ASIC has taken action against 17 SMSF auditors, including disqualifying three, due to concerns about their failure to meet independence and auditing standards, minimum continuing professional development (CPD) hours and the lodging of annual statements.
Those auditors not disqualified by the corporate watchdog have had additional conditions added to their registration as an SMSF auditor after all but one of the auditors was referred to ASIC by the ATO.
The SMSF auditors disqualified by ASIC are:
- Tram Tran (NSW) – for not being a fit and proper person,
- Kelvin Wright (NSW) – for failing to obtain sufficient appropriate audit evidence in the audit of an SMSF in relation to the property and investments in unlisted trusts being reported at market value, borrowings including compliance with limited recourse borrowing arrangements, the purchase of properties, lease agreements, transactions with related parties, liabilities and expenses, and failing to comply with CPD requirements, and
- Geoffrey Wood (NSW) – for signing an inappropriate audit report, failing to provide audit files to the ATO on time despite multiple requests, failing to lodge an annual statement within the required time frame and otherwise not being a fit and proper person.
The SMSF auditors with additional conditions are:
- Stephen Bray (ACT) – for deficiencies in auditing fund assets and loans, a lack of understanding of independence requirements and failing to comply with CPD requirements,
- Ross Casperson (Queensland) – for deficiencies in auditing fund investments and borrowings, failing to obtain signed financial statements and not complying with CPD requirements,
- Dharambir Ghangas (WA) – for deficiencies in auditing fund investment properties, other assets and motor vehicle expenses,
- Gerald Adams (Victoria) – for auditor independence breaches and deficiencies in auditing loans and fund assets,
- Rohan Dyson (Victoria) – for auditor independence breaches,
- David John Simpson (NSW) – for auditor independence breaches, deficiencies in auditing fund borrowings and assets, not complying with CPD requirements and failing to provide documentation to the ATO within a reasonable time frame,
- Geoffrey Sexton (Queensland) – for auditor independence breaches and deficiencies in auditing fund borrowings, assets and income.
- Sandra Koschel (Queensland) – for auditor independence breaches,
- John McCann (NSW) – for auditor independence breaches and deficiencies in auditing fund borrowings, assets, income and expenditure,
- Leo Sheppet (Victoria) – for auditor independence breaches and deficiencies in auditing fund borrowings and assets,
- Rodney Grosvenor (NSW) – for auditor independence breaches,
- Dennis Kronheim (NSW) – for auditor independence breaches, deficiencies in auditing fund assets and borrowings, and not complying with CPD requirements,
- Michael Lane (NSW) – for deficiencies in auditing income and audit documentation, and
- Thomas Swanton (Queensland) – for deficiencies in auditing fund assets, member benefits and related-party transactions.
The regulator stated all of the auditors, except for Tran, were referred to it by the ATO under section 128P of the Superannuation Industry (Supervision) Act 1993, which requires all auditors to be registered with ASIC. Tran was deregistered from a statutory role by another regulator, with ASIC considering that decision when making its own.
ASIC commissioner John Price said: “SMSF auditors play a fundamental role in promoting confidence in the SMSF sector. ASIC will continue to take action where the conduct of SMSF auditors is inadequate.”
