ASIC has taken action against three SMSF auditors, disqualifying two and imposing additional conditions on one.
ASIC announced that it has disqualified two people from being registered SMSF auditors. Darryl Iseppi, of Queensland, was disqualified for “significant auditor independence breaches and deficiencies in auditing the acquisition of shares, borrowings, valuation of assets, compliance with in-house asset requirements and regarding a non-commutable life pension”. While Alan Bentwitch, of New South Wales, was disqualified for “failing to comply with a condition to have peer reviews of three of his audits”, a condition which was previously imposed after a referral from the ATO.
ASIC also announced that it had imposed additional conditions on the registration of Richard Hennessy, of NSW, as an SMSF auditor. Hennessy will have to have his audits reviewed by another SMSF auditor, not audit funds “where there are independence threats irrespective of the safeguards”, complete specified courses in ethics and auditing, and provide his professional association with a copy of the conditions imposed.
These conditions were imposed after ASIC found “deficiencies in maintaining auditor independence and in audit work, including auditing the ownership and valuation of fund assets and ensuring compliance with legislative borrowing requirements”.
The ATO referred information about the three auditors to ASIC, as allowed for in the SIS Act.