2 SMSF auditors disqualified
ASIC has moved to disqualify two SMSF auditors and add conditions to the licence of a third.
The actions arose following ASIC concerns about failures to meet requirements including independence standards and auditing standards, or failing to comply with further conditions on the approved SMSF auditor’s registration.
ASIC disqualified Darryl Iseppi of Queensland and Alan Bentwich of NSW from being SMSF auditors. Mr Iseppi was disqualified for significant auditor independence breaches and deficiencies in auditing the acquisition of shares, borrowings, valuation of assets, compliance with in-house asset requirements and regarding a non-commutable life pension.
Mr Bentwitch was disqualified for failing to comply with a condition to have peer reviews of three of his audits, which was imposed following a past referral from the ATO.
ASIC also imposed conditions on Richard Hennessy of NSW for deficiencies in maintaining auditor independence and in audit work, including auditing the ownership and valuation of fund assets and ensuring compliance with legislative borrowing requirements.
The conditions imposed included having audits reviewed by another SMSF auditor, not auditing funds where there are independence threats irrespective of the safeguards, completing specified courses in ethics and auditing, and providing his professional association with a copy of the conditions.
Information about these three auditors was referred to ASIC by the ATO under section 128P of the SIS Act.