20 February 2025
Chartered Accountants Australia and New Zealand (CA ANZ) has warned the Federal Government that not including practicing accountants on its new financial standards body is akin to having a medical standards board without a practicing doctor.
The Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB), and the Financial Reporting Council (FRC), which currently oversee and set reporting, audit and assurance, and sustainability standards, will be merged into one entity by July 2026.
CA ANZ CEO Ainslie van Onselen said the new body must have a balance of current, practicing and independent members.
“The idea that practicing members wouldn’t be involved in the setting of standards for the profession carries huge risks for Australia’s markets, economy and international reputation,” Ms van Onselen said.
“A standards board or committee that is completely ‘independent from industry’ would be unable to set standards in the public interest, is likely to create far-reaching unintended consequences and could be more exposed to influence by vested interests.
“You wouldn’t put a retired pilot who used to fly a Boeing 747 in the 2000s in charge of the standards for an Airbus A380 and, yet, the equivalent of this is what’s being proposed in the consultation paper for auditors and accountants.”
Ms van Onselen said CA ANZ supports the overall goal of greater flexibility for standards setting to deal with evolving market needs, such as climate and sustainability reporting, but has serious concerns about the lack of legislative framework.
“Without establishing basic structures, roles and governance in legislation, how can the Government expect the profession, investors, companies and the public to place their trust in this new body?” Ms van Onselen said.
“The current standards bodies are effective and trusted. So why change to a model which is largely inconsistent with comparable jurisdictions and international standards setting arrangements?
“We’ve heard serious concerns from investors and companies about how this change could impact confidence in the Australian market, and how we’re viewed globally.”
A poll of Chartered Accountants revealed 76 per cent were not aware of the consultation process for the new body, and 69 per cent did not feel there was sufficient opportunity for input.
“Treasury’s 30-day timeframe for this consultation is not enough for a change of this magnitude. The standards, structures and processes involved in this merger are critical for market confidence and Australia’s international reputation as a place to invest,” Ms van Onselen said.
“Many of the stakeholders that rely on the existing bodies and process have been surprised by this significant winding back of checks and balances almost going under the radar.”
ENDS
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents nearly 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com
For more information contact:
|
AUSTRALIA Gillian Bowen, Public Affairs Manager Australia M +61 411 485 421 gillian.bowen@charteredaccountantsanz.com
|
|