ASSIGNMENT INSTRUCTIONS/ QUESTIONS The CPA Australia section on Moodle contains a number of media links http://www.abc.net.au/news/...

RUNNING TITLE: Ethical and Corporate Governance Issues of CPA Australia.
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Ethical and Corporate Governance Issues of CPA Australia.
Student Name
Instructor Name
University name
Assignment Code
Submission date
RUNNING TITLE: Ethical and Corporate Governance Issues of CPA Australia.
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Table of Contents
Page No
Executive Summary 3
Introduction
Background 4
Specification of the problem 4
identification of the issues. 4
Discussion
Analysis of issues of ethical/corporate governance issues
elating to CPA Australia including reference to any
elevant principles, legislation, standards and regulation
5

Federal Government/Parliament interest and ASIC
interest in CPA Australia‟s ethical/corporate governance
issues.
7
Stakeholders affected by the ethical/corporate
governance issues
8
Conclusion and
Recommendation
8
Appendices Appendix 1, page 5 of 10 10
Appendix 2, page 6 of 10 10
Appendix 3, page 7 of 10 11
Appendix 4, page 8 of 10 11
References 12 &
13
RUNNING TITLE: Ethical and Corporate Governance Issues of CPA Australia.
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Executive Summary
The report discusses the recent issues of ethics and corporate governance that has rocked
corporate Australia especially the accounting profession. The report delineates how an
organization which is responsible for upholding the highest standard in accounting practice
systematically
eached those standards for pecuniary gain and windfalls. An effort has been
made to represent how consistent public apathy and concern on ethical practices and governance
can
ing down an insensitive and opaque management and create awareness in the highest
echelons of a nation to
ing about systemic changes in corporate governance standards across
the entire business landscape.
RUNNING TITLE: Ethical and Corporate Governance Issues of CPA Australia.
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Ethical and Corporate Governance Issues of CPA Australia.
Introduction
Background
Recent ethical/corporate governance issues/problems of CPA Australia.
CPA Australia Ltd. is an unlisted company that is limited by guarantee but follows the
ASX code of corporate governance. There has been a wave of public discontent on how
corporates in Australia report and disclose executive pay. The most recent ethical and corporate
governance issue concerns the professional accounting body known as certified Practising
Accountants Australia(CPA).
Specification of the problem
CPA Australia has been gripped in a crisis, with CEO Alex Malley removed and more than half
its board members leaving amidst a media hype over its CEO‟s pay and governance concerns.
("The Lack of Transparency at CPA Australia: A Synopsis of Media Reports – On Target
Direct", 2017). There are serious allegations of
each of corporate governance and ethical
standards including non-transparent behaviour and public disclosure including grossly
unacceptable levels of remuneration packages for the CEO and his Board members.
Ethical and governance Issues
The first issue, is concerning the excessive marketing ca
ied out for building up the CEO‟s own
„
and‟ through his book entitled ‘The Naked CEO’ and further getting a TV program
sponsored, ‘In Conversation with Alex Malley’ (Krugger, 2017)
The second issue is concerning completely cutting out ordinary CPA members from
decision-making at CPA Australia. The third issue is excessively high remuneration packages for
its CEO and board members (Walker, 2017). A fourth issue is the connection of these
controversial players with Macquarie University. Many of these controversial players have been
faculties at Macquarie university and have taught together. One wonders whether there is some
link in these connections that point towards such non-transparent behaviour (“The Lack of
Transparency at CPA Australia”, 2017). A fifth issue is that position of CEO was never
advertised. What was the motive behind not advertising this important position. Important
RUNNING TITLE: Ethical and Corporate Governance Issues of CPA Australia.
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questions are being raised in this regard and it is being assumed that the same was done to favour
Malley to become the CEO.
The entire case looks like an unfair wedlock in which the ma
iage has taken place with
ulterior motives of unscrupulous gains. A sixth issue is concerning conduct of Annual General
Meeting outside Australia in a far-off country when majority of its members live in Australia and
all previous AGMs happened in Australia itself. More so, when the company is being questioned
on corporate governance, then what was the need to conduct its AGM outside Australia.
Discussion and Analysis
Analysis of issues of ethical/corporate governance issues relating to CPA Australia including
eference to any relevant principles, legislation, standards and regulation
It is so surprising that a professional body that teaches corporate governance is itself
lacking in this best practice. CPA members do not have the power to directly elect its board
whose directors get appointed through a sub-committee not elected by members and these
directors including Malley were remunerated generously. How can a company who claims to be
a champion of other company‟s transparency itself is so non-transparent? (“The Lack of
Transparency at CPA Australia”, 2017).
Under CPA‟s rules, the board‟s nomination and remuneration committee identifies
potential new directors. The rules require an independent, non-member director to sit on the
committee but both of them quitted. What were the circumstances under which Malley left
Macquarie in 2006 after receiving a confidential settlement and moved to CPA. It is a serious...