On 1 May, ASIC announced that they’d cancelled the registration of 117 SMSF auditors back in late February. The auditors had failed to lodge their annual statements, and when ASIC sent them a reminder, they still didn’t get it done. Cancellation is a big deal because you obviously can’t do any audit work while not registered. Some will be able to re-register, but the process won’t be fun (or easy); can you imagine doing that exam again?!
It’s not the first time ASIC has cancelled the registration of a batch of auditors. In the past, registered auditors have been struck off for everything from breaching independence requirements, to failing to meet Australian auditing standards. But it’s another important reminder to stay on top of your ongoing legal obligations as an approved SMSF auditor.
What else are regulators looking at?
ASIC and the ATO work together to monitor and regulate registered professional SMSF auditors. So while it’s probably ASIC you deal with most of the time, the ATO also “…conduct(s) audits and reviews of SMSF auditors where our data or intelligence indicates there may be some concerns with their compliance and behaviour.” The ATO has stated that “during our compliance work we also look at compliance with CPD requirements. We have found some compliance gaps and have passed this information on to ASIC.”
So what are the CPD rules?
The CPD rules for approved SMSF auditors are explained in ASIC’s RG243.88-90. These sections basically say you have to do 120 hours over each three-year period, including at least 30 hours on super and eight hours specifically on auditing. The training also has to “be reasonably expected to enhance the auditor’s technical skills or professional service delivery”. In other words, it’s got to be new material, or a refresher that will help you do a better job for your clients.
SMSF101 delivers engaging, on-demand, fully online SMSF CPD. Our modules have been accredited with the SMSF Association and the FPA. You may be able to fulfil your entire annual non-auditing-specific CPD requirements with just a few of our great refreshers, like SMSF Investment Rules and Strategies, and SMSF Taxation. Check out the full range of titles available for continuing professional development and get started now.