Media Release

Independence clarity a win for SMSF auditors

The critical need for independence in the auditing of self-managed superannuation funds (SMSFs) has been addressed in the federal government’s Stronger Super announcement, according to the Institute of Chartered Accountants in Australia (the Institute).

The government’s view on SMSF audit standards is that prescriptive standards cannot be applied in all situations and could lose relevance over time as services evolve.

The government’s policy package aligns with our position – that the industry needs a principles-based approach to independence, says the Institute’s head of superannuation, Liz Westover.

“This announcement reinforces that the accounting profession’s standard on professional ethics is the most appropriate platform for the provision of audit services within SMSFs. We’re committed to having an industry carrying out quality audits, and auditor independence is a vital component of this. The announcement highlights that the existing governance framework in the SMSF industry is robust,” she says.
 
The Institute will continue ongoing discussions with the professional standard-setter, the Accounting Professional & Ethical Standards Board.

We will also maintain dialogue with the government on finalising details on the proposed introduction of SMSF auditor registration, and further clarification on the appropriate replacement to the accountants’ exemption as part of the Future of Financial Advice reform package.

Article last Updated 21 September 2011