ob体育 has acted against eight self-managed superannuation fund (SMSF) auditors for breaches of their obligations. This included breaches of auditing and assurance standards, independence requirements, registration conditions, or because ob体育 was satisfied the individual was not a fit and proper person to remain registered.
From 1 April 2023 to 30 June 2023, ob体育:
- disqualified five SMSF auditors; and
- imposed additional conditions on three SMSF auditors.
This is in addition to the cancellation of 413 SMSF auditors (22-121MR, 23-012MR and 23-150MR), as part of ob体育鈥檚 recent compliance program.
ob体育 Commissioner Danielle Press said, 鈥業n the last year, ob体育 has acted against 26 SMSF auditors who failed to meet the independence and auditing standards, or whose conduct called into question the integrity of SMSF audits. The SMSF sector holds more than $865 billion in assets in over 600,000 funds and it is crucial that SMSF auditors comply with their regulatory obligations. ob体育 will continue to take action where the conduct of SMSF auditors is inadequate.鈥�
Paul Barry, Stephen Funder, Bruce Jones, Gregory Leggett and Malcolm Orman were disqualified from being SMSF auditors. Their names have been placed on ob体育鈥檚 public banned and disqualified register and they are not eligible to reapply for registration. Mr Funder has applied to the Administrative Appeals Tribunal for the disqualification decision to be reviewed.
Toby Dodd, Mark Gregson and Clayton Lawrence had additional conditions imposed on their SMSF auditor registration. Conditions are specific to the auditor (see the ), and can require undertaking additional professional development, having independent reviews of SMSF audit files and audit tools, templates and methodology, and notifying their professional accounting association of the additional conditions.
Seven SMSF auditors were referred to ob体育 by the Australian Taxation Office (ATO) and official information about one SMSF auditor was disclosed to ob体育 by another Australian government body.
Background
Approved SMSF auditors are registered with ob体育 under the Superannuation Industry (Supervision) Act 1993 (SIS Act).
ob体育 and the ATO work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and can refer matters to ob体育. ob体育 also monitors the SMSF auditor population for non-compliance and is empowered to disqualify, suspend, cancel or impose additional conditions on the registration of SMSF auditors.
ob体育 may make an order disqualifying or suspending a person from being an approved SMSF auditor, under section 130F of the SIS Act, if the person has failed to carry out or perform adequately and properly the duties and functions of an auditor or is not a fit and proper person to be an approved SMSF auditor. A disqualified SMSF auditor is placed on ob体育鈥檚 public banned and disqualified register at connectonline.asic.gov.au and is not eligible to reapply for registration.
ob体育 may impose conditions on an SMSF auditor鈥檚 registration under section 128D of the SIS Act or may cancel the registration of an SMSF auditor under section 128E of the SIS Act, for non-compliance with conditions or failing to lodge annual statements in the required timeframe.
SMSF auditors have the right to appeal decisions ob体育 makes in relation to them under the SIS Act. They may request that ob体育 reconsider a decision it has made against them. If the decision is confirmed or varied the SMSF auditor may apply to the Administrative Appeals Tribunal for further review of the decision.
Further information can be found on ob体育's website and in Regulatory Guide 243 Registration of self-managed superannuation fund auditors.
SMSF trustees and members can check whether their auditor is registered, suspended or has conditions imposed on their registration by searching ob体育's .
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Editor's note:听
On 4 October 2023, Mr Funder withdrew and the Administrative Appeals Tribunal dismissed Mr Funder's application for review and stays of ob体育's disqualification decision.听