SMSF auditor registration a key

The Institute of Chartered Accountants in Australia (ICAA) has given its strong backing to stronger registration proposals for self-managed superannuation fund (SMSF) auditors.

Discussing the issue with members last week, the ICAA’s head of superannuation, Liz Westover, said the organisation had been a strong and vocal supporter of the proposal to create a register of SMSF auditors, governed by the Australian Securities and Investments Commission (ASIC).

“The register alone isn’t a fix, but it will bring about the capacity to instil high standards in our members. A competency test – as proposed by ASIC – simply will not achieve this outcome,” she said.

Westover said the proposed auditor registration process would bring about significant benefits.

“Half of all SMSF auditors currently undertake five or less audits per annum – many of these simply will not go through the registration process given they undertake such low numbers of audits,” she said. “Such a degree of rationalisation can only serve to benefit the SMSF industry, with the remaining auditors more focused, skilled and experienced.”

Westover argued that the implementation of a competency exam would test knowledge and knowledge alone, and that “it would fail to ensure that the auditing of SMSFs is being conducted correctly and appropriately”.