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
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Ethics and Integrity

Discussions about the constitution and how CPA Australia is run
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aceone
Posts: 18
Joined: Mon Jun 12, 2017 6:11 pm
Location: Sorell, Tasmania

Ethics and Integrity

Post by aceone » Tue Jan 02, 2018 6:15 pm

For my clients, I have attained the status of Authorised Representative so that the clients can have a holistic (and whole-istic) service.
During this month's CPD, the Ethics topic covered "Building an ethical corporate culture". Wow - so relevant to the goings-on at CPA. Let me cite some extracts (sourced from Kaplan OnTrack learning for Financial Planners, today):
  • - There has been a tendency for Australian financial services firms to take a reactive approach to negative impacts on company culture, rather than proactively establish a culture of compliance and integrity
  • - Strong cultures have two common elements: there is a high level of agreement about what is valued, and a high level of intensity with regard to those values. Of course, not all cultures encourage good or ethical behaviours. When it comes to developing world-class ethics and compliance programs, the starting point is a positive culture of integrity
  • - corporate culture of integrity is typically characterised by ... clear set of organisational values that emphasise a commitment to operating in a compliant and ethical manner, .....It really depends on the [attitudes of the] board and senior management. They set the tone and it depends on their own personal ethical stance. That ethical stance has to be … modelled by them to the rest of the organisation, be it big or small
  • - Australian psychologist and social researcher, Hugh Mackay, who theorised that customers and clients judge an organisation on two factors to determine whether they are ethical or not...“Those two things are how they treat their customers, which of course is staff behaviour, and executive behaviour, but equally important is how they treat each other — so how the team treats each other. All those factors need to be aligned and in place to have a culture of integrity and ethical culture”...
  • -even though the law may set minimum ethical standards, companies should not fall into the trap of thinking that meeting those minimum standards is sufficient. [my note: CPA Australia is a company]
and best of all
  • - we often think it’s a few bad apples when things go wrong in relation to ethics, but we should really be looking at how to fix the barrel those apples are in

Now, I'd bet (my maximum bet is 20c) that the new Chairman of the Board, Mr Wilson, would say that all these things are being applied within CPA Australia. I truly look forward to reading this year's communiques from Head Office to feel the integrity emanating and the ethics oozing therefrom. And, I truly look forward to comments from other members of CPA on these points.

Before the negative critiques start to flow - yes, I'm being "educated" as a financial planner which some might view as being "indoctrinated". And, in reading today's CPD materials there were times when I read "educate the clients" as meaning "provide the clients with propaganda"...maybe I'm too old for my own good.
Tracey Jones (right now, I'm too embarrassed to admit that I'm a fully paid up member), B.Mgt, M.Acc, DFP
CTC Taxation & Accounting Services Pty Ltd
Sorell Tas 7172

JWheldon
Posts: 348
Joined: Wed May 24, 2017 6:43 pm

Re: Ethics and Integrity

Post by JWheldon » Wed Jan 03, 2018 10:32 am

Maybe the new board need to update their own corporate guidance on Directors standards.

https://www.cpaaustralia.com.au/about-u ... -statement



Given you are going to be an authorised representative. Is your practice under the announcement from the PSC no longer covered under the limited liability scheme?



Professional Standards Council approve CPA Australia Ltd

The Professional Standards Councils have approved the CPA Australia Ltd Professional Standards (Accountants) Scheme for a 2-year period.

http://www.psc.gov.au/news-and-publications/latest-news

Councils approve CPA Australia Ltd Professional Standards (Accountants) Scheme
21 December 2017

On 29 November 2017, the Professional Standards Councils approved the CPA Australia Ltd Professional Standards (Accountants) Scheme, for a 2-year period. The Councils are satisfied that the new scheme will protect consumers and encourage the continuous improvement in professional standards.

The new scheme will cover all CPA Australia members who hold a current Public Practice Certificate issued by CPA Australia and extends to members in all states and territories including Tasmania, for the first time. The Scheme is not intended to include financial services activities and excludes any person who is a Representative of an Australian Financial Services Licensee (except a Limited Licensee).

As part of their considerations, the Councils met with and received in-person submissions from the CPA Chair, Peter Wilson AM, CPA interim CEO Adam Awty, and CPA General Manager Public Practice, Peter Docherty. The 2-year Scheme, proposed by CPA Australia, allows the association to work through, and advise Councils, of improvements to association governance, including an all-new board, Chair and CEO; acting on recommendations of the CPA Independent Review Panel; and, improving scheme oversight and data collection.

The Hon Matthew Kean, Minister for Better Regulation and Innovation, has authorised publication of a notice in the NSW Government Gazette, which will occur on Friday 22 December 2017. The CPA Australia Ltd Professional Standards (Accountants) Scheme will commence in NSW on 23 December 2017. The Scheme has been sent to the relevant Ministers in the remaining states and territories for publication in their respective government Gazettes.
Related information

What are Professional Standards Schemes?
Download a copy of the CPA Professional Standards Scheme
Download the Professional Standards Legislation

http://www.psc.gov.au/news-and-publicat ... nsultation


CPA Australia Ltd proposed Professional Standards Scheme is open for public consultation.
26 Sept 2017

The Professional Standards Councils have decided to publish the Professional Standards Scheme proposed by CPA Australia Ltd (on 4 September 2017), and invite the public to make comments and submissions on the proposed Scheme.   The CPA Australia Ltd Professional Standards Scheme public notification period will run for 28 days from the 27 September 2017 to 25 October 2017.   

Public Notification is a  necessary and important  step in  the consideration for  approval of a Professional Standards Scheme. It does not imply  an approval of a Scheme and is instead an  invitation  for the public to provide comment.  Details of current and previous public notifications can be found on our Notification page. 

In this instance, matters which the Councils may take into account include the appropriateness of association governance, mechanisms for complaints handling for member misconduct, as well as management of any conflicts of interest, insofar as they are relevant to operations of the Professional Standards Scheme.

Submissions need to be made directly to the Councils.   All submissions  received  are confidential and are not published, although summaries and questions  raised  may be put to the Association for response as part of the Councils’ consideration. 

CPA Australia Ltd has published a public consultation document on their website  to accompany this notification. This document is intended to explain the  scope and operation of the Scheme  and  pre-empt  public questions: https://www.cpaaustralia.com.au/about-u ... nformation

The notification, the proposed Scheme Instrument and the consultation document provided by CPA Australia should be read before a comment is submitted.
Related information

What are Professional Standards Schemes?
Download a copy of the expired CPA Professional Standards Scheme
Download the Professional Standards Legislation

User avatar
Brett Stevenson
Posts: 450
Joined: Fri Mar 24, 2017 10:43 am

Re: Ethics and Integrity

Post by Brett Stevenson » Thu Jan 04, 2018 10:12 am

Hi Tracey,
Your focus on the poor ethics example of CPAA is a good one. The examples you highlight really do emphasise how our organisation's leadership has failed us miserably.
I did a similar exercise a few months ago now by looking at all the articles in In The Black over the last year or so written by the CPA ethics 'expert' Dr Eva Tsahuridu, and it really was almost cringeworthy when contrasting what was said in the articles with the actual behaviour of our leaders.
Joe Aston did a great piece on this in the AFR.
Its also worth noting that Ian McPhee who was Chairman of the Independent Review Panel that looked at CPA was the Australian representative on the International Accounting Ethics Board, and his technical assistant was DrEva Tsahuridu. The obvious questions that come to mind hardly need to be written down eh?
I also note that CPA Australia (with Dr Eva Tsahuridu as one of the main organisers it would seem) was the principal sponsor of the Australasian Business Ethics Network (ABEN) Conference in Melbourne in December 2017 which involved RMIT and Swinburne. The talk is a heck of a lot louder then the walk, and some day hopefully they will keep in step.
But the irony and hypocrisy of it is amazing.
And of course no mention of this in the IRP Final Report. I made some comments about this on LinkedIn.
It's also worth noting that one of the big marketing pushes at the Australian Open is to have an NBL Basketball match on the centre court to promote Basketball at the tennis.
Of course how can you even think of this without thinking of Graeme Wade and his involvement at CPA and the NBL, and the Australian Open and NBL sponsorships.
If I had the time I think it would be good to draft up a little postcard for Aust Open attendees highlighting the matters exposed at CPA Australia this last year so they can get the complete story.

chuck_meister
Posts: 96
Joined: Fri Mar 31, 2017 8:58 am

Re: Ethics and Integrity

Post by chuck_meister » Mon Feb 19, 2018 3:32 pm

Each year I get an email with CPA promoting consulting services to implement business partnering.
This reminded me of the the challenge that the big four had which ultimately required the separation of the consulting arms from their auditing part of the business. Specifically related to conflict of interest which may influence the external audit if large $$$ were tied up in consulting contracts.

In regards to the CPA, lets say a company engages CPA to roll out the business partnering framework, and right in the middle, an accountant who was instrumental in helping CPA secure the work failed to comply with CPD. What to do? Normally you instruct the non-compliant accountant to catch up, but now being compromised it is easy to let such a thing slide. This is also similar with the situation with CPA Advice. How can you be both the regulator and provider of services?

What should have been done, is for this to be offered directly to members as a workshop, either free of heavily subsidised. Since members funds were used to conduct the research, the knowledge gained should directly be made available to increase the skills and capabilities of the members, thereby increasing their overall competence, thereby the CPA brand.

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