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ATO provides update on timeline for auditor independence guidance

ato shelley banton smsf
Miranda Brownlee
13 January 2021 — 1 minute read

The ATO plans to publish detailed guidance on the independence standards impacting in-house audits and its compliance approach in March, in lieu of writing to audit firms.

In June 2020, the ATO published guidance on the restructured APES 110 Code Ethics for Professional Accountants and the APESB Independence Guide.

The ATO previously advised that it would be writing to audit firms during the 2020–21 financial year to assist SMSF auditors to comply with their requirements under the restructured code.


After further consideration and consultation with industry stakeholders, the ATO has now stated that in in lieu of writing to auditing firms, it will publish detailed guidance on its website.

“This web content will provide SMSF auditing firms and tax professionals guidance on the independence standards under the code and our position on key issues of concern to industry, including in relation to in-house audits,” the Tax Office said.

“Providing guidance in this format will enable us to provide targeted up-to-date information to auditors to help them meet their obligations and allow us to respond quickly to any changes, emerging issues and future guidance needs.”

The ATO stated that it is currently finalising the content of its guidance and that it expects to publish it by March 2021, and will advise auditors when this occurs.

ASF Audits head of education Shelley Banton flagged that the ATO would no longer plan to send letters to SMSF auditors in a recent Accurium webinar, with the guidance to be published on the ATO’s website instead.

“They will be is issuing some further general guidance in the new year and that will be in relation to their view of some of those restructuring arrangements which have arisen from the application of the revised independence standards,” Ms Banton explained.

“So, no SMSF auditor letters, and I guess part of the rationale for that is that having that information on their website will allow them to respond a lot more quickly to any situations and scenarios that may arise as a result of people trying to get around these independence requirements. It provides them with a more flexible tool in that respect.”

Miranda Brownlee

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 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.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

ATO provides update on timeline for auditor independence guidance
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