SMSF auditors under fire

The corporate watchdog has put self-managed superannuation fund (SMSF) auditors under the microscope and has made a disqualification, suspensions, and conditions imposed on a number of SMSF auditors.

The Australian Securities and Investments Commission (ASIC) said the actions followed concerns regarding failure to meet requirements including independence standards and auditing standards, failing to comply with continuing professional development requirements and otherwise not being a fit and proper person.

• Philip Shugg of Victoria has been disqualified for not being a fit and proper person as he was bankrupt;
• Greg Marlow of Northern Territory has been suspended for significant deficiencies in auditing the ownership and valuation of fund assets, lease agreements, whether transactions were on an arm’s-length basis, and compliance with personal use and collectable asset rules. He also issued an audit report in an incorrect form, and did not obtain signed financial statements;
• John Redenback of New South Wales had conditions imposed for deficiencies in maintaining auditor independence, and deficiencies in audit work on the ownership and valuation of fund assets and whether a transaction was on an arm’s-length basis;
• Lenneke Serjeant of New South Wales had conditions imposed for deficiencies in maintaining auditor independence, and deficiencies in audit work on the valuation of fund assets, lease and loan agreements, execution of trust deeds and reviewing the investment strategy by trustees;
• Angelo Covelli of Victoria had conditions imposed for deficiencies in audit work on the valuation of fund assets, limited recourse borrowing arrangements, lease agreements and rental statements; and
• Darren Tappouras of New South Wales had conditions imposed for deficiencies in audit work on the ownership and valuation of fund assets, in-house asset requirements, limited recourse borrowing arrangements. He also did not obtain signed financial statements and did not comply with CPD requirements.