SMSF auditor case outcomes 2023–24

SMSF auditor outcomes for the 2024 financial year.

Last financial year (2023–24) we referred 45 auditors of self-managed super funds (SMSFs) to the Australian Securities & Investments Commission (ASIC).

This compares to 41 referrals for the previous financial year.

A further 51 auditors chose to voluntarily de-register following the commencement of ATO compliance activity.

SMSF auditors play a critical role in maintaining the integrity of the SMSF system and the rate of referrals reflects how we continue utilizing data to ramp up our compliance actions to address auditor behaviors which put the SMSF system at risk.

In-house audit reviews were a major focus of our compliance work during the year with 11 auditors referred to ASIC for failing to ensure that their specific arrangements complied with the independence standards as set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

We also undertook compliance work focusing on auditors who:

• have been in reciprocal audit arrangements
• haven’t undertaken any audits in the last 5 years
• are at risk of not holding appropriate professional indemnity insurance (PII) or having completed the required continuing professional development (CPD).

The key compliance issues identified included auditors who:

• breached the in-house audit independence requirements
• failed to perform adequate checks or gather sufficient audit evidence for market valuations, existence of assets, trustee declarations, borrowings and arm’s length transactions.

ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from auditing self-managed superannuation funds.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.