Choosing the best auditor for your firm Evaluating different SMSF auditors is not as simple as comparing apples with apples! With the deadline for ATO enforcement of the new Independence Code only months away, many Accounting firms are hastily reorganising their audit arrangements to ensure compliance with the stringent new independence rules. However, weighing up…
The selfmanagedsuper publication has this week reported that establishing pooling arrangements among several different accounting firms will not be seen as a satisfactory method of complying with the amended auditor independence standards. A pooling arrangement is where a group of accounting firms that have previously relied on Chinese wall arrangements to meet auditor independence requirements,…
230 Tax Agents have mis-used SANs in the latest count The ATO is continuing its program to weed out the mis-use of SMSF Auditor Numbers (SAN) where tax agents are in effect masquerading as auditors. The ATO mailed the 2018 annual returns to registered SMSF auditors requesting a SAN confirmation check and this resulted in…
Can SMSF Auditors continue reciprocal arrangements under the new Independence Code? The view of both the ATO and ASIC is that threats to independence arising from reciprocal arrangements are so significant that no safeguards can reduce this threat to an acceptable level. In effect, reciprocal arrangements are no longer allowed under the new Independence Code….
The US election has focussed the world on the importance of accuracy, transparency, independence and the rule of law in tallying ballots. This reminds me of the circuitous journey we have been on with SMSF auditing in Australia. The idea of an independent SMSF audit was established for the benefit of trustees… to protect their retirement savings and…
The new APES 110 Code of Ethics for Professional Accountants has many ramifications for SMSF trustees… and Accountants have an obligation to notify clients of changes that may affect their audits. Under the new code, accounting firms providing administration for SMSFs cannot also provide audit services for that client, not through a Chinese wall, nor by establishing a breakaway company. Reciprocal…
The new Independence Guide clarifies that an auditor cannot audit an SMSF if they prepared the financial statements for the SMSF unless it is a “routine or mechanical service”, however the ATO has clarified that the “routine and mechanical” exception is very hard to meet and also may not exist in future years. The ATO is encouraging SMSF…
Reciprocal auditing arrangements where SMSF firms enter into audit arrangements for one another risk breaching new independence requirements, the ATO has clarified. The restructured Independence Guide in the APES 110 Code of Ethics for Professional Accountants has caused many firms to restructure their businesses and make new audit arrangements. However some firms are unwittingly creating new independence…
In recent times, expert SMSF specialist advice has become more valuable than ever. Speaking at a recent industry conference, John Maroney, Chief Executive of The SMSF Association said, “SMSFs need specialist advice from a calming, trusted adviser. Now is not the time for rash decisions, so having a learned, reassuring voice in an SMSFs corner…
There have been mixed reactions to the new Independence Code for SMSF audits, with some firms outraged that they may have to give up audit fees and repurpose staff, while others are a step ahead in anticipating the inevitable “drawing of boundary lines” around independence in audit arrangements. Whatever your personal view, now is not…
