Issues of concern
Issues we find when reviewing the performance of SMSF auditors include:
- auditor independence – you should never audit an SMSF if you or a relative are members, or if you undertake another role in its administration or accounting
- SISA and SISR knowledge - you need to understand and apply the super laws
- insufficient documentation - you must maintain a record of your audit processes and keep sufficient audit evidence to support your findings and opinions
- failure to report contraventions to us – you must report all contraventions that meet the reporting criteria, even if they have been rectified during the year.
Where we find matters of concern, we will determine the appropriate action, including referral to ASIC.
We will refer an SMSF auditor to ASIC if we form an opinion that the auditor:
- has failed to perform their duties under the SISA, or other law or
- has breached a provision of the SISA or SISR or
- is not 'fit and proper' to be an approved SMSF auditor.
You will generally be considered by us to be 'fit and proper' if you have:
- adequately and properly performed your duties and functions as an SMSF auditor
- a good character and appropriate professional abilities (which include competency, diligence, knowledge and soundness of judgment)
- not been subject to sanctions under any relevant laws (including laws dealing with responsibilities relating to the person's profession, honesty and business transactions).
ASIC may take action against a person who is an approved SMSF auditor, including:
- imposing a condition on an auditor’s registration
- varying a condition on an auditor’s registration
- accepting an enforceable undertaking
- cancelling an auditor’s registration
- suspending an auditor’s registration
- disqualifying a person from being an approved SMSF auditor.
Issues we find when reviewing the performance of SMSF auditors relate to auditor independence, SISA and SISR knowledge, insufficient documentation and failure to report contraventions.