ASIC 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 ASIC by the Australian Taxation Office (ATO) following a review of audit firms that undertook both accounting and auditing work for SMSF clients.
ASIC 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’s independence requirements.
ASIC Deputy Chair Sarah Court said, ‘Independence 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. ASIC will take action where appropriate to reinforce the independence requirements.’
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 ASIC’s decision to impose conditions.
