While the Australian Taxation Office (ATO) is continuing to work with the industry to implement new auditor registration arrangements, it has conceded that, generally, standards have already risen.
In a recent address to the Institute of Chartered Accountants national SMSF conference, ATO assistant commissioner Stuart Forsyth said that the ATO’s general assessment of approved auditors was that they were doing a much more professional job than previously.
"This is reflected in the trend towards greater specialisation in this market and by a reduction in the number of auditors who conduct only a handful of audits.
"Through our data-matching exercises, we’re observing fewer auditors who audit their own fund, although we still have concerns around auditor independence and unwillingness by some to comply with their obligations," Forsyth said.
He said a significant concern was that some auditors were not identifying and reporting serious contraventions by funds they audit "as would be expected of a professional auditor".
