The 15 SMSF auditors were referred to ASIC by the 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,” Court said.
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.
Independance = different firms? I am not sure those two things are equivalent. Independence for auditing sounds a little like claiming independence as a financial adviser… challenging. Am I the only person who thinks it weird that ASIC won’t let one class of professionals use that word while requiring another group of professionals to use it all the time?