Institute of Public Accountants

The Australian Securities and Investments Commission (ASIC) continues to serve as the corporate regulator and public oversight authority for audit inspections in Australia through its risk-based audit inspection and surveillance program. In parallel, the Institute of Public Accountants (IPA) continues to operate a Quality Review Program (QRP) for members in public practice, which the IPA reports is aligned with the requirements of Statement of Membership Obligations 1 (SMO 1).

Since the previous assessment, the IPA has continued to maintain and refine its QRP through a risk-based selection methodology that incorporates the SMO 1 review cycle and enhanced focus on higher-risk practices. The QRP continues to assess firm operations, compliance with ethical and professional standards, quality management requirements, and relevant regulatory obligations. Review outcomes are weighted and risk-rated, and non-compliance may be escalated under Pronouncement 12 – Administration of Member Compliance, which provides for follow-up action including remediation, suspension, forfeiture of membership, and other disciplinary measures.

Regulatory developments in the jurisdiction continue to support fulfillment. Australia has adopted Australian Standard on Quality Management 1 (ASQM 1) and Australian Standard on Quality Management 2 (ASQM 2), aligned with International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2). The IPA continues to support member implementation of these requirements through professional guidance, member communications, practice support resources, and ongoing updates through its professional standards channels.

The IPA also continues to participate in ongoing consultations with the Accounting Professional & Ethical Standards Board (APESB) and to communicate developments in quality management, audit quality, and practice review expectations to members through newsletters, webinars, and other professional communications.

Overall, the IPA continues to play an active and sustained role in supporting quality review, member compliance, and implementation of quality management standards. Accordingly, fulfillment of SMO 1 is assessed as Sustain.

Current Status: Sustain

The Australian Securities and Investments Commission (ASIC) and the professional accountancy organizations in the jurisdiction continue to share responsibility for education and professional development requirements depending on the statutory registration or professional designation. The Institute of Public Accountants (IPA) continues to maintain the educational and continuing professional development framework for its members, including the Associate Institute of Public Accountants (AIPA) and Member Institute of Public Accountants (MIPA) designations.

Since the previous assessment, the IPA has continued to strengthen its professional education pathway through its IPA Program, delivered in collaboration with Deakin University, and its Mentored Experience Program (MEP), which provides structured practical experience and mentor-supported professional development. Progression from AIPA to MIPA continues to require completion of the relevant program stage and at least three years of practical experience. In addition, members progressing through the advanced stage of the program continue to have access to postgraduate pathways, including an MBA awarded through Deakin University upon satisfactory completion.

The IPA continues to maintain robust continuing professional development requirements for all members, supported by annual compliance reviews for practitioners and periodic audits for non-practitioners. Since the previous assessment, the IPA has continued to expand its learning framework through a revised competency-based professional framework, incorporating recognized prior learning, practical experience, and a growing range of micro-credentials and multidisciplinary learning modules. The organization also continues to offer a significant volume of professional development activities each year across in-person, online, and hybrid delivery formats.

The IPA reports that it continues to monitor developments in the International Education Standards (IES) and to update its professional program and continuing professional development framework accordingly, including continued emphasis on an outcomes-based learning approach and competency development.

Overall, the IPA continues to play an active and sustained role in supporting initial professional development, practical experience, and continuing professional development for its members. Accordingly, fulfillment of SMO 2 is assessed as Sustain.

Current Status: Sustain

In Australia, auditing standards continue to be issued by the Auditing and Assurance Standards Board (AUASB), the independent statutory standard-setter responsible for the Australian Auditing Standards (ASA), which remain aligned with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB).

The Institute of Public Accountants (IPA) continues to support fulfillment of Statement of Membership Obligations 3 (SMO 3) through active participation in the standard-setting process and sustained support for member implementation. Since the previous assessment, the IPA has continued to participate in AUASB consultations, roundtables, and forums, and to provide member perspectives through written submissions, either independently or jointly with the other Australian professional accountancy organizations.

The IPA continues to notify members of updates issued by the AUASB and the IAASB and to support implementation through technical guidance, professional development activities, and practice support resources. This includes training programs, webinars, templates, and practical tools relating to audit and assurance standards, quality management, and related assurance developments. The IPA also continues to update its professional education program to reflect recent changes in auditing and assurance standards.

In addition, the IPA continues to undertake advocacy with government ministers and state and Commonwealth representatives on audit and assurance matters that have significant professional and economic implications, thereby supporting broader jurisdictional alignment with international auditing developments.

Overall, the IPA continues to play an active and sustained role in supporting the adoption and effective implementation of 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).

The Institute of Public Accountants (IPA) continues to support fulfillment of Statement of Membership Obligations 4 (SMO 4) through active participation in the standard-setting and consultation process. Since the previous assessment, the IPA has continued to engage directly with the APESB’s review of professional and ethical standards and to submit comments on exposure drafts issued by both the APESB and the IESBA, either independently or in coordination with other Australian professional accountancy organizations.

To support member implementation, the IPA continues to issue regular communications, technical updates, professional guidance, and continuing professional development activities on ethics and independence requirements through its publications, newsletters, and learning channels. Ethical requirements and professional conduct continue to be embedded in the IPA Program and continuing professional development framework, ensuring ongoing awareness and application by members.

The IPA also continues to support the ethical framework through liaison and advocacy with regulatory bodies and other stakeholders at both state and Commonwealth levels, with the objective of promoting consistency between APES 110 principles and relevant legal and regulatory requirements affecting the profession and the public interest.

In addition, the IPA continues to ensure that complaints regarding professional misconduct and ethical breaches are investigated and followed up through its professional conduct and disciplinary framework.

Overall, the IPA continues to play an active and sustained role in supporting adoption, implementation, and promotion of the ethical framework in the jurisdiction. Accordingly, fulfillment of SMO 4 is assessed as Sustain.

Current Status: Sustain

Financial reporting for public sector entities in Australia continues to be based on Australian Accounting Standards (AAS) issued by the Australian Accounting Standards Board (AASB). The framework remains accrual-based and includes public sector-specific requirements, while the AASB continues to seek consistency with International Public Sector Accounting Standards (IPSAS) where appropriate.

The Institute of Public Accountants (IPA) continues to support fulfillment of Statement of Membership Obligations 5 (SMO 5) through advocacy, technical engagement, and member support in relation to public sector financial reporting developments. Since the previous assessment, the IPA has continued to participate in relevant consultations on public sector reporting matters and to advocate for alignment of AAS with IPSAS principles where appropriate and practicable within the Australian framework.

The IPA also continues to liaise with government authorities, regulators, and public sector stakeholders on technical issues affecting public sector financial reporting, budgeting, and accountability. This ongoing engagement supports awareness of international public sector developments and contributes to jurisdictional discussions on the future role of IPSAS in Australia.

To support implementation, the IPA continues to provide professional development, training, and technical resources for members involved in the preparation, presentation, and audit of public sector financial reports. Members working in the public sector remain required to comply with the accounting standards issued by the AASB, and the IPA continues to support compliance through continuing professional development activities and technical updates.

Overall, the IPA continues to play an active and sustained role in supporting public sector financial reporting developments and member implementation. 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 professional accountancy organizations and the statutory regulators, including the Australian Securities and Investments Commission (ASIC) and the Tax Practitioners Board (TPB).

The Institute of Public Accountants (IPA) continues to support fulfillment of Statement of Membership Obligations 6 (SMO 6) through a formal and operational investigative and disciplinary framework for its members. The IPA’s internal process continues to address alleged breaches of professional and ethical requirements, as well as breaches of the IPA Constitution, By-Laws, and Pronouncements. The framework includes an Investigator, Investigations Review Officer, Professional Conduct Committee, Disciplinary Tribunal, and Appeal Tribunal, thereby maintaining separate stages for investigation, discipline, and appeal in line with SMO 6 best practices.

Since the previous assessment, the IPA has continued to review and refine its procedures on an ongoing basis to maintain alignment with SMO 6 best practices. The organization continues to provide the public with access to its complaints process and investigation procedures through its website and continues to publish the outcomes of disciplinary proceedings to support transparency and public awareness.

The IPA also continues to support implementation through member education and awareness activities. It regularly communicates common causes of professional conduct breaches, highlights ethical and professional obligations, and directs members to relevant standards, guidance, and resources to help mitigate the risk of complaints and disciplinary action.

Regulatory developments in the jurisdiction continue to support fulfillment through the continued operation of ASIC’s and TPB’s statutory investigative and disciplinary powers for auditors and tax practitioners, respectively.

Overall, the IPA continues to maintain an active, transparent, and sustained investigative and disciplinary framework aligned with SMO 6 best practices. Accordingly, fulfillment of SMO 6 is assessed as Sustain.

Current Status: Sustain

The Australian Accounting Standards Board (AASB), an Australian Government agency, continues to establish the financial reporting framework for the jurisdiction through the Australian Accounting Standards (AAS). The two-tier reporting framework remains in place, with Tier 1 incorporating International Financial Reporting Standards (IFRS Standards) and Tier 2 Simplified Disclosures providing reduced disclosure requirements for eligible entities while retaining the same recognition and measurement principles.

The Institute of Public Accountants (IPA) continues to support fulfillment of Statement of Membership Obligations 7 (SMO 7) through active advocacy, technical engagement, and member implementation support in relation to financial reporting standards. Since the previous assessment, the IPA has continued to participate in consultations and reviews relating to IFRS adoption and implementation by the AASB and continues to liaise with government officers, regulators, and elected officials on financial reporting requirements affecting the profession and the broader economy.

To support implementation, the IPA continues to provide members with practical tools, templates, technical guidance, and regular updates on changes to financial reporting standards through its various communication channels. The IPA also continues to deliver in-person and online training programs covering financial reporting developments, recent amendments to standards, and practical application issues.

In addition, the IPA continues to organize roundtable events and stakeholder forums to raise awareness of financial reporting developments and to support dialogue among members, regulators, and other key stakeholders on emerging issues, including sustainability-related reporting requirements.

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

Current Status: Sustain