The accounting field is always changing because of new laws, developing technology, and shifts in industry practices. To keep up, accountants must engage in Continuing Professional Development (CPD). CPD helps them stay updated on the latest skills and knowledge, allowing them to tackle new challenges effectively.
The International Federation of Accountants (IFAC) played a significant role in promoting CPD globally. In 2006, IFAC introduced International Education Standard 7 (IES 7). This standard requires its member organisations to ensure that accountants participate in CPD activities to maintain their professional competence.
Read on to find out what registered accountants in Australia must complete in CPD requirements.
Why accountants need CPD
CPD refers to a variety of learning activities that professionals engage in throughout their careers. It is also a requirement for accountants to maintain their professional licenses and memberships with various accounting bodies, ensuring they stay qualified to practice. Engaging in CPD helps accountants perform their daily tasks better and boosts their employability in a more competitive job market.
Today, professional bodies like CPA Australia and CA ANZ mandate CPD to ensure that accountants meet specific educational standards. The push for mandatory CPD emerged in response to the need for ongoing education to uphold professional standards and public trust.
CPD requirements for accountants
In Australia, CPD requirements vary depending on the professional body to which an accountant belongs. Depending on the designation, there may also be differences, with more senior members needing more hours.
Accountants are required to complete at least 20 CPD hours each financial year. They are also required to have a minimum of 120 CPD hours over a triennium, or a rolling three-year period.
Verifiable and unverifiable CPD
The key distinction between verifiable and unverifiable CPD lies in the availability of objective evidence to support the completion of learning activities.
Verifiable CPD refers to learning activities that can be objectively measured and confirmed through documentation. These activities provide clear evidence of participation and the knowledge gained. Examples of verifiable CPD include:
- Attendance at courses, conferences, seminars, or workshops
- Research that leads to publications or presentations
- Structured training sessions organised by employers
- Completion of accredited programs or examinations
- Activities that involve teaching or presenting to others
To qualify as verifiable, these activities must have supporting documentation that can be reviewed by external parties.
Unverifiable CPD, on the other hand, includes learning activities that do not result in tangible evidence of completion. These activities may contribute to professional development but lack formal verification. Examples of unverifiable CPD include:
- On-the-job training without documented proof
- Self-study activities that do not involve an examination or certification
- Casual reading of professional journals or magazines
- Learning from informal discussions or experiences without formal assessment
CPA Australia CPD requirements
All CPA Australia members must complete a minimum of 20 hours per year and 120 hours over a triennium. The start of the triennium depends on when the registered accountant became a member. If they join CPA Australia before June 30, the triennium starts on January 1 of that year and ends on the third anniversary. If they join after June 30, their triennium starts on January 1 of the following year.
Members must also complete at least 2 verifiable hours on ethics-related topics each year, and 10 hours over the triennium. This requirement started in October 2023 to promote ethical conduct among financial professionals. Only Life Members, Honorary Members, and Retired Members are exempt from ethics CPD requirements.
CA ANZ CPD requirements
Members of Chartered Accountants Australia and New Zealand (CA ANZ) are required to complete CPD requirements based on their designation. All members are required to complete a minimum of 6 hours of verifiable ethics-related CPD during each triennium starting on or after July 1, 2024.
Members must keep accurate records of both verifiable and non-verifiable CPD activities and maintain evidence for verification purposes.
Certified Accountants (CA), Affiliates, and members with Non-Member Principal (NMP) status
This designation signifies a fully qualified accountant who can provide a full range of accounting services. These members must complete:
- At least 20 CPD hours each year
- 120 CPD hours over a triennium
Associate Chartered Accountants (ACA)
This mid-level qualification recognises individuals who want to be acknowledged for their skills in business and finance without pursuing full CA status. ACA members must complete:
- At least 15 CPD hours each year
- 90 CPD hours over three years, with at least 67 hours being verifiable CPD activities
Accounting Technicians (AT)
This designation is for individuals managing financial accounts, such as Accounts Managers or Assistant Finance Managers. AT members must complete:
- At least 10 CPD hours each year
- 60 CPD hours over three years, with at least 45 hours being verifiable CPD activities
IPA CPD requirements
The Institute of Public Accountants (IPA) requires members to complete CPD to promote lifelong learning. These requirements were revised in response to developments in the accounting profession and are outlined in Pronouncement 7, which outlines 3 competency areas:
- Technical and product knowledge: Focuses on core accounting knowledge
- Management and professional skills: Develops skills related to productivity, behaviour, and operations
- Professional and ethical standards: Emphasises understanding and applying ethical standards in the public interest
Based on this update, IPA members must complete the following CPD requirements:
- At least 120 CPD hours over a three-year period
- 20 hours (a minimum of 15 verifiable hours and 5 verifiable hours) for each competency area
Members are required to keep detailed records of their CPD activities for a minimum of five years after the end of each triennium.
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Ways to complete CPD for accountancy
There is a wide range of CPD opportunities available for accountants, but the right one should help advance their skills and knowledge. Accountants can consider activities that are directly relevant to their current job, their future career goals, and their areas for improvement.
Below is a list of activities that count as CPD:
- Formal education and training, such as virtual or in-person workshops, seminars, conferences, and courses
- Self-directed learning like engaging in academic studies or investigations and reading books, articles, and journals related to accounting practices
- Mentorship, wherein the professional receives guidance from more senior peers or provides coaching to a less experienced colleague
- Networking by participating in groups or committees that focus on accounting industry standards and practices
- Speaking engagements at conferences or seminars to educate others about accounting topics
- On-the-job training provided by employers that enhances practical accounting skills through daily tasks
Tracking and reporting CPD activities
Tracking continuing professional development activities is essential to demonstrating professional commitment to ongoing learning and regulatory requirements. Generally, professional bodies require maintaining a CPD diary, either digitally or on paper.
The key components of a CPD diary entry or record should include:
- The date when the CPD activity took place
- How long the activity lasted
- A brief overview of what was learned or achieved
- Category or type of activity
- Whether the activity is verifiable or not
- Other relevant documentation
Documents such as certificates, attendance records, and notes or reflections from the activity can be used as supporting evidence in the event of an audit.
To submit CPD requirements, members must maintain a CPD diary that logs each activity and submit it through the online portal of the regulatory body. This can be done as needed or at the end of every financial year.
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