Pivot Magazine November/December 2018
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ASSETS OTHER LIABILITIES THE FUTURE VALUE RETAINED EARNINGS PROFIT MARGIN FLOW AUDIT ENGAGEMENT It’s a time of intense pressures and big possibilities. Let the transformation begin. NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER HAVE WE HIT NAVDEEP BAINS: THE WORLD’S + PEAK LETTUCE? / MINISTER OF EVERYTHING / TOP TAX COPS CPA-COVER_EN.indd 1 2018-10-15 3:11 PM Professional Development IT PAYS TO KNOW Reduce Tax & Audit Risk: Enroll in a Year-end Seminar! Marty S., CPM - Member, Ontario Region With more than Avoid Fines and Penalties for Your Clients 200 constantly or Your Organization changing Preparing for year-end brings a wide range of payroll-related federal and challenges. These challenges can be both external and internal to your organization. As an accountant, you have a responsibility to provincial your clients, your employees, and yourself to minimize the risks of regulations, payroll audits and penalties – particularly at year-end. staying payroll The Canadian Payroll Association is here to help ensure a smooth compliant is a payroll year-end. You, your team, and your clients may benefit from our popular 2018 Year-end and New Year Requirements huge challenge seminar. Led by experienced, certified payroll professionals, our faced by comprehensive seminar gives you the information you need to tackle year-end with ease, prepares you to handle the top issues employers, CRA looks for during audits, and helps you reduce the risk of audits accountants and penalties. and clients. You’ll also learn about the latest Federal and Provincial legislation and regulations impacting Canada Pension Plan, Employment Insurance, Employment Standards, Workers’ Compensation and more. Stay Current Stay Compliant Year-end seminars are available in-class at 70 cities across Canada and online at payroll.ca. Don’t miss out - register today at payroll.ca payroll.ca CONTENTS 04 | From the CEO 36 FIRST IN 06 | Diagnosing Facebook’s mid-life crisis. 08 | For everything you don’t learn in school, there’s teen teacher Austin Chan. 09 | J5, a new five-nation task force, is hot on tax evaders’ heels. 11 | Playlist curators are music’s new moguls. 12 | The outrageous price of pet pampering. COLUMNS 14 | Why CRA scams are more than just a nuisance. 16 | Financial literacy programs work. So why don’t more of us act? 16 | The surprising trick to a productive workday. FEATURES 17 | Lonely at work? You’re not alone. 20 | The Future of Audit The pressures on auditing have never been greater. Nor the opportuni- LAST OUT ties. One thing is certain: change is coming. BY BERNARD SIMON 49 | A superjacket that 26 | Have We Hit Peak Lettuce? might be too advanced for A green revolution has seen the market of fast-casual chains its own good. peddling greens and grains become increasingly crowded. Could the fall of the romaine empire be nigh? BY JASON KIRBY 50 | Why first-class flying is more opulent than ever. 32 | Come From Away Meet J.D. Irving’s director of immigration, the woman charged with 51 | Are tattoos still a hiring solving Atlantic Canada’s worker shortage. BY MATTHEW HALLIDAY hindrance? It’s complicated. 36 | The Minister of Everything 52 | Shoppers are swapping Navdeep Bains, the CPA in charge of Ottawa’s most sweeping personal data for loyalty portfolio, just got a daunting new task: deciding what to do with points. Is it worth it? Canadians’ data. BY LUC RINALDI 54 | GUILLAUME SIMONEAU GUILLAUME A tech titan’s secrets 44 | If You Could Read My Mind to scaling up. Artificial intelligence can predict election outcomes, prevent suicides and figure out what you’re thinking—without even asking. Welcome to 58 | CPA by day, comedian PHOTOGRAPH BY the phoneless future of polling. BY BRYAN BORZYKOWSKI by night. NOVEMBER/DECEMBER PIVOT 3 CPA-TOC_EN.indd 3 2018-10-15 11:55 AM FROM THE CEO The cover story of this edition of Pivot In Canada, November marks Financial (page 20) examines the many forces, Literacy Month, and the choice of late KEEPING pressures and possibilities that are fall is appropriate timing given that many influencing the work of CPAs at a time of us will start spending like crazy in of heightened scrutiny of audit practices the run-up to the holidays. But financial AHEAD OF around the world. Events like the sud- literacy is about much more than man- den collapse of the U.K. construction aging a credit card bill. A sound under- giant Carillion not only have conse- standing of personal finances is a driver OUR TIMES quences internationally, but they also of individual and family well-being and BY JOY THOMAS raise important questions about audit contributes to the economic stability of quality, as well as the state of regulatory the country overall. and professional oversight. CPA Canada is a dedicated promoter Consequently, the focus on audit has of financial literacy, and the topic is one provided an opportunity for Canadian that I am personally passionate about. CPAs to advance their reputation for Indeed, I am honoured to be a member leadership and excellence. Among other of the National Steering Committee on things, Canadian CPAs are working to Financial Literacy. CPA Canada’s inter- strengthen the relevance of audit in a nationally recognized and award-winning climate when investors seek out infor- financial literacy program seeks to mation from multiple (and often unau- empower Canadians with no-cost in- dited) sources. person sessions, publications and other Research we have conducted in con- resources. What’s more, later this month, junction with FEI Canada shows that on Nov. 22 and 23, CPA Canada, in audit quality is most strengthened when cooperation with CPA British Columbia, the auditor, audit committee and man- will present the Mastering Money Con- agement work together as a “three-legged ference in Vancouver. stool.” In addition, last year, CPA Canada Our financial literacy program is help- and the Institute of Chartered Accoun- ing Canadians make more informed TORONTO tants of Scotland co-hosted a “Future of financial decisions. This touches on the There’s always a lot happening in our Audit” symposium for senior accounting values associated with the Canadian ideal profession, so this month I wanted to professionals. The session concentrated of good business: sustainable growth and address three different topics: the audit on three core topics: the profession’s role social development going hand in hand. BISHAST AT HOTEL, KŌ landscape, financial literacy and our in the reporting of key performance new branding campaign. indicators, audit data analytics and the SHOT AT As research and experience shows, audit skill set that will be required of auditors Debunking the myth of the “boring” quality is driven by many inextricably in the future. The success of the sympo- accountant is the theme of the 2018/19 connected factors—including corporate sium is leading to a follow-up session to national CPA brand advertising cam- culture, standards compliance, good take place in Scotland. paign. It is designed to shift Canadians’ governance and the work of robust, CPA Canada is further expanding the perceptions of CPAs away from the independent audit committees. conversation about the future of audit “pencil-pusher” stereotype. Here in Canada, a collaborative through our ambitious consultation Utilizing humour and a strong visual approach between auditors, regulators, initiative called Foresight: Re-imagining appeal, the campaign leverages television, standard-setters and financial institu- the Profession. Please join in the discus- billboards, social media and other chan- CLAUDINE BALTAZAR/PLUTINO GROUP; tions provides a strong infrastructure sion at cpacanada.ca/foresight. nels to reinforce the message that CPAs for the delivery of high-quality informa- Canada’s chartered professional are Canada’s pre-eminent accounting tion to investors. Our shared goals are accountants value collaboration and and business professionals—no matter clear: act in the public interest and welcome working in conjunction with what the business. HAIR AND MAKEUP BY support Canada’s well-respected and all key stakeholders to ensure the invest- The campaign shows the range of efficient capital markets. Canada’s audit ing public remains protected. Yet we can’t exciting roles that CPAs play in a variety ecosystem is built on integrity, trust rest on our laurels. This country has a of fields. It tested well in focus groups and respect, and there is a collective well-recognized track record of working and, while it’s primarily aimed at this MATT BARNES; understanding that it must evolve in to keep pace with the constantly chang- country’s business leaders, an important response to globalization, technology ing marketplace. We’ll continue to evolve aspect is to strengthen the pride of Cana- and user expectations. with a forward-looking philosophy. dian CPAs in their designation. ◆ PHOTOGRAPH BY 4 PIVOT NOVEMBER/DECEMBER 2018 CPA-PresLetter_EN.indd 4 2018-10-17 4:49 PM Pivot is published six times a year by the Chartered Professional Accountants of Canada in partnership with St. Joseph Media. Opinions expressed are not necessarily endorsed by CPA Canada. Copyright 2018. TORONTO SUBSCRIPTION INQUIRIES VOLUME 1 | ISSUE 4 277 Wellington St. W., M5V 3H2, Tel. (416) 977-0748 or 1-800-268-3793 Tel. (416) 977-3222, [email protected] Fax (416) 204-3409 EDITOR Mark Stevenson PUBLISHER ONLINE Heather Whyte, MBA, APR SENIOR EDITOR Luc Rinaldi MONTREAL cpacanada.ca/pivotmagazine 2020 Robert-Bourassa Blvd, ART DIRECTOR Adam Cholewa ASSOCIATE PUBLISHER Tobin Lambie Suite 1900, H3A 2A5, ADVERTISING FRENCH EDITOR Tel. 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