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.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all