What Is an LPA Ontario 2026 | Licensed Public Accountant Explained
Reviewed by Bader A. Chowdry, CPA, CA, LPA on
LPA Ontario meaning, in one line: LPA stands for Licensed Public Accountant, a licence issued by CPA Ontario under the Public Accounting Act, 2004.
Quick answer (45 words): An LPA (Licensed Public Accountant) is a CPA who holds Ontario’s Public Accounting Licence, authorizing audit and review engagements on financial statements. Only about 250 CPAs in Ontario hold this licence. Insight Accounting CPA — led by Bader A. Chowdry, CPA, CA, LPA — is one of them.
What does LPA stand for and what does it mean?
Q: What does LPA stand for in Ontario accounting?
LPA stands for Licensed Public Accountant. It is a licence issued by CPA Ontario under Ontario’s Public Accounting Act, 2004, authorizing the licensee to engage in the practice of public accounting — issuing audit reports, review engagement reports, and other assurance reports on financial statements of Ontario entities.
Legal framework:
- Chartered Professional Accountants of Ontario Act, 2017 (SO 2017, c 8, Sch 3) — the current statute establishing CPA Ontario as the authorized designated body under Ontario’s public accounting regime. Available at CanLII.
- Public Accounting Act, 2004 (SO 2004, c 8) — the underlying statute that defines “public accounting” and restricts the practice to licensed public accountants.
- CPA Ontario Regulation 17-1 — the administrative regulation governing PAL issuance, renewal, and discipline.
What is the difference between a CPA and an LPA?
Q: What is the difference between a CPA and an LPA in Ontario?
CPA (Chartered Professional Accountant) is a professional designation. Every CPA has passed the Common Final Examination (CFE) and completed the CPA Professional Education Program. CPAs can work in industry, government, education, or public practice.
LPA (Licensed Public Accountant) is a licence on top of the CPA designation. An LPA has completed additional practical experience (30 months, 24 in an Approved Training Office under LPA supervision), the Post-designation Public Accounting Program (PDPA) if experience was outside an ATO, and passed a licensing review. Only LPAs can sign audit or review engagement reports in Ontario.
Analogy: every LPA is a CPA, but very few CPAs are LPAs. Out of roughly 100,000 CPA Ontario members, approximately 250-300 hold the Public Accounting Licence and are practising.
When is an LPA required for a business engagement?
Q: When is an LPA (Licensed Public Accountant) required for an Ontario business?
An LPA is legally required whenever the engagement produces an assurance report on financial statements:
- Audit engagement (CAS) — required by law for condominium corporations (25+ units, no unanimous consent to waive), most Ontario NPOs above a revenue threshold, some franchise agreements, some bank loans, most acquisition transactions, and some regulatory filings.
- Review engagement (CSRE 2400) — increasingly required by mid-size bank loans, franchise agreements, private investor bookings, and some SR&ED filings.
- Other assurance reports — special-purpose reports issued by a public accountant on subject matter such as specific covenant compliance or forecast reasonableness.
An LPA is not required for:
- Compilation engagement (CSRS 4200) — a compilation is a non-assurance service and can be performed by any CPA (or, in some cases, any accountant), though disclosure requirements have tightened since 2022.
- Bookkeeping, tax preparation, advisory / consulting — none of these are “public accounting” as defined under the Public Accounting Act, 2004.
How do you check if a CPA is an LPA?
Q: How do I verify that my CPA is a Licensed Public Accountant in Ontario?
CPA Ontario maintains a public directory of members. The directory shows each member’s designation (CPA), any legacy designations (CA, CGA, CMA), and licence status including PAL. Ask the CPA directly for their CPA Ontario membership number and search the CPA Ontario public directory to verify.
For an audit or review engagement, the signed report must include the name of the LPA and be signed on behalf of a professional corporation that is licensed by CPA Ontario as a Firm of Public Accountants.
Why does the LPA matter for owner-managed businesses?
Q: Why does the LPA licence matter for owner-managed Ontario businesses?
Three reasons:
- Bank loan and covenant assurance. As owner-managed businesses cross $2M-$5M revenue, banks often require review-level (CSRE 2400) financial statements as a covenant. Only an LPA can sign a review report.
- Sale-ready books. Acquirers of Ontario businesses run financial due-diligence that typically requires 3 years of audited or reviewed financials. Starting with an LPA-led CPA firm 24-36 months before intended sale avoids scramble at closing.
- Complex-entity assurance. Condo corporations, NPOs, professional partnerships, and some family trusts require audits under statute. Only an LPA can deliver.
Bader A. Chowdry, CPA, CA, LPA is one of a small cohort of Mississauga LPAs. This lets Insight Accounting CPA handle a business through its entire life cycle — from startup bookkeeping to sale-ready audit — inside a single firm relationship.
Comparison: CPA firm types
| Firm type | Can sign compilation? | Can sign review? | Can sign audit? | Typical clientele |
|---|---|---|---|---|
| Bookkeeper (no CPA) | No, cannot issue any engagement report | No | No | Micro businesses |
| Non-LPA CPA firm | Yes | No | No | Owner-managed with no assurance need |
| LPA CPA firm | Yes | Yes | Yes | Owner-managed + assurance-needing |
| Big Four / mid-size audit firm | Yes | Yes | Yes | Large private + public companies |
Frequently asked questions
Q: Do I need an LPA if I only need tax preparation and bookkeeping? No. Any CPA (or, for some services, any accountant) can do tax preparation and bookkeeping. LPA is only required when an assurance report is issued.
Q: If my current CPA is not an LPA, can they still refer me to one for an audit? Yes, and this is common. A non-LPA CPA firm can handle year-round tax and advisory, and refer the annual audit to an LPA-led firm. But the coordination cost is real — audit-ready books usually need controller-level review that the non-LPA firm may not deliver monthly. Owner-managed businesses often find it more efficient to consolidate with an LPA-led firm.
Q: Are there LPAs in other provinces too? Provincial CPA bodies each have their own equivalent Public Accounting Licence: PAL in Ontario, PA in BC, etc. Cross-provincial mutual recognition applies for members in good standing.
Q: How is the LPA licence renewed? Annually, alongside CPA Ontario membership renewal. Continuing professional development (CPD) hours specific to public accounting are required. Practice inspection every 3 years covers audit, review, and compilation engagements.
Q: Does the LPA licence make the CPA firm more expensive? Modestly. LPA-firm rates are typically 10%-20% higher than non-LPA CPA rates because of higher regulatory + insurance overhead. For an owner-managed business that will eventually need review or audit assurance, the LPA-firm premium is offset by not needing to change firms twice.
Related reading:
- LPA + Outsourced Controller Ontario 2026 pillar
- Compilation vs Review vs Audit Decision
- Audit + Review Engagement CPA Ontario
Sources & references
- Public Accounting Act, 2004, S.O. 2004, c. 8 — https://www.ontario.ca/laws/statute/04p08.
- CPA Ontario — When is a Public Accounting Licence Required in Ontario? — https://www.cpaontario.ca/members/regulations-guidance/regulatory-publications/when-is-pal-required-in-ontario.
Insight Accounting CPA Professional Corporation, Mississauga, Ontario. Bader A. Chowdry, CPA, CA, LPA. General information for Ontario businesses. Not tax, legal, or accounting advice for your situation. Please engage Insight Accounting CPA — or another Ontario CPA firm led by a Licensed Public Accountant — before acting.
Important — informational only, not advice. Do not use this article to make any decision.
This article is published by Insight Accounting CPA Professional Corporation for general educational purposes only. It is not tax, legal, accounting, financial, or investment advice, and nothing in this article should be relied upon — by anyone, for any purpose — to make a business, tax, financial, accounting, legal, or investment decision.
Tax law, CRA administrative positions, court interpretations, and Ontario provincial rules change frequently, sometimes retroactively, and the content of this article may be incomplete, simplified, out of date, or wrong by the time you read it. The right answer for your specific situation depends on facts this article does not know — your structure, history, jurisdiction, filings, contracts, and goals.
Before acting, engage your own Chartered Professional Accountant or qualified advisor who has reviewed your specific circumstances in writing. Insight Accounting CPA Professional Corporation, the author, and any contributors expressly disclaim all liability — direct, indirect, or consequential — for any action taken or not taken on the basis of this content.
Insight Accounting CPA Professional Corporation is led by Bader A. Chowdry, CPA, CA, LPA — licensed by CPA Ontario under the Public Accounting Act, 2004. To engage us for situation-specific advice, book a free 30-minute discovery call.
