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Cpa Australia Ethical Issues

928 Words4 Pages

Executive Summary
This report aims at outlining the ethical problems that arouse in one of the biggest accounting professional boards CPA Australia following the resignation of some top senior management including the former CEO of CPA Australia, in June 2017. These problems arose after some angry members called on the board to reveal details on the CEO’s pay and how the body spends membership funds as annual reports failed to provide detailed information. In July 2017, an Independent Review panel was assigned to assess the problems, examine and report whether the board’s current policies align with the best practices. Basically the major scope of review revolved around Governance and from there arose issues concerning Remuneration, Marketing …show more content…

CPA Australia and its members is obliged to comply with Professional and Ethical Standards prescribed by the Accounting Professional and Ethical Standards Board .This is fundamental to the reputation of CPA in ensuring consistency of practice and confidence for Australian businesses. On 16 June 2017 the Board of CPA Australia announced an independent panel to conduct a review to address main areas of concern which are governance, remuneration issues, marketing strategies including expenditure and other matters to be discussed in detail . This followed claims raised by members and other stakeholders especially on disclosure of top senior management’s salaries and this had an impact on the reputation and value of CPA …show more content…

This Illustrated on table 2 in the appendix as per Review Panel Report.
The recommendations revealed were that CPA Australia should continue remuneration but benchmarking of Director and CEO’s remuneration should be undertaken annually and it should include comparisons to the same member-based organisations as well. Any changes in the CEO’s salary and payment of short-term incentives should be aligned to the changes in membership and revenue, as well as focused on achieving member engagement (McPhee, et al., 2017). CPA Australia should present individual remuneration and explain remuneration procedures to improve transparency to stake holders as well as external

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