½ñÈÕÈÈÃÅʼþ

½ñÈÕÈÈÃÅʼþhas cancelled, or imposed conditions on, the registration of a number of auditors of self-managed superannuation funds (SMSFs) who had not maintained an appropriate level of audit experience.

Following a recent review, 36 SMSF auditor registrations have been cancelled and conditions have been imposed on a further six SMSF auditors.

All of the 42 SMSF auditors against whom ½ñÈÕÈÈÃÅʼþacted had not issued any SMSF audit reports over the past five years and thus were not considered to have the necessary practical experience required to perform SMSF audits.

In relation to the six auditors who had conditions imposed on them, ½ñÈÕÈÈÃÅʼþwas satisfied that it would be an appropriate alternative to cancellation considering the auditor’s individual circumstances and other relevant (non-SMSF audit) experience. The various conditions imposed across these auditors were:

• Independent reviews – Having a number of audits reviewed by an independent SMSF auditor for compliance with auditing standards;
• Education – Completing specific courses of study, including in audit and fund compliance requirements under the Superannuation Industry (Supervision) Act 1993 (SIS Act) compliance; and
• ½ñÈÕÈÈÃÅʼþexam – Sitting and passing ASIC’s SMSF auditor competency exam prior to issuing any SMSF audit reports.

Background

From 1 July 2013, the SIS Act required all auditors of SMSFs to be registered with ASIC. This was to ensure that all SMSF auditors meet at least base standards of competency and expertise.

½ñÈÕÈÈÃÅʼþand the Australian Taxation Office (ATO) work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and may refer matters to ½ñÈÕÈÈÃÅʼþfor possible action in ASIC’s capacity as the review body that determines whether to disqualify an auditor or cancel or suspend their registration. ½ñÈÕÈÈÃÅʼþmay also impose conditions on an SMSF auditor.

Section 123E of the SIS Act allows the cancellation of the registration of an SMSF auditor who no longer has the practical experience required to perform SMSF audits.

Approved SMSF auditors seeking to cancel their registration voluntarily can do so through the .

Further information can be found on ASIC's website and in ½ñÈÕÈÈÃÅʼþRegulatory Guide RG 243 Registration of self-managed superannuation fund auditors ().

SMSF trustees and members can check whether their auditor is registered, or whether a person has been disqualified, by searching ASIC's .