The Financial Markets Authority (FMA) of New Zealand recently honoured Certified Public Accounts (CPA) Australia with its accreditation.
CPA Australia Chief Executive Alex Malley revealed the accreditation at a cocktail party held at the conclusion of the CPA Congress 2012 held at Sky City Convention Centre on October 18.
He described the move as an important development for the accounting body and its members in New Zealand.
“The licensing regime will improve the standard of auditing, boost confidence in investment markets and ultimately allow businesses to focus on what really matters, namely, achieving sustainable growth.
“We continue to be a strong supporter of harmonising Trans-Tasman accounting and auditing standards in order to make doing business between New Zealand and Australia easier,” he said.
Trans-Tasman amity
Commerce Minister Craig Foss said the move would strengthen New Zealand’s financial markets.
“Audit quality is a vital part of ensuring that investors can have confidence in the financial statements produced by New Zealand companies. The New Zealand Institute of Chartered Accountants is the only other accredited body that can carry out auditor licensing in New Zealand,” he said.
According to Mr Foss, the accreditation of CPA Australia marked another step towards reducing regulatory barriers within the Single Economic Market between New Zealand and Australia.
Regulated System
Established on May 1, 2011, following the enactment of the ‘Financial Advisers Act 2008,’ the FMA brought to practice a new system of Authorisation and Certification of Financial Advisers to cleanse the market of unhealthy practices and reinstate public confidence in professionals.
The ‘Financial Advisers Act’ came into force on July 1, 2011 to foster a more regulated system of service delivery by finance advisers, who are now obliged to ‘graduate’ to become ‘Authorised Financial Advisers,’ through a rigorous procedure of Certification.
The FMA regulates financial advisers, aiming to make the services provided by finance companies, mortgage brokers and other service providers in the finance sector more transparent and accountable to stakeholders and the public.
Indian Newslink has carried a number of reports, commentaries and opinions of experts since July last year.
Lifting Standards
Accountability, transparency and audit procedures have come into sharp focus, following the collapse of a number of finance companies in New Zealand over the past five years. The National Government, since its formation in November 2008, was keen to promote a stringent auditing regime that would ring the alarm bells early enough to prevent failure of financial companies.
Experts believe that the entry of CPA Australia as an accredited body would strengthen the regulatory environment, lifting industry standards.
“The role of auditors and other stakeholders has been in the spotlight following failures in the financial markets, in New Zealand and internationally, which have affected investor confidence,” they said.
CPA Australia is authorised to issue auditor licences to those of its members who meet the prescribed requirements, including holding a Public Practice Certificate.
CPA Australia is one of the world’s largest accounting bodies, representing more than 139,000 finance, accounting and business professionals in 114 countries.
Established 125 years ago, CPA offers its members education, training and technical support, providing rewarding career pathways for top accounting graduates.
CPAs are recognised as strategic business leaders and New Zealand members include senior finance professionals from some of the country’s largest public and private sector organisations.
Read our Editorial, ‘Sound audit lifts accounting standards’ under ‘Viewlink.’
