| Q. |
Will professional standards become legally enforceable? |
| A. |
The Auditing and Assurance Standards Board (AUASB) has included references to the relevant ethical requirements in the new legally enforceable Auditing Standards. APES 110 Code of Ethics for Professional Accountants and APES 320 Quality Control for Firms are relevant in this context. Consequently, the relevant Accounting Professional & Ethical Standards Board (APESB) issued standards are legally enforceable by virtue of the Auditing Standards.
The context of the legal enforcement relates to the audit of companies, registered schemes and disclosing entities in accordance with Chapter 2M, or financial services licencees in accordance with Chapter 7, of the Corporations Act 2001. For members who do not conduct such audits, the APESB issued standards do not have the force of law. |
| Q. |
What will the impact be of professional standards having the force of law? |
| A. |
As the professional standards have the force of law in the context of audits undertaken in compliance with the Corporations Act 2001, the Australian Securities & Investments Commission (ASIC) would be able to investigate members for non compliance with the relevant ethical requirements.
CPA Australia will also undertake disciplinary action, where appropriate. It is essential to note that all members of CPA Australia are required to comply with the APESB issued standards regardless of the legal enforcement status. |
| Q. |
When will the APESB issued professional standards apply? |
| A. |
1 July 2006. |
| Q. |
What are the relevant ethical requirements? |
| A. |
All APESB issued standards are relevant ethical requirements to the accounting profession, where applicable to the specific function. |
| Q. |
Are the professional standards jointly issued by CPA Australia and the Institute of Chartered Accountants in Australia? |
| A. |
No, the professional standards are no longer issued by the professional accounting bodies. The APESB was established in February 2006 to independently issue the professional standards. However, the professional accounting bodies continue to comment and support the issue of the professional standards. For more information, please visit the the APESBs website. |
| Q. |
What is the status with the jointly issued Code of Professional Conduct (CPC) and Miscellaneous Professional Statements (APS)? |
| A. |
The CPC and APS have been transferred to the APESB. The CPC has now been replaced by APES 110 Code of Ethics for Professional Accountants, and APS 5 Statement of Quality Control for Firms has been replaced by APES 320 Quality Control for Firms and APS 1.1 Conformity with Auditing Standards has been replaced by APES 410 Conformity with Auditing and Assurance Standards. The remaining APS continue to apply to members. |
