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Accounting bodies leading the way with requirements of self-managed super funds
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Monday, 25 February 2008  
 
As the popularity of Self Managed Superannuation Funds (SMSFs) continues to grow at an unprecedented rate and auditors play an important role in assisting trustees to meet their legal obligations, CPA Australia Limited, the Institute of Chartered Accountants in Australia (the Institute) and the National Institute of Accountants (NIA) have developed a set of competency requirements for auditors of SMSFs to provide further clarity around the skills required of them.  
 
The minimum competency requirements for auditors of SMSFs are mandatory for members of the three professional accounting bodies who sign audit reports. Members must also hold a public practice certificate issued by one of the bodies. 
 
A joint statement by the three bodies said that the competency requirements will be operative for financial reporting periods commencing on or after 1 July 2008, although earlier adoption is encouraged. 
 
The competency requirements make it clear that auditors must be able to complete the tasks of planning, evidence gathering, evidence evaluation and decision making in five key areas, in the context of an audit of an SMSF. 
 
The competency requirements recognise that the growing demand for SMSF audits brings with it a responsibility to provide both auditors and users of the audited information with clarity concerning quality and compliance expectations. 
 
It will be mandatory for members who sign an SMSF audit report to meet the following requirements:

  • Hold a practicing certificate issued by the professional accounting body of which they are a member – CPA Australia, the Institute or the NIA
  • Have relevant Professional Indemnity Cover
  • Undertake continuing Professional Development as set out in the requirements
  • Ensure that those who perform work on their behalf have appropriate knowledge and experience, and are properly supervised in the conduct of the audit
The quality control procedures of the three bodies will include checking for compliance with these requirements. 
 
The three bodies will ensure their continued commitment in liaising with the Auditing and Assurance Standards Board, the Financial Reporting Council, the Australian Taxation Office and other stakeholders to make certain that members continue to meet the auditing standards. 
 
The competency requirements are available on the following websites: