CA ANZ opens voting on revised conduct code
The accounting body has outlined a range of actions it is undertaking to help restore public trust in the profession in its annual report.
CA ANZ has opened the voting on changes to its professional conduct rules following a review earlier this year.
Members can vote from now until 5pm AEDT on 20 October 2023 following the conclusion of the AGM scheduled for that date.
CA ANZ chair John Palermo said a successful vote would bolster the body’s focus on upholding integrity and trust in the CA designation.
“Members want to see an effective and robust response to the contemporary issues we see today,” he said.
“Implementing the review recommendations will deliver that if our members vote to approve the by-law changes required to bring them to life.”
“As well as delivering procedural and efficiency improvements to ensure our Professional Conduct Framework remains effective and robust, a successful vote will also strengthen our ability to respond to events involving firms – including a fivefold increase in maximum fines.
“By voting yes, our members can help us safeguard the integrity and reputation of the chartered accountant designation at a time when the poor actions of a few have cast a shadow over our profession.”
The votes come in the wake of revelations that PwC partners used confidential Treasury tax plans to help multinational clients restructure and the widespread reputational harm that followed as the scandal was exposed to parliamentary scrutiny.
However, the conduct review was prompted by criticism of CA ANZ’s handling of the KPMG exam cheating affair last year, when hundreds of members were implicated but the body sanctioned just eight unnamed culprits.
As well as the fine increase, the review recommended strengthening its response to firm events, closing a gap relating to investigating former members, and enabling voluntary firm membership in New Zealand.
CA ANZ said nine resolutions, all endorsed by the board, were required to make the changes to its by-laws and a further five regulatory resolutions were needed to amend the NZICA Rules.
In-depth explanations of the 14 resolutions and the marked-up by-laws and NZICA Rules were available on the CA ANZ website.
CA ANZ said it will also commence the implementation of other recommendations from the PCF review that are not dependent on member approval during the 2024 financial year.
CA ANZ to review quality review inspection program
In addition to the implementation of the By-Law and NZICA Rule changes, the accounting body said it will also review the design and scope of its quality review inspection program.
CA ANZ said it will implement a range of aligned initiatives to ensure all members understand their membership obligations under the By-Laws and NZICA Rules to observe the fundamental principles of professional behaviour, integrity, objectivity, professional competence and confidentiality and comply with self-disclosure obligations imposed by the By-Laws and NZICA Rules.
The annual report said that 488 quality practice reviews were completed in the 2022–23 year. This was a 36 per cent increase from the previous financial year but fell short of the target of set for the 2022–23 year.
CA ANZ plans to increase the number of practice reviews it undertakes to 580 for the 2023–24 financial year.
Professional conduct investigation outcomes in 2022–23
During the 2022–23 financial year, CA ANZ’s independent disciplinary process resolved 416 complaints, with 221 resolved by the PCC following investigation and 31 at the Disciplinary Tribunal and Appeals Council/Tribunal.
There were 172 adverse findings or sanctions including ordering removal of membership in eight complaints and suspension or interim suspension in 11 complaints.
CA program enrolments decline
The annual report also shows CA ANZ fell short of its membership target by almost 1,500, adding 2,310 during the year for a rise of 1.7 per cent. Of the 136,730 total, all bar about 10,000 are in Australia or New Zealand.
CA ANZ chief executive Ainslie van Onselen said the body was on track to deliver a surplus this financial year.
“This year we saw CA program enrolments decline due to the pandemic, a reduction in international students entering our universities and an overall decline in management and commerce bachelor degrees in Australia and New Zealand,” she said.
In order to address the declining attractiveness of a career in the accounting profession and support the future talent pipeline, CA ANZ said it will focus on driving accounting career awareness.
This will include launching a youth brand campaign across targeted media channels such as TikTok and partnering with Year13, an organisation helping young Australians transition from school to work.
“We will also partner with teachers, career development practitioners and Members, providing them with a wide range of resources, such as the High School Toolkit to help support awareness raising activities,” the annual report said.
Ms van Onselen said that CA ANZ had responded to member requests in its five-pillar strategy to 2025.
“In FY23 we saw the launch of our new ‘digital front door’ powered by a data hub that enables more tailored support and resources depending on the nature of a member’s role,” she said.
“We also achieved important steps toward fortifying the profession’s talent pipeline, including the introduction of new sustainability and advanced reporting electives in the CA Program, the design of a Flexible Pathways Program and becoming the only accounting body in Australia approved to offer the government study assistance loan scheme FEE-HELP.”
“Landing these strategic initiatives, alongside a renewed campaign aimed at secondary and tertiary students supported by a High School Toolkit and Career Cards, means that we are not waiting and hoping – we are moving to improve the attractiveness of the profession and secure the next generation of talent.”
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