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Accountants Daily - CPA believes penalties still low

Posted: Mon Apr 30, 2018 11:02 am
by certified sane
God bless the CPA weighing into penalties policy governing listed companies as being too soft.
Speaking to Accountants Daily, CPA Australia head of policy, Paul Drum said that while the increased penalties were a “positive initial response”, they may still be insufficient in the grand scheme of things.

“The royal commission into the banking sector demonstrates that the current penalty regime has been an insufficient deterrent and as a consequence that there are some in the industry who have effectively snubbed both ASIC and the law,” said Mr Drum.
Maybe the inaction by ASIC to bodies like CPA might be the problem as to why a lack of consequence might empower people to behave in a certain way. I seem the remember a certain member based accounting body not covering itself in glory at a senate hearing. Again maybe the lack of penalties for those board members might lead other to believe you can walk away free of accountability.

Nothing against you Mr Drum, but the pot calling the kettle black comes to mind.

https://www.accountantsdaily.com.au/tax ... _content=1

Re: Accountants Daily - CPA believes penalties still low

Posted: Mon Apr 30, 2018 2:13 pm
by nakedadmin
Yeah if CPA Australia wants to understand why the banks don't respond to ASIC they only need to look as far as their own 202B request.

In that instance, an offence of strict liability ASIC said: we cannot impose a penalty for non compliance as it would require court action.

ASIC has not even imposed the penalties that they have. But Paul Drum is happy to state that the "current penalty regime has been an insufficient deterrent" and that increased penalties are a welcome first step. The penalties were never imposed so how is a higher penalty not imposed a better deterrent?

I think CPA Australia is just trying to look like they know what they are talking about here. But in reality even though CPAs are involved throughout these industries CPA Australia has not led on this. In fact one problem is that they are competitors of CPA Australia. How hard can you criticise competitors, they would just say you're conflicted and they'd be right.

Re: Accountants Daily - CPA believes penalties still low

Posted: Tue May 01, 2018 10:47 pm
by theallseeingeye
Hubris and arrogance are alive and well at Southbank if Mr Drum thinks his organisation has a shred of credibility or moral compass required to pontificate on board behaviour and ASIC enforcement.