Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    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:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. 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   No


    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   No
      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   No
      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   No
      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:
    1. 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

    2. the Enacting body(ies)

      Commonwealth Parliament of Australia and the Australian Stock Exchange

    3. 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   No


    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   No
      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   No
      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   No
      If YES, please indicate the term of appointment: Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      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   No
      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)

      a. How can IFAC obtain copies of these documents?

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

      b. Are the documents available in English?
      Yes   No


    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.
      a. Nature of body

      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.

      b. Name of standards

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


    45. How many voting members does the standard-setting body have?
      10


    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:
    1. 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

    2. accessibility of meetings (i.e., public or private)

      Public

    3. 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.

    4. 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)

      a. How can IFAC obtain copies of these documents?

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

      b. Are the documents available in English?
      Yes   No


    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.
      a. Nature of body

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

      b. Name of standards

      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)

      0

      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:
    1. 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

    2. accessibility of meetings (i.e., public or private)



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

      Majority

    4. 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:


    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   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.



    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.
      ICAA Board of Directors or or CPAA National Council.

      With respect to Q71d, the ICAA has been in existence for 75 years and CPAA for 40 years.

    1. 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.

    2. How many voting members does the relevant body(ies) have

      40000

    3. 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

    4. 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   No


    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   No



    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)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      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)

      a. How can IFAC obtain copies of these documents?

      It is available from www.aasb.com.au

      b. Are the documents available in English?
      Yes   No


    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.
      a. Nature of body

      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).


      b. Name of standards

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


    84. How many voting members does the standard-setting body have?
      10


    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:
    1. 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

    2. accessibility of meetings (i.e., public or private)

      Public

    3. 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.

    4. 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)

      a. How can IFAC obtain copies of these documents?

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

      b. Are the documents available in English?
      Yes   No


    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.
      a. Nature of body

      Agency being appointed by the goverment.

      b. Name of standards

      AASB Standards
      Australian Accounting Standards (AASs)


    96. How many voting members does the standard-setting body have?
      10


    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.)?
      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


    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:
    1. 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.

    2. accessibility of meetings (i.e., public or private)

      Public

    3. 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.


    4. 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:
    1. 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.

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements





    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   No

      If YES, please describe the following:

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

      Overview only, no specific staff allocated

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Referrals to ASIC Suspension of trading

    3. 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   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body

      12

    3. Its powers



    4. 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

    5. 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

    6. 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:
    1. regulation of the audit profession

      No additional requirement

    2. accounting and auditing standard-setting

      As per the Corporations Act

    3. review of financial statements prepared by listed entities

      As per the Corporations Act

    4. 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:
    1. regulation of the audit profession

      No additional requirements

    2. accounting and auditing standard-setting

      As per the Corporations Act

    3. review of financial statements prepared by listed entities

      As per the Corporations Act

    4. 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
    1. regulation of the audit profession

      No Additional requirements

    2. accounting and auditing standard-setting

      As per the Corporations Act

    3. review of financial statements prepared by listed listed entities

      As per the Corporations Act

    4. 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?


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

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

      ASIC


    2. accounting and auditing standard-setting

      ASIC

    3. review of financial statements prepared by listed listed entities

      ASIC

    4. 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   No

      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)?




    Section 10 I -- Investigation and Discipline


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

    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.



    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)

      0

      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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