ASIC Auditor Registration is Coming!

Debate still goes on regarding the registration of SMSF Auditors via the ASIC.  It has been reported that Auditors who undertake less than 20 Self Managed Superannuation Fund Audits per year will be required to sit an exam.

The final details are expected to be announced by Assistant Treasurer Bill Shorten within the next few weeks.  However, it has been reported that the registration process will require; an exam for those auditors who undertake less than 20 fund audits per year, police checks and the auditor to be able to show they are a fit and proper person.  Also, it has been reported that the auditor will be required to disclose the number of audits they perform and declare their independence.

So will these measures improve the standard of auditing of SMSF? I believe it will!  Over the past 10 years that I have operated a specialist SMSF Audit firm I have seen a lot of new specialist SMSF audit business set-up.   From the auditors I have spoken to in this time the vast majority are very professional and process a great amount of superannuation knowledge.  The presence of these specialist firms has already raised the standard and a consolidation of this sector will only improve the standards across the board.

To the big question – will the costs of a SMSF audit increase?  It has been reported that the registration and exam requirements could lead to an exodus of auditors from the industry causing SMSF Audit fees to increase.  Looking at my business only, it would have to be a very significant annual ASIC fee to see my fees increase as a result of the registration process.  I believe that a consolidation of SMSF auditors will not affect the SMSF audit fees for those who are currently undertaking audits to a high standard.