11/29/2022 | Press release | Distributed by Public on 11/28/2022 17:44
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ASIC has taken action against six self-managed superannuation fund (SMSF) auditors for breaches of independence requirements and auditing standards.
Over the period 29 June 2022 to 30 September 2022, ASIC:
Five of these SMSF auditors were referred to ASIC by the Australian Taxation Office (ATO). One SMSF auditor did not comply with conditions imposed by ASIC on their SMSF auditor registration.
These actions resulted from breaches of obligations including auditing and assurance standards, independence requirements, and registration conditions, or because ASIC was satisfied the individual was not a fit and proper person to remain registered.
ASIC Commissioner Sean Hughes said, 'SMSF auditors have a fundamental role in promoting confidence in the SMSF sector. ASIC will apply a range of regulatory tools against SMSF auditors who fail to meet the independence and auditing standards or whose conduct calls into question the integrity of SMSF audits.'
Khanh Huynh, of Leumeah, New South Wales, was disqualified from being an SMSF auditor in June 2022 for:
Hafiz Saroha, of South Granville, New South Wales, was disqualified from being an SMSF auditor in August 2022 for:
Janette Townshend, of Templestowe, Victoria, was disqualified from being an approved SMSF auditor in August 2022 for auditing a fund where her spouse was a member and a director of the corporate trustee, over a number of years. Ms Townshend has applied to the Administrative Appeals Tribunal for the disqualification decision to be reviewed.
Yaw Boadi, of Constitution Hill, New South Wales, had additional conditions imposed on his registration in September 2022 for breaching Australian auditing and assurance standards by not obtaining sufficient appropriate audit evidence in relation to the valuation of an investment in unlisted shares, recoverability of a loan, verifying property title and ensuring property leases are at arm's length, and by not adequately evidencing reasons for decisions and review of work undertaken by others.
The requirements of the conditions are:
ASIC has cancelled the SMSF auditor registration of:
Brian Carroll, of Miranda, New South Wales, in July 2022 for failing to lodge with ASIC an SMSF auditor annual statement and for not meeting the following additional conditions imposed on his registration (refer 22-075MR):
Linda Ingham, of St Kilda, Victoria, in August 2022 for failing to lodge five SMSF auditor annual statements with ASIC.
Approved SMSF auditors are registered with ASIC under the Superannuation Industry (Supervision) Act 1993 (SIS Act).
ASIC and the ATO work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and can refer matters to ASIC. ASIC also monitors the SMSF auditor population for non-compliance and is empowered to disqualify, suspend, cancel or impose additional conditions on the registration of SMSF auditors.
ASIC may make an order disqualifying or suspending a person from being an approved SMSF auditor, under section 130F of the SIS Act, if the person has failed to carry out or perform adequately and properly the duties and functions of an auditor or is not a fit and proper person to be an approved SMSF auditor. A disqualified SMSF auditor is placed on ASIC's public banned and disqualified register at connectonline.asic.gov.au and is not eligible to reapply for registration.
ASIC may impose conditions on an SMSF auditor's registration under section 128D of the SIS Act. ASIC monitors compliance with conditions imposed on SMSF auditor registrations, taking further action if conditions are not met.
SMSF auditors have the right to appeal decisions ASIC makes in relation to them under the SIS Act. They may request that ASIC reconsider a decision it has made against them. If the decision is confirmed or varied the SMSF auditor may apply to the Administrative Appeals Tribunal for further review of the decision.
Further information can be found on ASIC's website and in Regulatory Guide 243Registration of self-managed superannuation fund auditors.
SMSF trustees and members can check whether their auditor is registered, suspended or has conditions imposed on their registration by searching ASIC's SMSF Auditor register.