Investigation Launched into Conflict of Interest Concerns Involving Professional Accounting Bodies
Accounting bodies were recently scrutinized for their operational model of overseeing members’ behavior while advocating for their interests.
An Australian parliamentary inquiry has highlighted concerns regarding potential conflicts of interest within professional accounting bodies.
During the inquiry led by Greens Senator Barbara Pocock, doubts were raised about the credibility of these bodies, particularly their dual roles.
One concern raised was regarding organizations like Chartered Accountants Australia and New Zealand (CAANZ) receiving fees from members while also being tasked with regulating their members’ professional behavior.
Addressing this issue, Kristen Wydell, a general manager at CAANZ, acknowledged the conflict of interest while mentioning the provisions in place to manage it.
She explained that decision-makers in their conduct programs are not members or employees of CAANZ, ensuring independence in the process.
Furthermore, Wydell emphasized that the team managing the professional conduct of accountants keeps its functions separate from other activities of CAANZ, reducing the risk of conflict of interest.
IPA’s Perspective
In contrast, Vicki Stylianou from the Institute of Public Accountants (IPA) refuted claims of a conflict of interest within their organization, stating that they operate in the public interest as a genuine not-for-profit entity.
Stylianou highlighted that the IPA’s disciplinary tribunal is comprised of independent members, including barristers and lawyers unaffiliated with the organization or its members.
She firmly rejected any notion of conflicted interests within IPA based on their structure and processes.
ASIC’s Involvement
The issue of conflicts of interest has also attracted the attention of the Australian Securities and Investments Commission (ASIC), which monitors financial services.
When questioned about potential reforms to address conflicts of interest in accounting bodies, ASIC Commissioner Kate O’Rourke mentioned that their focus is primarily on issues within their purview and oversight of auditors.
