ATO to contact 100 SMSF auditors with inactive audit periods
The ATO will be sending letters to around 100 SMSF auditors who haven’t completed an SMSF audit for five years and referring them to ASIC where they can’t provide evidence of recent practical experience.
In an online update, the ATO stated that it will be writing to around 100 SMSF auditors who haven’t been reported as the auditor on an SMSF annual return in the past five years and asking them to show why they believe they still have the necessary practical experience to audit SMSFs.
“We’ll also request evidence that they’ve met their CPD and professional insurance indemnity requirements,” the ATO stated.
“SMSF auditors who can’t demonstrate they’ve maintained their practical experience or who fail to provide evidence of their CPD and personal insurance indemnity requirements may be referred to ASIC.”
The ATO reminded SMSF auditors of their requirements to maintain practical experience along with continuous professional development.
“Under the Superannuation Industry (Supervision) Act 1993, ASIC can cancel the registration of an SMSF auditor who hasn’t performed any significant audit work for a continuous period of five years,” it said.
“This is because they may no longer have the practical experience necessary to audit SMSFs.”
The ATO said that if SMSF auditors wish to cancel their registration, they can do so at any time.
Under ASIC’s new funding model, ASIC now charges SMSF auditors a $899 fee when they apply to have their auditor registration cancelled.
Before the introduction of the funding model, there was no fee where an SMSF auditor made a request to cancel their registration.
Both the ATO and ASIC have been monitoring the SMSF auditor community very closely recently, particularly in relation to auditor independence issues.
As part of its high-risk auditor program, the ATO announced in February that it had already referred 37 SMSF auditors to ASIC this year.
The ATO also launched a top 100 assurance campaign last year which monitors the 100 SMSF auditors with the greatest number of SMSF audits.
Last financial year, ASIC removed a total of 155 SMSF auditors from the register, including 117 registrations, for failure to lodge annual statements and 12 disqualifications for failing to comply with auditing standards.
The remaining 26 auditors voluntarily requested cancellation after concerns were raised with them by ASIC.
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
