Institute of Public Accountants

The corporate regulator, ASIC, has responsibility for audit oversight and has a program of audit inspection of selected firms. The PAOs implement review procedures for their respective members. IPA members in public practice are subject to a Quality Review Program (QRP). IPA reports that its QRP meets the SMO 1 requirements and the Board’s Pronouncement 4 - Quality Review Program outlines in detail what is expected of members throughout the QA review process.

Members are selected in accordance with the IFAC SMO cycle with adjustments for members who are assessed as high(er) risk. The QRP assesses how members operate their practice; compliance with ethical and professional standards; and other regulatory requirements. Answers are scaled and weighted based on a range of criteria. The new QRP which is being developed (and our previous system) are based on appropriate algorithms with reports produced for each member. IPA may refer non-compliant members to IPA’s Pronouncement 12 – Administration of Member Compliance for follow-up action which can result in suspension or forfeiture of membership and other penalties.

IPA participates in numerous and ongoing consultation with APESB; and regularly communicates to members through our various channels to keep them updated on developments.

Current Status: Sustain

ASIC and the PAOs set educational standards depending on the statutory registration or designation. The PAOs set the continuing professional development requirements for their respective members.

In order to use the AIPA designation and practice as a qualified accountant, an individual must hold an eligible accounting qualification from an accredited university or hold an eligible statutory registration with either ASIC and/or the TPB. AIPAs may then pursue the MIPA designation by completing Stage 1 of IPA’s Program which is offered in collaboration with Deakin University. In order to complete Stage 1 of IPA’s Program and advance to the MIPA designation, individuals must complete at least three years’ of practical experience. IPA offers a Mentored Experience Program (MEP) that is designed to provide a structured approach to the practical experience component. The MEP is a work-experience based program guided by a mentor and is a support mechanism for the remainder of IPA members’ career development. All IPA members must adhere to and report on their CPD obligations. IPA conducts an annual audit of practitioners and a triennial audit of non-practitioners to ensure compliance.

In further collaboration with Deakin University, IPA members that wish to pursue Stage 2 of the IPA Program will receive an MBA upon satisfactory completion.

IPA maintains ongoing monitoring and implementation of all changes to the IES, including an increased focus on an output-based approach to professional accountancy education. To this end, the IPA’s professional program and CPD programming are reviewed and updated to take into account developments to ensure a practical and effective approach to education and training outcomes. IPA completely overhauled the Professional Practice Program, including the content and exams. IPA’s events and CPD program offer a range of training activities, including in person, online and hybrid events. IPA offers over 500 events per annum.

In addition to its AIPA and MIPA qualifications, IPA offers other national certificates, diplomas and a Masters degree (through Deakin University) in accounting, bookkeeping, financial planning, and other disciplines to support a range of accountancy professionals IPA has developed over the last couple of years a new competency framework which takes into consideration Recognised Prior Learning, experience, and other competencies, which it can match to the overall framework. A huge range of multi-disciplinary micro credentials have been incorporated into the framework. Further details can be obtained on the IPA website and will be updated on an ongoing basis.

Current Status: Sustain

As noted above, in Australia, the applicable auditing standards are issued by the Auditing and Assurance Standards Board (AUASB), an independent, statutory agency of the Australian Government. Since April 2006, the AUASB has released Australian Auditing Standards (AAS) based on the ISA as issued by the IAASB.

The IPA is committed to supporting the ongoing adoption and implementation process of AAS. In this regard, IPA is involved in consultations and participates in AUASB meetings, roundtables, and forums to provide a voice to its members’ views. IPA submits written comments on public consultations either independently or in collaboration with other Australian PAOs. IPA notifies members when the AUASB and the IAASB issue updates to the Standards.

To support members with implementation of the auditing standards, the IPA provides training along with a variety of tools, templates, and resources on our website. Additionally, IPA makes amendments to its IPA Program to ensure recent developments are covered.

The IPA also engages in advocacy with government ministers and State and Commonwealth representatives when changes arise relating to audit and assurance that have significant impacts across the economy.

Current Status: Sustain

The Accounting Professional & Ethical Standards Board (APESB), an independent body that was established in 2006, sets the ethical requirements with which all members of the PAOs must comply. APESB has issued the Accounting Professional & Ethical Standard (APES) 110 Code of Ethics for Professional Accountants (including Independence Standards), which is based on the IESBA Code of Ethics for Professional Accountants (including Independence Standards).

The IPA supports its members in understanding and applying the ethical requirements by issuing communications through its various publications and channels; updating the IPA Program accordingly and through CPD; and ensuring that complaints regarding misconduct are investigated with appropriate action taken.

The IPA is active in supporting the APESB’s adoption process by engaging directly and extensively in the APESB’s review of professional and ethical standards and submitting comments to exposure drafts issued by APESB and IESBA.

Additionally, IPA advocates and liaises with other regulatory bodies and stakeholders to ensure that principles embedded in the IESBA Code of Ethics for Professional Accountants (including Independence Standards) are incorporated in a range of laws — at both the state and commonwealth level — that impact on the accounting profession, and in the public interest.

Current Status: Sustain

Financial reporting for public sector entities in Australia is based on the Australian Accounting Standards (AAS) adopted by the AASB. The Australian Accounting Standards incorporate and comply with IFRS and include a specific standard for public sector accounting. The AASB’s transaction neutrality policy means similar transactions and events are accounted for in a similar manner by all entities. The PAOs report that the AASB will seek consistency with IPSAS. In this regard, IPA reports that its primary role in this area is to advocate for aligning the AAS with the IPSAS where appropriate and possible and to be involved in any relevant consultations. The IPA will also liaise with government authorities and officers on technical issues related to public sector matters.

Any IPA members that are involved in the preparation, presentation or audit of financial reports in the public sector must comply with the accounting standards issued by the AASB and IPA offers professional development and training focused on the public sector.

Current Status: Sustain

Refer above for investigative and disciplinary (I&D) procedures for professional accountants, which are carried out by the PAOs and the regulators being ASIC and the TPB.

The IPA I&D process is an internal process to determine whether a member has breached any of the professional and ethical requirements or the IPA constitution, by-laws, or pronouncements. There is no jurisdiction to deal with commercial disputes or breaches of the law. The Investigator undertakes investigations on behalf of the IPA in relation to alleged breaches of the relevant Standards and rules. There is also an Investigations Review Officer and a Professional Conduct Committee as well as Disciplinary and Appeals Tribunals. The IPA provides the public with access to its Complaint Process, Complaint & Investigation Procedure Information and Complaint Information on its website. At the conclusion of an investigation, the Investigation Officer will complete an Investigation Report outlining the issues raised, identifies the relevant Standard/s that may have been breached, analyses the issues and searches that were undertaken, and recommends the appropriate action which may include a referral to the IPA’s Disciplinary Tribunal which may issue a range of penalties. IPA members can appeal a decision to the IPA’s Appeal Tribunal. More detailed information on IPA’s I&D system can be found here. The IPA reports that it reviews its procedures on an ongoing basis to maintain alignment with the SMO 6 best practices.

The IPA outlines common causes for investigation breaches, noting that many complaints can be avoided or mitigated if members are aware of their professional and ethical requirements and the common issues that may give rise to such matters. Alongside this list, IPA references Standards and resources to ensure its members are informed of all provisions of the Code of Ethics and other professional and ethical Standards.

In the interests of transparency and raising public awareness, IPA also details the results of all disciplinary proceedings on its website.

Current Status: Sustain

The Australian Accounting Standards Board (AASB), an Australian Government agency, sets the accounting standards for the jurisdiction. There are two tiers of reporting requirements for preparing general purpose financial statements with Tier 1 — known as the Australian Accounting Standards (AAS) — incorporates the IFRS while Tier 2 Simplified Disclosures that considers IFRS for small- and medium-sized entities.

The IPA advocates for the incorporation of the IFRS into AAS and supports the implementation of applicable Standards by its members. For example, it will liaise with government officers and elected officials on reporting requirements and with regard to standard-setting processes, IPA is involved in regular reviews of IFRS adoption by the AASB.

The IPA assists its members with tools and templates related to financial reporting in addition to regularly offering in person and online training that covers financial reporting topics and the latest Standards. IPA shares information on updates through its various communication channels. It organizes roundtable events with key stakeholders to further raise awareness.

Current Status: Sustain