CHARTERED ACOUNTANTS ANZ (CA ANZ) has acknowledged the work of the Parliamentary Joint Committee into Ethics and Professional Accountability: Structural Challenges in the Audit, Assurance and Consultancy Industry and has engaged extensively with the committee through appearances, submissions and responding to questions on notice.

"The committee’s report is extensive and requires time to be carefully considered," a CA ANZ spokesperson said. "On initial review, we are pleased to see some recommendations echo our own Going Further roadmap. 

"In particular, the strengthening of resourcing and effectiveness of the chief government auditor regulator, Australian Securities and Investments Commission (ASIC), and other bodies such as the Companies Auditors Disciplinary Board, as well as recommendations in relation to whistleblowers and whistleblower protections.

"We also welcome recommendations focused on improving accountability and transparency of large firms. Enhancing the reporting and governance obligations of large professional services firms is also a central tenant of our roadmap to enhancing trust and accountability within the profession," the spokesperson said.

"Protecting the term ‘accountant’ with legislation (Recommendation 27), so that only qualified accountants who are members of a professional body can use it, is a very positive step to safeguarding our profession and points to the valuable role our members play in the Australian economy.

"However, there are also recommendations that do not appear to consider evidence provided to the committee.

"Recommendation 25, seeking a review by the Australian Government into professional accounting bodies investigatory and disciplinary processes, with a view to potentially establishing a single independent body to perform these functions, is based on an assumption there are no mechanisms in place within accounting bodies to prevent and manage conflicts of interest, the spokesperson said.

"As we clarified in our opening statement here, CA ANZ is a private membership body with by-laws that enable us to hold our members to account, and in some cases expel them from our community.

"As associations with an approved professional standards scheme and members of the International Federation of Accountants (IFAC), all professional accounting bodies have the same obligations to implement conduct rules and processes.

"We have already provided extensive evidence that shows our conduct and disciplinary framework is entirely independent from board and management, with the independent Professional Conduct Committee, Disciplinary Tribunal and Appeals Tribunal comprised of senior chartered accountants, lawyers, ethicists and academics.

"Our independent conduct team applies the rule of law without fear or favour, and all CA ANZ members are subject to the same conduct rules regardless of where they work.

"In 2022, we conducted an extensive review of our framework and last year our members voted in favour of a number of recommendations to strengthen our ability to respond to behaviour deemed unethical, including increasing fines for firm events fivefold.

"As we have outlined to the committee, the ability to impose significant fines, like we have seen from the Public Company Accounting Oversight Board (PCAOB), requires statutory powers under legislation. During recent appearances at both the Senate and Parliamentary Joint Committees, CA ANZ said we would gladly accept the ability to do the same, should the government choose to go down that path," the spokesperson said.

"In relation to Recommendation 3, we are not persuaded that changes to partnership caps will drive better governance or culture in firms. Partnership caps in the corporations legislation are historic and have been repealed in other jurisdictions as irrelevant. 

"CA ANZ does not shy away from scrutiny and transparency. This is why we have already taken steps to publish and proactively provide to key stakeholders a Professional Standards Annual Report for Australia, with information regarding reviews, conduct, discipline and other relevant information," the spokesperson said.

"We also currently report to the Financial Reporting Council (FRC), Tax Practitioners Board (TPB) and Professional Standards Council (PSC). We believe Recommendation 25 is duplicated effort and does not mirror approaches in other sectors with a scheme.

"CA ANZ is continuing to review the recommendations and will provide its membership with a comprehensive response to the report in due course."

www.charteredaccountantsanz.com

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THE Joint Standing Committee on Treaties has tabled a report recommending the ratification of the Convention on the International Organization for Marine Aids to Navigation (the Marine Aids Convention).

The Convention establishes the International Organization for Marine Aids to Navigation, which will replace the International Association of Marine Aids to Navigation and Lighthouse Authorities and continue its work on harmonising marine navigation systems worldwide.

"A key feature of the organisation’s work has been to promote the harmonisation of marine navigation aids internationally, so that mariners can expect the same set of rules and systems no matter who’s waters they are sailing in," Committee Chair Lisa Chesters MP said.

"Although the Internal Association of Marine Aids to Navigation and Lighthouse Authorities was a peak body with international membership, some governments and organisations were unable to join the association because it was a non-governmental organisation. As an intergovernmental organisation, the new body will benefit from increased membership and sponsorship."

The committee supports ratification and recommends that binding treaty action be taken.

The report also contains the minor treaty action 2022 Amendments to Annexes II, VIII and IX of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

The report can be found on the Committee website, along with further information on the inquiry.

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THE Joint Standing Committee on Implementation of the National Redress Scheme anticipates it will finish its inquiry into the operation of the National Redress Scheme in November 2024.

Over the course of the inquiry, the committee has received more than 50 submissions and held 11 public hearings. Evidence received has highlighted areas the committee has examined including:

• the experience of First Nations applicants and applicants with disability in their dealings with the Scheme;
• accessibility, performance and effectiveness of support services and legal advice for survivors and their advocates;
• barriers and complications experienced when accessing the Scheme, such as with language, communication and cultural safety;
• the need for increased resources for redress legal services and counselling support services to better meet demand and reduce long waiting periods;
• concerns regarding delays processing applications, the consistency of redress outcomes and the transparency of decisions.

Senator Catryna Bilyk, Chair of the Joint Standing Committee on Implementation of the National Redress Scheme, said, "The committee is grateful for the submissions received later in the inquiry and is taking the time needed to ensure this evidence is considered. This has resulted in the expected completion of the inquiry to be extended from October to November."

"The evidence we have received has been extremely important to this inquiry and the committee is working hard to consider this evidence carefully and respectfully in the drafting of its report. The committee appreciates the efforts taken by contributors of this inquiry and hopes to provide a report that reflects the evidence provided throughout the inquiry."

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THE Joint Committee of Public Accounts and Audit has today tabled its report for the Inquiry into Commonwealth Financial Statements 2022-23.

Committee Chair Linda Burney stated that poor IT governance, particularly user access issues, continue to be among the significant findings of the Auditor-General’s report into the financial statements.

Ms Burney said, "Unauthorised user access to IT systems across the Commonwealth remains a problem as in previous years. The risks this poses are potentially significant as some of the agencies involved hold highly sensitive information."

Another area of particular concern to the committee from the 2022-23 audits was the increase in the number of annual reports not being presented in time to be scrutinised at end of year Estimates hearings.

Ms Burney said, "The Parliament must have this information, and is indeed entitled to expect it, in time to readily and properly scrutinise the expenditure of taxpayer funds."

Other matters considered by the committee included legislative breaches involving certain payments and incorrect executive remuneration or non-compliance with the Remuneration Tribunal; and the lack of a mandatory internal auditing function for Commonwealth entities.

The committee had made five recommendations in its report that include requests for updates from specific entities on addressing legislative breaches and IT governance shortfalls, and an explanation from agencies that have failed to present an annual report on time for three consecutive years.

The committee is also recommending the Department of Finance amends the current guidelines to require it to be notified immediately of any breaches of the executive remuneration rules, and that it develops a mandatory framework with detailed guidelines for internal auditing.

The report can be downloaded from the inquiry website.

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