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.

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