Three-yearly SMSF audits not worth the cost or risks: professional bodies

Professional bodies have roundly criticised the Government’s proposal for some SMSFs to only be audited every three years.

The Government announced in the 2018/19 Budget its proposal for three-yearly SMSF audits. It was initially unclear, but later set out, that each year would have to be audited, though not annually as is currently required but every three years.

Professional bodies have criticised the proposed measure – including the SMSF Association and accounting bodies CPA, CAANZ and Institute of Public Accountants (IPA) – in submissions in response to a Treasury discussion paper. Read more...

Concerns about three-year SMSF audits “falling on deaf ears”

Industry concerns about the Government’s proposal for a three-year audit cycle for some SMSFs are not being taken seriously, according to an accounting body.

The Government announced in the latest Federal Budget that some SMSFs would only need to be audited every three years, instead of annually – subject to the passage of legislation.

The Institute of Public Accountants (IPA) says the proposal shows a lack of understanding or respect for the work of SMSF auditors.

“Key concerns raised throughout the consultation period seem to be falling on deaf ears,” said IPA CEO Andrew Conway. Read more...

More details on three-yearly SMSF audits released

The Government’s has given more detail on its proposal for a three-year SMSF audit cycle, which was announced in the 2018 Budget.

“This change will reduce the compliance burden for funds that have a history of good behaviour and have relatively simple affairs,” said Minister for Revenue and Financial Services Kelly O’Dwyer, releasing a discussion paper for consultation.

“The objective is to incentivise good SMSF record-keeping and compliance by alleviating the regulatory burden whilst maintaining optimal system oversight and integrity,” said Minister O’Dwyer. Read more...

Three-year SMSF audits may not save money, not worth the risk

The Government’s proposal of a three-year audit cycle for some SMSFs might not end up saving these funds any money.

The Institute of Public Accountants said the three-year audit cycle “may be flawed”, or at best would simply defer costs.

IPA CEO Andrew Conway said the proposal, where SMSFs with a good compliance history would have three years audited at once instead of annually, may be “very well intended but could well be misdirected”.

“There are other ways to reduce the red tape involved in managing SMSFs,” he said. Read more...

Accounting body wants answers on 3 year SMSF audit change

The Institute of Public Accountants wants answers from the Government to questions about the 2018 Budget measure to move some SMSFs to audits every 3 years.

The Institute of Public Accountants (IPA) said it was working with Minister for Revenue and Financial Services Kelly O’Dwyer and the Treasury around the policy.

“We need to understand the policy rationale for the proposal to move to three-year cycles for SMSF audits,” said IPA chief executive officer Andrew Conway.

“How does reducing the audit cycle enhance regulatory oversight and transparency in the SMSF sector?” Read more...

Audits for SMSFs every three years welcomed by SMSF Association

The proposal in the 2018 Budget that SMSFs with a good compliance history only have audits every three years has been welcomed by the SMSF Association.

Under the measure, if it is legislated, SMSFs with three years of clear audit reports and timely lodgement of the SMSF Annual Return will go from an annual audit cycle to a three year audit cycle.

SMSF Association CEO John Maroney said the proposal was a fitting reward for SMSF trustees that adhere to the rules, and will cut red tape for the sector. But it is still the position of the Association that an independent audit is essential to the integrity of SMSFs. Read more...