The Australian Securities and Investments Commission (ASIC) is continuing to crack down on self-managed superannuation (SMSF) auditors, with two disqualifications made this week for breaches of various requirements and a failure to report legislative contraventions.
Information about the two individuals – John Tretola of South Australia and Robert Newham of the Australian Capital Territory – was referred to ASIC by the Australian Taxation Office (ATO).
ASIC and the ATO work closely together as co-regulators of SMSF auditors, and under the Superannuation Industry (Supervision) Act 1993 (the SIS Act), all SMSF auditors are required to be registered with ASIC to ensure they all meet base standards of competency and expertise.
The ATO monitors SMSF auditor conduct and may refer matters to ASIC for possible action, such as disqualification or suspension of their registration.
ASIC said it found Mr Tretola had breached auditor independence requirements in that he audited his own fund and a fund where he was the trustee.
Mr Tretola also failed to identify and report contraventions of the SIS Act, the regulator said.
Meanwhile, ASIC found that Mr Newham had also breached requirements in that he also audited his own fund was well as funds where his staff had prepared the financial statements.
Mr Newham also failed to comply with his continuing professional development requirements, ASIC said.
“SMSF auditors play a fundamental role in promoting confidence in the SMSF sector so it is crucial that they adhere to ethical standards and other requirements,” ASIC Commissioner John Price said.
“ASIC will continue to take action where the conduct of SMSF auditors is inadequate.”
