The Australian Securities and Investments Commission (ASIC) has disqualified four SMSF auditors and suspended two more as part of ongoing action against SMSF auditor misconduct.
The corporate regulator disqualified New South Wales-based auditor Sofranios Vlahos for significant auditor independence breaches, and also disqualified Stephen Sproats and Mark Higgins (also of New South Wales, and Queensland-based SMSF auditor Kent Hacker for the same behaviour.
ASIC noted the disqualifications of Hacker, Sproats and Higgins were also related to deficiencies in auditing asset valuation, and compliance with arm’s-length transaction requirements (Hacker and Sproats) or compliance with financial reporting requirements (Higgins).
It also imposed one-year suspensions and conditions on Ronald Cuthbertson and Malcolm Heasman, both based in Western Australia for deficiencies in auditing the valuation of fund assets, compliance with separation of fund and trustee asset ownership, and a number of other compliance breaches
“The actions followed ASIC concerns about failures to meet independence and auditing standards, failure to comply with continuing professional development (CPD) requirements and otherwise not being a fit and proper person,” ASIC said.
As part of the conditions imposed on them, Cuthbertson and Heasman are required to undertake a peer review process for their audits, complete specific courses of studies, including ethics and audit, and pass an SMSF auditor competency exam.
In addition, Heasman is required to certify to ASIC that he has not conducted audits in specific circumstances related to independence, review tools and templates to ensure they are up-to-date and complete, finish a course of study related to ethics and audit, and pass an SMSF auditor competency exam.
“Mr Heasman is also restricted from conducting any audits in independence threat situations regardless of any safeguards,” ASIC noted.
The regulator confirmed information relating to the misconduct of all six auditors was referred to ASIC by the ATO under section 128P of the Superannuation Industry (Supervision) Act 1993.
Earlier this month, ASIC permanently banned a former Adelaide SMSF adviser from having any involvement in financial services and credit activities.
In February, it disqualified an SMSF auditor and suspended another as part of an action against six auditors in three different states.
