Many of us would like more hours in our day, but there are some requirements that cannot be delayed or ignored. In 2022–2023, CA ANZ received about 420 complaints to the Professional Conduct Committee (PCC) in 2022–2023. While many were dismissed, a number related to members who failed to comply with CA ANZ compliance requirements.

Kristen Wydell FCA, general manager Professional Standards at CA ANZ, says the main cause for these complaints is members not responding to requests for information. These include ignoring a request to undertake a mandatory quality practice review, not completing the Professional Standards Scheme Questionnaire, and acting as a public accountant without a Certificate of Public Practice (CPP).

“There is an obligation in the regulations to comply with reasonable directions from CA ANZ and after we've exhausted all reasonable efforts, it gets to the point where that member is referred to the Professional Conduct Committee for not providing the necessary information or documents,” says Wydell.

“The important thing for people to remember is for a professional association to operate, we rely on members to provide information to help us report and meet our obligations.”

Completing a quick questionnaire

Wydell explains that one of the most common issues referred to the PCC is when members don’t complete their annual Professional Standards Scheme Questionnaire. In 2023, 39 members in Australia were referred to the PCC for this issue.

The CA ANZ Professional Standards Scheme potentially puts a limit on the maximum amount that can be awarded for a legal claim. It applies in Australia to members with a CPP, affiliate members, and practice entity members.

Each member practice is sent an annual online questionnaire around the same time as their professional indemnity insurance renewal.

“The information we collect is to make sure that they’ve got professional indemnity insurance, how much they have, the size of their practice, and the types of services offered by their practice,” explains Wydell. “Lastly, we need to know if they’ve had any professional claims made against them. The questionnaire takes about 15 minutes to complete.”

CA ANZ uses this information to meet its obligations to report to the Professional Standards Council.

“If we don’t have accurate and sufficient data, then we can’t meet our obligations – that then puts the whole scheme at risk,” says Wydell.

“Unfortunately, when people don’t complete the questionnaire despite our follow-up activities, it will end up at the PCC.”

Undertaking a quality review

Every year, a number of practices are selected to take part in CA ANZ’s Quality Practice Review Program. It is a mandatory obligation and is a necessary condition of CA ANZ being recognized as a professional accounting body by local and international entities.

“It’s one of our monitoring processes whereby we’re checking to make sure a member’s practice has a system of quality management in place that complies with professional standards, including the Code of Ethics, and other legal and regulatory requirements,” says Wydell.

“If a member ignores the request for information required to undertake a quality review, they will be referred to the PCC. It doesn’t happen very often, but there are a few practices each year that ignore our repeated requests.”

Holding a Certificate of Public Practice

CA ANZ requires all principals in public practice to hold a CPP. A CPP is essential if the practice wishes to use chartered accountant branding. It also protects the CPP holders under the Professional Standards Scheme.

“The certification protects the public interest and our brand by ensuring our members meet the high standards expected of them. Not having a CPP will result in a referral to the Professional Conduct Committee,” says Wydell. “This is a fundamental requirement that can’t be ignored.”

Update on the CA ANZ Professional Standards Scheme

The Professional Standards Scheme may limit on the maximum amount that can be awarded for a legal claim against members in Australia. It applies to those with a Certificate of Public Practice (CPP), affiliate members and practice entity members. CPP holders have annual mandatory reporting obligations under the scheme.

As a scheme member, you must include a disclosure statement on all business documents, including electronic communications you give to actual and prospective clients. It should be included on your website, too. The required form of the statement is:

Liability limited by a scheme approved under Professional Standards Legislation.

When printed, the statement should be in no less than a Times New Roman size 8 font.

Failing to display the disclosure statement could mean you are unable to benefit from the scheme and are liable for an amount greater than the scheme’s maximum caps. It is also an offence under the legislation and could result in a fine.