The Australian Securities and Investments Commission (ASIC) is expecting the number of SMSF auditors completing the mandatory registration process to increase steadily over the coming few years.
“From here we’re expecting about 250 [SMSF auditors] each year to be registered,” ASIC reporting and audit senior analyst Craig Angove told the 2015 SMSF Association National Conference in Melbourne last week.
“I’m not sure how many more will drop off, but our estimate is probably about 250 [will join] each year and so far that’s probably on the mark.”
While the registration process was still in the transition period, Angove said he did not envisage significant changes to the procedures already in place once that phase had been completed.
“The exam itself is doing its job and won’t change significantly. We’ve delivered about 1563 exams and we’ve had about an 18 per cent pass rate first attempt and most people [who failed the first time] do sit it a second time,” he said.
“It’s not intended to be and hasn’t acted as a broad-brush culling of auditors; it’s a refinement, a bit of a fallback for us.
“It’s not the only means we’ve got to assess the suitability of someone, but I think it’s done its job. It’s present and its impact I suppose, in terms of the cancellations and those people failing it and not stepping in, has had the desired impact.”
He cited the noticeable increase in the number of continuing professional development hours performed by auditors to get to the level of knowledge needed for successful registration as an indirect benefit from the examination process.
Since the new system was implemented, ASIC has registered 7235 SMSF practitioners with the total number of auditors currently on the register being 6689.
Angove said many auditors had been deregistered for failing to meet the exam conditions, with the bulk of those not sitting the exam at all. Others originally registered had been disqualified for disorderly conduct.
“There’s also then a number who have just left. Probably I think for all of those categories they’re at the lower end, in terms of the number of audits they’ve done, so again that goes towards the specialisation of the sector,” Angove said.
Prior to the new regulations around 11,500 auditors were servicing SMSFs.
