ASIC chairman Greg Medcraft said that the quality of auditors needed to improve as according to their investigation "One in every seven SMSF auditors are not up to scratch", He said 'Clearly there is an issue and I have found that number which was found to be wanting needs to drop significantly,' he told the Australian Financial Review.
A recent Tax Office compliance review of auditing activity in the SMSF area found that some auditors were operating with inadequate processes, knowledge or skills, or not applying proper procedures or tests. They said that it has 'significant' concerns that some auditors are not identifying and reporting contraventions by SMSFs when carrying out annual audits.
The penalty for breaching the rules can be up to $220,000. A fund can also be made non-compliant and its assets taxed at the highest marginal rate. However, it says 50% of SMSF contraventions were not being picked up by auditors. They have reported cases where auditors have turned a blind eye to members withdrawing money early from their retirement savings or lending funds to relatives. Some SMSFs have even audited their own fund, which is illegal.
The chairperson of SPAA, Sharyn Long, said that some auditors were not operating at the necessary standard. 'In some cases they are just signing an auditor opinion without undertaking the work that they need to,' she says. 'If that is the case, they are clearly not in a position to detect breaches or report them.'
SMSF Audit Link - your alternative
WWW.SMSFAUDITLINK.COM.AU
SMSF Audit Link Pty Ltd is a Sydney based CPA qualified independent audit firm that offers specialised SMSF audit solutions to trustees via their accountants.
We work together with only Sydney based Accountants, Financial Planners and SMSF Administrators (we do not offer our services directly to trustees) to provide compliant, efficient and cost effective SMSF audit services.
SMSF Audit Link is a technical SMSF audit specialist firm that has incorporated best practice systems and processes that translate into real benefits to our clients, namely end trustees via their advisors.
We visit the accountant's offices to conduct our audit. Our audit services are restricted to only Sydney and we have no branches or representative offices anywhere else in Australia
Our principal, Mr Manoj Abichandani is SMSF Specialist Advisor and SMSF Specialist Auditor accredited by SMSF Professional Association of Australia (SPAA) and has over 17 years experience in Auditing SMSF.
We strive to provide SMSF Accountants and their clients namely, fund trustees, with peace of mind in governing their superannuation fund. We have developed our own 320 checkpoint audit program after being in the SMSF space over a number of years of experience. This audit programme is core to our fundamental knowledge of day to day operation to the most complex fund.
Due to our vast experience, we often consult to accountants as SMSF Specialists on topics such as pensions, borrowing strategies, death benefits etc. This service is free to accountants who use us as their fund auditor. We offer no investment advice and do not service end clients directly.
We are aware of our responsibility with respect to conducting SMSF audit engagements. Our planning, conducting and reporting on the financial and compliance audit of a SMSF is as per SIS Act and Regulations and second to none, which means that accountants and advisors can rely and trust on us with audit of complex SMSF of their clients.
"SMSF Audit is our only business and we just have to do it well"
For Audit of 1st SMSF in your practice we will charge only $1 Incl. GST and feel free to use this offer for your most complex fund. If you are not satisfied with our audit process, there is no obligation to use us for audit of other funds in your practice.
To read "how our audit process works" click here.
This offer will expire on 30th November 2011. You must either phone our office 02 9684 4199 and book for this offer with Mr Soni or phone our Business Development Manager Mr Aslam CPA on 0423 044 771 or email at sarfraz@smsfauditlink.com.au or phone Mr Manoj Abichandani SMSF Specialist Auditor on 0411 56 46 26
Click here for our brochure
