The regulator emphasised that SMSF auditors serve as gatekeepers of the superannuation system
The Australian Securities and Investments Commission (ASIC) has taken enforcement action against 17 approved self-managed superannuation fund (SMSF) auditors during the second half of 2024.
In October 2024, ASIC announced the suspension of three high-volume auditors. ASIC took the latest regulatory action in response to breaches of professional obligations, non-compliance with annual statement requirements, and a lack of necessary practical experience among certain auditors. ASIC stated that these measures are essential to maintain the integrity of the SMSF sector, which holds $1 trillion in assets across more than 638,000 SMSFs.
Between July 1 and December 31, 2024, ASIC disqualified four SMSF auditors, imposed additional conditions on two auditors, and cancelled the registration of 11 others. ASIC confirmed its original disqualification decisions in cases where auditors sought reconsideration. ASIC imposed further conditions on particular SMSF auditors. The cancellations were linked to an Australian Taxation Office (ATO) project that identified auditors lacking sufficient practical experience. Under the Superannuation Industry (Supervision) Act 1993, ASIC has the authority to cancel the registration of SMSF auditors who do not perform significant audit work for a continuous period of five years.
ASIC determined that the affected auditors had breached professional obligations, including failing to comply with auditing and assurance standards, not meeting auditor independence requirements, neglecting continuing professional development obligations, or holding a current professional indemnity insurance policy. Some auditors did not comply with annual statement reporting obligations, while others no longer had the necessary practical experience to conduct SMSF audits effectively.
ASIC emphasised that SMSF auditors serve as gatekeepers of the superannuation system and play a crucial role in ensuring the sector's integrity. The regulator stated that it will continue to take action against auditors who fail to meet their obligations.
ASIC and the ATO jointly regulate SMSF auditors. The ATO monitors auditor conduct and refers cases of non-compliance to ASIC, which can disqualify, suspend, impose conditions, or cancel an auditor's registration under the SIS Act. SMSF auditors who are disqualified are placed on ASIC's public banned and disqualified register and are not eligible to reapply unless the disqualification is revoked. Auditors have the right to request ASIC reconsider a decision, and if the decision is confirmed or varied, they may seek a further review by the Administrative Appeals Tribunal.
The status of any registered SMSF auditor, including suspensions or imposed conditions, can be verified through ASIC's Professional Registers Search.
