May 2012
Do you require a Public Practice Certificate?
Date issued: 7 May 2012
CPA Australia requires any member who is offering public accounting services to be of CPA status and hold a Public Practice Certificate. This applies to anyone closely associated with a firm, whether as a principal or a director, a consultant or an officer of the practice entity.
Next tranche of Stronger Super legislation
Treasury has released draft legislation, which includes provisions relating to superannuation fees, intra-fund advice and insurance. Proposals also include disclosure of trustee or director and executive remuneration, as well as investments held and managed by superannuation entities on behalf of members.
Draft APRA prudential standards
The Australian Prudential Regulation Authority (APRA) has released 11 draft prudential standards for comment. The draft standards seek to impose minimum requirements on superannuation trustees to prudently manage member funds. Members can email their comments on the draft standards to finplan@cpaaustralia.com.au Friday 6 July.
Accountants' PI insurance: an overview
This recording provides an overview of the importance of professional indemnity insurance and risk management for CPA Australia public practitioners.
April 2012
Are you registered?
Date issued: 23 April 2012
The Personal Property Securities Act 2009 was passed on 14 December 2009. The legislation will implement a national online register to replace more than 70 commonwealth, state and territory registers used to regulate personal property used as security.
Tax concession entities: Special conditions
Date issued: 23 April 2012
The Assistant Treasurer, the Hon. David Bradbury MP, has released revised draft legislation for restating and standardising the special conditions for tax concession entities
Conflicts of interest and outsourced services
Date issued: 23 April 2012
CPA Australia represents members by submitting comment to national and international bodies regarding proposed legislation and standards. Two recent submissions concern the IESBA's Exposure Draft (PDF) on the Proposed Changes to the Code of Ethics for Professional Accountants Addressing Conflicts of Interest and the APESB's Exposure Draft (PDF) on Guidance Note 30: Outsourced Services.
Opt-in exemption: Last minute amendments
Date issued: 23 April 2012
Last-minute amendments to the Future of Financial Advice Bills will give the Australian Securities and Investments Commission (ASIC) the ability to exempt financial advisers from the opt-in obligation if they are satisfied that the financial adviser is signed up to a professional code that removes the need for opt-in.
Call for comment: Amending start date of FoFA
Date issued: 18 April 2012
Draft amendments to the Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Advice Measures) Bill 2011, which will implement the delayed application date for the Future of Financial Advice (FoFA) reforms, have now been released.
Employment practices liability insurance
Date issued: 18 April 2012
Learn about the four major areas of employment practices liability insurance cover and the impacts of employment-related liability claims.
Final FPS exams: May and November 2012
Date issued: 30 March 2012
In February this year a new pathway to attain the CPA Australia Financial Planning Specialisation was announced. The pathway under the existing points system will close on 30 June 2013.
Fringe Benefits Tax checklist
Date issued: 30 March 2012
This checklist provides a summary of the procedures and mechanics for preparing the 2011–12 fringe benefits tax return.
Top ten audit breaches 2011
Date issued: 6 April 2012
CPA Australia's Quality Review Program has revealed the most common ways members have been found to have breached the auditing standards. Many of the breaches found are the result of a lack of documentation, as per ASA 230, providing the necessary evidence that required procedures have been performed.
Top ten non-audit breaches 2011
Date issued: 30 March 2012
Quality Assurance is important, and CPA Australia’s Quality Review Program has found the most common ways members have been found to have breached professional standards or legislative and regulatory requirements.
Ethics guidelines for business
Date issued: 2 April 2012
The Accounting and Professional Ethical Standards Board has released guidelines to help professional accountants in business address a range of ethical issues.
March 2012
Flood assistance in Queensland, New South Wales and Victoria
Date issued: 17 March 2012
CPA Australia has created a disaster recovery toolkit offering guidance to businesses directly or indirectly affected by a natural disaster. Links to government resources are also provided.
Auditing financial instruments: Special considerations (PDF)
Date issued: 17 March 2012
The Auditing and Assurance Standards Board has issued Guidance Statement GS 020: Special Considerations in Auditing Financial Instruments to help auditors and provide guidance on considerations regarding financial instruments when carrying out audit and assurance engagements.
Professional and ethical standards (PDF)
Date issued: 17 March 2012
The Accounting and Professional Ethical Standards Board (APESB) has introduced a mechanism to gather stakeholder views on international exposure drafts. Members can make submissions to the APESB by the due dates indicated. CPA Australia made a submission to the APESB on the proposed standard APES 225: Valuation Services.
Code of Ethics: Potential changes (PDF)
Date issued: 17 March 2012
An exposure draft on the proposed changes to the definition of “engagement team” in the Code of Ethics has been issued by the International Ethics Standards Board for Accountants. CPA Australia will make a submission, and members can e-mail their comments to professionalstandards@cpaaustralia.com.au by Friday 11 May.
Top tips from public practitioners
Date issued: 17 March 2012
Learning from others’ experience is integral to success, which is why CPA Australia’s Showcasing best practice in public practice interviews members from all streams of public practice in Australia. The interviews are available in video and audio formats.
FoFA implementation extended
Date issued: 15 March 2012
The Australian Government has announced that the Future of Financial Advice (FoFA) reforms will commence from 1 July 2012, but the application of the provisions will be voluntary until 1 July 2013. Mandatory application will start from 1 July 2013.
Promoting your practice
Date issued: 16 March 2012
Make the most of your CPA status by displaying your CPA public practice logo. CPA Australia provides a number of public practice branded merchandise products specifically for CPA Australia public practice certificate holders
Business uncertainty an unintended result of Part IVA changes
Date issued: 2 March 2012
Businesses face greater uncertainty and productivity losses as a result of the Australian Government's moves to tighten anti-avoidance provisions in the tax law, CPA Australia has said.
Top ten breaches: Quality assurance
A total of 2932 breaches were reported in 2011 through CPA Australia's Quality Review Program. 57 per cent were non-audit related breaches and 43 per cent were audit related breaches. CPA Australia has compiled a list of the top 10 breaches for each category.
February 2012
Are you eligible for a Star Grant?
Date issued: 29 February 2012
CPA Australia Public Practice Certificate holders who are members of a CPA Australia Professional Standards Council (PSC) liability-limited scheme are eligible to apply for the PSC’s Star Grants initiative program if they’re involved in certain projects.
CPA Australia publishes open letter to Minister
CPA Australia and the Institute of Chartered Accountants have published an open letter to the Hon. Bill Shorten, Minister for Financial Services and Superannuation, in the Australian Financial Review, as part of a public awareness campaign to emphasise the important role that professional accountants play in the community and for over two million small-to-medium businesses in Australia.
Superannuation and limited recourse borrowing (PDF)
The Australian Government has released Exposure Draft – Corporations Amendment Regulations 2012 proposing to make limited recourse borrowing arrangements (LRBA) "financial products" under the Corporations Act 2001 when entered into by superannuation funds. A person dealing in an LRBA will be required to have an Australian Financial Services Licence and meet the disclosure requirements where the product is issued to a retail client. The regulations will commence three months after the day they are registered. Members can email their comments to finplan@cpaaustralia.com.au by Monday 5 March.
Could you be a reviewer?
Are you an experienced public practitioner? Don’t miss out on this opportunity to provide your fellow CPA Australia members with support and guidance on professional standards to improve their practice. You will receive continuing professional development hours for training activities as deemed appropriate.
Code of Ethics for Professional Accountants
CPA Australia has made a submission to the International Ethics Standards Board for Accountants regarding proposed changes to Code of Ethics for Professional Accountants, related to provisions addressing a breach of a requirement of the code.
APES 310: Dealing with Client Monies
APES 310 Dealing with Client Monies became effective 1 July 2011, with early adoption permitted. APES 310 replaces APS 10 Trust Accounts and Guidance Note 3 Operation of Trust Accounts. The standard has been divided into two parts – obligations of members who deal with client monies, and obligations of trust account auditors on their compliance with this standard.
Members under review Cycle 1: Key dates
Members who are undergoing their review in the first half of 2012 are reminded that planning meetings must be held by Friday 30 March, reviews must be completed by Friday 22 June and the review report must be sent back to CPA Australia by Friday 13 July, or 15 business days after the review (whichever is sooner). Members can email qualityreview@cpaaustralia.com.au if they have difficulty meeting these dates.
Outsourced services
An exposure draft on the Proposed Guidance Note APES GN 30: Outsourced Services (GN 30) has been issued by the Accounting and Professional Ethical Standards Board. GN 30 provides guidance to Members in public practice who provide or use outsourced services. CPA Australia will make a submission, and Members can email their comments to professionalstandards@cpaaustralia.com.au by Friday 23 March.
Growing client services
A new video provides guidance for CPA Australia members on how to grow client services and how an evolving product and service mix can meet client needs.
January 2012
Personal property securities: new register
The Australian Government's commercial law reform to personal property securities took effect on 30 January 2012, with the commencement of a new national online register.
Developing referalls
This recording provides some guidance for CPA Australia members on the development of referrals and how to improve your level of engagement with clients.
2012 employers' manual
CPA Australia's employers’ manual for public practice firms has been updated to reflect changes to the work health and safety laws. The new model for work health and safety laws took effect on 1 January 2012 in Queensland, New South Wales, the Northern Territory and the Australian Capital Territory.
Professional indemnity insurance mini policy
Date issued: 19 January 2012
CPA Australia's professional indemnity insurance 2012 mini policy for public practitioners is now available.
Professional and ethical standards update
Date issued: 19 January 2012
The Accounting Professional and Ethical Standards Board has issued APES 325 Risk Management for Firms and revised the definition of "public interest entity" in APES 110 Code of Ethics for Professional Accountants.
The International Ethics Standards Board for Accountants has released for exposure Proposed Changes to the Code of Ethics for Professional Accountants Related to Provisions Addressing a Breach of a Requirement of the Code.
Auditor independence and firm rotation
Date issued: 19 January 2012
CPA Australia has made a submission (PDF) to the Public Company Accounting Oversight Board on its concept release on auditor independence and audit firm rotation. CPA Australia considers the status quo adequately addresses auditor independence and, given the absence of specific evidence pointing to improvements in audit quality as a result of the proposals, does not support the proposed changes of introducing mandatory audit firm rotation.
December 2011
Accountants' licensing exemption: wait for announcement
Date issued: 22 December 2011
CPA Australia understands that the Australian Government’s delay in announcing a replacement to the accountants’ licensing exemption is causing uncertainty for members.
FPS review: new changes for 2012
Date issued: 22 December 2011
To ensure the financial planning specialisation (FPS) remains a mark of expertise and professionalism, CPA Australia has reviewed the current requirements to attain the specialisation. The criteria and the points system will be replaced with a new pathway which will focus on education and experience.
Revised ethical standards
Date issued: 22 December 2011
The Accounting Professional and Ethical Standards Board has issued revised APES 330 Insolvency Services (PDF) and APES 210 Conformity with Auditing and Assurance Standards (PDF).
APES 330 replaces the existing standard and will be effective for insolvency services commencing on or after 1 April 2012, with early adoption permitted. APES 210 replaces the existing standard and is effective from 30 September 2011.
New Zealand audit regulations for accredited bodies
Date issued: 22 December 2011
The Financial Markets Authority (FMA) has released Consultation Paper Proposed Requirements for Accredited Bodies Under the Auditor Regulation Act 2011, which sets out the minimum standards and conditions that the FMA proposes should be met by organisations seeking accreditation.
November 2011
Audit and assurance news
CPA Australia has made submissions to the Australian Auditing and Assurance Standards Board which are generally supportive of proposed standards for assurance engagements on fundraisings and comfort letter engagements.
Code of ethics for accountants: submission
Date issued: 8 November 2011
The International Ethics Standards Board for Accountants (IESBA) has issued Exposure Draft Proposed Changes to the Code of Ethics for Professional Accountants Related to Provisions Addressing a Breach of a Requirement of the Code.
FoFA Bill referred to PJC inquiry
Date issued: 7 November 2011
On the Thursday 13 October, the Senate referred the Corporations Amendment (Future of Financial Advice) Bill 2011 (PDF) to the Parliamentary Joint Committee (PJC) on Corporations and Financial Services for inquiry.
Auditing news
The Australian Auditing and Assurance Standards Board has reissued Guidance Statement 007; The International Auditing and Assurance Standards Board has undertaken a post-implementation review of Clarified International Standards on Auditing; and the Joint Accounting Bodies have lodged a submission with Treasury on Exposure Draft Enhancing Audit Quality.
Quality assurance review fees to be abolished
Date issued: 2 November 2011
CPA Australia is pleased to announce a cost reduction for members holding a CPA Australia Public Practice Certificate (PPC) as part of our strategy to support members in public practice.
October 2011
INPRACTICE – online now
CPA Australia's new magazine developed especially for public practitioners, INPRACTICE, issued with your September edition of INTHEBLACK, is now available online. Read up on technical updates and explore topics such as clean energy, clean accounting, staff recruitment and ethical challenges
Need for greater efficiency reinforced at forum
Date issued: 4 October 2011
Australia's Tax Forum, held on Tuesday 4 and Wednesday 5 October in Canberra, reinforced the need for greater efficiency in Australia’s tax system if productivity improvements are to be achieved.
Auditing – submissions, standards and exposure drafts
CPA Australia has lodged a submission to the Public Company Accounting Oversight Board (PCAOB) in response to the PCAOB concept release on possible revisions to its standards. The Joint Accounting Bodies have made a submission to the International Auditing and Assurance Standards Board in response to the proposed standard on assurance engagements other than audits or reviews of historical financial information.
The Auditing and Assurance Standards Board has issued exposure drafts on proposed standards relating to corporate fundraisings and comfort letters, and Treasury has released Exposure Draft Corporations Legislation Amendment (Audit Enhancement) Bill 2011.
Insurance forum: complimentary video available
CPA Australia members can access a complimentary recording of the Insurance Forum for Public Practitioners. Non-members can access the recording for $22
Public Practice Advisory Committee
Date issued: 3 October 2011
Nominations are being sought for CPA Australia's Public Practice Advisory Committee.
Insurance and Professional Standards Council Scheme Advisory Committee
Date issued: 3 October 2011
Nominations are being sought for CPA Australia's Insurance and Professional Standards Council Scheme Advisory Committee.
September 2011
Joint Accounting Bodies endorse ban on conflicted remuneration
Date issued: 29 September 2011
Media statement issued by the Joint Accounting Bodies
Removing conflicts of interest in the provision of financial advice is strongly aligned to the accounting profession’s principles of professional independence, and can only serve to build consumer trust and confidence in seeking advice, according to the Joint Accounting Bodies (CPA Australia, the Institute of Chartered Accountants in Australia and the Institute of Public Accountants).
Maintenance of principles-based SMSF audit independence a win
Date issued: 21 September 2011
CPA Australia has welcomed the maintenance of a principles-based approach to independence standards for auditors of self-managed superannuation funds (SMSFs) as part of the Australian Government’s Stronger Super reforms announced today.
Insurance Forum for Public Practitioners
Access responses to the questions raised following CPA Australia’s Insurance Forum for Public Practitioners in July.
Updated guidance statement for SMSF auditors
The Auditing and Assurance Standards Board has revised its Guidance Statement GS 009 Auditing Self-Managed Superannuation Funds (SMSF). The guidance statement was first issued in 2008 to help auditors conduct SMSF audits. GS 009 was updated to help auditors comply with the new auditing standards and ATO requirements that have been released since GS 009 was first issued.
Calls for comment on proposed amendments to APES 110
The Accounting Professional and Ethical Standards Board (APESB) has issued for comment an exposure draft on the proposed amendments to the definition of 'public interest entity' in APES 110 Code of Ethics for Professional Accountants.
CPA Australia members can email their comments on the exposure draft by Friday 30 September to professionalstandards@cpaaustralia.com.au.
INPRACTICE – covering the topics that affect you
If you are a public practitioner, keep an eye out for CPA Australia's new magazine, INPRACTICE, with your September issue of INTHEBLACK. INPRACTICE includes technical updates and explores issues such as clean energy, clean accounting, staff recruitment and ethical challenges, and has been developed especially for our public practitioners.
The magazine will be available online in mid-October. To make the most of this and other public practice resources, visit the practice management knowledge portal on the CPA Australia website.
Auditflow: SMSF Audit Program
With legislation and regulation constantly shifting and becoming ever-more complex, CPA Australia welcomes any innovation that saves time, money and provides auditors with assurance that audits are fully-compliant. As such, CPA Australia supports the software launch from Auditflow SMSF – a web-based application which aims to greatly improve the quality of the auditing of nearly half a million self-managed superannuation funds (SMSF) in Australia.
APESB meeting outcomes
Date issued: 5 September 2011
The latest Accounting Professional and Ethical Standards Board (APESB) meeting took place in Sydney on Monday 15 and Tuesday 16 August.
Risk management for firms
The Joint Accounting Bodies, of which CPA Australia is a member, have issued a joint submission to the Accounting Professional and Ethical Standards Board regarding the exposure draft of proposed standard APES 325 Risk Management for Firms.
August 2011
Future of Financial Advice – draft legislation released
Date issued: 31 August 2011
On Monday 29 August, the Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon. Bill Shorten, released the first tranche of Future of Financial Advice (FoFA) draft legislation which represents a critical next step to ensuring the provision of high quality financial advisory services.
It also confirms that a decision on the accountants’ exemption will be announced in the second tranche of the package. CPA Australia members can send comments on the draft legislation to finplan@cpaaustralia.com.au by Friday 9 September.
Recruit the best people for your practice
Date issued: 31 August 2011
Recognition of your CPA status can help attract people who want to work for trusted leaders in the field.
CPA Australia has designed simple, yet attention grabbing, advertising examples that can be tailored to suit your practice branding and meet a variety of layouts for different publications. These examples apply to CPA Australia members practicing in Australia only.
FPS – under review and final exam for 2011
Date issued: 31 August 2011
CPA Australia’s Financial Planning Specialisation (CPA (FPS)) distinguishes CPA Australia members who specialise in financial planning. To ensure the specialisation remains a mark of expertise and professionalism, the decision has been made to review the specialisation requirements.
Your opinion counts: auditor reporting
Date issued: 31 August 2011
CPA Australia is seeking comments from members on two consultation papers regarding auditor reporting. Submissions will be made on each of these papers.
AUASB issues important note about GS 007
Date issued: 31 August 2011
The Auditing and Assurance Standards Board (AUASB) has issued a note that Guidance Statement 007 Audit Implications of the Use of Service Organisations for Investment Management Services contains some inconsistencies with the updated Clarity audit standards, which must be addressed by service and user auditors.
New streaming rules for capital gains: podcast
Date issued: 24 August 2011
John Paolacci CPA, Partner, PKF Australia Ltd, provides a practical summary of the steps trustees of discretionary trusts must take before Wednesday 31 August in the streaming of gains to particular beneficiaries in respect of the 2010–11 financial year.
Trust streaming manual (PDF)
Date issued: 24 August 2011
On Wednesday 29 June, the Tax Laws Amendment (2011 Measures No. 5) Act 2011 came into effect. The Act sets out a number of new requirements that must be satisfied for the trustee of a trust to effectively ‘stream’ capital gains and franked dividends to specific beneficiaries.
Trusts streaming
Date issued: 17 August 2011
In this Sound Business podcast, John Paolacci, Partner, PKF Australia Ltd, discusses recent changes to legislation that impact on the streaming of trust distributions.
Sample audit programs 2011
Date issued: 17 August 2011
The Sample audit programs 2011 – small to medium entities (SMEs) manual is available at no cost to CPA Australia members who hold CPA Australia Public Practice Certificates, and may be purchased by other members and non-members. Use this resource to create audit plans and understand the requirements involved in auditing SMEs. Features of the 2011 manual include downloadable templates for letters, reports and checklists, and sample audit programs.
Public practitioners – we need your views
The International Federation of Accountants (IFAC) Small and Medium Practices (SMP) Committee is seeking public practitioners’ views on the issues impacting them. The SMP Quick Poll will allow IFAC and CPA Australia to understand the challenges public practitioners are facing and tailor resources, such as the Guide to Practice Management for Small- and Medium-Sized Practices, to meet these challenges.
CPA Australia is encouraging members in public practice to participate in the poll, which covers business advisory and auditor reporting. The poll should take three minutes to complete.
APESB consults further on APES 230
Date issued: 17 August 2011
The Accounting Professional and Ethical Standards Board (APESB) meeting was held on Monday 15 and Tuesday 16 August. Stakeholders presented and discussed their submissions regarding Exposure Draft APES 230 Financial Advisory Services. CPA Australia, along with the other Joint Accounting Bodies, reiterated the points made in their submission.
CPA Australia will keep members updated as consultations progress.
Public practice submissions
Date issued: 10 August 2011
The Joint Accounting Bodies have made two submissions to the Accounting Professional and Ethical Standards Board regarding public practice. The submission on Consultation Paper CP 01/11 Proposed Definition of Public Interest Entity for the Code addresses the proposed definition of public interest entity and the submission on APES 330 Insolvency Services addresses proposed revisions regarding insolvency services.
Environmental accounting – what does it take?
Date issued: 10 August 2011
The majority of skills used in sustainability and environmental accounting are acquired by accountants working in public practice or management accounting. Experienced CPA Australia members working in these areas can use these transferrable skills to move into environmental accounting.
Associate members who want to work in sustainability and environmental accounting should familiarise themselves with relevant legislation and complete a course in the field. CPA Australia's green accounting video series explains how to break into environmental accounting.
Proposed replacement to the accountants' exemption
As part of the Future of Financial Advice reforms, the Australian Government has announced that the accountants' exemption will be replaced. Take CPA Australia's poll to share your reaction to the proposal.
Improve your website with CPA Australia branding
Date issued: 3 August 2011
To be successful, a website must be clear and easy to use. Ensure your public practice branding is incorporated and consistent by using the sample basic page designs provided for CPA Australia public practitioners in the website design section of CPA Australia’s public practice brand guidelines (page 33). This branding is for use by CPA Australia members who practice in Australia only.
Access the latest auditing news
Date issued: 3 August 2011
There is now a dedicated news page on the CPA Australia website for auditing. Articles include information about ASA 2011–1 Amendments to Australian Auditing Standards and new class orders that affect financial reporting and audit requirements for associations and co-operatives in New South Wales.