ASIC March 2024 SMSF Audit Independence Update Graphic | SIS Logic

SMSF Auditor Independence | ASIC March 2024 Update

October 21, 20242 min read

The Importance of Independence for SMSF Auditors

Independence is a key aspect of any audit function, not just for self-managed super funds (SMSFs). It is essential to ensure the credibility and reliability of the audit process, safeguarding the integrity of the superannuation system by providing an unbiased and objective assessment of compliance with legal and regulatory requirements. Without independence, the trust placed in these audits would erode, leading to potential non-compliance, financial loss, and undermining the entire SMSF industry.

For auditors, independence isn’t just good practice-it’s also a professional and ethical obligation. A compromised audit not only exposes SMSF trustees to regulatory risks but also threatens the auditor’s own standing and reputation within the industry.

ASIC’s March 2024 Update: Independence Under Scrutiny

In March 2024, ASIC again took action to address independence concerns in the SMSF auditing space. ASIC imposed conditions on the registration of 13 SMSF auditors and accepted the voluntary cancellation of two others. These actions came after the Australian Taxation Office (ATO) referred cases where auditors were involved in both preparing financial statements and auditing the same SMSF clients-an obvious violation of the independence requirements.

ASIC’s Deputy Chair, Sarah Court, emphasized the serious nature of maintaining auditor independence: “Independence is fundamental to auditors to protect the integrity of the SMSF industry. SMSF auditors should carefully consider their structure and any services provided to audit clients to identify and evaluate independence. ASIC will take action where appropriate to reinforce the independence requirements.”

The imposed conditions include restrictions on performing in-house audits (as you would expect), a mandatory independence review of all SMSF audit clients, and an obligation to notify professional associations of these conditions.

Maintaining independence is not only crucial for compliance but also vital for the long-term health of the SMSF audit industry. ASIC’s actions serve as a strong reminder to auditors to regularly review and ensure that they meet independence standards in their engagements.

For further insights into the role of independence, you can also read an article I wrote for SMS Magazine in 2017, which explores this topic: The Role of an Independent Auditor.

Neil Ashton is a Certified Practising Accountant (CPA) and ASIC-registered SMSF Auditor with over 25 years’ experience in the accounting industry. As founder of SIS Logic—servicing Sydney, the Central Coast, and beyond—Neil has conducted more than 10,000 self-managed super fund audits and specialises in SMSF administration. His commercial, risk-based approach ensures fast, compliant audits that deliver strategic insights and peace of mind. Neil’s dedication to personalised service and proactive guidance makes him a trusted partner for trustees and advisers navigating the complexities of SMSFs.

Neil Ashton

Neil Ashton is a Certified Practising Accountant (CPA) and ASIC-registered SMSF Auditor with over 25 years’ experience in the accounting industry. As founder of SIS Logic—servicing Sydney, the Central Coast, and beyond—Neil has conducted more than 10,000 self-managed super fund audits and specialises in SMSF administration. His commercial, risk-based approach ensures fast, compliant audits that deliver strategic insights and peace of mind. Neil’s dedication to personalised service and proactive guidance makes him a trusted partner for trustees and advisers navigating the complexities of SMSFs.

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