With the Australian Taxation Office (ATO) and ASIC hounding down on the independency of SMSF Auditors within accounting firms, there is added pressure and requirement to outsource for SMSF Auditors. According to ASIC’s Media Release 18-326MR on 26 October 2018, 101 SMSF auditors have been disqualified, suspended or restrictions placed since 2013 to 30 June 2018. These occurred primarily due to the following:
• Not meeting independence requirements of an auditor;
• Not complying with the auditing standards set by the Australian Auditing Standards Board (AUASB);
• Not identifying or reporting non-compliances to Australian Taxation Office (ATO); and
• Not meeting a fit and proper person test requirement.