CPA Australia

Last updated
CPA Australia
AbbreviationCPA
Formation12 April 1886;137 years ago (1886-04-12)
Legal statusRegistered Body (in Australia)
Headquarters28 Freshwater Place, Southbank, Melbourne, Australia
Region
Australia and Asia-Pacific
Membership
168,736 (2020)
Official language
English
President and Chair of the Board
Merran Kelsall AO [1]
Chief Executive Officer
Andrew Hunter [2] [3]
Revenue
Decrease2.svg AUD $156.14 million (2020)
ExpensesDecrease2.svg AUD $149.79 million (2020)
Website www.cpaaustralia.com.au
[4]

CPA Australia ("Certified Practising Accountant") is a professional accounting body in Australia, originally founded as the "Incorporated Institute of Accountants" in 1886. As of 31 December 2020, it has 168,736 members in 150 countries and regions around the world. [5] CPA Australia currently has 19 staffed offices across Australia, China, Hong Kong, Malaysia, Singapore, Indonesia, Vietnam, New Zealand and the UK. [6]

Contents

History

The current form of CPA Australia dates from 1952, when the Commonwealth Institute and Federal Institute merged to create the Australian Society of Accountants. In July 1990 the name changed to the Australian Society of Certified Practising Accountants, and in April 2000, the name became CPA Australia. [7] [8]

The main predecessor bodies of the Society, with year of formation, were:

2017 CEO controversy

The CEO of CPA Australia from 2009, Alex Malley, came under significant criticism in the media and from CPA members in 2017 for his A$1.8 million annual salary and for the significant amounts of CPA funds going towards promoting Malley and his personal interests, such as a paid television show and Malley's autobiography. [9] The scandal surrounding Malley, combined with broader member discontent over executive changes that made the board unaccountable and debts accrued from the establishment of a financial planning arm, led to the resignation of the CPA president Tyrone Carlin in May 2017, and then to two board members resigning a week later in June 2017. The resigning board members, Richard Alston and Kerry Ryan, cited the presence of "board allies of chief executive Alex Malley" refusing to "allow a wide-ranging review of Mr Malley and the organisation" as their main reason. [10] The board resignations had also followed former Future Fund Chairman and Commonwealth Bank CEO, David Murray, who resigned his 40-year CPA membership in response to what he saw as poor management within CPA. [10]

On 15 June, a further three directors resigned due to the expanding scandal surrounding Malley and the remaining board initiated an "independent review" of all claims made against CPA and its CEO, to be chaired by former chief of the Australian Defence Force, Sir Angus Houston. [9] However, even the decision to create the review came under criticism when it was revealed that Houston had appeared as guest on Malley's TV program and had written a glowing foreword in Malley's book. [11] Houston later resigned his post in favour of former Commonwealth Auditor-General, Ian McPhee. [9]

Facing a significant swelling of discontent amongst CPA members, in June 2017 it was announced that the CPA board had terminated the contract of Malley, resulting in CPA paying out the remainder of his contract to the sum of A$4.9 million. [12] [13] On the developing scandal, Sydney Morning Herald journalist Colin Kruger noted: "Accountancy is meant to be the profession of sober financial clarity. [...] Not the sort of profession for flashy types, accountants are meant to be the score keepers, not the goal scorers. It makes the lack of accountability, and financial clarity, from the top accounting body in Australia – CPA Australia – all the more incongruous." [14]

In August 2017, it was announced that the remaining board members would resign their positions at the end of the year, to make way for an entirely new board. [15] The subsequent review report released in September 2017 found that the "chief executive was overpaid, [CPA Australia] had lost touch with its members and provided questionable value for money for the services it rendered." [16] In addition to CPA's "over-emphasis on marketing and brand building activities that centred on the former CEO", the review in particular noted the excessive CEO's salary, with its many increases over several years not being justified by organisational growth. [17] On 1 October 2017 an entirely new board took office, headed by Peter Wilson as president and chairman, and on 3 April 2018 a new CEO, Andrew Hunter, was appointed to take over from the interim CEO since Malley's departure, Adam Awty. [18] [19] In January 2019, following the recommendations of the 2018 AGM, Malley and three previous directors (Penny Egan, former president Richard Petty, and Graeme Wade) were stripped of their Life Memberships by the Board for their involvement in the controversy. [20] [21] [22] [23]

Membership

Full members of CPA Australia use the designatory letters CPA, [24] while senior members with at least 15 years' experience in finance, accounting or business, as well as leadership and/or management experience in those fields, may become Fellows and use the letters FCPA. [25] [26] The board may also confer life membership or honorary membership for "eminent achievement and service" to CPA Australia and/or the profession. [27] In 2017, CPA Australia disclosed that the organisation had (as of 30 June 2017) 158,311 members, including 119,653 voting members. The membership at this time comprised 106,299 CPAs, 13,154 FCPAs, and 38,838 associate members. [28]

Arms

Coat of arms of CPA Australia
CPA Australia Arms.svg
Notes
Granted to the Australian Society of Accountants by the Kings of Arms.
Adopted
1 September 1958 [29]
Crest
On a Wreath of the colors, five books erect proper.
Helm
A closed steel helmet.
Escutcheon
Azure, a Fess enhanced and in base a Pale Argent, over all a representation of the Southern Cross counterchanged.
Motto
Integrity
Other elements
Mantling of azure doubled argent.
Symbolism
The T formed by the fess and pale represents a double-sided account, and thus double entry book-keeping.

See also

Related Research Articles

<span class="mw-page-title-main">Accounting</span> Measurement, processing and communication of financial information about economic entities

Accounting, also known as accountancy, is the processing of information about economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.

<span class="mw-page-title-main">Certified Public Accountant</span> Title of qualified accountants in many countries

Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. It is generally equivalent to the title of chartered accountant in other English-speaking countries. In the United States, the CPA is a license to provide accounting services to the public. It is awarded by each of the 50 states for practice in that state. Additionally, all states except Hawaii have passed mobility laws to allow CPAs from other states to practice in their state. State licensing requirements vary, but the minimum standard requirements include passing the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting-related experience.

<span class="mw-page-title-main">Chartered Institute of Management Accountants</span> Body concerned with global managerial accounting

The Chartered Institute of Management Accountants (CIMA) is the global professional management accounting body based in the UK. CIMA offers training and qualification in management accountancy and related subjects. It is focused on accountants working in industry and provides ongoing support and training for members.

<span class="mw-page-title-main">Chartered accountant</span> Professional designation for accountants

Chartered accountants were the first accountants to form a professional accounting body, initially established in Scotland in 1854. The Edinburgh Society of Accountants (1854), the Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) were each granted a royal charter almost from their inception. The title is an internationally recognised professional designation; the certified public accountant designation is generally equivalent to it. Women were able to become chartered accountants only following the Sex Disqualification (Removal) Act 1919 after which, in 1920, Mary Harris Smith was recognised by the Institute of Chartered Accountants in England and Wales and became the first woman chartered accountant in the world.

<span class="mw-page-title-main">Association of Chartered Certified Accountants</span> Global professional organization

Founded in 1904, the Association of Chartered Certified Accountants(ACCA) is the global professional accounting body offering the Chartered Certified Accountant qualification (ACCA). It has 240,952 members and 541,930 future members worldwide. ACCA's headquarters are in London with principal administrative office in Glasgow. ACCA works through a network of over 110 offices and centres in 51 countries - with 346 Approved Learning Partners (ALP) and more than 7,600 Approved Employers worldwide, who provide employee development.

<span class="mw-page-title-main">Institute of Chartered Accountants of India</span> National professional accounting body in India

The Institute of Chartered Accountants of India (ICAI) is India's largest professional accounting body under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament for promotion, development and regulation of the profession of Chartered Accountancy in India.

The School of Accounting and Finance (SAF) at University of Waterloo is a professional school within the Faculty of Arts. The School was established in 1980 under the name 'School of Accountancy'. Its name was changed in 2008 to better reflect its program offering. Today, more than 1,600 students are enrolled in the School's programs. In September 2009, a new 52,000 square feet (5,000 m2) building was officially opened to house the School.

Donald Robert ArgusACCPASF is an Australian businessman, chairman of Bank of America Australia advisory board and member of Monash University's Monash Business School advisory board. He is a former member of Bank of America's inaugural Global Advisory Council (2013–2019); former chairman of BHP (1999–2010) and Brambles (1999–2008), former director of the Australian Foundation Investment Company (1999–2013) and former CEO of National Australia Bank (1991–1999). He was educated at the Anglican Church Grammar School.

The Certified Public Accountants Association (CPAA) was formed in 1989 to represent the interests of certain accountants in the United Kingdom.

Tan Sri Dato' Sri (Dr.) Mohamad Norza Zakaria is a Malaysian chartered accountant and a fellow of CPA Australia. He is currently the President of Olympic Council of Malaysia (OCM) and also holds the post of President of Commonwealth Games Association of Malaysia.

John A. Bryant is an Australian businessman. He is the chair of Flutter Entertainment. Bryant was the chairman and chief executive officer (CEO) of Kellogg Company (Kellogg's) from 2011 to 2017.

In Conversation with Alex Malley is an Australian television interview show on the Nine Network.

<span class="mw-page-title-main">Cindy Hook</span> American businesswoman (born 1964)

Cindy Hook is an American-Australian business executive. She is the chief executive of the organising committee for the 2032 Summer Olympic and Paralympic Games. She was the chief executive officer of Deloitte Asia Pacific from September 1, 2018, to May 31, 2022. She was the chief executive officer for Deloitte Australia from 2015 to 2018. Hook was the first female CEO of an Australian big four professional services firm. In 2018, she was named in Australian Financial Review's annual Power issue as one of the top five most powerful people in consulting.

The Institute of Certified Public Accountants of Uganda is a professional body for certified public accountants (CPAs) in Uganda. As of July 2016, total membership was about 2,000 members.

Alex Malley, is an Australian accountant and business executive who is currently the CEO of the Australian Chiropractors Association since 2022, and the former chief executive of CPA Australia from 2009 to 2017. He was removed by the CPA board of directors in late June 2017 after months of controversy regarding his salary and the use of CPA funds for self-promotion of his book and TV program.

Akolisa Ufodike is a Nigerian-Canadian entrepreneur, academic, finance executive and politician. He is a director of Kainji Resources, an oil and gas company in Nigeria.

<span class="mw-page-title-main">CPA Canada</span>

Chartered Professional Accountants of Canada is the national organization representing the Canadian accounting profession through the unification of the three largest accounting organizations: the Canadian Institute of Chartered Accountants (CICA), the Society of Management Accountants of Canada and Certified General Accountants of Canada (CGA-Canada), as well as the 40 national and provincial accounting bodies. It is one of the largest organizations of its type in the world, with over 217,000 Chartered Professional Accountants in Canada and around the world.

Kellen Eileen Kariuki is an accountant, businesswoman and corporate executive in Kenya. Since January 2015, she is the executive director and CEO of the Unclaimed Financial Assets Authority (UFAA), an agency of the central government of Kenya. The government agency, created by Act of parliament in 2011, collects unclaimed funds in the financial system, including un-cashed checks, unclaimed insurance proceeds, cash in dormant bank accounts and money in similar situations in financial institutions. The UFAA then attempts to re-unite the funds with their rightful owners or heirs, upon proper identification. In the meantime, the UFAA invests the money on behalf of the owners, to keep up with inflation.

Marianne Harrison is a Canadian-born financial services executive. She earned her bachelor's degree from the University of Western Ontario and a diploma in accounting from Wilfrid Laurier University. She is a Chartered Professional Accountant and a Fellow of Chartered Professional Accountants (FCPA). In 2017, she was appointed as President and CEO of John Hancock Financial after having served as President of Manulife Canada since 2012.

<span class="mw-page-title-main">Alan Jackson (businessman)</span> Australian business executive and director (1936–2018)

Alan Robert JacksonAO AASA FCA FCPA FAIM CBIM was an Australian businessman who was the Director of BTR Nylex between 1977 and 1996 and CEO of BTR plc between 1991 and 1996 as well as Chairman of the Australian Trade Commission (Austrade) between 1995 and 2001. He was also a board member of the Reserve Bank of Australia (RBA) between 1991 and 2001.

References

  1. "CPA Australia appoints Directors and Office Bearers" (PDF). CPA Australia. CPA Australia. Retrieved 5 October 2020.
  2. Tadros, Edmund (23 March 2018). "CPA Australia appoints ex-Macquarie banker Andrew Hunter as chief executive". Australian Financial Review. Retrieved 7 May 2018.
  3. King, Philip (19 July 2023). "CPA Australia CEO quits to pursue career in Europe". Accountants Daily. Retrieved 3 September 2023.
  4. "CPA Australia Integrated Report 2020". Integrated Annual Report. CPA Australia. Retrieved 9 September 2021.
  5. "CPA Australia". CPA Australia - About us. Retrieved 2020-10-15.
  6. "CPA Australia". www.cpaaustralia.com.au. Retrieved 2016-04-18.
  7. CPA Australia Handbook, 1995, p11021
  8. "CPA Australia logo evolution" (PDF). CPA Australia. Archived from the original (PDF) on 20 April 2011. Retrieved 4 September 2023.
  9. 1 2 3 Aston, Joe (24 January 2018). "Alex Malley: What a difference a year makes". Australian Financial Review. Retrieved 21 March 2018.
  10. 1 2 Aston, Joe; Tadros, Edmund; Patrick, Aaron; Durkin, Patrick (7 June 2017). "Richard Alston quits CPA Australia board over governance". Australian Financial Review. Retrieved 21 March 2018.
  11. Letts, Stephen (16 June 2017). "CPA chief Alex Malley keeps his job but faces 'fiercely independent' review over ongoing controversy". ABC News. Retrieved 21 March 2018.
  12. Hobday, Liz (24 June 2017). "CPA terminates contract with chief executive Alex Malley". ABC News. Retrieved 21 March 2018.
  13. Aston, Joe; Tadros, Edmund (23 June 2017). "CPA Australia CEO Alex Malley sacked". Australian Financial Review. Retrieved 21 March 2018.
  14. Kruger, Colin (26 June 2017). "Alex Malley, CPA Australia's 'Naked CEO' who walked off with $4.9m". The Sydney Morning Herald. Retrieved 21 March 2018.
  15. Tadros, Edmund (7 August 2017). "Inside story of Alex Malley's final days at CPA Australia". Australian Financial Review. Retrieved 21 March 2018.
  16. Letts, Stephen (15 September 2017). "CPA review finds CEO overpaid and organisation 'out of touch' with members". ABC News. Retrieved 21 March 2018.
  17. Pash, Chris (14 September 2017). "CHARTS: How the salary of CPA Australia's chief executive grew faster than membership". Business Insider Australia. Retrieved 7 May 2018.
  18. "CPA Australia Board Announced". 28 September 2017. Archived from the original (Media Release) on 29 March 2019.
  19. "CPA Australia Announces New CEO" (PDF). CPA Australia. 23 March 2018. Archived from the original (Media Release) on 29 March 2019. Retrieved 4 September 2023.
  20. Taurian, Katarina (31 Jan 2019). "Alex Malley, former directors stripped of CPA life memberships". accountantsdaily. Retrieved 17 Sep 2020.
  21. "Statement from the Board". CPA Australia. 31 January 2019. Archived from the original (Media Release) on 27 March 2019. Retrieved 4 September 2023.
  22. Durkin, Patrick; Tadros, Edmund (22 May 2018). "Fiery CPA AGM calls for stripping Alex Malley's life membership". The Australian Financial Review. Retrieved 4 September 2023.
  23. Aston, Joe (30 January 2019). "Malley, Petty, Wade, Egan stripped of CPA life membership". The Australian Financial Review. Retrieved 4 September 2023.
  24. "What does CPA stand for" . Retrieved 2021-04-29.
  25. "About CPA Australia". Archived from the original on 2011-05-13. Retrieved 2011-05-19.
  26. "Advance to FCPA status". CPA Australia. Retrieved 3 September 2023.
  27. "Honours and Awards". CPA Australia. Archived from the original on 11 March 2021. Retrieved 4 September 2023.
  28. Tadros, Edmund (12 July 2017). "CPA Australia reveals full member figures". The Australian Financial Review. Retrieved 3 September 2023.
  29. Low, Charles (1971). A Roll of Australian Arms. Adelaide: Rigby Limited. p. 9. ISBN   0-85179-149-2.