Did you know that Chartered Accountants are seen by the public as some of Australia's most trusted professionals?¹

The CA ANZ Certificate of Public Practice (CPP) framework plays a role in maintaining the community's high opinion of members who are principals in public practice.

Why we have the CPP

A core function of CA ANZ is to protect the public and ensure the ongoing good name of Chartered Accountants. We do this by:

• supporting the Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and Professional and Ethical Standards published by the Accounting Professional & Ethical Standards Board (APESB)
• stipulating training and experience requirements for public practitioners
• requiring minimum levels of professional indemnity insurance, and
• conducting a quality review process with respect to public practices.

For this system to work, CA ANZ requires all principals in public practice to hold a CPP. This may give the practice the right to use Chartered Accountants branding and brings the CPP holders under the protection of the Professional Standards Scheme (liability capping).

"Whether you have few or many clients, they are each entitled to the same standard of service, which means that all principals need to meet the same standards. This is managed through the CPP framework."

But why do I need it?

You may think you don't need a CPP when in fact you do. Here are six common misconceptions about CPPs:

1. I am not required to hold a CPP because I do not refer to the firm as "Chartered Accountants"
   Incorrect: If you are a principal in public practice, then you are required to hold a CPP. If all principals in your firm are CA ANZ CPP holders or Affiliate members of CA ANZ, then your firm may be entitled to use the Chartered Accountants branding.
2. I am not required to hold a CPP because I am a sole practitioner earning only $10,000 in fees per annum.
   Incorrect: Sole practitioners are principals in public practice. Earning lower fees does not mean you are not required to hold a CPP. Whether you have a few or many clients, they are each entitled to the same standard of service, which means all principals need to meet the same standards. This is managed through the CPP framework.
3. I am not required to hold a CPP because I only do bookkeeping and BAS.
   Incorrect: Bookkeeping and BAS fall within the definition of public accounting services. Principals providing services in these areas need to meet the same standards as managed through the CPP framework.
4. I am not required to hold a CPP because I hold no equity in the firm.
   Incorrect: You do not need to hold equity in the firm to be considered a principal. When you sign off on client engagements, for example, the client will see you as the person responsible, and so you are required to hold a CPP.
5. I have a CPP because I have done the Public Practice Program.
   Incorrect: You still need to apply for a CPP by submitting an application form, together with a certificate of currency to show that you have complying professional indemnity insurance and two years of Continuing Professional Development (CPD) records. Your application form will also make clear your relevant experience.
6. The firm already has a CPP because my partner applied.
   Incorrect: Only individual Chartered Accountants hold CPPs. If your partner is a CA and holds a CPP, then they have met their obligations, but that's all. Their CPP doesn't cover you – you are still required to hold a CPP in your own right.

1. https://www.accountantsdaily.com.au/regulation/16365-chartered-accountants-among-most-trusted-professionals-report