IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

The Institute of Chartered Accountants in Australia

Introduction

The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

Part 1:	Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
Part 2:	Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

Setting auditing, accounting, ethics, public sector and education standards; and
Regulating the accountancy profession.

Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

Questions or comments may be sent to complianceassessment@ifac.org.

Section 3 -- Member Body General Information

1. Country:

AUSTRALIA

2. Name of member body:

The Institute of Chartered Accountants in Australia

Or please specify name:

3. Individual responsible for preparation:

SUSAN SMITH

4. Date member body became a member of IFAC:

Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

10 / 1977

Questions 5 - 22 are for internal use only

Section 3G -- Affiliations

23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):

CAPA

Section 4 -- Statutory Framework

Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

Section 4A -- The Companies Act or Commercial Code

The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

24. What is the full name of:

a). the Act or the Code:		Corporations Act 2001 (Cth)
b). the Enacting body:		Commonwealth Parliament of Australia
c). date the Act or Code came into force:		07 / 2001

25. How can IFAC obtain a copy of the Act or Code?

It is available from http://scaleplus.law.gov.au

26. Is the Act or Code available in English?

Yes

27. What are the types of entities covered by the Act or the Code?

Please check all that apply.

	Listed entities					Other (please specify): Non-listed disclosing entities
	Private companies					Other (please specify): Registered schemes
	Governmental					Other (please specify):
	Not-for-profit					Other (please specify):

28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged
Private companies			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged although an exception exists for small private companies
Governmental			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged
Not-for-profit			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged although an exception exists for small private companies
Other (please describe) Non-listed disclosing entities			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged
Other (please describe) Registered schemes			Audited financial statement in accordance with Australian accounting standards (which generally follow IFRS) are required to be prepared and lodged

29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			International auditing standards
Private companies			Only some are required to be audited - where audited, it is in accordance with international auditing standards
Governmental			Government owned companies are required to be audited by a registered company auditor, which can include the Auditor General. Such audits must be conducted in accordance with Australian Auditing Standards.
Not-for-profit			Only where a not-for-profit company is incorporated as a public company (limited by guarantee) are they required to be audited by a registered company auditor. Such audits must be conducted in accordance with Australian Auditing Standards.
Other (please describe) Non-listed disclosing entities			Only some are required to be audited - where audited, it is in accordance with international auditing standards
Other (please describe) Non-listed disclosing entities

30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

31. Who appoints the statutory auditors?

Please check all that apply.

	Shareholders					Management
	Board of directors					Other (please specify):
	Audit committee					Other (please specify):
	Government agency					Other (please specify):

32. Does the Act or Code require joint auditors for the statutory audit?

Yes

If yes, please describe the requirement:

33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?

Yes

If yes, please describe the requirement:

For Listed Company Audits for years commencing as of July 1, 2004, the Corporate Law Economic Reform Program (CLERP) 9 amendments require rotation of the Lead Engagement / Signing partner every five years and the Review partner if one is appointed.

This rotation period can be extended to 7 years for smaller listed entities who have the approval of the regulator.

Auditors are appointed until removed or resigned; therefore, they are not appointed for a specific period as such. Their appointment can be reviewed annually at the Annual General Meeting of the entity.

Section 4B -- Securities Market Regulations

Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:

the major items of Legal authority for such requirements

Corporations Act 2001 (Cth), Australia Stock Exchange (ASX) listing rules, Australian Securities and Investments Commission (ASIC) Act & Australian Prudential Regulation Authority (APRA) Act
the Enacting body(ies)

Commonwealth Parliament of Australia and the Australian Stock Exchange
the latest amendment date?

July 1, 2004 (as a result of CLERP 9).

35. How can IFAC obtain a copy of the Legal authority?

It is available from http://scaleplus.law.gov.au

36. Is the Legal authority available in English?

Yes

37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?

Yes

If YES, please describe the requirement:

Listed entities,which are in the insurance or banking industry are required to provide additional reports to "industry regulators". All listed companies are also required to report in accordance with ASX listing rules which entail some additional reporting requirements and continuous disclosure

38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?

Yes

If YES, please describe the requirement:

F1 Professional Independence standard of the Institute - this standard is based on the IFAC Code. The CLERP 9 amendments also now require auditors to be independent.

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.

	Shareholders			Management
	Board of directors			Other (please specify): The term of appointment is at the discretion of the company at the Annual General meeting.
	Audit committee			Other (please specify):
	Government agency			Other (please specify):

40. Are auditors who perform audits of listed entities appointed for a specified period?

Yes

If YES, please indicate the term of appointment:

Year(s)

41. Are joint auditors required for audits of listed entities?

Yes

If YES, please describe the requirement:

Only one auditor is required, there may be reviewing partners but not joint auditors, as required in France by way of example. With respect to question 40, the term of appointment is at the discretion of the company at the Annual General Meeting.

42. Is rotation of the auditor or audit firm for audits of listed entities required?

Yes

If YES, please describe the requirement:

As detailed in question 33 for Listed Company Audits for years commencing as from July 1, 2004, the CLERP 9 amendments require rotation of the Lead Engagement Partner / Signing partner every five years adn the Review partner if one is appointed.

Section 5 -- Auditing Standards

Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 5A -- Statutory Framework

43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:

Type of entity	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting audit and other assurance standards
Listed entity	ASIC Act	01/2004	Auditing and Assurance Standards Board (AUASB)
Other (please describe) All entities required by Corporations Act or where entities require an audit	ASIC Act	01/2004	Auditing and Assurance Standards Board (AUASB)
Other (please describe)
Other (please describe)

It is available from http://scaleplus.law.gov.au

Yes

Section 5B -- Standard-Setting (Auditing and Assurance Standards Board (AUASB))

44. For Auditing and Assurance Standards Board (AUASB), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

The AUASB derives its authority from the ASIC Act as following CLERP 9 amendments from July 1, 2004. The AUASB will be funded in a similar manner to the Australian Accounting Standards Board (AASB) being a mixture of government and Accounting Bodies' funding.

Auditing and Assurance Standards (AUSs) and Auditing and Assurance Guidance Statements (AGSs)

45. How many voting members does the standard-setting body have?

46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		The CLERP 9 amendments provide for a part-time Chairman who is paid. Members of the Board will receive sitting fees (attendance fees)

47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

All of the above (e.g. best person for the job, sector of the profession, private and public members, academic, geographic representation).

48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Under CLERP 9 the Government appoints the Chairman, and the Financial Reporting Council appoints the members.

49. What is the term of appointment for members?

3 Year(s)

50. For how many years has the standard-setting body been in existence?

37 Year(s)

51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

560,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

0.70

52. To what entity is the standard-setting body accountable?

Financial Reporting Council under CLERP 9.

53. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Details of how these standards are developed and issued is included in AUS 102 Foreword to Australian Auditing and Assurance Standards and Guidance Statements (January 2002). AUASB meetings are held in public. The document is available on the AARF website: www.aarf.asn.au
accessibility of meetings (i.e., public or private)

Public
approval process for final standards (i.e., majority required to approve final standards)

Simple majority of the AUASB then as an AUASB standard is now a 'disallowable instrument' of the Parliament, the Standard is place before the Parliament for 15 parliamentary sitting days where the Parliament can move to strike the standard out or amend it. No action by the Parliament means the Standard is passed.
other relevant due process activities

54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

12 Day(s)

Section 6 -- Ethics

Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 6A -- Statutory Framework

55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.

Type of professional covered	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting ethics standards
Professional Accountants in Public Practice	Code of Professional Conduc	12/2003	ICAA & CPAA jointly
Professional Accountants in Business	Code of Professional Conduc	12/2003	ICAA & CPAA jointly
Professional Accountants in the Public Sector	Code of Professional Conduc	12/2003	ICAA & CPAA jointly
Other (please describe)

Code of Professional Conduct (CPC) & Miscellaneous Professional Statements are available on the ICAA website at: www.icaa.org.au

Yes

Section 6B -- Standard-Setting (ICAA & CPAA jointly)

56. For ICAA & CPAA jointly, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Professional accountancy bodies. For information about CPA Australia (CPAA), refer to CPAA's response to the Assessment of the Regulatory and Standard-Setting Framework.

Code of Professional Conduct and Miscellaneous Professional Statements

57. How many voting members does the standard-setting body have?

Professional bodies set jointly through resolutions of their respective Boards

58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		Ethical standards are developed through a process of consultation between ICAA, the professional body and its staff, and ICAA member volunteers in conjunction with CPAA staff and member volunteers. Suggested standards are then exposed for comment by interested stakeholders via electronic exposure on both the ICAA & CPAA websites.

59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Not applicable

60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Not applicable

61. What is the term of appointment for members?

Year(s)

62. For how many years has the standard-setting body been in existence?

Year(s)

63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

0.0

64. To what entity is the standard-setting body accountable?

The accounting bodies are currently investigating the need for a separate joint ethical standards board. Answers to the above questions will be provided if subsequently resolved. While not directly accountable to other bodies, the existing co-regulatory environment in Australia ensures that views and perspectives are sought, when relevant, from the following regulatory bodies: Financial Reporting Council (FRC); ASIC; (Australian Taxation Office (ATO).

65. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Members are notified by electronic newsletter and hard copy journals. Exposure drafts are available on the website and members are invited to comment
accessibility of meetings (i.e., public or private)

Varies depending on matter under consideration. For example, independence requirement � both private and selective public meetings were held during exposure period
approval process for final standards (i.e., majority required to approve final standards)

Majority
other relevant due process activities

66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 7 -- Education

Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

Section 7A -- Education Requirements

67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:

In Australia, in most states, the compulsory years of schooling include infants/primary education from Kindergarten to Year 6 (age 5 � 12); and then high school from Year 7 to 10 (age 12�16), although it is possible for people to leave school before finishing year 10 if they are at least 15. Although not compulsory, many students stay on for senior high school in Years 11 & 12 (age 16-18), and must do so if they intend to apply for university. After this secondary schooling period students can seek employment or further their education by attending either an Institute of Technical & Further Education (TAFE) or private post-secondary college; or alternatively they can take up tertiary education by enrolling at university. Enrolment in TAFE is possible after year 10 but to apply for university, students must complete year 12 and achieve the overall tertiary entry mark required for the discipline they wish to study.

To be either a Chartered Accountant (CA) or a Certified Practising Accountant (CPA) in Australia, a person must complete a university degree accredited by the applicable professional association and ensure they have covered subjects in the core curriculum areas specified by the professional bodies.

The final educational requirement to be a CA is the completion of the CA Program (the postgraduate admission program of The Institute of Chartered Accountants) and to be a CPA a person must pass the CPA Program (the entry program of CPA Australia).

In addition to completing a university degree and passing the professional program of the professional body, a person must also have completed a period of mentored practical experience.

68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?

Yes

The draft regulation is available from www.treasury.com.au

There are no legal or educational restrictions on the use of the term �accountant� in Australia. However, there is stratification of providers of accounting services. The ICAA is one of the professional bodies which imposes requirements on members to achieve educational standards, obtain experience and adhere to high standards of professional conduct in order to use the Chartered Accountants designation.

Auditors have to be Registered Company Auditors, a process administered by the Australian Securities and Investment Commission (ASIC). The requirements to become a Registered Company Auditor are contained in the Corporations Act. In brief, a degree in Accounting from a recognized University, satisfactory completion of the post-graduate CA Program or CPA Program, and either prescribed practical experience (three years full time in audit) or meeting an audit competency based standard which is currenlty being establihsed.

69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.

	Academic requirements Baccalaureate degree accredited by the professional bodies
	Professional examinations CA Program or CPA Program
	Practical experience 3 years service mentored by a member of the ICAA within an accredited firm or program accredited organisation and simialr requriements for CPA program.
	Final qualifying examination CA Program or CPA Program
	Other (please describe) Registration Certificate Auditors wishing to audit companies under the Corporations Act 2001, must also obtain a registration certificate from the Australian Securities Investments Commission (ASIC), our securities regulator, in accordance with the requirements of our Corporations Act 2001. The basic requirements for this is membership of one of the professional accounting bodies, and a minimum three years appropriate experience. Further details can be obtained from the ASIC website: www.asic.gov.au. Also refer to s.1280 of the Corporations Act

70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.

	A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
	A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
	Member body(ies) establishes the education requirements for the accounting profession.
	Other (please describe)

71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.

A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.
The ICAA Board of Directors consists of eleven Directors, ten being elected by members in each respective state of Australia and one by members on the overseas register. Directors and Regional Councillors are elected for a three year term, with one-third of the positions on the ICAA Board and Regional Councils being up for election each year. The President and Deputy President are elected annually by the Board to their positions.

The Members on the various Committees are selected by the relevant ICAA General Manager in consultation with the current Chairperson, the CEO and are approved by the ICAA Board. They comprise of members from each State with attempts made to also ensure that the various member segments of the ICAA are represented (eg. male/female; public practice, business & industry, government, academia). Where necessary, committee members with the specific experience/qualifications needed for a particular committee will be sought out and appointed. Eg., the committee responsible for the admissions program (CAPAC) has a number of academic members on it or on its Academic Board.
How many voting members does the relevant body(ies) have
40000

Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		Essentially members on the ICAA Committees are voluntary, although the ICAA Board of Directors receive Directors fees

For how many years has the body been in existence?

Year(s)

72. How would you describe the authority that the education requirements have?

	Requirements are legally-based
	Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
	Requirements are set in member body(ies) policy document(s).
	Other (please describe)

72 a. How can IFAC obtain copies of these documents?

The by-laws and Regulations of the ICAA are available on the ICAA website at http://www.icaa.org.au/services/index.cfm?menu=299&id=A105769365

72 b. Are these documents available in English?

Yes

73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?

Same

Different

If different, please briefly describe the main differences:

74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.

	The education program and final examination are delivered by the member body.
	The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
	The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
	Other (please explain)

75. Once qualified as a member of your professional body, can members offer their services directly to the public?

Yes

Section 7B -- Licensing

76. Are there licensing requirements for auditors in your country?

Yes (continue with Question 77)

No (proceed to Section 8)

77. Who sets the requirements to obtain a license?

Australian Securities and Investments Commission (ASIC).

With respect to question 75 and 76, to offer their services directly to the public, a CA must first apply for a Certificate of Public Practice and as part of the application provide evidence that they have had experience in public practice and have obtained professional indemnity insurance. They must also complete a 2 day public practice program.

78. What are the requirements to obtain a license (please select all relevant requirements.)?

	Academic study specific for obtaining a license
	Practical experience
	Licensing examination
	Final qualifying examination
	Other (please describe) Auditors wishing to audit companies under our Corporations Act 2001 must also obtain a registration certificate from the Australian Securities and Investments Commission (ASIC), our securities regulator, in accordance with the requirements of our Corporations Act 2001. The basic requirements for this are membership of one of the professional accounting bodies, and a minimum of 3 years appropriate experience. Further details can be obtained from the ASIC�s website www.asic.gov.au. Also refer to s 1280 of the Corporations Act

79. Are there ongoing requirements to retain a license?

Yes

	Continuing professional development
	Re-examination
	Other (please specify): Auditor is required to lodge an annual statement providing details of audits conducted in proceeding year to demonstrate maintaining competence

80. What entity grants the license?

ASIC

81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).

None

Section 8 -- Public Sector Accounting Standards

Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

Section 8A -- Statutory Framework

82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.

Type of entity	Name of legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting public sector accounting standards
Whole of government	Corporations Act and State and Commonwealth legislation	12/2003	Australian Accounting Standards Board (AASB)
Ministry/department
Statutory authority/agency
Profit entity owned by government
State governments
Local governments
Other (please describe)
Other (please describe)

It is available from www.aasb.com.au

Yes

Section 8B -- Standard-Setting (Australian Accounting Standards Board (AASB))

83. For Australian Accounting Standards Board (AASB), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Statutory

(Note: With respect to Q89, the AASB has been in existence for 3 years in its current format and 30 years in its previous format).

Australian Accounting Standards. The standards are on the accrual basis.

84. How many voting members does the standard-setting body have?

85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		The Chair of the AASB is employed full time and the other nine members are voluntary. (Sitting fees (attendance fees) are paid)

86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

All of the above (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation).

87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

The Financial Reporting Council (FRC) appoints all the members apart from the Chair who is appointed by the Government. Key constituents such as the accounting profession have the right to nominate candidates.

With respect to question 88, the Chairman is appointed for 5 years.

88. What is the term of appointment for members?

3 Year(s)

89. For how many years has the standard-setting body been in existence?

30 Year(s)

90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

2,000,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

0.70

91. To what entity is the standard-setting body accountable?

Financial Reporting Council (FRC)

92. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

The AASB follows due process when issuing new standards, by issuing exposure drafts. For appropriate issues there may also be other consultative documents such as an invitation to comment. AASB meetings are held in public. Details of the workings of the AASB are contained in Policy Statement 1 on its website at www.aasb.com.au
accessibility of meetings (i.e., public or private)

Public
approval process for final standards (i.e., majority required to approve final standards)

7 positive votes out of a current membership of 11. Following that, as the standard is a diallowable instrument of the Parliament, the standard sits before the Commonwealth Parliament for 15 sitting days where it can be struck out or amended. If the Parliament makes no changes within 15 sitting days, the standard is passed.
other relevant due process activities

93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

20 Day(s)

Section 9 -- Private Sector Accounting Standards

Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

Section 9A -- Statutory Framework

94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.

Type of entity	Name of legal authority or applicable rules	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting private sector accounting standards
Listed entity	Corporations Act and State and Commonwealth legislation	06/2004	Australian Accounting Standards Board (AASB)
Other (please describe) Other entities required to prepare financial statements	Corporations Act and State and Commonwealth legislation	06/2004	Australian Accounting Standards Board (AASB)
Other (please describe)
Other (please describe)
Other (please describe)

It is available from http://scaleplus.law.gov.au

Yes

Section 9B -- Standard-Setting (Australian Accounting Standards Board (AASB))

95. For Australian Accounting Standards Board (AASB), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Agency being appointed by the goverment.

AASB Standards
Australian Accounting Standards (AASs)

96. How many voting members does the standard-setting body have?

97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		The Chair of the AASB is employed full time and the other nine members are voluntary

98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

All of the above (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation).

99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

100. What is the term of appointment for members?

3 Year(s)

101. For how many years has the standard-setting body been in existence?

20 Year(s)

102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

2,000,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

0.70

103. To what entity is the standard-setting body accountable?

Financial Reporting Council (FRC)

104. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

The AASB follows due process when issuing new standards, by issuing exposure drafts. For appropriate issues there may also be other consultative documents such as an invitation to comment. AASB meetings are held in public. Details of the workings of the AASB are contained in Policy Statement 1 on its website at www.aasb.com.au.
accessibility of meetings (i.e., public or private)

Public
approval process for final standards (i.e., majority required to approve final standards)

7 positives out of current membership of 11.
Following that, as the standard is a diallowable instrument of the Parliament, the standard sits before the Commonwealth Parliament for 15 sitting days where it can be struck out or amended. If the Parliament makes no changes within 15 sitting days, the standard is passed.
other relevant due process activities

105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

20 Day(s)

Section 10 -- Monitoring (Quality Assurance) and Enforcement

Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

Section 10A -- Securities Market Regulatory Authority

106. Name the authority that regulates the securities market:

Australian Securities and Investments Commission (ASIC)
(see http://www.asic.gov.au/asic/asic.nsf)

107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:

Responsible for enforcing & regulating company and financial services laws to protect consumers, investors and creditors. Has authority under the Australian Securities and Investment Commission Act 2000

108. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

Registers company auditors before they can audit under the Corporations Act 2001. Monitors activities of auditors via financial statement reviews and targeted reviews (i.e. where there is evidence that there may have been a brach of Auditing Standards or the Corporations Act). The ASIC will have authority to monitor compliance with auditing standards under CLERP9 as the standards will have the force of law under the Corporations Act.
accounting and auditing standard-setting

Indirect interest only � not part of the standard-setting Boards
review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

Conducts reviews of financial statements in accordance with ASIC procedures � varies from year to year

Section 10B -- Stock Exchange

109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:

Profit	Not for profit	Stock Exchange
		Australian Stock Exchange (ASX) - Profit

Section 10B -- Stock Exchange
Australian Stock Exchange (ASX) - Profit Details

110. For Australian Stock Exchange (ASX) - Profit, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

Overview only, no specific staff allocated
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

Referrals to ASIC Suspension of trading
How enforcement actions are administered.

According to the Corporations Act

Section 10C -- Regulatory Oversight of the Accounting Profession

111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?

Yes

If NO, proceed to the next section.

If YES, please describe :

What are the name and duties of the oversight body?

Outlined in Schedule 1, division 1 of CLERP 9 � Section 225 of the ASIC Act (see http://www.austlii.edu.au/au)

Specific accounting and auditing standard setting functions for which the Financial Reporting Council (FRC) is responsible include:

- appointing the members of the AASB and AUASB (other than the Chairmen);
- approving and monitoring the AASB�s and AUASB�s: priorities; business plans; budgets; and staffing arrangements (including level, structure and composition of staffing);
- determining the AASB�s and AUASB�s broad strategic directions;
- giving the AASB and AUASB directions, advice or feedback on matters of general policy and on the AASB�s and AUASB�s procedures;
- monitoring the development of international accounting and auditing standards and the accounting and auditing standards that apply in major international financial centres;
- furthering the development of a single set of accounting and auditing standards for world-wide use with appropriate regard to international developments;
- promoting the continued adoption of international best practice accounting and auditing standards in the Australian accounting and auditing standard setting processes if doing so would be in the best interests of both the private and public sectors in the Australian economy;
- monitoring:
the operation of accounting and auditing standards to assess their continued relevance and their effectiveness in achieving their objectives in respect of both the private and public sectors of the Australian economy;
- the effectiveness of the consultative arrangements used by the AASB and AUASB; and
- seeking contributions towards the costs of the Australian accounting and auditing standard setting processes;
- monitoring and periodically reviewing the level of funding, and the funding arrangements, for the AASB and AUASB.

Specific auditor independence functions for which the FRC is responsible include:

- monitoring and assessing the nature and overall adequacy of:
- the systems and processes used by Australian auditors to ensure compliance with auditor independence requirements;
- the systems and processes used by professional accounting bodies for planning and performing quality assurance reviews of audit work undertaken by Australian auditors to the extent to which those reviews relate to auditor independence requirements;
- the action that Australian auditors who have been subject to such quality assurance reviews have taken in response to the reports prepared as a result of those reviews;
- the action taken by professional accounting bodies to ensure that Australian auditors who have been subject to such quality assurance reviews respond appropriately to the reports prepared as a result of those reviews; and
the investigation and disciplinary procedures of professional accounting bodies as those procedures apply to Australian auditors;
- monitoring the overall compliance by companies, registered schemes and disclosing entities with the audit-related disclosure requirements of the Corporations Act and the accounting and auditing standards;
- giving the Minister and the professional accounting bodies reports and advice on the above matters;
- monitoring international developments in auditor independence, assessing the adequacy of the Australian auditor independence requirements in the light of those developments and giving the Minister, and professional accounting bodies, reports and advice on any additional measures needed to enhance the independence of Australian auditors; and
- promoting, and monitoring the adequacy of, the teaching of professional and business ethics by, or on behalf of, professional accounting bodies to the extent to which the teaching of those subjects relates to auditor independence.
The number of members on the oversight body

12
Its powers

Outlined in Schedule 1, division 1 of the CLERP 9 � Section 225 of the ASIC Act.

As well as any other powers conferred by the Australian Securities and Investments Commission Act 2001 (Clth), the FRC has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.
How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

To be determined, memorandums of understanding are currently being prepared
The sanctions the oversight body may impose in the event of non-compliance

To be determined, but essentially only by way of recommendation to the professional body, to ASIC or to the Government
How the oversight body is accountable to any public institution or body

The FRC reports to the Minister and is accountable to Parliament

Section 10D -- Banks Regulatory Authority

112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:

Australian Prudential Regulation Authority (APRA) Reserve Bank of Australia

113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:

Subject to regulation by ASIC

114. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

No additional requirement
accounting and auditing standard-setting

As per the Corporations Act
review of financial statements prepared by listed entities

As per the Corporations Act
enforcement of accounting, reporting and auditing requirements

As per the Corporations Act

Section 10E -- Non-Banking Financial Institutions Regulatory Authority

115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.

Australian Prudential Regulation Authority

116. What is the source of Legal authority of the regulatory authority(ies)?

Australian Prudential Regulation Authority Act 1998 (APRA Act) Commonwealth Authorities and Companies Act 1997 (CAC Act)

117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:

regulation of the audit profession

No additional requirements
accounting and auditing standard-setting

As per the Corporations Act
review of financial statements prepared by listed entities

As per the Corporations Act
enforcement of accounting, reporting and auditing requirements

As per the Corporations Act

Section 10F -- Insurance Companies Regulatory Authority

118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.

Australian Prudential Regulation Authority

119. What is the source of Legal authority of the regulatory authority(ies)?

Australian Prudential Regulation Authority Act 1998 (APRA Act) Commonwealth Authorities and Companies Act 1997 (CAC Act)

120. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

No Additional requirements
accounting and auditing standard-setting

As per the Corporations Act
review of financial statements prepared by listed listed entities

As per the Corporations Act
enforcement of accounting, reporting and auditing requirements

As per the Corporations Act

Section 10G -- Other Regulatory Authority

121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.

Institute of Chartered Accountants (ICAA)
CPA Australia (CPAA)
Australian Taxation Office (ATO)
ASIC

122. What is the source of Legal authority of each regulatory authority?

ICAA and CPAA � professional standards of the bodies
ATO � Tax Act

123. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

ICAA and CPAA administers its own ethical rules and quality review of its members

ASIC
accounting and auditing standard-setting

ASIC
review of financial statements prepared by listed listed entities

ASIC
enforcement of accounting, reporting and auditing requirements

ASIC

Section 10H -- Quality Assurance

124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?

Yes

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

ICAA & CPAA both conduct regular reviews for all practitioners holding full certificates of public practice. It is a joint program separately administered by each body under slightly different procedures

125. Under what authority does the organization conduct the program of quality assurance review?

ICAA and CPAA conducts reviews in accordance with the respective professional bodies regulation

126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?

Reviews are performed by practitioners accredited and appointed by ICAA and CPA in accordance with the ICAA�s and CPA�s policies and procedures

Section 10 I -- Investigation and Discipline

127. Is there a process for investigating and disciplining the accounting profession in your country?

Yes

If NO, proceed to the Certification of Chief Executive

128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?

	Government or other agencies are solely responsible for this function.
	Government or other agencies have this responsibility, but the member body or bodies participate in the process.
	Government formally delegates this function to the member body or bodies, to exercise on its behalf.
	Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
	Other (please explain)

129. Please indicate the name of the body or bodies responsible for investigation and discipline.

Note: With respect to question 128, ICAA and CPAA have separate and independent processes that operate alongside processes of legal authorities.

Company Auditors & Liquidators Disciplinary Board has disciplinary powers over registered auditors and liquidator. Cases are referred to it only by the ASIC.

ASIC, and the ICAA�s and CPA�s investigation & discipline functions are carried out by management and tribunals appointed by their Boards

Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

130. How many voting members does the body have?

Not applicable

131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Appointments are made to give broad representation to the various sectors of the profession and membership. The tribunals also include lay representatives

133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Respective Boards of the accounting bodies

134. What is the term of appointment for members?

Year(s)

135. For how many years has the body been in existence?

Year(s)

136. Please indicate the budget in US$ of the body for the last fiscal year.

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

(specify currency)

137. To what entity is the body accountable?

The tribunals are appointed by the professional bodies and do not report to an outside body.

With respect to Q138 below, the individual professional accounting bodies conduct hearings that are carried out on a regularly monthly basis.

138. Approximately how many days per year does the body meet in full session (including teleconferences)?

20 Day(s)

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