Tougher SMSF audit standards urged

The Cooper Review into superannuation has been told there needs to be a substantial upgrade in the experience and qualifications required of self-managed superannuation fund (SMSF) auditors.

In a submission to the Review, Sydney-based accountant and audit specialist Graeme Green pointed to the high standards required of auditors registered by the Australian Securities and Investments Commission (ASIC) when compared to those required of the majority of auditors dealing with SMSFs.

He said he was aware of certain auditors signing off 10 to 12 audits a day and others charging $200 a fund.

“This is ridiculous, given the requirement to prepare a full professional file which needs to undergo a separate review procedure,” Green said.

“Clearly this is improper, and in my view [it] arises from ignorance resulting from lack of training, knowledge and experience which can’t be rectified by a grossly inadequate one-day course,” he said.

Green’s submission recommended increased mandatory training requirements for professionals who want to become SMSF auditors, suggesting a three-month compulsory semester course written by the Institute of Chartered Accountants.

His submission also called for clear guidelines with respect to auditor independence, with auditor firms being barred from providing advisory, consultancy or other services to clients.

Green said that, at present, a firm could audit an SMSF with a partner or colleague providing superannuation legal and compliance advice, superannuation strategic advice, contributions and pension advice.