CPA Australia - Ethics and Governance - 3rd Edition - Notes

Sep 2, 2026

Uploaded by Skyler

These notes explain what it means to be a profession and why accountants hold unique responsibilities within the public interest. Part A covers self-interest versus public interest, self-regulation and co-regulation, professional regulatory processes, APESB references, quality assurance, discipline, and a code of ethics for members. Part B focuses on accounting’s interaction with society, including credibility, social impact, capability considerations, and the education and service ideals that sustain trust.

LanguageEnglish

CategoryExam

FormatPDF

Pages10

Reading Time25 min

AccessFree to download

Part A: Accountants as members of a profession

Public interest or self-interest?

What is a profession?

What is a professional?

Attributes of a profession

The Profession’s regulatory process

Part B: Interaction with Society

Accounting roles, activities and relationships

Credibility of the profession

Capability considerations

| Part A: Accountants as members of a profession | 3 | | --- | --- | | Public interest or self-interest?
Responsible decision making
Enlightened self-interest | 3
3
6 | | What is a profession?
Self-regulation
From self-regulation to a co-regulatory process | 8
9
10 | | What is a professional?
The accounting profession – traditional vs market control view
Trust and professions | 10
11
11 | | Attributes of a profession | 12 | | The Profession’s regulatory process
APESB
Quality Assurance process
Professional discipline | 18
18
19
20 | | Part B: Interaction with Society | 24 | | --- | --- | | Accounting roles, activities and relationships | 24 | | Social impact of accounting
Example: depreciation and behaviour | 32
32 | | Credibility of the profession
Credibility under challenge
Key issues causing reduced credibility
Restoring credibility to accounting | 34
34
34
36 | | Capability considerations
Business leadership capabilities
Technical skills, knowledge and experience
Soft skills, knowledge and experience | 37
37
38
38 | | Systematic
body of theory
and knowledge | Skills and expertise supported by a well-founded body of knowledge Educational approach one of lifelong learning
Regulated education programs to ensure an equivalent level of knowledge and competence for all members of the profession
In accounting for example, this includes the theory and practice of financial accounting, management accounting, auditing, and accounting/business information systems. It also involves knowledge of elements of the law (such as commercial law, corporate law, taxation law), economics and quantitative methods. | | --- | --- | | Extensive education process for its members
p13 | Knowledge that is not generally obtained by members of the general public Ongoing professional development requirement
To become a member of a profession, individuals must go through an extensive period of education, including an examination process. There are probably also requirements for continuing professional education and development after entry to membership. | | Ideal of service to the community
p13 | In exchange for the monopoly power Power to be used in the public interest
Lack of adherence (erosion of public trust) may lead to reductions of autonomy, authority and reputation
The wellbeing of society: enable the efficient and orderly functioning of business, not for profit and govt enterprises. Support better decision making
Pursuit of excellence: performance of the professional (build skills etc)
Community service: provide time and skills pro bono
A profession presents itself as a body of people who have an ideal of providing a service to the community that focuses on the well-being of society, the pursuit of excellence, and community service, including philanthropy. Professionals take the same degree of care, skill and responsibility in unpaid as paid work. Public trust in a profession is based largely on this service ideal. | | High degree of
autonomy and
independence
p14 | Self regulation / co-regulation
The extent of autonomy will depend on the consistent demonstration of ethical and professional standards
Because of its competence in a specific area of expertise, a profession is generally still allowed a large amount of autonomy, with small amounts of external regulation, so that the profession is able to establish its own standards of practice. These features historically led to self-regulation in the profession, and a high degree of discipline. Although self-regulation is being replaced with co-regulation following recent scandals, the onus is still on the individual accountant to have a self-principled, ethical and responsible approach. | | Code of ethics
for members
p15 | Sourced from APESB 2013, various other APES statements, constitution of CPA Australia, relevant legislation.
Global markets

FAQs

How do these notes distinguish public interest from self-interest for accountants?

They frame responsible decision making as serving the public interest, while recognizing potential self-interest and the need for ethical judgment to avoid erosion of public trust.

What regulatory mechanisms are discussed for the accounting profession?

The notes describe self-regulation and co-regulation, and outline the profession’s regulatory process including APESB, quality assurance, and professional discipline.

Why does professional education and ongoing development matter?

They emphasize extensive education and examination before membership, plus continuing professional development after entry, to ensure an equivalent level of knowledge and competence for all members.

Sep 2, 2026

Uploaded by Skyler