The Australian Securities and Investments Commission (ASIC) has received details of more than 300 SMSF auditors from the ATO. The approved auditors are vital cogs in the ATO wheel and registration concerns may turn out to be a serious issue.
13 out of 339 reported for serious concerns
Out of the 339 SMSF auditors, 13 are being reported for what the ATO believes to be serious concerns. It is crucial that the auditors are unbiased and independent, so that their financial reporting is unprejudiced and SMSF compliance reporting is accurate.
An independence guide to help SMSF auditors
The SMSF auditors can use an independence guide, available to them since 2013, to figure out whether they meet the criteria of independence before jumping on an audit engagement.
Compliance regulation is crucial
The DIY Superannuation environment is free from prudential regulation but SMSF compliance audits must be part of the game if a fair and ethical climate is to be maintained. Irrespective of whether an SMSF breaches the rules or stays in the green, audits and compliance regulation are important.
Be transparent with the ATO
If you are an SMSF trustee and you have been selected by the ATO, it is not yet time to press the panic button; if you think you are in the right, that is. Just ensure that you do not hide any relevant document you are being asked to furnish by the ATO.
I will also advise you to be particular with the deadline and as an aside, be very specific about the rectification plan that you carry out; not at any rate without having sought the ATO’s nod.
How best can the SMSF environment be scrutinised in absence of prudential regulation?