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By-laws require the identities of eight sanctioned members to remain confidential, it says.
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CA ANZ defends handling of KPMG case
19 July 2022
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CA ANZ has strongly defended its handling of the recent KPMG discipline case and its decision in the wake of the scandal to launch a review of its professional standards.
The body announced the review last week after hundreds of KPMG accountants were found to have systemically cheated on exams and an inquiry ended with sanctions on eight unnamed CA ANZ members while four others escaped penalty.
Last week CA ANZ said simply that the “individuals, sanctions and other outcomes remain confidential in line with CA ANZ’s by-laws” but correspondents to Accountants Daily queried whether the rules were being applied consistently.
“Other CA ANZ members are named and shamed,” said one correspondent, who requested anonymity for fear of repercussions.
Simon Grant, CA ANZ’s group executive advocacy, professional standing, said an investigation into KPMG by the US Public Company Accounting Oversight Board (PCAOB) last year meant the Australian body had to wait before responding.
“In the KPMG matter, there were higher regulatory actions already underway (by the PCAOB) when CA ANZ was first informed of the issue,” he said.
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“It was important to let those regulatory actions take place before CA ANZ activated its own investigation. The investigation commenced immediately after CA ANZ was advised of the conclusion of the PCAOB investigation, the findings made and actions.”
CA ANZ said it had to avoid acting in a way that would be prejudicial to a case already before a court or regulator and the scale of investigation – 422 members – involved “some administration”.
On the confidentiality of the culprits, Mr Grant said the body’s rules were unambiguous.
“CA ANZ by-laws are very clear about the confidentiality of proceedings before the independent Professional Conduct Committee, the Disciplinary Tribunal and the Appeals Tribunal,” he said.
“Matters before the PCC are confidential and details regarding cases and outcomes of those cases cannot be disclosed or published except in very limited, exceptional circumstances.
“Members and media sometimes ask why some disciplinary decisions are published and others – as in this case – are not.
“In short, the by-laws are very clear that where matters are escalated to the Disciplinary Tribunal, hearings are open to the public, and details of the complaints, the members involved and sanctions must be published. The referral of complaints to the Disciplinary Tribunal is a matter for the PCC.
“This matter was heard by the PCC and so while [CA ANZ] can provide comment on the outcome of the process, we are not privy to and cannot disclose any other details. We understand member frustration when issues like this occur and there’s not a great deal of information in the public domain.”
He said the CA ANZ’s integrity and discipline functions met global standards and were in line with International Federation of Accountants requirements.
However, the professional conduct review “provides an opportunity to consider the balance between the right to due process and confidentiality alongside protecting the public perception and reputation of the CA designation”.
The review will take in an examination of CA ANZ by-laws as well as how ethical breaches are communicated to members.
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