responses. Analyze or research Evaluate components of an

components of a risk effective risk management
management program program and evaluate its
and analyze its impact on impact on shareholder value,
shareholder value, or or

Analyze the impact of IT/ Evaluate the impact of IT/IS

IS risks on enterprise risk risks on enterprise risk and
and identify appropriate risk recommend appropriate risk
management strategies. management strategies.