The Australian Securities and Investments Commission (ASIC) has found 15 auditors of self-managed super funds (SMSF) wanting in terms of independence rules.
The 15 auditors were referred to the corporate regulator by the Australian Taxation Office after it undertook a review of accounting firms that did both the accounting and auditing work for self-managed superannuation funds.
ASIC had placed conditions on the registration of 13 of the 15 auditors, including restrictions on what ASIC terms ‘in-house audits’ of funds, a demand that an independence review be done of all of the accounting practice’s self-managed superannuation clients, and for the auditors affected to notify their professional bodies of their restricted registration status.
The remaining two auditors handed their audit registrations in when concerns were raised.
“Independence is fundamental to auditors to protect the integrity of the SMSF industry. SMSF auditors should carefully consider their structure and any services provided to audit clients to identify and evaluate independence,” ASIC deputy chair Sarah Court said.
“ASIC will take action where appropriate to reinforce the independence requirements.”
The action taken by ASIC regarding SMSF auditors comes at a time when senators Deborah O’Neill and Richard Colbeck are chairing committees that are separately looking at matters of ethical conduct that include the management of conflicts of interest and questions of independence.
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