The number of approved SMSF auditors continues to decline, according to the latest ASIC data.
ASIC notes that the number of SMSF auditors has continued to fall after the initial spike in 2014. Since 1 July 2013 SMSF auditors have been required to be registered and approved by ASIC.
In 2016/17 ASIC approved 79 SMSF auditors, had 62 applications withdrawn, refused one application and cancelled 406 registrations.
Correction: There appears to be an error in the ASIC report. The below chart is based on Table 14 in the report. However the figure of 6,639 does not equal the figure for the prior years plus approvals less cancelled. The correct figure is likely 6,344 – which is supported by the chart in the ASIC report, though there appears to be discrepancies in earlier years as well. Apologies for this oversight, it should have been picked up in drafting instead of being raised by a reader.
Of these 406, 238 were cancelled for failing to lodge the annual statement, 162 were cancelled at the request of the SMSF auditor – the reasons for this a not collected, but could include retirement or change of career. 4 were cancelled following action by ASIC – three were found to not be fit and proper persons and one was not an Australian resident – and two were cancelled for failing to comply with the conditions of their registration.