Chartered Accountants ANZ (CA ANZ) has issued a statement in response to the recent report from the Parliamentary Joint Committee into Ethics and Professional Accountability’s work on structural challenges in the audit, assurance and consultancy industry.
The report makes several recommendations aimed at improving ethics, accountability and transparency within the accounting profession.
In its initial review, CA ANZ expressed support for many of the committee’s recommendations, noting their alignment with the organisation’s Going Further road map, a strategic plan for enhancing trust, transparency and accountability in the profession.
The report’s emphasis on strengthening the Australian Securities and Investments Commission as the chief government regulator, alongside other bodies such as the Companies Auditors Disciplinary Board, resonated with CA ANZ’s ongoing efforts to bolster regulatory oversight in the sector.
Strengthening the reporting and governance obligations of large professional services companies is the focus of the road map designed to bolster trust and accountability within the profession.
Meanwhile, CA ANZ views recommendation 27’s proposal to protect the term ‘accountant’ through legislation as a positive step for safeguarding the profession.
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By GlobalDataHowever, CA ANZ expressed concerns regarding certain recommendations that do not seem to consider evidence provided to the committee.
Recommendation 26 calls for a review by the Australian Government into the investigatory and disciplinary processes of professional accounting bodies, with the potential establishment of a single independent body to perform these functions.
This recommendation is based on the assumption that there are no mechanisms in place within accounting bodies to prevent and manage conflicts of interest.
As associations with an approved professional standards scheme and members of the International Federation of Accountants, all professional accounting bodies are obligated to implement conduct rules and processes.
CA ANZ stated: “We have already provided extensive evidence that shows our conduct and disciplinary framework is entirely independent from Board and management, with the independent Professional Conduct Committee, Disciplinary Tribunal and Appeals Tribunal comprised of senior chartered accountants, lawyers, ethicists and academics.”
In 2022, CA ANZ reviewed its framework, with members voting in favour of recommendations aimed at strengthening its response to unethical behaviour, including a fivefold increase in fines for firm events.
The ability to impose fines, like those from the Public Company Accounting Oversight Board, necessitates statutory powers under legislation.
To enhance transparency, CA ANZ has taken steps to publish and provide key stakeholders a Professional Standards Annual Report for Australia.
This includes information on reviews, conduct, discipline and other relevant data.
Earlier this month, CA ANZ published an insight paper entitled Future-Proofing Finance: Business Partnering Insights for Chartered Accountants.
