Is your SMSF Auditor Independent?

The Accounting Professional and Ethical Standards Board (APESB), has recently emphasised the requirement for independence of SMSF auditors.

The ATO has always been concerned about the situation where the SMSF auditor is the registered tax agent and is also involved in preparing the accounts and statements for the SMSFs they audit. The ATO has now started data matching tax agent numbers with ASIC SMSF auditor numbers.

Now is the time to consider your current arrangement! Firms undertaking both the audit and accounting function for SMSF's will no longer meet their obligations under professional standards and ethics.

The APESB board's interpretation will result in considerably stricter compliance measures being implemented by the ATO.

The ATO has already begun to investigate firms.

• No longer can firms prepare both the accounting work, undertake the audit function and hide behind 'Chinese walls.'

• No longer can firms prepare the accounting work, undertake the audit function and hide behind the general 'routine or mechanical' process exemption.

• No longer can firms have reciprocal arrangements.

• No longer can a SMSF auditor have just the one source of SMSF audits.

In 2019, two of the top 100 SMSF auditors and 29 high risk SMSF auditors were referred by the ATO to ASIC after reviews that identified independence failures. The ATO has also cautioned that accounting firms that provide both the administration and audit functions for SMSF trustees will need to reconsider their business model. Providing both services will no longer be worth the risk.

Genuine SMSF audit Independence

Genuine SMSF audit independence provides your firm and trustees with impartial advice and professional judgement that helps accountants and trustees make the right decisions and delivers the best outcome for the accounting practice and trustees.

EDM Super Offers 100% Independent Audit Services

If your business is looking for an Australian based SMSF audit firm that is large enough to be genuinely independent, but also 100% Australian staffed and small enough that you can pick up the phone and ring your auditor with a question or for advice, EDM Super can help.

Every one of our auditors is a CA qualified SMSF audit specialist and would love to assist you with your SMSF audits. Let us share our expertise and wealth of both auditing and SMSF knowledge. Let us help you ensure your SMSF audits are genuinely independent

For an obligation free discussion about outsourced SMSF audits please contact Lana Edmonds at lana@edmsuper.com.au