The actions were prompted by several issues, including those related to auditing and assurance standards
Citing concerns over their adherence to required standards, the Australian Securities & Investments Commission (ASIC) took action against nine self-managed superannuation fund (SMSF) auditors in the fourth quarter of last year.
The actions were prompted by issues related to auditing and assurance standards, independence requirements, registration conditions, or suitability to remain an SMSF auditor.
During the last three months of 2023, ASIC disqualified five SMSF auditors, imposed additional conditions on two others, and cancelled the registration of two more.
The disqualified auditors, Stephen Bray, Kerpal Harnam, Terence Murphy, Johann Preller, and David Sidhu, have been listed on ASIC’s public banned and disqualified register, rendering them ineligible to re-apply for registration. Murphy and Bray have requested a review of ASIC’s disqualification decision, which is currently pending.
Timothy Davidson and Kylie Wilson had additional conditions placed on their SMSF auditor registration. These conditions, tailored to each auditor, may entail further professional development, passing the SMSF auditor competency exam, independent reviews of SMSF audit files, and notifying their professional accounting association.
Vincenzo Dissidomino and Vincent Crowe had their SMSF auditor registration revoked.
Among the nine auditors, five were flagged to ASIC by the Australian Taxation Office (ATO).
“SMSF auditors are responsible for auditing over 611,000 SMSFs with total estimated assets of almost $900 billion,” said Sarah Court (pictured), ASIC deputy chair. “In this privileged position, they play a key role in upholding the integrity and confidence of the SMSF sector. ASIC will continue to take action where conduct falls short.”
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