Q: What is the overall purpose of the Institute of Chartered Accountants in Australia's disciplinary process? 
A: To protect the integrity of the "Chartered Accountant" designation and the public interest by ensuring that members comply with the Institute’s high technical, professional and ethical standards. 
 
Q: Does the Institute of Chartered Accountants in Australia have the power to stop members from practising as an accountant? 
A: No. Under the Australian professional and regulatory framework anyone can call themselves an accountant and provide accountancy services – they do not need to be a member of a professional body. Accordingly, the fact that a member has been excluded from membership or membership has been cancelled does not mean that they may not continue to provide accountancy services, but they cannot use the Chartered Accountant designation.  
A "licence" is required to carry out specific services such as company audits or liquidations, or to act as a tax agent and is granted by the appropriate regulatory authority.  
 
Q: When does the Institute take disciplinary action? 
A: The Institute investigates complaints about members and, where it believes there has been a breach of the Institute's standards and regulations, disciplinary action may be taken. A member who has been subject to criminal action, some forms of civil action (particularly involving dishonesty or negligence), been dealt with by a regulatory body or who has become insolvent is also liable to disciplinary action. 
 
Q: Does the Institute of Chartered Accountants in Australia regulate company auditors, liquidators and directors? 
A: No. Under the Corporations Law the power to regulate company auditors, liquidators and directors is vested in the ASIC and only the Company Auditors and Liquidators Disciplinary Board can cancel an auditor's or liquidator’s registration. The ASIC has various powers to deal with directors who have not fulfilled their legal responsibilities. When an Institute of Chartered Accountants in Australia member has been disciplined by the CALDB or, in the case of a director, has had action taken against them by the ASIC, they are then referred to the Institute of Chartered Accountants in Australia Professional Conduct Tribunal which decides if any further action is appropriate in relation to their membership of the Institute. 
 
Q: What is the ultimate sanction that can be imposed by the Institute of Chartered Accountants in Australia? 
A: Exclusion from Institute of Chartered Accountants in Australia membership and withdrawal of the right to use the Chartered Accountant designation. 
 
Q: What other disciplinary measures can be imposed by the Institute of Chartered Accountants in Australia? 
A: Other sanctions include cancellation of membership for a specific period, withdrawal of the right to engage in public practice, a fine or a reprimand. The Professional Conduct Tribunal can also require a member to undertake additional continuing professional education or order a quality review of a member's practice. 
 
Q: Is the Institute of Chartered Accountants in Australia able to compensate anyone who suffers loss as result of a member's actions or negligence? 
A: No. The Institute of Chartered Accountants in Australia does not have any form of fidelity fund and does not have the power to order a member to pay compensation or reimburse clients or others affected by a member’s conduct or actions. These matters must be pursued through normal legal channels. Members in practice are required to hold at least a prescribed level of professional indemnity insurance. 
 
Q: Can the Institute of Chartered Accountants in Australia call a member to appear before the Professional Conduct Tribunal at the same time as other proceedings (such as an ASIC investigation or legal action) are underway? 
A: Because the Institute has limited powers to compel the production of documents and interview witnesses it normally waits until any investigations by ASIC or other regulators are completed before initiating its own investigation. In the case of civil legal action against a member, the Institute of Chartered Accountants in Australia has been advised that it would be very likely found to be in contempt of court if it were to commence any disciplinary proceedings while the court action is still proceeding.  
 
Q: Who is on the Institute of Chartered Accountants in Australia's Professional Conduct Tribunal? 
A: The Professional Conduct Tribunal is comprised of a number of Institute members (who must have been members for at least 15 years) together with a number of "non-accountants" (lay members) to represent the public interest and ensure transparency in the disciplinary process. A panel of the Tribunal, including at least one non-accountant, is called to hear each case, with hearings normally being held in the capital city of the member's state of residence. 
 
Q: Is there a right of appeal against the Professional Conduct Tribunal's decisions? 
A: Yes. A member may lodge an appeal which is heard by a separately constituted Appeal Tribunal, again comprising experienced members and non-accountants. The Appeal Tribunal can confirm, vary or set aside any of the decisions of the Professional Conduct Tribunal. The Institute of Chartered Accountants in Australia President can also lodge an appeal against the Professional Conduct Tribunal's decisions. 
 
Q: Why are the sanctions imposed by the Professional Conduct Tribunal sometimes quite different in what seem to be very similar cases? 
A: In deciding what sanctions are appropriate in a particular case the Tribunal will take into account all the individual circumstances, including any penalties that may already have been imposed (e.g. by the CALDB or ASIC) and whether the member has previously appeared before the Tribunal. 
 
Q: Are Professional Conduct Tribunal and Appeal Tribunal proceedings open to the public? 
A: No. Tribunal proceedings are held in private but a report of each case is published in Charter and on the Institute of Chartered Accountants in Australia's website.  
 
Further information on the Institute of Chartered Accountants in Australia process when a complaint is received about a member's conduct or performance.