According to ASIC statistics, approximately 186 SMSF auditors departed the SMSF auditing market in the 2019–22 income year as a result of changes in independence standards and greater regulatory scrutiny.
According to ASIC numbers released to
SMSF Adviser, there were 4,599 approved SMSF auditors as of 30 may 2022, with
220 auditors departing the SMSF auditing sector since the previous financial
year.
ASIC imposed conditions on five SMSF
auditors, banned two, and suspended another during the 2019–20 financial year,
according to the ATO. A total of five auditors were voluntarily deregistered, while
the results of a further 12 auditors are still pending.
Auditors have faced increased
accountability, increased scrutiny from authorities, and larger liability
concerns in recent years, according to DBA Lawyers director Daniel Butler.
"The ATO is looking at these
[audit] files in great detail to determine if the relevant evidence was present
and that adequate work records were kept," he said.
Auditor workloads are expected to grow this year as a result of COVID-19 and some of the accompanying relief measures.
Auditors are also adopting the APESB independence guidance, which will have an impact on organisations that provide both accounting and audit services to SMSF clients.
The Australian Taxation Office (ATO) has warned these businesses that the new rules will necessitate a considerable reorganisation of services and company processes.
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