Trust can be eroded in an instant through the actions of a few individuals, and the global accounting profession’s reputation has been in sharp focus following the fallout from PwC’s ethical and governance breaches.
“We’re facing a global trust challenge when it comes to integrity,” says IPA Group Executive Advocacy and Professional Standards Vicki Stylianou. “While the incident was in Australia, we’re not unique; countries around the world are dealing with similar public perception challenges and increased regulatory scrutiny.”
Although IPA primarily represents small businesses and sole practitioners, its members have also felt the ripple effects from the wider profession, encountering ethical challenges across the board.
There’s also a raft of new compliance obligations , following the Federal Government’s recent amendments to the Tax Agent Services (Code of Professional Conduct) Determination 2024, aimed at rebuilding confidence in the Australian tax system.
In addition, the government’s Ethics and Professional Accountability report, compiled by the Parliamentary Joint Committee on Corporations and Financial Services, provided 40 recommendations that could drive significant changes across the sector.
The report highlights widespread industry discontent, noting both an “ethical decline” and growing risks to those relying on audit integrity.
In response to the ethical challenges and in pursuit of restoring trust in the profession, , the IPA has intensified efforts to uphold ethical standards and reinforce transparency, striving to restore public and professional confidence.
Here are some of its key changes:
A new committee and complaints management system
IPA has conducted a thorough review of its complaints handling and disciplinary processes, leading to significant constitutional changes.
Among these changes is the creation of a Professional Conduct Committee, designed to assist, advise and make decisions on specific disciplinary matters, including member reinstatements. This new committee complements the existing Disciplinary Tribunal and Appeals Tribunal.
“We want to help small practitioners stay on top of these compliance obligations so they don’t get caught out.”
Vicki Stylianou, Group Executive Advocacy & Professional Standards, Institute of Public Accountants
Furthermore, the maximum fine for significant member misconduct has increased from $10,000 to $100,000. This brings IPA in line with other accounting bodies and with community expectations.
To further enhance oversight, IPA has introduced a new Complaints Management System, improving the organisation’s ability to manage and report on member regulation both internally and to external regulators.
Improved tools for members
IPA knows that keeping up to date on constant regulatory changes isn’t easy for time-starved sole practitioners and small accounting practices.
“Last year’s introduction of the TASA determination, which broadened the scope and application of the TASA Code of Conduct, highlights how the misconduct of a few can impact all registered tax practitioners,” says Stylianou.
“We want to help small practitioners stay on top of these compliance obligations so they don’t get caught out.”
To this end, IPA has recently reviewed its practice management tools, resulting in enhanced templates for engagement letters and improved quality and risk management forms.
In collaboration with the other accounting bodies, it has also updated guidance on accountants’ letters to align with changes in the Banking Code.
Focus on education
IPA Group CEO Professor Andrew Conway has emphasised IPA’s commitment to updating its Education Transformation Program in response to rapidly evolving demands on accountants.
“[The program] includes implementing microcredentials — concise, focused certifications that validate specific skills and knowledge areas — helping accountants stay relevant and competitive,” he said in IPA’s 2024 Integrated Report.
He highlighted three critical gaps in accounting education identified by global IPA research: digital skills, including AI and cybersecurity; support methods for staff, clients and stakeholders facing mental health and societal challenges; and practical, dynamic skills to help accountants thrive in a changing world.
“Our competency framework will offer flexible and affordable learning opportunities, enabling members to continually enhance their skills and stay relevant in an ever-changing landscape,” said Conway.
“This is an exciting opportunity for our members to take control of their career paths and stay ahead in the profession. Our commitment to educational transformation and robust governance is paving the way for a stronger, more resilient and ethical future for the accounting profession and its members.”
IPA members upholding the profession
Stylianou says while IPA plays a vital role in supporting members and contributing to a regulatory system to protect accounting integrity, no actions are foolproof and the benefits aren’t immediate.
“Eradicating all bad actors isn’t feasible and restoring trust takes time as it requires the public to observe a consistently professional standard of behaviour.”
She adds that it’s important that the profession and the public retain respect for “well-regulated accountants”.
“We must support those who consistently act in the best interests of their employers, clients and the public,” she says.
“IPA members have opted to join a professional accounting body with established and recognised entry and certification requirements. This certification actively evaluates and measures the skills, competence and experience necessary for professional accountants to deliver quality services.”
The IPA’s Ethics and Governance short course on 30 June covers ethical requirements of good governance, as well as how organisations might align their various formal and informal control mechanisms to reliably produce trustworthy and ethical conduct. More information here.
