The Accountants Professional and Ethical Standards Board (APESB) has expressed disappointment that the Institute of Public Accountants (IPA) has broken away from the APES 230 standard and implemented its own standard — Pronouncement 11, describing the IPA standard as "of lesser quality".
The APESB said it had encouraged the IPA not to issue its alternative standard and "advised that each of the three professional accounting bodies was expected to support all APESB standards to maintain a strong and effective co-regulatory framework".
In a statement reacting to the IPA move, the APESB reinforced the five years of public consultation with stakeholders which had occurred around the APES 230 standard and said it was disappointed the IPA had decided to pursue an alternative.
"The release of APES 230 in April 2013 followed more than five years of public consultation with stakeholders, which included extensive engagement with each of the three major professional accounting bodies to deliver the most appropriate standard for professional accountants who provide financial planning services," the APESB statement said.
"APESB is disappointed that the IPA has issued Pronouncement 11: Financial Planning Services as an alternative to APES 230 for its members.
"It is the expectation of the APESB that members of the three professional accounting bodies will adopt and implement all APESB standards and that those accounting bodies will monitor and enforce their respective members' compliance with these standards," APESB acting chairman Stuart Black said.
"APESB encouraged the IPA not to issue its alternative standard and has advised that each of the three professional accounting bodies is expected to support all APESB standards to maintain a strong and effective co-regulatory framework," he said.
"It weakens the reputation of the entire Australian accounting profession if one of the major professional accounting bodies allows its members to opt out of one of APESB's Standards in favour of another standard of lesser quality."
