ASIC Auditor Registration is Coming?
09/02/2012 by Michael Dietrich
Details of the SMSF Auditor Registration have been eagerly awaited by the industry for months. It is now February and we still have no announcement from Assistant Treasurer Bill Shorten. Maybe it will be announced to coincide with the 2012 Self Managed Super Fund Professionals Association (SPAA) National Conference next week?
Debate still goes on regarding the registration of SMSF Auditors via the ASIC. It has been reported that the registration process will require; an exam for those auditors who undertake less than 20 fund audits per year, police checks and the auditor to be able to show they are a fit and proper person. It has also been reported that the auditor will be required to disclose the number of audits they perform annually and declare their independence.
So will these measures improve the standard of auditing of SMSF? I believe it will! Over the past 10 years that I have operated a specialist SMSF Audit firm I have seen a lot of new specialist SMSF audit business set-up. From the auditors I have spoken to in this time, the vast majority are very professional and have a great amount of superannuation knowledge. The presence of these specialist firms has already raised the standard and a consolidation of this sector will only improve the standards across the board.
To the big question "will the costs of a SMSF audit increase?" It has been reported that the registration and exam requirements could lead to an exodus of auditors from the industry causing SMSF Audit fees to increase. Looking at my business only, it would have to be a very significant annual ASIC fee to see my fees increase as a result of the registration process. I believe that a consolidation of SMSF auditors will not affect the SMSF audit fees for those who are currently undertaking audits to a high standard.
What do you think, is the SMSF Auditor Registration a good thing?
If you are attending the SPAA Conference next week come along to the Audit Special Interest Discussion Group (early on Wednesday morning 8 am), ask some questions I'll be on the panel.
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Debate still goes on regarding the registration of SMSF Auditors via the ASIC. It has been reported that the registration process will require; an exam for those auditors who undertake less than 20 fund audits per year, police checks and the auditor to be able to show they are a fit and proper person. It has also been reported that the auditor will be required to disclose the number of audits they perform annually and declare their independence.
So will these measures improve the standard of auditing of SMSF? I believe it will! Over the past 10 years that I have operated a specialist SMSF Audit firm I have seen a lot of new specialist SMSF audit business set-up. From the auditors I have spoken to in this time, the vast majority are very professional and have a great amount of superannuation knowledge. The presence of these specialist firms has already raised the standard and a consolidation of this sector will only improve the standards across the board.
To the big question "will the costs of a SMSF audit increase?" It has been reported that the registration and exam requirements could lead to an exodus of auditors from the industry causing SMSF Audit fees to increase. Looking at my business only, it would have to be a very significant annual ASIC fee to see my fees increase as a result of the registration process. I believe that a consolidation of SMSF auditors will not affect the SMSF audit fees for those who are currently undertaking audits to a high standard.
What do you think, is the SMSF Auditor Registration a good thing?
If you are attending the SPAA Conference next week come along to the Audit Special Interest Discussion Group (early on Wednesday morning 8 am), ask some questions I'll be on the panel.
