IPA Rules and Standards

The Institute of Public Accountants (IPA) is a professional accounting body which sets the professional and ethical requirements for its members, which they are required to uphold.

The power of the IPA to set standards and to enforce their observance is set out in the IPA's Constitution and By-laws. Professional and ethical standards are promulgated either directly by the Board of Directors or by the Accounting Professional and Ethical Standards Board (APESB).

The IPA is a company Limited by Guarantee. The Constitution and By-laws set out member rights and obligations; the conduct of the IPA and members meetings; and other important corporate governance issues. The governing documents of the IPA are as follows:

• IPA Constitution
• IPA By-laws

The IPA requires all members to conduct themselves and their professional activities at the highest level of standards. Members in their professional capacity represent not only themselves but the IPA and by reference all other IPA members.

To help members to better understand the professional and ethical standards required by the IPA, a number of pronouncements have been promulgated by the Board of Directors.

Where an APESB standard, guidance note or authoritative interpretation has been promulgated it may replace an existing IPA Pronouncement, to the extent that the APESB standard covers the same issues. Where an APESB standard, guidance note or authoritative interpretation does not exist, the Pronouncement issued by the IPA Board of Directors will remain in force. The Board of Directors retains the power to issue new and update existing Pronouncements, where no equivalent APESB standard exists or to provide additional requirements that the Board of Directors determines are needed.

It should also be noted members have an obligation to abide by all standards, guidance notes and authoritative interpretations issued by the Auditing & Assurance Standards Board (AUASB) and all standards, guidance notes and authoritative interpretations issued by the Australian Accounting Standards Board (AASB).

Australia's three professional accounting bodies (IPA, CPA Australia and the ICAA) have joined forces to support an independently constituted board to oversee the development and promulgation of professional and ethical standards in the accounting profession. The primary objects of APESB are:

1.  To develop and issue in the public interest professional and ethical standards that will apply to the membership of the professional bodies. Professional and ethical standards include but are not limited to:

• Code of ethics for professional accountants
• Miscellaneous professional statements and joint guidance notes; and
• Such other ethical issues or similar matters of interest in respect of the accounting profession.

2.  To provide a formal and rigorous forum for the consideration, promulgation and approval of professional and ethical standards, performed in an open, timely, independent and proactive manner.

Information on APESB can be found at the APESB website www.apesb.org.au.

The APESB Standards members must abide by are:

• APES 110 Code of Ethics of Professional Accountants (This replaces IPA Pronouncement 1 Code of Ethics)
• APES 205 Conformity with Accounting Standards (This replaces IPA Pronouncement 3 Conformity with Accounting and Urgent Issues Group Consensus Views)
• APES 210: Conformity with Auditing and Assurance Standards (This replaces IPA Pronouncement 8 Conforming with Auditing Standards)
• APES 215: Forensic Accounting Services (This standard does not replace any Pronouncement)
• APES 220 Taxation Services (This replaces IPA Pronouncement 9 Taxation Standards)
• APES 225 Valuation Services (This standard does not replace any Pronouncement)
• APES 305 Terms of Engagement (This does not replace any Pronouncement)
• APES 310 Dealing with Client Monies (This replaces IPA Pronouncement 6 for Audits commencing from the period 1 July 2011)
• APES 315: Compilation of Financial Information (This replaces IPA Pronouncement 5 - Compilation of Financial Reports)
• APES 320: Quality Control of Firms (This does not replace any Pronouncement)
• APES 330 Insolvency Services (This does not replace any Pronouncement)
• APES 345 Reporting on Prospective Financial Information (This does not replace any Pronouncement)
• APES 350 Participation by members in Public Practice in Due Diligence Committees in connection with a Public Document (This does not replace any Pronouncement)

APESB is currently reviewing all the professional standards previously issued by the professional accounting bodies and creating APES standards in their place. The AUASB and the AASB also issue exposure drafts of new or revised accounting standards from time to time. Before promulgation of a new standard, an exposure draft of the new/revised standard will be available for public comment. The IPA seeks member feedback on these draft standards as they are issued. Your views will then be incorporated into the final IPA submission to the APESB, AUASB or AASB.

The current IPA pronouncements are as follows:

• Pronouncement 4: Quality Assurance Reviews
• Pronouncement 6: Client money and the Maintenance and Audit of Trust Accounts of Members (still in effect for trust accounts for the year ending 30 June 2011. For the year 1 July 2011 to 30 June 2012 members must use the APES standard.)
• Pronouncement 7: Continuous Professional Education

All IPA members holding a Professional Practice Certificate are subject to periodic Quality Assurance Reviews by an independent Reviewer.

Such reviews, and the Professional Practice Manual, which assists members meet their quality assurance requirements, help to ensure that members in Professional Practice continually maintain the highest professional standards.

In the near future, members will be able to participate in PPQA Online, our online quality review service.  More info on this process can be found at PPQA Online.

The IPA has a strong reputation both within the accounting profession and business community for the quality of its Continuing Professional Education (CPE) seminars and workshops.

All IPA members must attend at least 40 hours of CPE each year as a condition of their continued membership of the IPA.

Pronouncement 7 sets out in further details the Institute's CPE requirements.