CPA Australia

In Australia, the Australian Securities and Investments Commission (ASIC)—the audit oversight regulator—and three professional accountancy organizations (PAOs) share responsibility for carrying out quality assurance (QA) reviews. The ASIC is authorized to review all audits of all entities while the PAOs implement review procedures for their respective members. CPA Australia operates a Best Practice Program (BPP) to ensure that its members in public practice maintain high professional standards. CPA Australia reports that this system fulfills the requirements of SMO 1.

CPA Australia notes that an increased focus has been placed on education and dissemination of learning outcomes from the BPP; for example, educating members on common breaches and the importance and value of quality control along with resources to help improve these procedures. CPA Australia also notes that its QA review results are linked to its investigative and disciplinary procedures, and where necessary, members may be subject to disciplinary action for failure to comply with professional standards. Outcomes from the reviews are shared more broadly to members in its e-newsletter and in its annual report alongside continuing professional development activities as well as to stakeholders such as the Financial Reporting Council and Professional Standards Council.

Australia adopts ASQM 1 (aligns to ISQM 1), and New Zealand adopts PES 3 which also aligns to ISQM 1. In preparation for the adoption of ASQM 1 (NZ - PES 3) and the subsequent changes to APES 320, CPA Australia have undertaken a member education and awareness campaign, together with developing member support tools to assist with implementing the new requirements and revising pre-existing member support content. CPA Australia offers a comprehensive range of educational products to its members.

In 2022, following the adoption of AQSM 1 and the commencement of the CPA Australia Best Practice Program, two educational offerings were made available relating to AQSM 1.

In addition, there are the following resources available for members:

• 2022 Factsheet - New Quality Management Requirements for Firms

• System of quality management tool: System of Quality Management Tool for Firms Providing Audit and Assurance Services

In addition, CPA Australia offered two webinars concerning quality management for audit firms:

• Quality Management for Audit Firms - How to get started
• Quality Management for Audit Firms - Guide to Implementation

As part of a CPA Australia Best Practice Program assessment, CPA assessors review a firm's system of quality management by reviewing their documentation against the APES standard and ASQM 1 if they provide audit and assurance services. As part of the engagement file reviews, the assessors check to see that there is evidence that what is documented in the firm's quality management manual (or their procedures etc) are adhered to.

Current Status: Sustain

Educational requirements for the two protected professional accountancy titles in Australia—registered company auditor (RCA) and qualified accountant—are governed by the Corporations Act 2001 and the Australian Securities and Investment Commission (ASIC) Act 2001. The ASIC and three professional accountancy organizations (PAOs) in the jurisdiction also have a role in setting and implementing initial and continuing professional development requirements (IPD and CPD, respectively). According to the Corporations Act 2001 and ASIC’s Regulatory Guide 154, one of the entry requirements for becoming an RCA or a qualified accountant, respectively, includes holding a recognized tertiary accounting qualification from one of the PAOs. CPA Australia’s Certified Public Accountant (CPA) designation is recognized as one of these.

To use the CPA designation, CPA Australia members must obtain an undergraduate degree accredited by CPA Australia, complete the CPA Program and three years’ practical experience, and then fulfill CPD requirements to renew and maintain their qualification. Both the IPD and CPD requirements meet the latest requirements of the IES.

Each year, CPA Australia offers over 250 online self-paced courses, over 300 webinars and over 100 workshops, conferences, and events.

CPA Australia also provides options for graduates from other disciplines, and for candidates with gaps in their technical core knowledge, to work towards eligibility to enter the CPA Program, through the completion of its Foundation exams as required. The CPA Australia Foundation exams are six exams designed to test candidates on the core accounting knowledge required for entry into the CPA Program. The CPA Program undergoes a triennial review to ensure it continues to be relevant, high quality and to identify opportunities for improvement. 

CPA Australia has also been offering micro-credentials for approximately 3 years. Topics cover a range of technical and interdisciplinary skills and new micro-credentials are regularly released. CPA Australia also launched Ethical Dilemmas in Accounting: A Practical Perspective, a 5-hour micro-credential.

Current Status: Sustain

The Corporations Act 2001 requires annual financial reports to be audited. The Australian Securities and Investment Commission requires the application of standards issued by the Auditing and Assurance Standards Board (AUASB), an independent, statutory agency of the Australian Government, responsible for developing, issuing and maintaining auditing and assurance standards. Since April 2006, the AUASB has released Australian Auditing Standards (ASA) based on the ISA as issued by the International Auditing and Assurance Standards Board (IAASB), in line with strategic direction from the Financial Reporting Council. The latest ISA are adopted.

CPA Australia is committed to supporting the ongoing adoption and implementation process of AAS that align with ISA. In this regard, CPA Australia reports that it is represented at all AUASB meetings and participates in roundtable consultations. The association will also notify of members of consultations and exposure drafts to provide comments when requested.

To support its members with implementation, the association has a variety of accessible tools, templates, and resources on its website related to audit and assurance. This includes a dedicated section on the quality management standards as well as specific pages with resources and guidance on audits for small- and medium-sized entities and non-profits. Furthermore, CPA Australia regularly offers in-person and online continuing professional development training that covers audit and assurance topics and indicates it makes amendments as necessary to its CPA Program.

Current Status: Sustain

The Accounting Professional & Ethical Standard Board (APESB), an independent body that was established in 2006, sets the ethical requirements that all professional accountants who are members of CPA Australia, Chartered Accountants Australia & New Zealand, and/or the Institute of Public Accountants must comply.

The APESB has issued the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) which is based on the latest International Code of Ethics for Professional Accountants issued by the IESBA.

CPA Australia reports that it is active in supporting the APSEB’s adoption process by attending APESB meetings; participating in taskforces and roundtables; and seeking members’ comments before making submissions to exposure drafts issued by the APESB and the IESBA. Additionally, CPA Australia also notes that it communicates with stakeholders in the private sector, government, and regulators regarding the Code of Ethics.

The association supports its members in understanding and applying the ethical requirements, by hosting events and training; issuing communications through its newsletters and website; updating its CPA Program accordingly; and providing implementation support and guidance on ethical behavior and common ethical challenges and obligations in the workplace.

Current Status: Sustain

Financial reporting for public sector entities in Australia is based on the Australian Accounting Standards (AAS) adopted by the Australian Accounting Standards Board (AASB)—an independent Australian government agency. The Australian Accounting Standards are on an accrual-basis that incorporate and comply with IFRS and do include a specific standard for public sector accounting. The professional accountancy organizations in the jurisdiction report that when relevant for not-for-profit private or public sector entities, the AASB will seek consistency with IPSAS; however, no plans to adopt the IPSAS have been announced.

In this regard, CPA Australia reports that it supports the AASB’s activities in aligning the AAS with the IPSAS where appropriate. CPA Australia invites its membership to comment on the AASB and IPSASB-issued exposure drafts and share its views as part of the process in developing CPA Australia's response.

CPA Australia also offers the several online training programs related to public sector reporting, accounting, and budgeting. In addition to events organized by CPA Australia that relate to public sector accounting, the institute has a library of tools, resources, and research, and a support network for its members that work in the public sector.

Current Status: Sustain

Investigative and disciplinary (I&D) procedures for professional accountants in Australia are carried out by the Australian Securities and Investment Commission (ASIC) and three professional accountancy organizations (PAOs) in the jurisdiction. The ASIC is charged with carrying out these procedures for registered company auditors while the PAOs implement I&D systems for their respective members. CPA Australia’s I&D Process is outlined in its bylaws, and meets the SMO 6 benchmark.

The Professional Conduct Oversight Panel (PCOP) exists to further strengthen the independence and oversight of I&D procedures and supports the CPA Australia Board with matters relating to professional conduct and discipline of members with regard for the law. The PCOP has an advisory role and is authorized to exercise the powers expressly delegated to it by the Board. The PCOP makes determinations in situations where the General Manager of Professional Conduct is conflicted and has oversight of the Professional Conduct unit. 

CPA Australia notes that it strives to ensure its members are informed of all provisions of the ethics code and other applicable professional standards along with the consequences of non-compliance through an appropriate communications plan, which includes its CPA Program and holding informational sessions. In the interest of transparency and raising public awareness, the association also details the process of making a complaint and results of all disciplinary proceedings on its webpages.

Current Status: Sustain

The Australian Accounting Standards Board (AASB), an independent Australian Government agency, sets Australian Accounting Standards (AAS) to be applied in the jurisdiction through an extensive standard-setting process, which includes identifying technical issues related to the Australian context, research and consultation with stakeholders, and then issuing the standard. There are two tiers of reporting requirements for preparing general purpose financial statements: (i) Tier 1: AAS and (ii) Tier 2: Australian Accounting Standards—Simplified Disclosures.

CPA Australia reports that it focuses on using its best endeavors to promote the incorporation of the IFRS into AAS and support the implementation of applicable standards by its members. For example, regarding standard-setting processes, the association explains that it will notify of members of both newly issued standards and consultations and exposure drafts issued by the AASB and IASB to submit comments.

CPA Australia assists its members with a variety of accessible tools, templates, and resources on its website related to financial reporting. Furthermore, CPA Australia regularly offers in-person and online continuing professional development training that covers financial reporting topics and indicates it makes amendments as necessary to its CPA Program.

Additionally, the association also provides guides for the general public to better understand the information contained within annual reports and an auditor’s report on financial statements.

Current Status: Sustain