The Australian Securities and Investments Commission is toughening its stance on SMSF auditor independence, disqualifying the second auditor in two months for not meeting independence requirements.
ASIC issued a reminder to trustees of self-managed superannuation funds that they must use registered and independent auditors to audit their funds.
In the latest case, Ross Russo of New South Wales was disqualified for auditing the fund of a close family friend and failing to meet the audit evidence requirements of the Australian auditing standards.
In July, ASIC disqualified Neil Wilson of Victoria, after finding that he audited a fund of which he was a member. Wilson also breached documentation requirements.
Since 2013, the superannuation rules have required that all SMSF auditors be registered with ASIC.
The regulator says trustees and members should check whether their auditor is registered by searching its SMSF auditor register.
ASIC commissioner John Price says: “SMSF auditors play a fundamental role in promoting confidence in the SMSF sector, so it is crucial that they adhere to ethical and professional standards.
“ASIC will continue to take action where the conduct of SMSF auditors is inadequate.”