In the quarter ending 31 December 2023, ob体育 took action against nine self-managed superannuation fund (SMSF) auditors where we formed the view that conduct did not meet the required standards. This included concerns about compliance with auditing and assurance standards, independence requirements, registration conditions, or for not being a fit and proper person to remain an SMSF auditor.
ob体育 Deputy Chair Sarah Court said, 鈥楽MSF auditors are responsible for auditing over 611,000 SMSFs with total estimated assets of almost $900 billion. In this privileged position, they play a key role in upholding the integrity and confidence of the SMSF sector. ob体育 will continue to take action where conduct falls short.鈥�
Between 1 October 2023 and 31 December 2023, ob体育:
- disqualified five SMSF auditors,
- imposed additional conditions on two SMSF auditors, and
- cancelled the registration of two SMSF auditors.
Stephen Bray, Kerpal Harnam, Terence Murphy, Johann Preller and David Sidhu were disqualified from being SMSF auditors. Their names have been placed on ob体育鈥檚 public banned and disqualified register and are not eligible to reapply for registration. Mr Murphy and Mr Bray requested ob体育 review its disqualification decision which is currently under consideration.
Timothy Davidson and Kylie Wilson had additional conditions imposed on their SMSF auditor registration. Conditions are specific to the auditor (see the ), and can require undertaking additional professional development, passing the SMSF auditor competency exam, having independent reviews of SMSF audit files and/or audit tools, templates and methodology and notifying their professional accounting association of the additional conditions.
Vincenzo Dissidomino and Vincent Crowe had their SMSF auditor registration cancelled.
Of the nine SMSF auditors mentioned here, five were referred to ob体育 by the Australian Taxation Office (ATO).
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 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 their registration 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 .
Editor's note:聽
Mr Harnam, Mr Preller and Mr Sidhu requested reconsideration of ob体育's disqualification decision. Al five decisions (including Mr Murphy and Mr Bray) were ultimately confirmed on reconsideration by ob体育.聽
Mr Murphy and Mr Sidhu sought further review of ob体育's decision in the Administrative Appeals Tribunal (AAT), now called the Administrative Review Tribunal (ART).聽
Editor's note 2:聽
On 6 February 2025, the ART confirmed ob体育's decision to disqualify Mr Murphy from being an approved SMSF auditor. A copy of the ART's decision and reasons for the decision
Mr Sidhu's review is still under consideration by the ART.聽