Practice Management Flashcards
Mikie decided to retire from her practice five years ago. She was granted retirement leave. Prior to closing her business, she transferred all of her active files to another RCIC, settled all unearned funds in her client account, and made all the necessary notifications to ICCRC, IRCC, and any other decision maker who may have been involved in processing her active client files. She has been travelling the world for the last five years, and she has extended her retirement leave each year since then. Now, she has decided to relocate to Spain and open a new immigration consulting practice there. Ashley, a fellow RCIC and Mikie’s former assistant, tells her that Mikie has been away from the profession for too long and must re-start the registration process to become a RCIC again. Is this information true or false?
False: Refer to article 9 of the Leave of Absence Regulation. Mikie can resume her practice and come out of retirement, as long as she has maintained valid errors and omissions insurance and paid the remainder balance of all owing fees.
RCIC Lana has been practising for almost 10 years and has around 150 active client files. She is currently suffering from occupational “burn-out” and has decided to apply for a one-year leave of absence to focus on her mental and physical health. Her request was granted within several days. Before opening her own practice, Lana had obtained much of her current knowledge through a Mentor, Peter. How should Peter advise Lana to proceed now that she is taking a leave of absence?
a) Notify all of her active clients and transfer these files to another practitioner; maintain valid errors & omissions insurance; maintain a working client account.
b) Account for all unearned funds in the client account; apply for an exemption from the regulator to complete the annual Compliance Audit; ensure that all active client files have been closed.
c) Notify her legal and accounting teams of her decision to take a leave of absence; cancel her errors & omissions insurance; maintain a working client account.
d) Notify all of her active clients and transfer these files to another practitioner; maintain valid errors & omissions insurance; cancel her client account and transfer funds to her business account.
A: Refer to article 6 of the Leave of Absence Regulation.
True or False: In accordance with the Client Account Regulation, any interest earned on money being held in the Client Account can be used by the RCIC for any business-related expenses.
True: See article 7.1 of the Client Account Regulation.
Who is the responsible authority for contacting Employment and Social Development Canada (ESDC) to clarify misleading instructions?
a) The regulator and professional associations
b) Professional associations
c) Education providers
d) The regulator
B: The regulator’s role is to protect the public’s interest, which includes mediating disputes between members and their clients. Professional associations and education providers are both involved with furthering their members’ interests and education, as well as providing networking opportunities and representing the profession with industry stakeholders.
Who is the responsible authority for establishing admission standards to the profession?
a) The regulator and professional associations
b) Professional associations
c) Education providers
d) The regulator
D: The fundamental mission of the regulator is to minimize and mitigate risks to the public. To fulfill this mission, one of the regulator’s duties is to define criteria for admission to the profession. Professional associations and education providers are both involved with furthering their members’ interests and education, as well as providing networking opportunities and representing the profession with industry stakeholders.
RCIC Amber has been practicing for two years as a sole practitioner. Next month, her nephew, Ian, will be relocating to Canada as an international high school student. Ian’s parents passed away in a car accident when he was young, so he is very close to his aunt and his grandparents. He decides to move in with Amber. A few weeks into the semester, Ian starts to struggle in school. Amber finds that she is spending more and more time tutoring Ian. She decides that she would much rather homeschool Ian, so that she can give him undivided attention. Does Amber have grounds to request a temporary leave of absence from ICCRC?
a) Yes, Amber can request a leave of absence for family reasons.
b) Yes, Amber can request a leave of absence for education reasons.
c) No, Amber must submit a request for leave based on compassionate considerations.
d) No, Amber must submit a request for leave based on other family reasons.
C: Refer to article 2.1.7 of the Leave of Absence Regulation.
True or False: Members who are on approved leave must still complete all Practice Management Education courses that take place during their leave.
False: Refer to article 4.2 of the Practice Management Education Regulation.
Which regulatory body predated the Immigration Consultants of Canada Regulatory Council (ICCRC)?
a) Canadian Society of Immigration Consultants
b) Canadian Council of Immigration Consultants
c) Canadian Regulatory Council of Immigration Consultants
d) College of Immigration and Citizenship Consultants
Canadian Society of Immigration Consultants: The profession was first governed by the Canadian Society of Immigration Consultants (CSIC), which was created in 2004. The Immigration Consultants of Canada Regulatory Council (ICCRC) began governing the profession in 2011.
What is the role of a professional association?
a) Protect the public from incompetent or unethical practitioners
b) Promote the knowledge and image of professional immigration consultants
c) Develop standards of practice for its members to adhere to
d) Protects and lobbies the interests of members and provides educational activities
provides educational activities
True or False: Members who are on approved leave may only undertake pro bono work and must not accept any compensated work on behalf of clients.
False: Refer to article 9.4 of the Leave of Absence Regulation.
New members are required to complete ____ mandatory PME course within ____ months of becoming a member.
1 mandatory PME course within 6 months
See articles 3 and 4 of the Practice Management Education (PME) Regulation.
Juanita is a new RCIC based in Yellowknife, NWT. She has set up a Client Account at her local financial institution, completed the Agent Agreement and Client File Management Practice Management Education courses, and has registered for two more Practice Management Education courses. She downloads all the files and reads them several days ahead of the courses. During both subsequent courses, she actively participates until the main presentation and activities are completed, then she leaves during the question-and-answer periods, since she doesn’t have any questions for the instructor. As a senior consultant, how should you advise Juanita regarding her action?
a) Juanita is still expected to ask several questions, to demonstrate that she has been actively listening and participating, and she should email these questions to the PME instructor.
b) Juanita should reach out to the PME instructor to ensure that her attendance has in fact been logged, since she left early.
c) Juanita will have to take the same PME course all over again because she left early.
d) Juanita should reach out to the PME instructor and apologize for leaving the sessions early.
C: Per Article 7.4 of the PME Regulation, if an RCIC joins a session after the start time or leaves before the session is over, they will not receive credit for the course.
Who is the responsible authority for organizing workshops on writing submission letters?
a) The regulator and professional associations
b) Professional associations and education providers
c) Education providers and the regulator
d) The College of Immigration and Citizenship Consultants
B: The regulator’s role is to protect the public’s interest, which includes mediating disputes between members and their clients. Professional associations and education providers are both involved with furthering their members’ interests and education, as well as providing networking opportunities and representing the profession with industry stakeholders.
What year was the ICCRC established?
a) 2001
b) 2010
c) 2011
d) 2015
2011: ICCRC was established in 2011 as the successor of CSIC, as the result of regulatory amendments to IRPA.
Which of the following is not an accepted activity for the purpose of meeting Continuing Professional Development obligations?
a) Attending an educational workshop in-person
b) Downloading a recorded version of an approved CPD event
c) Moderating a panel at an immigration and citizenship conference
d) Publishing an article on new temporary residence program policies
B: Simply downloading a recording of an approved CPD event is not acceptable. Members must watch or review the downloaded recording.
RCIC Pam is the owner of a new consulting practice. She works alone, but she has signed Agent Agreements with three overseas agents. With their help, she has slowly built a solid practice through study permit applications. Her agents help her with collecting client information and documents and with applying for Canadian post-secondary institutions. Pam does not have any interactions with these clients at all. She is essentially filling out application forms and submitting applications without ever providing any consultation advice. The clients who sign retainer agreements with Pam understand that Pam is the one who submits the applications for them, even though they only correspond with their agents. Out of respect for their clients’ confidentiality, Pam’s agents do not copy Pam on any of their correspondence with the client. What rule of the Code of Professional Ethics is Pam breaching?
a) “Maintenance of Confidentiality,” as no one but Pam herself should have access to client documents.
b) “Advocacy duties,” as Pam cannot persuasively advocate for the client if she doesn’t interact with them.
c) “Duty of good faith,” as Pam cannot represent her clients in good faith without interacting with them.
d) “Responsibility for Agents and staff,” as Pam cannot be sure that her agents are conducting themselves in accordance with the CoPE, or that there are no omissions or errors in their work.
D: All RCICs are responsible for the staff and agents they employ or contract. Although they can strictly advocate for their clients without any interaction with them, Pam cannot be sure that her agents are conducting themselves in accordance with the CoPE, or that there are no omissions or errors in their work. The other choices are also not correct answers as employees and agents can have access to the clients’ personal documentation when completing their assigned tasks, and Pam can still act in “good faith” when representing them.
The Compliance Audit cycle begins on which date in each calendar year?
a) January 1
b) April 1
c) July 1
d) October 1
July 1: See article 5.1 of the Compliance Audit Regulation
True or False: If you are not currently practising and reside outside of Canada, you do not need to purchase Errors and Omissions insurance.
False: All members in good standing must purchase E & O insurance regardless of their professional activity.
Liam was working with a registered immigration consultant to bring his wife to Canada. Liam felt the RCIC’s behaviour was contradictory to the conduct required of a professional immigration consultant, and he decided to lodge a complaint. The ICCRC head office was near Liam’s place of work, so he took his complaint files directly to the ICCRC on his lunch hour one day. Would the ICCRC accept his complaint?
a) Yes, all complaints against a RCIC can only be filed with the ICCRC in person.
b) Yes, a complaint can be filed with the ICCRC by mail, fax, email, or in person.
c) No, the ICCRC only accepts complaints filed by mail, fax, or email.
d) No, complaints must be filed with CAPIC not the ICCRC.
C: The ICCRC does not accept in-person submissions of complaints.
RCIC Alec is good friends with several of his former assistants, Wendy, Isaac, and Michael, who have all moved on to open their own consulting practices. They often get together after work at Alec’s office, where they will have a few drinks and then go out to eat at a restaurant nearby. During dinner, they will discuss their current and previous files, gossip about their clients’ interesting stories, and wonder what these clients are doing now. Which rule of the Code of Professional Ethics have Alec, Wendy, Isaac, and Michael breached?
a) Disclosure Prohibited
b) Confidentiality Survives Retainer
c) Maintenance of Confidentiality
d) Professional Misconduct
C: All parts of a client’s file (whether they are previous or current clients, or even if the files have been closed) must remain confidential. If using them for education or training purposes, then their information must be changed substantially that only the fundamental elements are retained, in order to protect the client’s confidentiality.
True or False: Errors and Omissions insurance covers individual members and staff, but it does not cover company dealings at all.
True: Members who register themselves as a “personal corporation” or “limited entity” can have E & O insurance coverage extended.
Which year did ICCRC establish a streamlined Complaints and Discipline process?
a) 2015
b) 2016
c) 2017
d) 2018
2018: Prior to 2018, complaints were managed by the Discipline Committee alone, who carried out hearings and decided on disciplinary action. Since 2018, a new resolution stream was added to expedite urgent and high-risk cases.
Pat is an RCIC in Alberta, and they are calculating their Continuing Professional Development (CPD) hours for this year. In March and June, Pat attended online training courses that each occurred from 9:00-12:00 on a Saturday. Pat also worked as an instructor in the Family Class Immigration course (ICL 850) with the GDipICL program at Queen’s University for the fall semester. The course was 6 weeks long, and Pat facilitated a 2-hour tutorial each week of the course. This was Pat’s first time teaching ICL 850. Has Pat met the required number of CPD hours for this year?
a) Yes, Pat has 18 hours, which exceeds the minimum requirement.
b) Yes, Pat has 24 hours, which exceeds the minimum requirement.
c) Yes, Pat has 42 hours, which exceeds the minimum requirement.
d) No, Pat has 14 hours, which does not meet the minimum requirement.
D: RCICs are required to complete 16 hours of CPD training per calendar year. Pat receives the following hours for their activities:
March online training: 3 CPD hours
June online training: 3 CPD hours
Weekly tutorial sessions: 3 hours for the first hour in the first week + 1.5 hours for the second hour in the first week = 4.5 CPD hours in the first week. The remaining 10 hours of tutorial count as 1.5 hours each, or 15 CPD hours. In total, the weekly tutorial sessions contribute 19.5 CPD hours. However, Pat can only claim up to a maximum of 50% of the annual CPD requirement for teaching (i.e. 8 hours). Thus Pat’s tutorials accumulate a total of 8 equivalent hours of CPD activities.
So, Pat’s total for the year is 3 + 3 + 8 = 14 CPD hours.
True or False: To protect the client’s confidentiality, all parts of their complaint against a member can be made anonymously.
False: Complaints may not be made anonymously. ICCRC can only investigate a complaint if the complainant submits a copy of their government-issued identification.
Which of the below is not included in the definition of “conduct unbecoming a member” in the Code of Professional Ethics?
a) Taking advantage of a person’s vulnerability due to their ethnicity.
b) Dishonesty or breach of trust.
c) Committing a criminal offence.
d) Any conduct that is substantially similar to prohibited conduct in the CoPE.
A: Conduct unbecoming a member is defined as “Taking advantage of a person’s vulnerability due to age, inexperience, lack of education, or ill health.”
True or False: The Discipline Committee’s role is to determine if a compliant has grounds or merit to warrant further review.
False: The Discipline Committee adjudicates the complaints referred to it by the Complaints Committee. Only serious complaints supported by evidence are forwarded to the Discipline Committee.
True or False: Manny is a RCIC based in Winnipeg, MB. He was previously employed by a consulting practice in Winnipeg, which he left a year ago to start working as an International Student Advisor at the local university. He is still good friends with his former employer, who pays him a referral fee for referring students to their firm to apply for Post-Graduate Work Permits or permanent residence. Manny refers about 500 students to the firm in the first year, and a year later, signed an Agent Agreement with the firm to formally act as their agent. Manny has breached the “Conflicts of Interest” rule of the Code of Professional Ethics.
True: Manny, by receiving monetary compensation, cannot be representing students in good faith because he has a personal interest in referring his students to a specific RCIC.
True or False: The ICCRC Discipline Committee always assigns a member of the panel with the exclusive obligation of overseeing negotiations between RCICs and ICCRC during a complaints and discipline review.
False: Negotiations are held between the member (and/or their legal counsel) and ICCRC legal counsel for possible settlement.
RCIC Markus has been working on a family class sponsorship application for the last seven months. Both the sponsor, Auggie, and the applicant, Kyle, are very slow to respond to emails and often do not submit the correct documents to Markus for review. Markus is extremely frustrated at what he perceives is a prolonged “waste of his time.” Markus tells Auggie and Kyle that he is terminating their retainer agreement. Auggie and Kyle ask Markus for a refund of the professional fees they have already paid him, claiming that these fees are “unearned funds.” Markus refuses and instead provides them with guidance on how to file a complaint at the ICCRC. The next day, Auggie files a complaint against Markus with the ICCRC. Will ICCRC proceed with investigating this complaint?
a) Yes, Markus should have refunded any unearned funds when he terminated the retainer agreement.
b) Yes, Markus did not give Auggie and Kyle enough notice before terminating the retainer agreement.
c) No, the complaint has no merit or substance to warrant further investigation by ICCRC.
d) No, the complaint should have been filed by Kyle, not Auggie, as Kyle is the foreign national.
C: In addition, ICCRC will also decline to investigate if the matter is not in the public’s interest for the regulator to proceed any further.
Which of the following is not a core element related to partnership business models?
a) Partners share strategic decision making.
b) The partnership is a distinct legal entity.
c) Partners are held responsible for all debts.
d) Each partner is jointly liable for liabilities and assets of the business.
B: In a partnership, business assets and joined with all partners’ own personal assets.
Hubert operates 10 successful hair salons throughout Manitoba. He has managed his salons as a sole proprietor the entire time and is a successful entrepreneur. Over the last 20 years, Hubert has assisted many of his current and previous employees with obtaining work permits and eventual permanent residence. Hubert has decided to start an immigration consulting practice to help other hairstylists in the province with work permits and permanent residence. He has successfully completed the GDipICL program as well as his Entry to Practice Exam. Taking into consideration Hubert’s current business obligations, how should he run his consulting practice?
a) Full-time, as an incorporated company or as a sole proprietorship.
b) Part-time, as an incorporated company or as a sole proprietorship.
c) Part-time, as a Partner.
d) Full-time, as a Partner.
B: Hubert has extensive business obligations because he is still running his hair salons in Manitoba. Since he only intends to offer limited services, he should keep his consulting practice on a part-time basis so as to not prejudice either business. Hubert would also be better operating his immigration practice as a sole proprietorship (incorporated or not). If he were in a partnership, he would be responsible for joint business decisions, which he may not be able to commit to along with his existing business obligations.
True or False: Your classmate in the GDipICL program, Gilbert, has just passed his Entry to Practice Exam and submitted his registration application to the ICCRC. He has no previous experience in working on immigration applications. He did very well on the Family Class course during the program, so he intends to work as a specialist on sponsorship applications. You believe that Gilbert should be seeking internship or employment opportunities with other specialists first.
True: Gilbert and his potential clients would benefit from practical experience in preparing applications and advising/consulting clients, prior to starting his own business.
True or False: RCIC Jordan has been retained by Christina, an older woman in her early 50s, to submit an application for proof of Canadian citizenship on behalf of Christina’s young daughter, who was born the previous year. Jordan advises Christina that given her age, IRCC would likely request Christina and her daughter to undergo a DNA examination to prove their biological relationship. Jordan explains to Christina that DNA samples must be collected at approved, third-party clinics for the results to be accepted by IRCC. He further tells Christina that she must use the services of “Beta DNA Clinic,” as he knows the clinic personally and can obtain a discount on the fees, plus guarantee that the test results will be released within 24 hours. The ICCRC Agents Regulation stipulates that Jordan can continue to instruct his clients to use a specific third-party DNA testing centre.
True: Jordan is obligated to conduct client affairs in an efficient, cost-effective manner, and he has done so here. There are no stipulations in the Agents Regulation that restrict the use of specific third-party service providers.
Roberta has just been issued her license to practice as an RCIC by the regulator. Prior to graduating from the GDipICL program, she earned a bachelor’s degree in International Relations. She has decided to work as a specialist and work exclusively with international students, since her sister works with a local public university. She has decided to establish a home-based business. Which of the following services can Roberta claim as expenses in her home-based business?
a) Her entire retainer fee from retaining a law firm to help her incorporate her company.
b) Her entire mortgage interest payment each year.
c) The costs of buying filing cabinets to store her client files.
d) The costs of buying a new desk and ergonomic computer chair as part of her office set-up.
A: Roberta can only claim part of her mortgage interest payments (not its entirety) as a business expense. Filing cabinets, desks, and chairs are considered capital items and cannot be deducted as expenses.
Ivana has completed her Graduate Diploma in Immigration and Citizenship Law. She is now trying to decide whether she wants to work as a specialist or a generalist. Which factors would you advise her to consider when making this decision?
a) Her age and fluency in English.
b) Her personal experience with immigration processes.
c) Her social network.
d) Her research skills and legal writing ability.
B: The other three elements are important skills for both specialists and generalists, but to help determine whether to focus on specialty areas is primarily based on personal experience with the immigration process.
True or False: RCIC Brianna has been practising since 2020. Due to the COVID-19 pandemic, she has not been able to attend many Continuing Professional Development activities in person. For this reason, she does not know many experienced or senior practitioners and has instead been calling the IRCC Client Service Centre a lot to obtain information from call centre agents. Brianna has just been retained by a new client to submit a Work Permit application under the NAFTA Professionals program. She has never completed such an application before, but she has read all the program guides available on the topic. This is not sufficient under the Code of Professional Ethics, and Brianna is obligated to retain the services of a third-party representative to assist her in submitting this application.
True: Until Brianna herself is sufficiently experienced in submitting an application of this type, she must consult or work with another person who is competent and licensed to perform that task or service.
Amelia and Ranjeet grew up in the same neighbourhood and attended the same elementary school. They attended different high schools and colleges but met each other again when they both enrolled in the Graduate Diploma in Immigration and Citizenship Law. They discovered that Amelia did really well during their Family Class course, and Ranjeet did well during Economic Class. After they finish the program, Ranjeet asks Amelia to consider forming a partnership with her and starting a business together. What are some key elements of a partnership that Ranjeet should mention to Amelia?
a) They can register a business name throughout Canada of their own choosing, and they can declare their business income as personal income.
b) Their partnership can be operated as a distinct legal entity from their personal assets and liabilities, and they can register their business name throughout Canada.
c) Their business income can be declared as personal income, they are jointly responsible for liabilities and assets of the business, and they share strategic decision-making responsibilities.
d) They can share in strategic decision-making responsibilities, and they can operate a distinct legal entity from their personal assets and liabilities.
c) Their business income can be declared as personal income, they are jointly responsible for liabilities and assets of the business, and they share strategic decision-making responsibilities.
A partnership does not allow for business liabilities and assets to be registered separately from each partner’s personal assets or liabilities.
True or False: Lydia is a dual citizen of the United States and Canada. For over ten years, she was employed by Amazon as a Technical Recruiter, responsible for hiring and staffing highly skilled Software and Computer Engineers to work in Amazon offices around the world. She has just completed her Graduate Diploma in Immigration and Citizenship Law. She has decided to focus on corporate clients, specializing in assisting Canadian employers in the technology sector fulfill their labour market needs by applying for work permits and Labour Market Impact Assessments. Lydia owns a primary residence in the United States and a vacation home in Canada. In order to fulfill her obligations to her clients, Lydia should open an office in Canada so her clients will be able to sign their documents in person.
False: Lydia is not required to open an office in Canada. Her clients are in the technology sector, so are equipped to correspond or communicate with her via digital means to prepare and finalize applications.
Which of the following core elements are related to sole proprietorship business models? Choose all that apply.
a) Strategic decision making is shared with others
b) Business income is declared as personal income
c) Business ownership is registered under your name
d) You can operate a business name throughout Canada
B and C: Strategic decision making is shared with others in a partnership, while federally incorporated companies allow for name registration throughout Canada.
You have been practising as a RCIC for several years. At an immigration and citizenship conference, you meet a new RCIC who has been practising for less than 6 months. This RCIC has been struggling to find clients or learn how to prepare different types of applications under the provincial nominee program. How should you advise this new RCIC?
a) Apply to work with a private or public university to work with international students or join an existing firm to gain practical experience.
b) Continue taking Practice Management Education courses to learn about developing strong client relationships.
c) Visit other practitioners and request that they share some of their overflow files, in order to gain more work experience.
d) Read federal court cases and summarize them to gain a deeper understanding of how to apply and interpret the law.
A: The new RCIC could also ask to partner with a sole practitioner on new files, seek mentorship from senior practitioners, or work with mentors on new files.
RCIC Wilson has been working as an Assistant Immigration Consultant for several years. This year, he finally made the decision to open his own practice. He has invited two of his coworkers, Emily and Julie, to join his new business as his partners. Wilson is experienced in all types of Economic Class applications. Emily and Julie are both knowledgeable in Temporary Residence and LMIA applications. Wilson, Emily, and Julie have succeeded in convincing 30% of their existing clients to leave the firm with them. Based on their respective knowledge and experience, how should Wilson structure the scope of his practice in order to best serve his clients?
a) As a generalist by purchasing recordings from past CPD events to learn about other programs.
b) As a specialist in Economic Class applications, to maximize clientele and profit.
c) As a specialist in Economic Class, Temporary Residence, and LMIA applications.
d) As a generalist by signing co-counsel agreements with other experienced practitioners.
C: Wilson, Emily, and Julie are not yet experienced enough to market themselves as generalists, so they should instead focus on offering their expertise on what they are most familiar and experienced in.
Which of the following core elements is related to incorporated business models?
a) Business income is declared as personal income.
b) The owner is personally liable for liabilities and assets of the business.
c) Business ownership is registered under the owner’s name.
d) The business is a distinct legal entity.
D: In sole proprietorships and partnerships, business income can be declared as personal income. Similarly, owners of both models are personally liable for liabilities and assets of the business. Business ownership is registered under the owner’s name in a sole proprietorship.
RCIC Aaron speaks Spanish fluently, having grown up in Argentina and being educated in Spain. All of Aaron’s clients are from Spanish-speaking countries, and their documents are provided in Spanish. He is required to retain the services of a third-party translator to translate these documents into English. However, because Aaron is fluent in Spanish, he decides to translate his clients’ documents into English himself and save his clients some money. Aaron pays a certified translator a small fee to insert her translator’s credentials and stamp on the documents when he is finished translating the documents himself. Should Aaron continue to do this?
a) No, Aaron must fully retain the services of a certified third-party translator, or he may be breaching his “Duty of Good Faith” from the Code of Professional Ethics.
b) Yes, Aaron does not strictly require the services of a third-party translator because he is fluent in Spanish himself.
c) No, doing so is illegal, and Aaron can be arrested or charged with providing fraudulent documentation.
d) No, doing so is in direct conflict of interest between Aaron and the third-party translator.
A: Aaron has acted in bad faith when he attempted to circumvent the correct process of obtaining translated documents. He must retain a certified, third-party translator to translate documents in their entirety.
Which of the following is untrue when it comes to running a home-based office?
a) You need a business license.
b) You do not need to pay property taxes.
c) You do not need a dedicated space to host virtual meetings.
d) You can federally incorporate your business.
B: Your home office is still your place of residence, so property taxes must still be levied. However, you may be able to claim these as part of your business expenses.
True or False: Guojing is a licensed immigration lawyer based in Detroit, Michigan. He is also a member of ICCRC and owns a small practice in Windsor, Ontario. Guojing mostly works from his Detroit office and keeps his primary residence in Detroit. In his Windsor office, he keeps a duplicate set of all his important ICCRC registration documents, including certified true copies of his ICCRC membership card and membership certificate. Last year, a fire broke out in Guojing’s Detroit office building and destroyed his entire office. All his documents were lost. Luckily, he was able to apply for new documents and a new membership card. Guojing should continue to keep duplicate certified true copies of his certification documents for safekeeping.
False: Refer to article 3 of the Reproduced Certificate of ID Regulation.
True or False: RCIC Penny has recently launched her company website. She has decided to dedicate a page on the site to display client testimonials. Many of her clients do not speak English, so they provide their testimonials in their native language. Penny paid a translator to translate these into English and posted the translations on the website. Penny has breached one or more articles in the Code of Professional Ethics.
True: In accordance with article 12.2 of the CoPE, Penny was required to have obtained permission from her clients to review and post the translated content.
True or False: Xenia has been working with an immigration law firm for many years, as a legal assistant. The law firm is registered in good standing with the Law Society of New Brunswick. After finishing her graduate diploma program, passing her Entry to Practice Exam, and becoming a licensed consultant, Xenia plans to continue her employment with the law firm as a consultant. Xenia will be able to retain clients through the law firm, which will allow her to practice under a reputable and well-established business name.
False: In accordance with article 6.1 of the Business and Business Name Registration Regulation, the law firm must also be registered with ICCRC if Xenia plans to practice under its business name.
New RCIC Allan lives in Banff, AB. He has already secured a large client base, most of whom reside in Calgary, AB, which is a 90 minute-drive away. Allan’s partner will work with him as his assistant. Allan estimates that he will likely spend about 20 hours per week meeting with clients. How should Allan best set up his office to service his clients?
a) Maintain a home office and set up a virtual meeting space to host client meetings.
b) Maintain a home office, set up a virtual meeting space to host client meetings, and lease a serviced office in Calgary for his partner to have a dedicated space to work.
c) Lease a professional office in the city to meet his clients and for his partner to have a dedicated space to work.
d) Maintain a home office to work on client files and lease a serviced office in Calgary to meet his clients.
D: This method will allow Allan to meet clients but eliminate costly fees of having a dedicated office 90 minutes away.
True or False: Clayton has been working with an immigration law firm for many years, as a legal assistant. He then became a member of ICCRC, after which he decided to start his own practice. One of the lawyers in the immigration law firm decided to leave the firm and join Clayton’s new practice. The two of them agreed to be partners in their new venture. The lawyer has remained in good standing with their provincial licensing authority, the Law Society of New Brunswick. Clayton is a member in good standing with the ICCRC. They share the costs of running the practice evenly, and they help each other out on co-counselling duties where necessary. Clayton and his partner will be able to retain clients separately as long as their clients are fully aware of their practice model.
False: Hide Feedback
In accordance with article 7.4 of the Business and Business Name Registration Regulation, both partners must be members of ICCRC.
Under the accrual basis of accounting, revenues are reported in the accounting period when the:
a) Cash is received
b) Services or goods have been delivered
c) Invoices are received by the client
d) Contracts are signed
B: Invoices and contracts are evidentiary proof that work has been completed or work will commence. Receiving the invoice is different from reporting at the time work in completed. Clients may receive an invoice well after work has been completed; however, revenue should be reported when the services or goods have been delivered to the client.
Entries to expenses such as rent expense are usually:
c) Credits
d) Debits
Debit: Debits refer to money that is being taken out of your accounts to pay for expenses.
True or False: Raymond holds client accounts at several major financial institutions, for the convenience of allowing his clients to transfer funds into his client account without incurring extra charges or deposit delays. Last week, he advised his client Alli that her translated documents will be completed at the end of that week, and the total bill will be $500 CDN. He asks Alli to transfer this amount into his client account so that he could use it to pay the translation agency. Alli does so the following day, and Raymond’s assistant proceeds to withdraw $500 cash from the client account that afternoon. Raymond has breached one or more articles in the Client Account Regulation by allowing a cash withdrawal from his client account.
True: Refer to article 6.4 of the Client Account Regulation.
True or False: All the following are considered “non-operating revenues.”
Revenue from referral fees you earn when you refer a client to another firm.
Revenue from being sponsored to speak at a seminar or workshop.
Gains from company investments or assets.
False: Referral fees and fees for speaking at a seminar or workshop are revenues that are still considered part of your consulting business. Non-operating revenue would include rents you collect from renting out part of your office, for example.
True or False: Amisha is a successful RCIC who managed two offices in Toronto, ON. In January 2020, she decided to close her Canadian offices and return to India to look after her parents during the COVID-19 pandemic. Since then, she has managed three office locations in Mumbai, and she has maintained her obligations to the regulator by completing her CPD hours virtually and attending Practice Management Education courses remotely. Amisha did not report any income on her 2020 Notice of Assessment, as she used all the income earned by the company to pay severance packages to her employees. She is now a non-resident of Canada. As a non-resident corporation, Amisha was not required to file a corporation income tax return in 2020.
False: A non-resident corporation must file a return if, at any time in the year, one of the following situations applies:
it carried on business in Canada
it had a taxable capital gain
it disposed of taxable Canadian property
This requirement applies even if the corporation claims that any profits or gains realized are exempt from Canadian income tax due to the provisions of a tax treaty.
True or False: Suzy has owned her consulting practice since 2011. Accordingly, she has also owned the same client account at one of the major financial institutions in Canada. Since she has been such a long-time client, she earns a very favourable interest rate on the deposits she maintains in her client account. Once her interest earnings reach a certain amount, she transfers that money to her business account and takes her staff out on a short weekend trip. During these trips, she spends all the money on nice dinners and allows her staff to purchase souvenirs, as well. She has been doing this since the beginning of her practice, to reward her staff for their dedication and hard work. According to the Client Account Regulation, this is prohibited, and Suzy cannot be using interest earned from her client account in this manner.
False: Refer to article 7.1 of the Client Account Regulation.
How should you determine your “Working Capital” needs?
a) Amount by which your current net income exceeds your day-to-day expenses.
b) Amount by which your current cash flow exceeds your current liabilities.
c) Amount by which your current assets exceed your current liabilities.
d) Amount by which your accounts receivables exceed your payroll.
C: Assets are defined as your accounts receivables, cash, and inventory. Your liabilities are accounts payables, fees, and any other debts owing against the company. Whatever is in excess is your working capital.
True or False: Momoko has been retained as a bookkeeper by Sachiyo to help manage some of the financial aspects of Sachiyo’s immigration practice. Sachiyo asks Momoko to prepare a balance sheet to report the total amount of her assets, liabilities, and shareholder’s equity for the entirety of her business operation history. Momoko should proceed with preparing the balance sheet as instructed by Sachiyo.
False: Balance sheets report your company’s assets, liabilities, and shareholder’s equity at a specific point in time. Momoko would not be able to produce a balance sheet for the entirety of Sachiyo’s operation history.
What is not considered part of your company’s “assets”?
a) Office furniture
b) Computers and equipment
c) Company logo from an online generator
d) Cash savings
C: If you purchased a logo, then the purchased logo would be considered an asset. But if you designed it and made it yourself, it is not considered an asset.
Kiana has just started her immigration consulting practice. She has retained a bookkeeper, Spencer, to help her manage some of the financial aspects of her practice. Spencer would like Kiana to provide a list of the main sources of cash flow the company will have. How should Kiana provide a breakdown of such sources?
a) Kiana should make separate lists for operations cash flow, marketing expenses, and total sales each month.
b) Kiana should forward emails from her service providers to report her cash flow from advertising the business, total sales, and financing from her bank.
c) Kiana should make separate lists for operations income, business investments, and financing from her bank.
d) Kiana should make separate lists from her cash flow from advertising the business, total sales, and financing from her bank.
C: Operations, investments, and financing are the main sources of cash flow for the company. The other noted sources are generally not considered “main sources of cash flow”.
Soon-Yi and Sung-Ho started an immigration practice together. So far, they have hired one assistant (who also works as a receptionist), and one bookkeeper. Soon-Yi was a university student advisor prior to opening her own practice, so she had lots of contacts, and their practice became very busy with lots of new clients almost immediately. Their bookkeeper has been kept busy issuing invoices, tracking transactions, receivables, and payables. At the end of their first month of business, Soon-Yi asks their bookkeeper to provide an account of all the reconciliations that have been completed so far. What information must their bookkeeper reconcile each month?
a) Personal line of credit balances, term investments, and mutual fund fluctuations.
b) Term investments and mutual fund fluctuations.
c) Earnings from GICs and interest charges on all accounts.
d) Deposits, withdrawals, credit card payments, and bank fees.
D: Reconciling all accounts, of all activity and transactions, will allow you to catch any mistakes. From a business perspective, you only need to reconcile your client and business accounts, although you may personally reconcile all your personal investment and savings accounts if you wish.
Kamran has been practising for several years. He has received a consultation request from Toshio. During the consultation, Kamran provides Toshio with a breakdown of his professional fees and government processing fees. Toshio states that he is facing financial difficulties, having recently lost his job. He asks Kamran if it would be possible to arrange for fee payment in intervals. What are the acceptable billing methods, according to the Retainer Agreement Regulation, that Kamran can offer Toshio?
a) Hourly billing, weekly billing, flat fee billing by milestone, flat fee billing by pre-determined schedule
b) Daily billing, weekly billing, flat fee billing by milestone, flat fee billing by pre-determined schedule
c) Daily billing, weekly billing, flat fee billing by milestone, flat fee billing each month
d) Hourly billing, daily billing, flat fee billing by milestone, flat fee billing by pre-determined schedule
D: Refer to article 5.1(h) of the Retainer Agreement Regulation.
True or False: Amisha is a successful RCIC who managed two offices in Toronto, ON. In January 2020, she decided to close her Canadian offices and return to India to look after her parents during the COVID-19 pandemic. Since then, she has managed three office locations in Mumbai, and she has maintained her obligations to the regulator by completing her CPD hours virtually and attending Practice Management Education courses remotely. She took all her financial records with her when she returned to India and now keeps them in her home office in Mumbai. Her electronic backups are kept on a secure cloud server in Mumbai. Amisha is not required to maintain any of her financial records in Canada since she is now considered a non-resident.
False: Records must be kept at a place of business or a personal residence in Canada, unless the Canada Revenue Agency (CRA) explicitly gives written permission to keep them elsewhere. Records kept outside of Canada and accessed electronically from Canada are not considered to be records kept in Canada.
Leonardo has retained a bookkeeper, Momoko, to help him manage some of the financial aspects of his immigration practice. Leonardo authorizes Momoko to have access to his client account and business account, and he provides receipts and invoices each time a transaction is completed with a client. Momoko asks Leonardo to confirm the deadline before which client account reconciliation must be completed. What is the deadline?
a) No later than 30 days after each month’s end
b) No later than 60 days after each month’s end
c) No later than 90 days after each month’s end
d) No later than 120 days after each month’s end
C: Refer to article 9 of the Client Account Regulation.
The following fees can be held in the client account:
a) Government processing fees, employee salaries, unearned funds
b) Government processing fees, disbursements, unearned funds
c) Government processing fees, property tax payments, disbursements
d) Government processing fees, translation fees, utility payments
B: Any fees associated with running your practice should not be deposited in the client account.
True or False: Landon started his own immigration consulting practice four months ago. He has successfully registered a business name and opened a payroll account with the CRA, which would allow him to hire employees. Even though his practice is small, he has already completed two applications for two different clients, and he has earned a gross income of $10,000. Landon must register a GST/HST account before the next quarter begins.
False: Since Landon did not exceed an income of $30,000 over four consecutive calendar quarters, he is not required to register for a GST/HST account, as he is considered a “small supplier.”
Assets are usually reported on the balance sheet at which amount?
a) Cost
b) Current Market Value
c) Expected Selling Price
d) Actual Selling Price
A: Assets’ cash amount must be recorded at the time they are required (the “cost” of those assets). This is called the “cash principle”. Because of the cash principle, the amount reported on the balance sheet should not reflect their current market value, which may fluctuate as the years go by. Similarly, it would violate the cost principle to record it at “expected selling price” or “actual selling price”.
Amisha is a successful RCIC who managed two offices in Toronto, ON. In January 2020, she decided to close her Canadian offices and return to India to look after her parents during the COVID-19 pandemic. Prior to this decision, Amisha had been managing her client information and records using many different excel spreadsheets. She now wishes to transition to a more streamlined process, managed through specialty software. What are some client management software tools that Amisha can consider? (Select all that apply)
a) CLIO
b) Quickbooks
c) Mogo
d) Sage
e) CaseEasy
f) Officio
g) IMMeFile
h) Solutionreach
CLIO, CaseEasy, Officio, IMMeFile: All others are client management software, but not for use in an immigration practice.
