CPA Australia comments on oversight body merger plan

Core Viewpoint - The establishment of a new body, External Reporting Australia, aims to consolidate existing accounting and auditing standards organizations in Australia, with a focus on enhancing sustainability reporting standards [1][2]. Group 1: Proposed Legislation - The draft legislation outlines the governance, structure, and operational framework for the new organization, including dedicated technical boards for accounting, assurance, auditing, and sustainability standards [2]. - It details the powers and functions of the new body, as well as transitional arrangements for the consolidation process [2]. Group 2: CPA Australia's Position - CPA Australia supports the creation of a new standard-setting board for sustainability reporting standards, which aligns with their long-standing advocacy [3]. - The organization welcomes the removal of the current function of providing strategic policy advice and audit quality reports, as this role is largely fulfilled by ASIC [3]. Group 3: Concerns Raised - There are concerns regarding the extent of authority granted to the proposed governing council, which may have excessive power over standard-setting boards and their leadership roles [4]. - Questions have been raised about the adequacy of checks and balances within the new structure, particularly regarding oversight amid potential bifurcation of technical activities [5]. Group 4: Future Engagement - CPA Australia expresses a desire to contribute to the development of subordinate law related to the new technical standard-setting boards for financial reporting, sustainability reporting, and audit & assurance [6].