Institute of Chartered Accountants:

The services that accountants provide directly affect individual members of the community as well as businesses and large corporations. Those relying on the work and advice of accountants place a high degree of trust in the professionalism and expertise of the accountant or the accounting firm. Accordingly, claims in professional negligence can be made against an accountant for services that are provided which are allegedly the cause of loss or damage to the person replying on the accountant’s expertise.

Of course, to identify whether an act of professional negligence has taken place, one must first investigate the facts and the law, and consider them in connection with the relevant standard of care for that particular industry. One place where that standard or care (or “duty of care”) can be found is the professional body which caters to that profession. The Institute of Chartered Accountants is the peak representative body of accountants in Australia. According to their website:

“Representing more than 73,000 current and future professionals and business leaders, the Institute has a pivotal role in upholding financial integrity in society. Members strive to uphold the profession’s commitment to ethics and quality in everything they do, alongside an unwavering dedication to act in the public interest.

“Chartered Accountants hold diverse positions across the business community, as well as in professional services, government, not-for-profit, education and academia. The leadership and business acumen of members underpin the Institute’s deep knowledge base in a broad range of policy areas impacting the Australian economy and domestic and international capital markets.” [1]

A representative body’s code of ethics or professional standards can provide the necessary principles according to which the legal duty of care can be measured. This can be a very complex and convoluted process. Where an accountant is facing a claim for negligence before the Institute of Chartered Accountants, or where an individual has suffered some loss as a result of allegedly negligent conduct of an accountant and who therefore wishes to lodge a complaint, it is advisable that appropriate legal advice is first obtained before any action is taken to commence or progress a matter. For more detailed information, please see our section titled “Accountants” above.

If you need some professional legal advice for a dispute involving the Institute of Chartered Accountants matter you may wish to contact our firm by telephone on (02) 9233 4048 or email us at info@navado.com.au and make an appointment to see one of our solicitors. 

[1] “Who We Are and What We Do” Institute of Chartered Accountants website (updated 11 July 2013) <www.charteredaccountants.com.au> (accessed 20 November 2013).

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