A new Independence Guide for SMSF auditing has become mandatory for audits in Australia. The Guide incorporates changes to the restructured APES 110 Code of Ethics for Professional Accountants (including independence standards). One particular change in Chapter 8 is that an SMSF auditor cannot audit an SMSF where the auditor, their staff or their firm…
No ambiguity – Chinese walls are out! The recently released APES 110 Code of Ethics for Professional Accountants including Independence Standards makes it clear that Chinese walls do not proffer acceptable independence for SMSF audits. With the ATO systematically reviewing audit arrangements and independence, now is the time to take heed of the APES Code……
The Covid-19 pandemic has thrust rapid change into many industries, not least the Accounting and SMSF sector. With many firms overloaded with advising and implementing on Stimulus measures and SMSF regulatory changes (much of the work not billable), there has been a push for a government-funded Voucher system to support the costs to Accountants in…
The National Cabinet Rent Code PDF Up to date as at 8 April 2020 While under normal circumstances, SMSF rentals are required to be at proven market rates, due to the financial effects of the coronavirus pandemic, the ATO has given permission for SMSFs to reduce the rent for the 2019/20 and 2020/21 financial years….
In the midst of a week that has seen ASIC suspend or disqualify several SMSF auditors, many Accountants have received an email from an SMSF Audit firm offering audits with a “modest” fee structure and the email went on to say: “we eliminate the compliance and recruitment challenges” Really? I find this very concerning. Nobody…
Actions speak louder than words and the ATO has demonstrated they are serious about enforcing the highest possible standard in SMSF audits. To begin their quality enforcement program, the ATO chose to review the top 100 auditors who are responsible for auditing 33% of all SMSFs, representing $186 billion in assets. The ATO strategy was…
Mis-use of Auditor Numbers Over 600 tax practitioners have either deliberately or mistakenly mis-used an SMSF auditor number, with the ATO detecting over a thousand instances of potential fraud. “Some practitioners have fraudulently charged clients for audits that didn’t occur and some have even prepared false audit reports with forged auditor signatures,” a recent ATO…
Communicative Auditors Add Value Recent court decisions highlight situations where the Auditor did not seek sufficient and appropriate evidence that the assets and liabilities of the fund exist and are clearly owned by the fund, and importantly, where unsecured loans may not be recoverable. In a recent case, the court cited failure of the Auditor…
