Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
Please join this website to participate in discussions. Also join our email list at http://eepurl.com/cWsgfb
Image

Does the review panel pass the independence test??

Discussions about the constitution and how CPA Australia is run
Post Reply
User avatar
jendalitz
Posts: 47
Joined: Thu Mar 30, 2017 5:20 pm

Does the review panel pass the independence test??

Post by jendalitz » Tue Jun 20, 2017 11:07 am

On Friday CPA Australia Chair, Mr Jim Dickson, announced an independent review had begun “to conduct a thorough review of all claims made in relation to CPA Australia.”

Air Chief Marshal Sir Angus Houston AK AFC (Ret’d) former Chief of the Australian Defence Force, and Mr Ian McPhee AO PSM FCPA, a former Auditor-General for Australia, will lead the review panel.

Both of these leaders are published supporters of CPA Australia CEO Alex Malley, having contributed to the foreword of Mr Malley’s book, The Naked CEO.

Do you feel these panel members pass the standards of independence expected of the accounting profession?

PLEASE VOTE & SHARE WITH YOUR NETWORKS https://www.surveymonkey.com/r/2KS8XYC

deaneus
Posts: 158
Joined: Mon Apr 03, 2017 9:09 pm

Re: Does the review panel pass the independence test??

Post by deaneus » Tue Jun 20, 2017 11:22 am

jendalitz wrote:
Tue Jun 20, 2017 11:07 am
Do you feel these panel members pass the standards of independence expected of the accounting profession?
The immediate strike-out is that both endorsed The Naked CEO, and Malley himself.

I smiled this morning when the AFR reported McPhee saying "endorsed his book just to give back to the profession" and that he would meet him once a year at accounting functions.

Journalism can be slanted in any direction but it felt like an attempt from McPhee to distance himself from Malley more than it felt like he was trying to establish a background of independence.

As we're all aware, it is not enough to be independent, you have to be seen as independent. They'll pass the first test, but not the second.

And that's before we find out the third member of the panel, or what the terms of reference are (which i feel conflicted about too, given they're being drawn up by Dickson)

Ted Sherwood
Posts: 6
Joined: Thu Jun 01, 2017 11:02 pm

Re: Does the review panel pass the independence test??

Post by Ted Sherwood » Tue Jun 20, 2017 11:28 am

A standard by which to judge the relationship:

"Independence comprises both:
• Independence of mind
• Independence in appearance

This means that members must not only be independent in action but they must also be perceived, by an informed third party, to be independent. This is particularly relevant when providing assurance services."

[from the chapter 'Fundamental Principles', Joint Accounting Bodies' publication 'Independence Guide, 2013, page 9]

JJF
Posts: 88
Joined: Fri Apr 14, 2017 8:19 am

Re: Does the review panel pass the independence test??

Post by JJF » Tue Jun 20, 2017 11:48 am

Just curious how you give back to the accounting profession by endorsing a book?

Talk about conflicted!!! (almost as bad as Professions Australia)

We need a review independent of the Board and "executive"- isn't that the role of ASIC?

User avatar
jendalitz
Posts: 47
Joined: Thu Mar 30, 2017 5:20 pm

Re: Does the review panel pass the independence test??

Post by jendalitz » Tue Jun 20, 2017 12:52 pm

Interesting angle being taken by Jillian Bowen today on the CPA Australia Members group on LinkedIn. Her take is that it isn't Alex Malley's book, it's CPA Australia's book and he just authored it in his capacity as CEO of the body. They might want get get that straight across Malley's profile on the CPA website and LinkedIn profiles... (and yes, I've made that suggestion).

User avatar
Stomper
Posts: 165
Joined: Tue May 02, 2017 9:55 am

Re: Does the review panel pass the independence test??

Post by Stomper » Tue Jun 20, 2017 1:01 pm

jendalitz wrote:
Tue Jun 20, 2017 12:52 pm
Interesting angle being taken by Jillian Bowen today on the CPA Australia Members group on LinkedIn. Her take is that it isn't Alex Malley's book, it's CPA Australia's book and he just authored it in his capacity as CEO of the body. They might want get get that straight across Malley's profile on the CPA website and LinkedIn profiles... (and yes, I've made that suggestion).
If that were true, the CPA logo would be prominently displayed on both the book and promotional material.....


the Naked CEO.JPG
the Naked CEO.JPG (59.04 KiB) Viewed 1567 times

the Naked CEO NYC.JPG
the Naked CEO NYC.JPG (121.06 KiB) Viewed 1567 times

JJF
Posts: 88
Joined: Fri Apr 14, 2017 8:19 am

Re: Does the review panel pass the independence test??

Post by JJF » Tue Jun 20, 2017 1:29 pm

That argument by Bowen is total rubbish!!

When members ask about the book, the CPA rushes to tell us that Malley gets no benefit and CPAA gets all the royalties.

But when it comes to selling the book to the public, Malley claims it all as his with no mention of CPAA.

You can't have it both ways.

If it is such a benefit to members as claimed then please disclose
- sales volumes
- associated costs
- impact on member numbers

They will never disclose.

User avatar
The Nude CPA
Posts: 227
Joined: Sat May 06, 2017 4:21 pm

Re: Does the review panel pass the independence test??

Post by The Nude CPA » Tue Jun 20, 2017 1:51 pm

If it was really the book they hold it out to be, its (quantifiable) successes would be plastered all over the annual report (and anywhere else they could manage)... "best seller" is just sales puffery.

FCA
Posts: 14
Joined: Wed May 03, 2017 2:27 pm

Re: Does the review panel pass the independence test??

Post by FCA » Tue Jun 20, 2017 4:08 pm

If its a benefit to members then why aren't each one of them getting a free copy? After all members pay $600 odd pa for the privilege of membership so surely it wouldn't be too much to expect to be able to have access to the publication they paid for?

User avatar
Stomper
Posts: 165
Joined: Tue May 02, 2017 9:55 am

Re: Does the review panel pass the independence test??

Post by Stomper » Tue Jun 20, 2017 4:30 pm

I hope the ATO never look at the Malley brand promotion spend to assess its deductability.

Looks to me to be more like a personal benefit than a genuine business deduction.

Just saying........

Just disappointed
Posts: 13
Joined: Sat May 06, 2017 6:23 pm

Re: Does the review panel pass the independence test??

Post by Just disappointed » Tue Jun 20, 2017 5:07 pm

FCA....Think about what you are saying. Read the 'precis' on Amazon, and then really consider if you would burden all long suffering CPA members with a free copy.

chuck_meister
Posts: 92
Joined: Fri Mar 31, 2017 8:58 am

Re: Does the review panel pass the independence test??

Post by chuck_meister » Tue Jun 20, 2017 5:26 pm

JJF wrote:
Tue Jun 20, 2017 1:29 pm
That argument by Bowen is total rubbish!!

When members ask about the book, the CPA rushes to tell us that Malley gets no benefit and CPAA gets all the royalties.

But when it comes to selling the book to the public, Malley claims it all as his with no mention of CPAA.

You can't have it both ways.

If it is such a benefit to members as claimed then please disclose
- sales volumes
- associated costs
- impact on member numbers

They will never disclose.
Interestingly, there is a free tool that converts the Amazon sales rank into daily sales.
https://www.quora.com/Can-you-tell-how- ... mazon-rank
In Amazon, this books rank is 1,059,111, which converts to less than one book a day.

Being ultra-generous, lets say one a day. This give a maximum of 974.
You don't have to even do the maths to know that at $13 US (or $10 for the kindle version). This
amounts to a pittance.

User avatar
jendalitz
Posts: 47
Joined: Thu Mar 30, 2017 5:20 pm

Re: Does the review panel pass the independence test??

Post by jendalitz » Tue Jun 20, 2017 6:45 pm

indeed Stomper that's a good point there's no notion of CPA branding on that book cover!!!!

Post Reply