ATO reports on cheap audits swoop
Following its review into the low-cost SMSF audit space last year, the ATO says it has identified a number of examples where low-cost audits failed to meet basic standards.
ATO Commissioner Chris Jordan says following its investigation into lower-cost audits, which it defines as audits that charge less than $400, the tax office identified several problems with these audits.
“No great surprise, we have found cases of concern where they’ve failed to conduct any sort of adequate audit that complies with any of the standards,” Mr Jordan told the SMSF Association’s national conference in Melbourne.
“They had no written audit plan or representation letters from trustees, all the things you would expect to be done, and we have taken action there.”
Mr Jordan said around 9 per cent of SMSFs are audited by low-cost auditors. Out of the 6,000 active SMSF auditors, some 8 per cent are low-cost auditors.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.