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ASIC has moved to disqualify three SMSF auditors, and imposed conditions on a further 14, as it sends out a stern warning to the profession.
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ASIC fires warning as it disqualifies, imposes conditions on a number of auditors
23 July 2019
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The SMSF auditor disqualifications and conditions come from a wide array of issues including failing to meet requirements including auditor independence standards, auditing standards, minimum continuing professional development (CPD) hours, lodging annual statements, and fit and proper person criteria.
All but one of the total 17 auditors were referred to ASIC by the ATO after the Tax Office singled out SMSF auditors as a key compliance area earlier this year.
The three SMSF auditors disqualified include Tram Tran, of NSW, for not being a fit and proper person; and Geoffrey Wood, of NSW, for signing an inappropriate audit report, failing to provide audit files to the ATO on a timely basis despite multiple requests, failing to lodge his annual statement within the required time frame and otherwise not being a fit and proper person.
Kelvin Wright, of NSW, was also disqualified for failing to obtain sufficient appropriate audit evidence in the audit of an SMSF in relation to the property and investments in unlisted trusts being reported at market value, borrowings including compliance with limited recourse borrowing arrangements, the purchase of properties, lease agreements, transactions with related parties, liabilities and expenses, and failing to comply with CPD requirements.
The 14 SMSF auditors with various conditions imposed on their registration include Stephen Bray, of the ACT; Ross Casperson, of QLD; Dharambir Ghangas, of WA; Gerald Adams, of Vic; Rohan Dyson, of Vic; David John Simpson, of NSW; Ross Casperson, of Qld; Sandra Koschel, of Qld; John McCann, of NSW; Leo Sheppet, of Vic; Rodney Grosvenor, of NSW; Dennis Kronheim, of NSW; Michael Lane, of NSW; and Thomas Swanton, of Qld.
The various conditions imposed on their registrations include peer reviews, restricted audits, independence assessments, education, annual declarations, proof of CPD, responding to requests, an exam, and providing their professional associations with a copy of their conditions.
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If an auditor breaches a condition on their registration, ASIC may disqualify or suspend their registration.
“SMSF auditors play a fundamental role in promoting confidence in the SMSF sector. ASIC will continue to take action where the conduct of SMSF auditors is inadequate,” ASIC commissioner John Price said.
SMSF trustees and members can check whether their auditor is registered and what conditions are on their registration by searching ASIC’s SMSF auditor register. ASIC also maintains a public register of disqualified SMSF auditors.
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