The regulator of self managed superannuation funds, the ATO, places great importance on the annual audit. The purpose of this audit is to provide an independent report to the trustee that there are no material errors in the financial statements and that any SIS breaches are identified and reported to enable them to be rectified. 
 
As a significant part of the regulatory framework for self managed funds it is important that the audit is performed independently of the accounts preparation. The standard of independence applied is that contained in the Code of Ethics for Professional Accountants, Section 290 (formerly Professional Statement F1). This is applied to all self managed fund auditors not just CA’s and CPA’s.  
 
As a result of benchmarking the ATO has identified that where the same firm performs both the tax return and the audit there is an increased risk of a breach not being identified or reported. This is therefore one of the risk criteria used when selecting funds for an ATO review. During a review the firm is required to show how it has complied with the independence standards when performing these roles.  
 
As a best practice approach it is recommended firms consider the segregation of roles within the firm and outsource the audit function where appropriate. 
 
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