“PSAAC” stands for the Public Sector Accounting and Auditing
Committee of the Canadian Institute of Chartered Accountants (CICA). PSAAC was
established in 1981, to improve and harmonize public sector accounting and
auditing practices. Its creation followed extensive consultation with federal
and provincial governments and legislative auditors, and an in-depth CICA study
of their financial reporting.
That study, Financial
Reporting by Governments (1980), found wide disparities in government
reporting practices. Government financial statements often reported fragmented
and incomplete information, leaving out major operating units and liabilities.
So, the financial statement information was inadequate for both decision-making
and accountability. In addition, similar transactions were being reported very
differently from government to government. As a result, useful comparisons of
one government’s financial statements with those of another were almost
impossible. The study called for accounting standards tailored to reflect the
nature of government objectives and operations, and to meet information needs
of the users of government financial statements and reports.
In 1991, a tenth anniversary pamphlet was issued on PSAAC - What It Is & What It Does. The
pamphlet explains: what it is; why it was formed; how it works; what it’s done;
where it’s going; and progress to date. According to the pamphlet: “PSAAC’s role
is: To serve the public interest by strengthening accountability in the public
sector through developing, recommending and gaining acceptance of accounting
and auditing standards of good practice. The Committee issues its
recommendations in Public Sector Accounting and Auditing Statements and
Guidelines. It also initiates research studies to serve as input to the
standard-setting process and to stimulate thought and debate on contentious or
complex issues.” An Appendix to the pamphlet lists seven accounting statements,
four auditing statements, two auditing guidelines and four research studies
issued up to that point in time.
