Volume requires auditor competency tests
In the Government's Super System Review released on 30 June 2010, self-managed super fund (SMSF) auditors were stated to be the one facet of this superannuation sector most relied upon by the Australian Taxation Office (ATO) to manage SMSF compliance.
SMSF auditors were considered 'the cornerstone of existing SMSF regulatory framework' and, as such, the implementation of minimum competency levels and auditor registration was a key recommendation.
And such initiatives are necessary, according to Ron Phipps-Ellis, Audit Partner at BCS Super Auditors, if only due to auditor numbers.
“It’s necessary because of the large number of SMSF auditors conducting what are quite large super fund audits per annum,” he said. “And while I’m not saying there are auditors who are acting incorrectly, I do think that they’re probably not all sufficiently competent to be doing self-managed super fund audits in the manner that’s required,” Phipps-Ellis said.
Asked whether a mandated requirement of auditor registration would signal a reduction in the number of auditors currently servicing the SMSF sector of superannuation, Phipps-Ellis agreed it was indeed a likely scenario.
“That could definitely happen, but it could be a good thing for the industry,” he said. “Independence is also going to be a very big issue in the next year or so.”
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
