Chartered Accountants Australia New Zealand (Formerly recognized as ICAA)

In Australia, the Australian Securities and Investments Commission (ASIC) continues to serve as the public oversight regulator for registered company auditors and maintains responsibility for surveillance, investigation, and enforcement of the financial reporting and auditing requirements under the Corporations Act 2001 (Cth). In parallel, Chartered Accountants Australia and New Zealand (CA ANZ) continues to operate a robust Quality Review Program (QRP) for its members in public practice, which remains aligned with the requirements of Statement of Membership Obligations 1 (SMO 1).

Since the previous assessment, CA ANZ has continued to operate a risk-based and cyclical mixed review model tailored to different practice sizes, structures, and engagement types, while avoiding duplication with ASIC’s inspection program and other regulatory reviews. For large and mid-tier audit practices subject to regular ASIC inspections, CA ANZ’s reviews continue to focus on the system of quality management, remediation activities, and leadership oversight. For smaller practices and sole practitioners, CA ANZ continues to conduct on-site, remote, and self-assessment-based reviews, including the micro-practice review model introduced in 2021.

CA ANZ continues to provide significant implementation support to members. This includes review templates, questionnaires, guidance materials, benchmarking resources, quarterly webinars, and dedicated training for both members and accredited reviewers. The organization also continues to publish annual reports summarizing review outcomes and common deficiencies, together with de-identified case insights and remediation tools to support continuous quality improvement.

Regulatory developments continue to support fulfillment. CA ANZ has remained actively engaged with ASIC following recent restructuring of ASIC’s audit surveillance function and continues to coordinate with the Financial Reporting Council (FRC) on audit quality and systems of quality management. It also continues to align its review program with the Australian Standard on Quality Management 1 (ASQM 1) and Australian Standard on Quality Management 2 (ASQM 2) framework and to link unresolved deficiencies to disciplinary follow-up through its professional conduct process.

Overall, CA ANZ continues to play an active and sustained role in quality review, member support, remediation, and regulatory coordination. Accordingly, fulfillment of SMO 1 is assessed as Sustain.

Current Status: Sustain

Educational requirements for the protected professional accountancy titles in Australia continue to be established through the Corporations Act 2001, the Australian Securities and Investments Commission (ASIC) framework, and the professional education systems maintained by the professional accountancy organizations. Membership of Chartered Accountants Australia and New Zealand (CA ANZ) and completion of the Chartered Accountant (CA) Program continue to satisfy one of the recognized professional qualification pathways for becoming a Registered Company Auditor (RCA) or a qualified accountant.

Since the previous assessment, CA ANZ has continued to maintain and enhance the CA Program, which comprises the Graduate Diploma of Chartered Accounting (GradDipCA) and structured Mentored Practical Experience (MPE). The program continues to require completion of technical and professional learning modules together with three years of practical experience under an Approved Training Employer (ATE). The Practical Experience Logbook and mentor reporting framework continue to support an outcomes-based competency model aligned with the International Education Standards (IES), including technical, professional, and ethical competencies.

CA ANZ also continues to maintain robust continuing professional development requirements under Regulation 7, with annual member confirmation, random compliance monitoring, and additional review of continuing professional development records for members holding a Certificate of Public Practice as part of the quality review process. The organization continues to offer a broad annual calendar of learning activities across audit and assurance, financial reporting, tax, ethics, integrity, leadership, sustainability, and emerging professional topics.

Regulatory and jurisdictional developments continue to support fulfillment. Since the previous assessment, CA ANZ has continued its annual and five-year review cycle for accredited accounting degree programs in Australia and continues to align its Professional Accreditation Guidelines with evolving IES 2 and IES 3 requirements relating to technical competence and professional skills. This ongoing review cycle continues to strengthen alignment between academic pathways and professional competency expectations.

Overall, CA ANZ continues to play an active and sustained role in initial professional development, practical experience, accreditation, and continuing professional development. Accordingly, fulfillment of SMO 2 is assessed as Sustain.

Current Status: Sustain

Auditing and assurance standards in Australia continue to be issued by the Auditing and Assurance Standards Board (AUASB), the independent Australian Government standard-setter responsible for the Australian Auditing Standards (ASA). The AUASB continues to maintain ASA in alignment with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB).

Chartered Accountants Australia and New Zealand (CA ANZ) continues to support fulfillment of Statement of Membership Obligations 3 (SMO 3) through active engagement in the standard-setting and implementation process. Since the previous assessment, CA ANZ has continued to participate in and contribute to consultations conducted by both the AUASB and the IAASB and continues to liaise with the Australian member of the IAASB to monitor international developments and emerging assurance issues.

To support implementation, CA ANZ continues to maintain a comprehensive suite of audit and assurance resources for members, including technical newsletters, guidance notes, practical tools, technical articles, research insights, and audit quality resources. Support materials continue to cover core audit and assurance topics as well as emerging areas such as quality management, fraud and going concern, and sustainability assurance.

CA ANZ also continues to provide an integrated continuing professional development framework for assurance practitioners through online and face-to-face learning programs, webinars, workshops, and specialist practitioner events. Since the previous assessment, offerings have continued to expand in response to developments in sustainability assurance, reflecting both international assurance developments and Australia’s evolving sustainability reporting framework.

Overall, CA ANZ continues to play an active and sustained role in supporting adoption, implementation, and member capacity building in relation to ISA-aligned auditing standards. Accordingly, fulfillment of SMO 3 is assessed as Sustain.

Current Status: Sustain

The Accounting Professional & Ethical Standards Board (APESB) continues to establish the ethical requirements applicable to members of the professional accountancy organizations in Australia through Accounting Professional & Ethical Standard 110 Code of Ethics for Professional Accountants (including Independence Standards) (APES 110), which remains aligned with the latest International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA). Since the previous assessment, APES 110 has continued to be updated to reflect recent IESBA developments, including provisions relating to public interest entities, technology, tax planning, and sustainability assurance and reporting.

Chartered Accountants Australia and New Zealand (CA ANZ) continues to support fulfillment of Statement of Membership Obligations 4 (SMO 4) through a broad range of awareness, training, and advisory initiatives. These continue to include online and face-to-face training, ethics-focused micro-courses, newsletters, technical articles, practical tools, and integration of ethics and professional standards into the CA Program and continuing professional development offerings.

To support practical implementation, CA ANZ continues to provide dedicated member support services for ethical and professional issues, including access to its Professional Standards team for advice on workplace ethical dilemmas and professional conduct matters, as well as the Chartered Accountants Advisory Group (CAAG) for more specialized support. Recurring themes and common issues identified through these channels continue to inform future training and professional development activities.

CA ANZ also continues to play an active role in the domestic and international standard-setting process. Since the previous assessment, it has continued to contribute to consultations and exposure drafts issued by both the APESB and the IESBA, either independently or jointly with other Australian professional accountancy organizations. CA ANZ also continues to maintain regular liaison with both bodies to monitor ethical and independence standard developments and to support international convergence.

Overall, CA ANZ continues to play an active and sustained role in supporting adoption, implementation, and awareness of ethical standards and professional conduct requirements. Accordingly, fulfillment of SMO 4 is assessed as Sustain.

Current Status: Sustain

Accounting standards in Australia continue to be issued by the Australian Accounting Standards Board (AASB), the independent Australian Government standard-setter. The AASB continues to use International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as the basis for Australian Accounting Standards (AAS) for the for-profit sector and the not-for-profit (NFP) sector, including the public sector.

For the public sector and other NFP entities, the AASB’s Not-for-Profit Entity Standard-Setting Framework continues to guide how IFRS-based standards are applied and modified where sector-specific requirements are necessary. The AASB also continues to consider International Public Sector Accounting Standards (IPSAS Standards) issued by the International Public Sector Accounting Standards Board (IPSASB) where relevant, including in the development of NFP-specific standards, interpretations, and guidance.

Chartered Accountants Australia and New Zealand (CA ANZ) continues to support fulfillment of Statement of Membership Obligations 5 (SMO 5) through active engagement in public sector and not-for-profit financial reporting developments. Since the previous assessment, CA ANZ has continued to provide input into consultations issued by both the AASB and the IPSASB and to maintain regular liaison with the Australasian IPSASB member to monitor international public sector reporting developments.

CA ANZ also continues to support alignment of AAS with IPSAS principles where appropriate and practicable within the Australian framework and continues to engage in policy discussions relating to the AASB’s approach to IPSAS as a potential basis for future public sector accounting developments.

Overall, CA ANZ continues to play an active and sustained role in supporting public sector financial reporting developments, standard-setting consultations, and alignment with international public sector reporting principles where appropriate. Accordingly, fulfillment of SMO 5 is assessed as Sustain.

Current Status: Sustain

Investigative and disciplinary procedures for professional accountants in Australia continue to operate through a shared framework involving the Australian Securities and Investments Commission (ASIC), the Companies Auditors Disciplinary Board (CADB), the Tax Practitioners Board (TPB), and the three professional accountancy organizations in the jurisdiction. ASIC continues to be responsible for the registration and oversight of Registered Company Auditors (RCAs) and for referrals to the CADB, while the TPB continues to oversee registered tax practitioners.

Chartered Accountants Australia and New Zealand (CA ANZ) continues to support fulfillment of Statement of Membership Obligations 6 (SMO 6) through a comprehensive and operational investigative and disciplinary framework for its members. The framework continues to include a Professional Conduct Committee (PCC) responsible for receiving and investigating complaints and determining whether matters should be referred to the Disciplinary Tribunal. Both the PCC, by consent, and the Disciplinary Tribunal may impose sanctions, while tribunal hearings and decisions continue to be public and subject to appeal to the Appeals Council.

The framework also continues to include an independent Reviewer of Complaints, who may review decisions and processes of the PCC and make recommendations or require reconsideration, thereby strengthening independence, transparency, and procedural fairness.

Since the previous assessment, CA ANZ has implemented significant enhancements following its comprehensive review and benchmarking exercise of the investigative and disciplinary framework. These reforms included amendments to the CA ANZ By-Laws approved by members in October 2023 and effective from 25 January 2024, extending the framework to former members, increasing the maximum fines applicable in certain firm-related matters, and introducing procedural and efficiency improvements. These developments further strengthen alignment with SMO 6 best practices.

CA ANZ also continues to provide public access to complaint forms, guidance materials for complainants and members, and public disciplinary outcomes, thereby supporting transparency and public awareness. In addition, regular independent reviews continue to be undertaken by the Professional Conduct Oversight Committee.

Overall, CA ANZ continues to maintain an active, transparent, and strengthened investigative and disciplinary framework that meets or exceeds the SMO 6 benchmark. Accordingly, fulfillment of SMO 6 is assessed as Sustain.

Current Status: Sustain

Accounting standards in Australia continue to be issued by the Australian Accounting Standards Board (AASB), the independent Australian Government standard-setter. The AASB continues to adopt International Financial Reporting Standards (IFRS Accounting Standards) issued by the International Accounting Standards Board (IASB) as the basis for equivalent Australian Accounting Standards (AAS). The two-tier reporting framework remains in place, with Tier 1 applying to entities with public accountability and Tier 2 Simplified Disclosures applying to other eligible entities.

Chartered Accountants Australia and New Zealand (CA ANZ) continues to support fulfillment of Statement of Membership Obligations 7 (SMO 7) through active engagement in the standard-setting and implementation process. Since the previous assessment, CA ANZ has continued to provide input into consultations issued by both the AASB and the IASB and continues to liaise regularly with the Australian member of the IASB to monitor international developments and emerging reporting issues.

To support implementation, CA ANZ continues to maintain a comprehensive suite of financial reporting resources for members, including technical newsletters, guidance materials, practical tools, research insights, and specialist content covering financial reporting, not-for-profit (NFP) reporting, and digital reporting. Continuing professional development offerings remain available through online and face-to-face channels and continue to be enhanced to address emerging areas, including sustainability reporting and related disclosure requirements.

Since the previous assessment, CA ANZ has also continued to expand member support through targeted learning content and micro-courses on sustainability reporting, reflecting the significant regulatory developments in Australia’s sustainability reporting framework and the growing importance of climate and broader sustainability disclosures.

Overall, CA ANZ continues to play an active and sustained role in supporting the adoption and effective implementation of IFRS-aligned accounting standards in Australia. Accordingly, fulfillment of SMO 7 is assessed as Sustain.

Current Status: Sustain