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The Australian Taxation Office (ATO) has just completed its 2024-25 SMSF auditor compliance review.
Of the 200 auditors reviewed, the ATO referred 41 to their co-regulator ASIC (Australian Securities and Investments Commission) and 36 voluntarily cancelled their registration following the review.
These auditors either failed to comply with the auditing and assurance standards, did not meet the independence requirements for in-house audits, or failed to demonstrate they had the necessary practical experience to carry out SMSF audits.
The most common compliance issues were around the lack of evidence to support that:
* fund transactions were conducted at arm's length
* fund assets were correctly reported at market value
* there were no charges over fund assets
* the fund's limited recourse borrowing arrangement had met the borrowing exceptions
The ATO intends to run another auditor compliance review in the 2025-26 financial year. If you hire an external auditor, ensure you verify their qualifications and experience in SMSF compliance.
#accountant #SMSF #ATO
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