ob体育 has imposed conditions on the registration of 13 self-managed superannuation fund (SMSF) auditors and accepted voluntary cancellations of two SMSF auditors after independence concerns were raised.
The 15 SMSF auditors were referred to ob体育 by the Australian Taxation Office (ATO) following a review of audit firms that undertook both accounting and auditing work for SMSF clients.
ob体育 had concerns that financial statements for SMSF clients were prepared by the same firm that also conducted the SMSF audit, in breach of the SMSF auditor鈥檚 independence requirements.
ob体育 Deputy Chair Sarah Court said, 鈥業ndependence is fundamental to auditors to protect the integrity of the SMSF industry. SMSF auditors should carefully consider their structure and any services provided to audit clients to identify and evaluate independence. ob体育 will take action where appropriate to reinforce the independence requirements.鈥�
The conditions emphasise the restriction on performing in-house audits, require an independence review of all SMSF audit clients and notification of the conditions to their professional association.
One SMSF auditor has applied to the Administrative Appeals Tribunal for review of ob体育鈥檚 decision to impose conditions.
Background
Approved SMSF auditors are registered with ob体育 under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and must comply with the auditor independence requirements set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards).鈥�
ob体育 and the ATO co-regulate SMSF auditors. The ATO monitors SMSF auditor conduct and refers matters to ob体育. ob体育 also monitors the SMSF auditor population for non-compliance and is empowered to disqualify, suspend, cancel or impose additional conditions on the registration of SMSF auditors.
ob体育 may impose conditions on an SMSF auditor鈥檚 registration under section 128D of the SIS Act. SMSF auditors have the right to appeal decisions ob体育 makes in relation to their registration.
Further information can be found on ob体育's website and in鈥�Regulatory Guide 243鈥�Registration of self-managed superannuation fund auditors. SMSF trustees and members can check whether their auditor is registered, suspended or has conditions imposed on their registration by searching ob体育's鈥�.
Editor's Note:
THE SMSF auditor that applied to the AAT to have ob体育's decision reviewed subsequently withdrew their application and the AAT dismissed the matter, effective from 29 May 2024.聽