SMSF auditors must realise who they are actually working for and communicate that to the entire industry in order to demonstrate the real value of the process, according to a specialist practitioner servicing the sector.
Speaking at the latest SPAA Sydney Chapter breakfast briefing, Engage Super Audits chief executive Jo Heighway said: “I think there are a lot of auditors who get confused about who their actual clients are.
“We see the trustees as our clients in respect to the audit reporting that we’re doing today and also the accountants and administrators we are working with.
“Who isn’t our client is the tax office. Very much like lodging a tax return, in certain instances a contravention report might need to be lodged with the ATO (Australian Taxation Office).
“That’s actually our only reporting obligation in relation to the tax office. We don’t work for the tax office, we’re not the police of the tax office, and it is very important that the entire industry understands that and realises we are there for you [the advisers and accountants] and you are our clients and your clients are our clients, so what we want is the best for your clients.”
Heighway lamented SMSF auditors were still regarded as something entirely different in the industry, a situation that was preventing the profession from proving its true value.
To that end, she pointed out auditors were often not even considered as part of the whole SMSF value chain, making it difficult for the industry to see their relevance.
She said that was particularly evident when it came to innovation and the use of technology as all other service providers developed new systems without considering the audit function and treating it as just a component that needed to be added on at the end.
However, she explained that situation had to change in order for the value proposition of all service providers in the sector to achieve maximum levels.
“[It’s important] for everyone in that value chain to understand that for the value chain to achieve its optimal performance, auditors must close the technology circle,” she said.
